Monday's Market Recap - Stocks Rally On Vaccination Optimism And Lower Bond Yields.
- Mar 1, 2021
- 2 min read
What is The Premarket Telling Us?
6:50 AM.
US stock futures are solidly elevated at this hour. Dow futures are up 277 points, Nasdaq futures up 160 points, and the S&P futures up 37 points. Asian markets ended higher in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 1.46%, down 0.94%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $62.08/barrel, up 0.94%.
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 sharply higher. Japan (Nikkei 225) gained 2.41%, Shanghai rose 1.21%, Hong Kong (Hang Seng) gained 1.63%.
Major European markets ended solidly higher . German (DAX) gained 1.64%, France CAC 40 up 1.57%, London FTSE 100 gained 1.62%.
Market And Sector Dynamics
The markets were off to the races at the opening bell, powered by vaccination optimism and the reflation trade, and a modest pullback in the US 10 Year Bond Yield, which has been stoking inflation fears in the market for the last few weeks. The Dow opened up 364 points, Nasdaq gained 170 points, and the S&P rose 45 points.
Today, the Johnson& Johnson single shot covid vaccine, approved by the Federal Drug Administration (FDA) over the weekend, is being shipped out across the country so that more Americans will have an opportunity to be vaccinated.
The Dow climbed even higher during the morning session with the major index up, just shy of 700 points, shortly after the 11:00 AM. The market remained at this elevated level for most of the session, gapping higher in the afternoon with the Dow up 730 points, the high of the day.
All eleven S&P sectors ended with solid gains, led by Technology, Energy, Industrials, Basic Materials, Communication Services, Consumer Discretionary, Utilities, Healthcare, Consumer Staples, and Real Estate.
Similarly, all Dow 30 component stocks ended in the green except for Merck and Wallgreens.
Factors Influencing Today's Market
Johnson and Johnson's single-dose covid-19 vaccine started being shipped out today across the country.
Asian and European markets were ended nicely higher in their sessions today.
US 10 Year Bond pulled back modestly early today, and close at 1.424%, up 2.09%.
WTI crude oil closed at $60.27/barrel, down 3.57%.
The final read on February Purchasing Manufacturers Index (PMI) came in at $58.60 vs 58.50 estimated.
Market Close Volume Traded And Advance Decline Ratio
Today the bull came roaring back. When trading ended the Dow rocketed 603.14 points, Nasdaq surged 396.48 points, and S&P gained 90.67 points. Total NYSE volume traded, a moderate 5.11 billion shares. Advancing shares outpaced Declining shares by 4:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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