Wednesday's Market Recap - A Solid Earning Quarter From Alphabet And Rising Energy Lift Stock.
- Feb 3, 2021
- 2 min read
What is The Premarket Telling Us?
7:00 AM.
Stock futures are mildly higher at this hour, after two strong days of gains. Dow futures are up 25 points, Nasdaq futures up 87 points, and the S&P futures up 14 points. Amazon, Google, and Chipotle reported earnings after the close yesterday evening. Markets learned that Jeff Bezos, Amazon's founder, will step down as CEO, to become Executive Chairman, and is handing off the CEO reigns to Andy Jassy, the current CEO of Amazon Web Services (AWS).
On The Bond Desk:
The US 10 Year Bond Yield at 1.10%, up 0.02%.
Currency Desk:
Eurodollar: 1.20
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $55.06/barrel, up 0.55%.
On the Earnings Calendar:
Strong earnings quarters from Amazon, Alphabet (Google). While Chipotle also reported earnings. The company beat revenue estimates, but earnings fell short of expectations.
In M&A News:
There was a merger in Pharma today, Jazz Pharma buying GW Pharma for $7.2 billion.
What About The Asian And European Markets?
Major Asian markets ended mixed. Japan (Nikkei 225) up 1.00%, Shanghai fell 0.46%, Hong Kong (Hang Seng) gained 0.20%.
Major European markets were also mixed. German (DAX) up 0.71%, France CAC 40 flat%, London FTSE 100 slipped 0.14%.
Market And Sector Dynamics
Following back to back sessions of gains, markets opened mixed this morning. The Dow lost 68 points, Nasdaq gained 100 points, and the S&P was up 13 points. WTI crude oil started off at $55.35/barrel, up 1.08%, and the US 10 Year Bond Yield hovered at 1.117%.
Stocks floundered for during the first half of the morning session, with the Dow hitting an intraday low, down 160 points. Stocks returned to positive territory by noontime, with the Dow up 27 points. Stocks gradually improved during the afternoon session, to close with a modest gain.
In today's session, six of the eleven S&P sectors ended the day with gains, led by Energy, Communication Services, Financials, Basic Materials, Consumer Staples, and Industrials. Consumer Discretionary, Healthcare, Real Estate, Utilities, and Technology ended the session lower.
Factors Influencing Today's Market
Strong quarterly earnings results from Google help to lift markets higher.
Amazon also reported a strong quarter, along with Bezos stepping down as CEO. Shares of the company fell.
Jazz Pharma announced it is buying GW Pharma for $7.2billion in cash and stock.
US 10 Year Bond Yield closed at 1.141%, up 4.23%.
WTI crude oil closed today at $55.90/barrel, up 2.08%.
This week's EIA Petroleum Status Report shows crude oil inventories fell -1.0 million barrels vs -9.9 million barrels in the prior week.
The Game Stop short squeeze dilemma has subsided. The stock closed today at $92.41/share, up $2.41.
ADP Private Sector Employment for January increased by 174,000 vs 50,000 estimated.
Market Close Volume Traded And Advance Decline Ratio
Stocks rallied for a third straight day. The Dow gained 36.12 points, Nasdaq slipped 2.23 points, and the S&P added 3.86 points. Total NYSE volume traded, a moderate 4.90 billion shares. Advancing shares outpaced Declining shares outpaced by 1.38:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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