Wednesday's Market Recap - A Oversold Risk-on Rally Aided By Bank Of England Action.
- cashtonsaunders
- Sep 28, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, September 28, 2020, AM.
Stock futures were higher again this morning, indicating a positive start when trading begins at 9:30 AM. Dow futures were up 69 points, Nasdaq futures down 27 points, and S&P was up 4 points. Major Asian markets ended lower in their sessions.
On The Bond Desk:
The US 10-Year Bond Yield was at 3.964%, up 0.0860%.
Currency Desk:
Eurodollar: 0.95
UK Pound: 1.06
Crude Oil:
WTI crude oil futures at $79.18/barrel, down 0.87%.
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 lower. Japan (Nikkei 225) was down 1.50%, Shanghai down 1.56%, Hong Kong (Hang Seng) down %.
Major European markets closed modestly higher. German (DAX)up 0.36 %, France CAC 40 up 0.19%, London FTSE 100 up 0.30%.
Market And Sector Dynamics
US stock markets started the trading session mostly higher. The Dow was up 57 points, the Nasdaq down 11 points, and the S&P was up 5 points. WTI crude oil opened fractionally higher at $78.59/barrel, up $0.09. The US 10 Year Bond Yield ticked up 0.002% to 3.951%.
One of the major factors adding positive sentiment to markets today was the decision by the Bank of England to buy Long-dated bonds and indicated a willingness to hike interest rates as appropriate to protect the British Pound (GBP).
Shares of drug companies were higher today mainly due to the impressive results of Biogen and Eisai's early-stage Alzheimer's clinical drug trial. The drug proved successful in preventing the disease from progressing further, for individuals with early-stage Alzheimer's disease.
Today's rally was broad-based and market tone was very positive. All eleven S&P sectors ended the session higher, led by, Energy, Communication Services, Consumer Discretionary, Basic Materials, Industrials, Healthcare, Financials, Real Estate, Consumer Staples, Utilities, and Technology.
Factors Influencing Today's Market
The Bank of England announced that it will buy Long-dated bonds, and increase interest rates when appropriate, to support the British Pound.
Asian markets ended lower, while European markets finished higher.
The US 10 Year Bond Yield closed at 3.737%, down 5.37%
WTI crude oil closed at $82.15/barrel, up 4.65%.
This week's EIA Petroleum Status Report showed US crude oil inventories grew/build 0.2 million barrels vs 1.1 million last week.
Market Close Volume Traded And Advance Decline Ratio
US stocks were in risk-on mode today. At the close of trading, the Dow soared 548.75 points, Nasdaq surged 222.13 points, and the S&P gained 71.75 points. Total NYSE volume traded was a modest 4.68 billion shares. Advancing shares outpaced Declining shares by 6052:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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