Wednesday's Market Recap - Stimulus And Vaccine Optimism Sends Stocks Higher In Today's Session.
What is The Premarket Telling Us?
7:00 AM.
This morning, stock futures are moderately down early in the premarket. Dow futures are down 134 points, Nasdaq futures down 52 points, and S&P futures down 13 points. Asian markets were mixed in their sessions.
On The Bond Desk:
The US 10 Year Bond Yield at 0.64%, down 0.02%.
Currency Desk:
Euro dollar: 1.17
UK Pound: 1.28
Crude Oil:
WTI crude oil futures at $38.97/barrel, down 0.81%.
On the Earnings Calendar:
None.
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 1.50%, Shanghai down 0.20%, Hong Kong (Hang Seng) up 0.79%.
Major European markets were all lower. German (DAX) fell 0.51%, France CAC 40 down 0.59%, London FTSE 100 down 0.53%.
Market And Sector Dynamics
Stocks opened the session triple digits higher. The Dow gained 140 points, Nasdaq up 18 points, and the S&P added 9 points. WTI crude oil closed at $39.46/barrel, up 0.46%, and the US 10 Year Bond started the day at 0.668%. A better than expected ADP Private Payroll reports showing 749K new private-sector jobs were created in September. That was followed by a strong increase in pending home sales, up 8.8% vs 3.2% estimated.
Optimism about an additional stimulus package was back on the agenda today, as Treasury Secretary, Steve Mnuchin and Speaker Pelosi met, hoping to shape a deal. Investor cheered the idea, and sent markest higher, with the Dow reaching a high of nearly 560 points, shortly after 2:00 PM.
Vaccine optimism also played a key role in today's markets as well, with Regeneron's announcement that its Covid-19 therapy show positive by shortening recovery time for some coronavirus patients.
Markets pulled back from it's higher levels in the last two hours of trading after the meeting between the Treasury Secretary, and Speaker Pelosi was over with no announcement of a deal. However, it is expected that their discussions will continue.
Today's rally was broad-based with nine of the eleven S&P sectors closed the session with gains, led by Healthcare, Financials, Utilities, Consumer Staples, Basic Materials, Technology, and Communication Services.
Industrials and Energy ended modestly lower.
Factors Influencing Today's Market
Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin met today hoping to arrive at a deal.
Regeneron announced positive results for its Covid-19 antibody cocktail therapy, saying it reduced recovery time in some patients.
September ADP Employment Report came in a better than expected 749K private payroll jobs, more than the 650K jobs estimated.
The final read of Second Quarter GDP came in at negative (-31.4%) vs 31.7% estimated.
August Pending Home Sales grew 8.8% vs 3.1% expected.
US 10 Year Bond Yield closed at 0.686%, up 5.30%.
WTI crude oil closed at $40.22/barrel, up 2.37%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell (-2.0) million barrels, vs (-1.6) million barrels last week.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed the indexes were sharply higher, although well off the highs of the day. The Dow gained up 329.04 points, Nasdaq gained 82.26 points, and the S&P gained 27.53 points. Total NYSE volume traded was a moderate 4.80 billion shares. Advancing shares outpaced Declining shares by 1.14:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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