Tuesday's Market Recap - Investor Were In Risk-on Mode As GSA Signs Biden's Ascertainment.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are sharply elevated at this moment. Dow futures up 316 points, Nasdaq futures up 45 points, and S&P futures up 29 points. Asian market ended positive in trading, overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.86% up 0.03%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.33
Crude Oil:
WTI crude oil futures hovered at $43.56/barrel, up 1.16%.
On the Earnings Calendar:
Retailer, Best Buy beat earnings expectation, but guidance was slightly less than anticipated.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed with solid gains. Japan (Nikkei 225) up 2.90%, Shanghai down 0.34%, Hong Kong (Hang Seng) up 0.39%.
Major European markets closed nicely higher. German (DAX) up 1.26%, France CAC 40 up 1.21%, London FTSE 100 up 1.55%.
Market And Sector Dynamics
Stocks rocket higher at the opening bell. The Dow soared 300 points, Nasdaq gained 59 points, and S&P up 28 points. WTI crude is off to a lower start at $42.82/barrel, down 0.94%, and the US 10 Year Bond at
Two events are driving markets this morning. First, optimism surrounding the Covid-19 vaccine, and the possibility that by spring or summer 2021 businesses could begin returning as more people begin to be vaccinated. Second, last night the General Services Administration finally ascertained that President-Elect Biden has won the 2020 elections and is entitled to funds for the transition, and now various federal agencies are allowed to coordinate with the new incoming administration transition team to ensure a smooth transition. In the meantime, President-Elect Biden has been naming is key White House Team which is well respected, and includes Janet Yellen, former Federal Reserve Chairman, who will now become Treasury Secretary.
Stocks remained solidly elevated for the entire session. The rally was broad-based and very positive.
Today's rally saw ten of the eleven S&P sectors closing with solid gains, led by, Energy, Financials, Basic Materials, Communication Services, Industrials, Technology, Consumer Discretionary, Utilities, Consumer Staples, and Healthcare.
Factors Influencing Today's Market
Markets appear to be cheering the General Services Administration decision to ascertain Vice President Biden, as President-Elect, three weeks after the Nov 3rd. Presidential Election.
Vice President has be putting together his Cabinet in the meantime, naming several key menbers with stellar qualifications, including Janet Yellen, the former Federal Reserve Bank Chair, to be Treasury Secretary.
Stock adopted a risk-on posture in today's session despite skyrocketting covid-19 infections across the country.
Asian and European market closed with solid gains.
US 10 Year Bond closed today at 0.885%, up 3.05%.
WTI crude oil closed at $44.91/barrel, up 4.30%.
Market Close Volume Traded And Advance Decline Ratio
Markets closed sharply higher today. The Dow soared 454.97 points, Nasdaq jumped 156.15 points, and S&P rose 57.82 points. Total NYSE volume traded, a heavy 6.28 billion shares. Advancing shares outpaced Declining shares better than 3:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
Comments