Wednesday's Market Recap - A Mixed Session As Stimulus Optimism Fades In The Afternoon Session.
- Dec 16, 2020
- 2 min read
What is The Premarket Telling Us?
7:30 AM.
US stock futures are modestly up at this hour, with Dow futures up 82 points, Nasdaq futures up 26 points, and S&P futures up 11 points. Major Asian markets were mostly higher in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.92%, up 0.03%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.34
Crude Oil:
WTI crude oil futures at $47.62/barrel, unchanged.
On the Earnings Calendar:
None to report.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets were mostly higher. Japan (Nikkei 225) gained 0.26%, Shanghai slipped 0.01%, Hong Kong (Hang Seng) gained 0.97%.
Major European markets traded solidly higher. German (DAX) gained 1.52%, France CAC 40 up 0.31%, London FTSE 100 up 0.88%.
Market And Sector Dynamics
Today, the market's main focus was on the Fed/FOMC interest rate policy decision due out later this afternoon. The market opened slightly higher. The Dow gained 7 points. Nasdaq gained 18 points, and the S&P gained 4 points. WTI crude oil was mostly unchanged at $47.56/barrel, down 0.07%, and the US 10 Year Bond Yield hovered at 0.943%.
Fiscal stimulus optimism, and the anticipated approval of Moderna's Covid-19 vaccine as soon as Friday helping positive market sentiment. Despite this, however, stocks turned lower shortly after the open and failed to return to positive territory for the rest of the session.
Six of the eleven S&P sectors ended lower in the session, led by Utilities, Industrials, Energy, Healthcare, Basic Materials, and Communication Services. Consumer Discretionary, Consumer Staples, Financials, and Real Estate.
Factors Influencing Today's Market
The Fed/FOMC left interest rates at existing levels after their two-day meeting.
Asian and European markets were mostly higher in their sessions.
Coronavirus infections and deaths continues to soar higher, overwhelming hospitals in many states.
It does appear that Congress continuing to work on a fiscal stimulus, but progress has been slow.
US 10 Year Bond Yield 0.935% up 1.63%.
WTI crude oil closed today's session at $48.36/barrel, up 1.13%.
Market Close Volume Traded And Advance Decline Ratio
Markets were mixed at the close. The Dow fell 44.77 points, Nasdaq gained 63.17 points, and the S&P gained 6.55 points. Total NYSE volume traded, a light 4.00 billion shares. Advancing and Declining shares were mostly even.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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