Tuesday's Market Recap - Investors Appear To Have Moved Past The Game Stop Short Squeeze Dilemma
- Feb 2, 2021
- 2 min read
What is The Premarket Telling Us?
8:30 AM.
US stock futures are sharply higher again this morning, indicating that yesterday's solid rally will continue today. Dow futures are up 249 points, Nasdaq futures up 113 points, S&P futures up 33 points. Asian markets closed higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.08%, down 0.01%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.38
Crude Oil:
WTI crude oil futures at $$54.79/barrel, up 2.32%.
On the Earnings Calendar:
Reporting before the bell this morning, Alibaba comfortably beats earnings and revenue estimates.
Amazon, Alphabet (Google), Chipotle, will report earnings results after the closing bell today.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets finished higher. Japan (Nikkei 225) up 0.97%, Shanghai up 0.81%, Hong Kong (Hang Seng) up 1.24%.
Major European markets were also higher in their session. German (DAX) up 1.56%, France CAC 40 up 1.86%, London FTSE 100 up up 0.78%..
Market And Sector Dynamics
Stocks opened significantly higher for the second day in a row. The Dow up 229 points, Nasdaq up 143 points, and the S&P up 60 points. WTI crude oil was off to a nice rally at $55.00/barrel, up 2.71%.
Markets continued to soar long after the opening with the Dow reaching a high of 625 points a little after 12:00 Noon, holding on to those levels for the remainder of the afternoon session, before a modest selloff just before the close.
Shares of companies affected by the short squeeze over the last two weeks, such as Game Stop, AMC, and others, have fallen from their lofty levels, no doubt leaving heavy losses for some investors who were participated.
In today's rally, all eleven S&P sectors ended with gains, led by Financials, Industrials, Consumer Discretionary, Communication Services, Basic Materials, Techology, Energy, Utilities, Staples, Real Estate, and Healthcare.
Factors Influencing Today's Market
Alibaba reported strong third-quarter results. The company beat earnings and revenue expectations, but shares fell in the session.
Shares of Financial companies and FAANG stocks soared in today's session.
Both Asian and European markets traded higher in today's session.
WTI crude oil closed the session at $54.96/barrel, up 2.63%.
US 10 Year Bond Yield ended the day at 1.110%, up 2.86%.
Market Close Volume Traded And Advance Decline Ratio
The markets ended trading today with strong gains, in a broad rally. The Dow gained 478.57 points, Nasdaq gained 209.38 points, and the S&P gained 52.47 points. Total NYSE volume traded, a moderate 5.48 billion shares. Advancing shares outpaced Declining shares by 3.21:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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