Wednesday's Market Recap - Fed Chair Calms Inflation Fears After Its Meeting -Stocks Rally.
- Feb 17, 2021
- 2 min read
What is The Premarket Telling Us?
7:00 AM.
US stock futures are modestly subdued this morning. Dow futures down 1 point, Nasdaq futures down26 points, and S&P futures down 2 points. Asian markets ended the session mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.30%, up 0.10%.
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $60.87/barrel, up 1.37%.
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 0.58%, Shanghai up 1.43%, Hong Kong (Hang Seng) up 1.10%.
Major European markets were lower. German (DAX) down 1.10, France CAC 40 down.036%, London FTSE 100 down 0.56%.
Market And Sector Dynamics
Markets started the trading session sharply lower, with the Dow down 96 points, Nasdaq down 131 points, and the S&P down 22 points. WTI crude oil opened lower, at $59.83/barrel, down 0.43%, and the 10 Year Bond held at 1.282%. All eleven S&P sectors were lower in the early going.
Markets are responding to US data released this morning; January Producer Price Index (PPI) which came in at 1.30%, and much higher than the 0.40% estimated, suggesting some inflation in the cost of goods purchased by manufacturers. Retail Sales for January also came in better than expected at 5.3% vs 1.1% estimated, suggesting that Americans went on a buying spree during the month of January.
Yesterday after the close of trading investors learned that Berkshire Hathaway had made a number of changes to its portfolio, made known after the release of the company's 13F report to the SEC for fourth-quarter 2020.
Stocks gradually recovered during the morning session, and approach the flat line early in the afternoon, before turning positive after the Fed/FOMC and the Fed Chair Powell calmed any fears of a change in Fed policy any time soon. Markets turned positive from that point and continued higher into the close.
Factors Influencing Today's Market
Fed/FOMC calm inflation fears after today's meeting, saying no imminent change to current policy.
US Retail Sales data, and Producer Price Index for January came much better than expected.
Warren Buffet, Berkshire Hathaway's recent 13F report shows some changes to his portfolio, including, the purchase of Chevron, and Verizon, which many investors bought those shares today.
Asian markets were mostly higher, and European markets ended lower.
US 10 Year Bond closed today at 1.272%, down 2.95%.
WTI crude oil closed today at $61.78/barrel, up 2.88%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended for the day, markets were mixed. The Dow added 90.27 points, Nasdaq lost 82 points, and the S&P fell 1.26 points. Total NYSE volume traded, moderate4.73 billion shares. Declining shares outpaced Advancing shares by 1.34:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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