Thursday's Market Recap - Optimism Took Center Stage Today As Speaker Pelosi Hints A Deal Is Near.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are looking gloomy at this hour, two and a half hours before the opening bell. Dow futures are down 59 points, Nasdaq futures down 23 points, and the S&P futures down 8 points. Asian markets ended their session mostly lower. Asian markets closed mostly lower.
On The Bond Desk:
The US 10 Year Bond Yield at 0.82%, up 0.02%.
Currency Desk:
Euro dollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $40.28/barrel,up 0.62%.
On the Earnings Calendar:
Tesla beats Q3 analyst earnings expectations after the close yesterday. The fifth consecutive quarterly profit, and the best for the company. Shares are trading higher.
AT&T also reported solid Q3 earnings performance, handily beating revenue expected revenues.
Union Pacific Q3 earnings disappointed investors, driven by declining freight revenues.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) fell 0.70%, Shanghai down 0.38%, Hong Kong (Hang Seng) up 0.13%.
Major European markets were mixed. German (DAX) down 0.12%, France CAC 40 down 0.05%, London FTSE 100 up 0.16%.
Market And Sector Dynamics
Stocks opened the session higher, with the Dow gained 42 points, and Nasdaq up 50 points, and the S&P up 6 points. WTI crude oil is down early, at $40.35/barrel, down 0.87%. US 10 Year Bond is 0.831%. Energy is off to a solid start early, as investors remain on stimulus watch, and House Speaker Pelosi and Treasury Secretary, Mnuchin, continue their negotiations.
Markets hung out just above the flatline during the first half of the morning session, but dived lower, a short while later with the Dow down 170 points around 10:45 AM, as the hope of fiscal stimulus faded. Markets quickly swung back into positive territory, after comments from Speaker Pelosi optimistically suggesting that
a deal may be near. From there, stocks climbed steadily higher into the close as optimism about a deal grew more likely.
Today's session was broad-based and positive, with eight of the eleven S&P sectors ended the session with gains, led by Energy, Financials, Healthcare, Utilities, Communication Services, Industrials, Basic Materials, and Consumer Staples.
Factors Influencing Today's Market
Speaker Nancy Pelosi gave markets some real optimism indicating that a deal may be close.
This week's Initial Jobless Claims report shows another 787K new claims for unemployment benefits, slightly less than the 865K expected.
Tesla and AT&T reported better than expected quarterly earnings results, sending their shares higher today.
Both Asian and European markets closed mixed.
US 10 Year Bond closed at 0.861%, up 4.92%.
WTI crude oil closed at $40.59/barrel, up 1.40%.
Market Close Volume Traded And Advance Decline Ratio
When the market closed today, the Dow gained 152.84 points, Nasdaq gained 21.31 points, and the S&P gained 17.93 points. Total NYSE volume traded a modest 4.18 billion shares. Advancing shares outpaced Declining shares by 2.25:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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