Tuesday's Market Recap - The Dow Clawed Back Half Of Yesterday's Losses In Today's Session.
- Jan 5, 2021
- 2 min read
What is The Premarket Telling Us?
8:00 AM.
US stock futures are slightly lower at this hour, with Dow futures down 6.00 points Nasdaq futures down 11 points, and S&P down 3 points. Asian markets closed mixed while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 0.92%, unchanged since the last close.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.35
Crude Oil:
WTI crude oil futures at $48.30/barrel, up 1.43%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) down 0.37%%, Shanghai up 0.73%, Hong Kong (Hang Seng) up 0.64%.
Major European markets were also mixed. German (DAX) up 0.55%, France CAC 40 down 0.44%, London FTSE 100 up 0.61%.
Market And Sector Dynamics
Markets got off to a slow start at the opening bell. The Dow rose 23 points, Nasdaq fell 12 points, and the S&P was up 0.46, a fraction. WTI crude oil moved higher at $49.14/barrel, up 3.25%, while the US 10 Year Bond held at 0.935%.
Markets soared higher in the morning session, shortly after the open, with the Dow surging 160 points. An hour later the Dow went negative for a short while before climbing back into positive territory, gapping even higher around 2:00 PM, when news broke that Saudi Arabia had decided to cut oil production by one million barrels per day to help stabilize prices. The Dow closed near the high of the day.
Ten of the eleven S&P sectors closed the day with gains led by Energy, Basic Materials, Industrials, Communication Services, Consumer Staples, Healthcare, Basic Materials, and Consumer Discretionary, Technology, Healthcare, Financials, Communication Services, Utilities, and Consumer Staples. Real Estate and Utilities were the lagging sectors today, although only mildly.
Factors Influencing Today's Market
Saudi Arabia's surprise cut in oil production was a welcome catalyst for markets today.
Both Asian and European markets ended the day mixed.
US 10 Year Bond closed the day at 0.955%, down 4.0%.
WTI crude oil closed the day at $49.58/barrel, up 4.54%.
December ISM Manufacturing Index came in a better than expected 60.7% vs 56.5 estimates.
The slow pace of vaccinations and a surge in Covid-19 infections in the US is a source of frustration for investors.
Market Close Volume Traded And Advance Decline Ratio
Following yesterday's selloff, the markets closed moderate gains today.. The Dow gained 167.71 points, Nasdaq gained 120.51 points, and the S&P gained 26.21 points. Total NYSE volume traded, a moderate 4.64 billion shares. Advancing shares outpaced Declining shares 2.63:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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