Wednesday's Market Recap - Lingering Talk Of Stimulus & Optimism About Pfizer's New Covid-19 Therapy
What is The Premarket Telling Us?
6:30 AM.
After yesterday's late-day selloff US stock futures are nicely higher three hours before the start of trading.
Dow futures are up 145 points, Nasdaq futures up 42 points, and the S&P futures up 15 points.
Asian markets traded higher in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 0.74%, down 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $39.72.barrel, down 2.34%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets ended their day higher. Japan (Nikkei 225) down 0.05%, Shanghai up 1.09%, Hong Kong (Hang Seng) still on holiday.
Major European markets ended mostly lower. German (DAX) up 0.17%, France CAC 40 fell 0.27%, London FTSE 100 fell 0.06%.
Market And Sector Dynamics
Stocks got off to an excellent start this morning, with investors firmly committed to pushing markets higher, after yesterday's late afternoon selloff. The Dow surged 313 points, Nasdaq soared 146 points, and the S&P rose 39 points. WTI crude oil started the day lower at $39.79/barrel, down 2.16%, and the 10 Year Bond hovers at 0.778%.
Markets remained solidly elevated for the entire session gradually gaining momentum along the way. Despite the President's tweet cutting off negotiations yesterday evening, investors are fairly confident that something will happen, perhaps, stimulus help for the airlines, or some other smaller package. Investors are also thinking that a large stimulus would come with a big Biden win, a Democratic-led House, and a Democratic-led Senate.
In addition, if the President wins, and the status cuo remains, you could have a smaller stimulus. Either way, there will be a stimulus package after the elections.
Pfizer vaccine news was also positive for markets, as the company announced that it is seeking 'Emergency Use Authorization' for a Covid-19 antiviral cocktail it has developed.
Markets closed at the high of the day, with all eleven S&P sectors ending the day with gains, led by Basic Materials, Consumer Discretionary, Industrials, Technology, Healthcare, Financials, Energy, Consumer Staples, Communication Services, Utilities, and Real Estate.
Factors Influencing Today's Market
Investors remain somewhat optimistic about fiscal stimulus despite the President's tweet.
Optimistic Covid-19 antiviral therapy news from drugmaker, Pfizer.
US 10 Year Bond Yield has ticked higher in the last few days, leading to some optimism for bank stocks.Today the 10 Year closed at 0.784%, up 6.08%.
Asian market closed slightly higher, but European stocks were mixed.
WTI crude oil gave back some gains today and closed at $40.03/barrel, down 1.57%.
This week's EIA Petroleum Status Report showed US crude oil inventories grew/build 0.5 million barrels vs a loss/draw of 2.0 million barrels last week.
Market Close Volume Traded And Advance Decline Ratio
Markets regained all of yesterday's losses, and then some in today's session. The Dow gained 530.70 points, Nasdaq gained 210 points, and the S&P gained 58.49 points. Total NYSE volume traded, a modest 3.87 billion shares. Advancing shares outpaced Declining shares by 2.72:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance. Wall Street Journal - Market Diary.
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