Monday's Market Recap - Dow Nasdaq And S&P Soared Against The Backdrop Of More Omicron In US.
- Dec 6, 2021
- 2 min read
What is The Premarket Telling Us?
Monday, December 6, 2021, 7:50 AM.
US stock futures were mostly higher in the premarket, indicating a higher open. Dow futures rose 164 points, Nasdaq futures fell 326 points, and S&P futures added 14 points. Major Asian markets ended lower overnight.
On The Bond Desk:
The US 10 Year Bond Yield was at 1.343%, down 0.105%.
Currency Desk:
Eurodollar: 1.12
UK Pound: 1.32
Crude Oil:
WTI crude oil futures at $68.32/barrel, up 3.11%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended lower today. Japan (Nikkei 225) down 0.36%, Shanghai down 0.50 %, Hong Kong (Hang Seng) down 1.76%.
Major European markets closed convincingly higher. German (DAX) gained 1.39%, France CAC 40 gained 1.48%, London FTSE 100 rose 1.54%.
Market And Sector Dynamics
Markets opened mixed this morning. The Dow surged 337 points, Nasdaq fell 32 points, and S&P gained 23 points. WTI crude oil started the day at $67.81/barrel, up 2.34%, and the US 10 Year Bond ticked higher to 1.377%, up 3.6 basis points.
In today's session, investors grappled with the potential effects of the Omicron variant being discovered in many more states, on top of increasing cases of Delta in many states. Yesterday, 1500 Americans died from Covid-19, most of whom were unvaccinated. Markets were also skittish about the Federal Reserve, and rising interest rates, and the ability to control runaway inflation. Supply chain disruptions were also a concern for markets.
Even my local Bagel shop has been touched by supply chain problems. Sunday morning I went to my local bagel shop, and there was a sign in the muffin section that read: "Because of supply chain issues, some muffins are not available." Only corn muffins were available. Apple, Blueberry, and other selections were nowhere to be found.
Markets gained momentum throughout the session. At the high of the day, the Dow was up more than 770 points, and the Nasdaq which started off the day lower turned around intraday, and ended higher.
Trading in today's session was firmly positive, with all eleven S&P sectors ending with solid gains, led by Industrials, Consumer Staples, Energy, Utilities, Basic Materials, Communication Services, Financials, Real Estate, Consumer Discretionary, Technology, and Healthcare.
Factors Influencing Today's Market
Additional cases of the Omicron have been detected here in the US, but indications are that most cases experience only mild symptoms.
Fear of the Federal Reserve speeding up the taper, potential Fed rate hikes
US 10 Year Bond closed at 1.431%, up 3.68%.
WTI crude oil price closed at $69.76/barrel, up 3.26%.
Asian markets fell today, while European market ended solidly higher.
Market Close Volume Traded And Advance Decline Ratio
At the end of Monday's trading, all the major indexes were higher. The Dow soared 646.95 points, Nasdaq jumped 139.68 points, S&P gained 53.24 points. Total NYSE volume traded a modest 4.86 billion shares. Advancing shares outpaced Declining shares by 2.93:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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