Tuesday's Market Recap - Stocks Gain On Vaccination Optimism And Fiscal Stimulus Negotiations.
- Dec 8, 2020
- 2 min read
What is The Premarket Telling Us?
7:00 AM.
If the futures are right, we can expect markets to be lower when the markets open at 9:30 this morning.
US stock futures are moderately lower this morning. Dow futures are down 164 points, Nasdaq futures down 53 points, and S&P futures down 23 points.Asian markets were lower in their sessions overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.93%, down 0.04%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.33
Crude Oil:
WTI crude oil futures $45.66/barrel, down 0.44%.
On the Earnings Calendar:
None to report.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed lower in their sessions. Japan (Nikkei 225) 0.30%, Shanghai down 0.19%, Hong Kong (Hang Seng) down 0.76%.
Major European markets ended mildly mixed. German (DAX) up 0.06%, France CAC 40 down 0.23%, London FTSE 100 up 0.05%.
Market And Sector Dynamics
Stocks were modestly lower at the open. The Dow fell 47 points, Nasdaq fell 15 points, and the S&P fell 8 points. Markets remained negative and volatile for the first hour of trading, but turned around a short while later, and remained securely in positive territory for the rest of the session.
In Britain, vaccinations with the Pfizer Covid-19 vaccine candidate began today, and that is adding positive sentiment to our markets here, as well. Vaccinations in the US could also begin as early as next week.
Potential fiscal stimulus is also a catalyst for markets today, as the Administration and Congress are said to be working on a compromise bill.
At the high of the day, shortly before 2:30 PM., the Dow was up 165 points. Trading was fairly balanced with six of the eleven S&P sectors ending the day with modest gains, led by Energy, Healthcare, Basic Materials, Consumer Staples, Industrials, and Technology. Real Estate, Utilities, Communication Services, and Financials, were the lagging sectors.
Factors Influencing Today's Market
Vaccine optimism as Britain begins Covid-19 vaccinations.
The US Congress appears to be negotiating a 908 Billion Covid-19 fiscal stimulus.
US 10 Year Bond Yield closed at 0.921%, down 0.71%.
WTI crude oil closed today at $45.48/barrel, down 0.61%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today the markets were solidly higher, with the Dow up 104.09 points, Nasdaq gained 62.83 points, and the S&P gained 10.29 points. Total NYSE volume traded, a moderate.4.68 billion shares. Advancing shares outpaced Declining shares by 1.72.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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