Tuesday's Market Recap - Vaccine Optimism And A Potential For Fiscal Stimulus Sends Stocks Higher.
What is The Premarket Telling Us?
8:15 PM.
Futures are a sea of green at this hour. Dow futures up 288 points, Nasdaq futures up 108 points, and S&P futures up 34 points. Asian markets closed their session nicely higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 0.86%, up 0.02%.
Currency Desk:
Eurodollar: 1.19
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $45.20/barrel, down 0.31%.
On the Earnings Calendar:
Salesforce.com reports earnings after the closing bell today.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets closed solidly higher. Japan (Nikkei 225) up 1.34%, Shanghai up 1.77%, Hong Kong (Hang Seng) up .086%.
Major European markets were also nicely higher. German (DAX) up 0.69%, France CAC 40 up 1.14%, London FTSE 100 up 1.89%.
Market And Sector Dynamics
Markets opened the trading day sharply higher, with the Dow up 309 points, Nasdaq up 114 points, and the S&P up 36 points. WTI crude oil was lower early, at $44.97/barrel, down 0.88%, and the US 10 Year Bond Yield sat at 0.888%.
With both houses of Congress back in session in Washington, there is a hint of optimism about fiscal stimulus resuming. Treasury Secretary, Mnuchin and Fed Chair Powell are scheduled to testify in the Senate this morning. Similarly, House Speaker, Nancy Pelosi, and Treasury Secretary, Mnuchin are scheduled to speak today, for the first time since October.
Vaccine optimism is also helping markets today with Moderna reporting more good news about its Covid-19 candidate being more than 94% effective, and that the company intends to apply for Emergency Use Authorization in (EUA) the US and in Europe very shortly. Share of the company soared nearly 70% higher but pulled back a short while later.
Stocks soared higher after the open with the Dow hitting 445 points shortly before 10:30 AM, and remained at or near that level for most of the morning session. Stocks came off those levels during the afternoon session, losing a little more steam an hour before the close.
Ten of the eleven S&P sectors ended today's session with gains, led by Communication Services, Financials, Technology, Real Estate, Basic Materials, Consumer Discretionary, Consumer Staples, Healthcare, Utilities, and Energy. Industrials was the only laggard today.
Factors Influencing Today's Market
A risk-on session driven by vaccine optimism, and the possible resumption of fiscal stimulus talks.
Asian and European markets finished sharply higher in their sessions.
Shares of Tesla soared higher as it nears entering the S&P500 Index on December 18th
Moderna will apply to the FDA for Emergency Use Authorization for its Covid-19 vaccine candidate.
US 10 Year Bond Yield closed at 0.929%, up 10.34%.
WTI crude oil closed at $44.32/barrel, down 2.25%.
Final read on November PMI Manufacturing was 56.7 as was expected, but stronger than last month's 53.4.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, markets ended moderately higher. The Dow gained 185.22 points, Nasdaq gained 156.37 points, and the S&P gained 40.82 points. Total NYSE volume traded, a moderate 5.41 billion shares. Advancing shares outpaced Declining shares by 2.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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