Monday's Market Recap - Dow Nasdaq and S&P 500 Ended With Gains.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are nicely positive at this hour. Dow futures are up 73 points, Nasdaq futures up 220 points, and S&P futures up 25 points. Asian stocks were mostly higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.78%, unchanged since the last close.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.30
Crude Oil:
WTI crude oil futures at $40.03/barrel, down 1.40%.
On the Earnings Calendar:
Third quarter earnings season kicks off tomorrow with the big banks.
In M&A News:
None reported.
What About The Asian And European Markets?
Major Asian markets were mostly higher overnight. Japan (Nikkei 225) down 0.26%, Shanghai up 2.64%, Hong Kong (Hang Seng) up 2.20%
Major European markets closed mixed. German (DAX) up 0.67%, France CAC 40 0.66%, London FTSE 100 down 0.25%
Market And Sector Dynamics
Markets opened the trading session. The Dow was up 107 points, Nasdaq up 144 points, and the S&P up 24 points. Vaccine optimism added some positive sentiment to markets this morning, as AstraZeneca has signed a $486 million deal with the US Government for the Covid-19 antibody therapy they are developing.
Stocks climbed steadily higher throughout the entire session as investors appear convinced that there will be additional covid fiscal stimulus, if not before the election, then definitely after, and the size of that stimulus could be larger after the election is over. Another positive factor for markets today is the sense that third-quarter earnings season, which begins with the banks tomorrow, will be better than expected.
Market breadth was convincingly positive with ten of the eleven S&P sectors ending the day with moderate gains, led by Technology, Communication Services, Consumer Discretionary, Consumer Staples, Financials, Utilities, Healthcare, Industrials, Real Estate, and Energy.
Factors Influencing Today's Market
Residual optimism around additional fiscal stimulus.
AstraZeneca signs a $486K deal with US Government for its Covid-19 antibody therapy.
Third-quarter earnings season begins tomorrow, starting with the big banks.
Investors anticipate this earnings season will be much better than the second quarter.
Asian and European markets were mostly higher in their sessions.
US 10 Year Bond Yield closed at 0.764%, down 1.93%.
WTI crude oil closed the day at $39.43/barrel, down 2.88%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today, all the indexes were solidly in positive territory. The Dow gained 250.62 points, Nasdaq soared 296.32 points, and the S&P gained 57.09 points. Total NYSE volume traded, a modest 3.49 billion shares. Advancing shares outpaced Declining shares by 1.59:1.
Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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