Monday's Market Recap - Stocks Soar On A FedX Upgrade And A Merger In The Energy Patch.
What is The Premarket Telling Us?
7:00 AM.
If you are a market bull, you will love what US stock futures are indicating at the start of trading. Dow futures are sharply up 347 points, Nasdaq futures up 189 points, and S&P futures up 43 points. Asian markets were mostly higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.66%, down 0.01%.
Currency Desk:
Euro dollar: 1.16
UK Pound: 1.27
Crude Oil:
WTI crude oil futures $40.33/barrel, up 0.20%.
On the Earnings Calendar:
None.
In M&A News:
Devon Energy is buying WPX Energy for $2.56 billion.
What About The Asian And European Markets?
Major Asian markets traded mostly higher. Japan (Nikkei 225) up 1.32%, Shanghai slipped 0.06%, Hong Kong (Hang Seng) gained 1.04%.
Major European markets closed with solid gains. German (DAX) jumped 3.22%, France CAC 40 gained 2.40%, London FTSE 100 up 1.46%.
Market And Sector Dynamics
Markets got off to a great start this morning, with the Dow soaring 360 points, Nasdaq jumping 168 points, and the S&P adding 46 points. WTI crude oil was mostly neutral, at $40.23/barrel, down 0.05%, and the US 10 Year Bond at 0.661%.
After giving back nearly all of the gains of August, during September, investors may be signalling that markets are ready to rally again. FedX, left for dead over the last two years, appears to favorite again. The company has enjoyed some investor support during the pandemic and may play a pivotal role in the transportation of Covid-19 vaccine when they become available for distribution. FedX was upgraded by Deutsche Bank this morning, sending the shares higher this morning.
News of a merger in the energy sector is also a catalyst for markets this morning. Devon Energy is buying WPX Energy for $2.56 billion.
Better than expected China industrial production data over the last few months may also be adding positive sentiment to markets this morning.
Markets remained sharply elevated throughout the session, with the Dow reaching a high of 548 points around 1:00 PM.
Today's rally was very positive and broad-based. All eleven S&P sectors ended with moderate gains, led by Energy, Financials, Discretionary, Technology, Industrials, Real Estate, Communication Services, Consumer Staples, Healthcare, and Utilities.
Factors Influencing Today's Market
Investors may be signaling that the September selloff is at or near the end.
Devon Energy buying WPX Energy for $2.56 billion.
FedX gets an upgrade from Deutsche Bank
US 10 Year Bond Yield closed at 0.658%, unchanged.
WTI crude oil price closed at $40.59/barrel, up 1.20%.
Market Close Volume Traded And Advance Decline Ratio
The bulls were solely in charge of the markets today. When trading ended stocks were sharply higher. The Dow gained 410.10 points, Nasdaq gained 203.96 points, and the S&P gained 53.15 points. Total NYSE volume traded, a modest 3.99 million shares. Advancing shares outpaced Declining shares by 5.45:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Econoday.
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