Tuesday's Market Recap - Big Technology Stocks Fell Again Today As Investors Move to Value Stocks.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are mixed this morning, with Dow futures up 167 points, Nasdaq futures down 181 points, and S&P futures down 8 points. It's clear that markets are continuing to evaluate, and take down the current prices of the stay at home stocks, in light of the announcement of Pfizer's highly effective Covid-19 vaccine yesterday. Although it will be a year or more before most people are able to get the vaccine, the event does signal a potential return to some normalcy.
On The Bond Desk:
The US 10 Year Bond Yield at 0.96%, up 0.14%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at $40.69/barrel, up 0.99%.
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 mixed in their sessions. Japan (Nikkei 225) up 0.26%, Shanghai down 0.40%, Hong Kong (Hang Seng) up 1.10%.
Major European markets closed up in their session. German (DAX) gained 0.51%, France CAC 40 gained 1.55%, London FTSE 100 up 1.79%.
Market And Sector Dynamics
Markets opened the trading session mixed. The Dow gained 122 points, Nasdaq fell 90 points, and the S&P fell 8 points. Stocks climbed higher after the open, with the Dow up more than 250 points shortly after 10:00 AM.
Post the Pfizer vaccine news the markets have been repricing, as companies that have been enjoying the biggest run up in prices due to stay at home, or lockdown, are now providing the source of funds for investing into previously unloved value stocks, and a real broadening out of the markets.
Covid-19 infections here in the US has continued to rise, with 44 states experiencing dangerous rise in cases, with some hospital ICU and other beds at or nearing their capacity.
Eight of the eleven S&P sectors closed the session with gains, led by Energy, Consumer Staples, Industrials, Utilities, Basic Materials, Financials, Real Estate, and Healthcare. Technology, Consumer Discretionary, and Communication Services lagged the markets today.
Factors Influencing Today's Market
Investors continue to reprice stay-at-home stock after the results of the successful Pfizer vaccine news were released.
Covid-19 infections continue to spread in 44 states of the US at the rate of 120,000/day.
Asian and European markets were mostly higher in their sessions.
US 10 Year Bond closed at 0.960%,up 3.90%.
WTI crude oil closed today at $41.36/barrel, up 2.66%.
Market Close Volume Traded And Advance Decline Ratio
Markets ended mixed in today's session. The Dow gained 262.95 points, Nasdaq lost 159.93 points and the S&P down 4.97 points. Total NYSE volume traded, a heavy 6.05 billion shares. Advancing shares outpaced Declining shares slightly better than 2:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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