Tuesday's Market Recap - Fiscal Stimulus Optimism Delivered Another Day Of Gains.
What is The Premarket Telling Us?
7:00 AM.
Stock futures are moderately up at this hour suggesting that markets may be looking to claw back some of yesterday's losses. Dow futures up 177 points, Nasdaq futures up 90 points, and the S&P futures up 25 points.
On The Bond Desk:
The US 10 Year Bond Yield has ticked higher at 0.76%, up 0.02%.
Currency Desk:
Euro dollar:1.17
UK Pound: 1.29
Crude Oil:
WTI crude oil futures at $41.23/barrel, up 0.41%.
On the Earnings Calendar:
IBM reported Q3 earnings results after the close yesterday. Earnings, and revenue declined in the quarter, or sending share of the company lower.
Proctor and Gamble (PG) reported strong Q3 earnings results, with sales up over 300%, once again driven by pandemic buying.
In M&A News:
Chipmaker, Intel is selling off its memory chip business.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.44%, Shanghai up 0.47%, Hong Kong (Hang Seng) up 0.11%
Major European markets ended mixed. German (DAX) fell 0.92%, France CAC 40 down 0.27%, London FTSE 100 up 0.08%.
Market And Sector Dynamics
Stocks jumped off to nice positive start, with the Dow up 110 points, Nasdaq up 50 points, and the S&P up 15 points.WTI crude oil is down early at $40.43/barrel, down 0.98%, and the US 10 Year Bond Yield at 0.781%.
Strong Q3 earnings from Proctor and Gamble, Intel's $9 Billion sales of its memory chip business, and the just-announced Department of Justice Antitrust lawsuit against Google has given investors a lot to decipher this morning. Shares of Google are solidly higher, confirming the news has not had any effect on the shares so far.
Shares of Intel traded are lower on news of its memory chip sale.
Stock held on to the elevated levels in the morning, but lost some of its momentum an hour before noon. The markets ticked higher again, after an encouraging and optimistic statement attributed to Speaker Pelosi, suggesting a deal could be near. Markets jumped higher with the Dow reaching a high of 380 points, around 2:00 PM. Markets lost momentum in the last half hour of trading.
The rally was broad-based and very positive, with ten of the eleven S&P sectors closing the day with gains, led by Energy, Financials, Communication Services, Real Estate, Consumer Discretionary, Utilities, Industrials, Technology, Basic Materials, and Healthcare.
Factors Influencing Today's Market
A hint of optimism regarding an agreement on fiscal stimulus the Speaker Pelosi and the Administration.
The Department of Justice has opened an antitrust suit against Google.
Intel is selling its memory chip business for $9 Billion.
Both Asian and European markets ended mixed in their sessions.
US 10 Year Bond Yield closed higher today at 0.786%, up 1.74%.
WTI crude oil closed the day at $41.41/barrel, up 1.42%.
Market Close Volume Traded And Advance Decline Ratio
Markets recorded nice gains in today's trading. The Dow gained 113.30 points, Nasdaq gained 37.61 points, and the S&P gained 16.20 points. Total NYSE volume traded, a light 3.90 billion shares. Advancing shares outpaced Declining shares by 2.18:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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