Tuesday's Market Recap - Fear Of New UK Covid-19 Strain Continues To Rattle Investors.
- Dec 22, 2020
- 2 min read
What is The Premarket Telling Us?
7:30 AM.
US stock futures are modestly positive, with Dow futures up14 points, Nasdaq futures up 69 points, and S&P futures up 8 points. The US Congress voted and passed the fiscal stimulus plan later yesterday evening, to help struggling Americans whose lives and livelihoods have been dislocated by the raging pandemic.
On The Bond Desk:
The US 10 Year Bond Yield at 0.94%. down 0.01%.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.34
Crude Oil:
WTI crude oil futures at $47.47/barrel, down 1.04%.
On the Earnings Calendar:
None.
In M&A News:
Peleton is buying rival Precor in a deal worth $420 Million.
What About The Asian And European Markets?
Major Asian markets ended their session with losses. Japan (Nikkei 225) down 1.04%, Shanghai down 1.86%, Hong Kong (Hang Seng) down 0.71%.
Major European markets closed with gains. German (DAX) up 1.30%, France CAC 40 up 1.36%, London FTSE 100 up 0.57%.
Market And Sector Dynamics
The markets got some good news this morning. Congress passed the fiscal stimulus last night, Apple may be interested in making cars, and Peleton is in the process of buying fitness rival Precor for $420 Million. Normally, this would be enough to propel markets higher, but not today. Stock opened mixed, with the Dow down 65 points, Nasdaq gained 33 points, and the S&P slipped 1.50 points. WTI crude oil opened lower at $47.17/barrel, down 1.67%, and the US 10 Year Bond Yield at 0.910%.
The Dow traded in negative territory for the entire session. The session was mildly choppy as stocks ebbed and flowed, and ended at the intraday low.
Today, markets were again focused on the new more contagious strain of the Covid-19 vaccine in the UK, while some experts suggest that the strain may already be in the US. This new strain has caused new lockdown and the closing of borders between the UK and the rest of Europe.
Nine of the eleven S&P sectors closed today's session with losses, led by Energy, Communication Services, Financials, Consumer Staples, Basic Materials, Industrials, Consumer Discretionary, Healthcare, and Utilities. Technology and Real Estate ended higher.
Factors Influencing Today's Market
The US Congress voted and passed the fiscal stimulus plan overnight.
Peleton has agreed to buy rival Precor for $420 Million.
Reports are that Apple may be interested in making cars.
New reported Covid-19 strain discovered in the UK, and may already be in America.
Asian markets were lower, While European markets finished with gains.
US 10 Year Bond Yield closed the day at 0.921%, down 1.77%.
WTI crude oil prices closed at $46.86/barrel, down 1.84%.
Market Close Volume Traded And Advance Decline Ratio
Stock ended mixed in today's trading. The Dow lost 200.94 points, Nasdaq gained 65.40 points, and S&P fell 7.66 points. Total NYSE volume traded, a light 4.11 billion shares. Declining shares outpaced Advancing shares by 1.36:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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