Wednesday's Market Recap - Stocks Rally After Fed/FOMC Announces Taper.

What is The Premarket Telling Us?

Wednesday November 3, 2021 7:15 PM.

Modestly negative described the status of US stock futures this morning. Dow futures were down 48 points. Nasdaq futures up 8 points, S&P futures down 5 points. Asian markets closed lower, as Japanese markets were closed for holiday.

On The Bond Desk:

The US 10 Year Bond Yield at 1.531%, down 1.531%

Currency Desk:

Eurodollar: 1.15

UK Pound: 1.36

Crude Oil:

WTI crude oil futures at $81.86/barrel, down 2.44%.

On the Earnings Calendar:

Shares of LYFT the ride-hailing company soared in the premarket after the company reported better than expected third quarter earnings. The company beat earnings, and revenue estimates, as drivers have returned, and ridership is up. T-Mobile reported strong third quarter earnings results. Food giant Mondelez, also exceeded estimates, including its full year forecast.

In M&A News:

None to report

What About The Asian And European Markets?

Major Asian markets closed lower. Japan (Nikkei 225) closed for Culture Day Holiday, Shanghai down 0.20%, Hong Kong (Hang Seng) down 0.41%.

Major European markets were mixed. German (DAX) rose 0.03%, France CAC 40 up 0.34%, London FTSE 100 fell 0.36%.

Market And Sector Dynamics

US stock opened lower at the start of trading for the day, with the Dow down 38 points, Nasdaq down 30 points, and the S&P lost 3 points. WTI crude oil fell moderately to $81.44/barrel, down 2.94%, while the US 10 Year Bond Yield was unchanged.

The market traded in negative territory for most of the morning and early afternoon session, but turned around after the Fed/FOMC meeting ended, and they announced that the long awaited taper would begin this month, as was telegraphed. Markets cheered this decision and rallied into the close.

Supply chain issues continued to dominate business news, but today markets were buoyed by strong earnings from Lyft, Mondelez, and T-Mobile was the major catalyst sending market higher during the latter part of the session.

Eight of eleven S&P sectors closed today's session with gains, led by Consumer Discretionary, Basic Materials, Consumer Staples, Communication Services, Healthcare, Technology, Real Estate, and Financials. Energy, Utilities, and Industrials ended lower.

Factors Influencing Today's Market

• Strong third quarter earning results from Lyft, Mondelez, and T-Mobile.

• Asian Markets ended lower, while European markets were mixed.

• October ADP Private Payroll grew a better than expected 571,000.

• US 10 Year Bond Yield closed at 1.603%, up 3.65%.

• WTI crude oil price closed at $80.34/barrel, down 4.25%.

• EIA Petroleum Status Report shows US crude oil inventories grew by 3.3 million barrels, vs 4.3 million barrels, last week.

Market Close Volume Traded And Advance Decline Ratio

After a weak start to the trading day, stock turned intraday to end solidly higher. The Dow gained 104.95 points, Nasdaq gained 161.98 points, and the S&P rose 29.92 points. Total NYSE volume traded, a light 4.30 billion shares.

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Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.