Monday's Market Recap - Stocks Rally After The President Signed Off On The $900 Stimulus Bill.
- Dec 28, 2020
- 2 min read
What is The Premarket Telling Us?
7:45 AM.
As we begin the final trading day for the week, US stock futures are moderately positive at this hour. Dow futures are up 159 points, Nasdaq futures up 95 points, and S&P futures up 26 points. Asian markets were mostly positive overnight. After he surprisingly, refused to sign the $900 billion stimulus package, which was voted on and approved by the US Congress last week, the President finally signed the bill late yesterday evening. Global markets are definitely cheering the signing of this package.
On The Bond Desk:
The US 10 Year Bond Yield at 0.93%, down 0.03%.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.35
Crude Oil:
WTI crude oil futures $48.75/barrel, up 1.08%.
On the Earnings Calendar:
None to report.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) gained 0.74%, Shanghai up 0.72%, Hong Kong (Hang Seng) down 0.27%
Major European markets moderately higher. German (DAX) up 1.49%, France CAC 40 up 1.20%, London FTSE 100 up 0.10%.
Market And Sector Dynamics
Markets started the last week of trading for 2020 on a very positive note. The Dow soared 162 points, Nasdaq jumped 107 points, and the S&P gained 25 points. Signing the $900 billion stimulus package was definitely a positive for markets today. WTI crude oil got also got off to a positive start at $47.88/barrel, unchanged, while the US 10 Year Bond held at 0.936%.
Stocks climbed higher after the opening, pushing all three indexes to new record highs, with the Dow up 325 points shortly after 10:30 PM. Stocks back mildly from the morning highs, but remained solidly higher for the rest of the session.
The trading session was mostly positive, with nine of the eleven S&P sectors ending the day with gains, led by Communication Services, Consumer Discretionary, Real Estate, Consumer Staples, Financials, Utilities, Healthcare, and Industrials. Energy and Basic Materials were the lagged in today's session.
Factors Influencing Today's Market
President Trump finally signed the $900 billion stimulus bill, last night.
US 10 Year Bond closed today at 0.935%, down 0.35%.
WTI crude oil price closed at $47.79/barrel, down 0.19%.
Asian and European markets closed with solid gains.
US vaccinations continue mostly to healthcare workers and the elderly nursing hope populations.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading today the three market indexes ended at new record highs. The Dow gained 204.10 points, Nasdaq gained 94.69 points, and the S&P gained 32.30 points. Total NYSE volume traded, a light 3.55 billion shares. Advancing shares slightly outpaced Declining shares in the session.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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