Wednesday's Market Recap - Stocks Rally As Investors Now Believe Fed Will Remain Subdued On Taper.
- May 26, 2021
- 2 min read
What is The Premarket Telling Us?
May 26, 2021 7:15 AM.
US stock futures are flashing green at this hour, indicating we could have a positive open. Dow futures up 87 points, Nasdaq futures up 50 points, and the S&P futures gained 14 points. Asian markets closed with modest gains.
On The Bond Desk:
The US 10 Year Bond Yield at 1.569%, up 0.2%.
Currency Desk:
Eurodollar: 1.22
UK Pound: 1.41
Crude Oil:
WTI crude oil futures at $65.60/barrel, down 0.71%.
On the Earnings Calendar:
None to report
In M&A News:
Amazon confirms it is buying MGM Studios for $8.4 billion.
What About The Asian And European Markets?
Major Asian markets ended higher. Japan (Nikkei 225) up 0.31%, Shanghai up 0.34%, Hong Kong (Hang Seng) up 0.88%.
Major European markets were mostly flat. German (DAX) down 0.09%, France CAC 40 up 0.02%, London FTSE 100 down 0.04%.
Market And Sector Dynamics
Markets opened today's trading session with moderate gains. The Dow gained 64 points, Nasdaq gained 48 points, and the S&P gained 7 points. WTI crude oil slipped lower to $65.40/barrel, down 1.0%, and the US 10 Year Bond ticked slightly higher to1.569%, up 0.5 basis points.
In a volatile morning session, stocks were down half an hour after the opening, before returning to positive territory an hour later. Stock remained comfortable above the flat line during the afternoon session, before losing ground in the final two hour of trading. At the low of the day the Dow was down 40 points, and the intraday high was up 85 points.
Seven of the eleven S&P sectors rallied higher today, led by Energy, Consumer Discretionary, Communication Services, Industrials, Financials, Real Estate, and Basic Materials. Healthcare, Consumer Staples, and Technology were mildly lower, while Utilities were flat.
Factors Influencing Today's Market
Investor appear to have come to terms with the Fed being in control of any threat of rising rates and inflation fears.
US 10 Year Bond has moderated over the last few weeks, and closed today at 1.581%, up 1.31%.
WTI crude oil closed today at $66.13/barrel, 0.09%.
This week's EIA Petroleum Status Report shows US crude oil inventories saw a draw down of 1.7 million barrels, compared to a build or increase of 1.3 million barrels in the prior week
Market Close Volume Traded And Advance Decline Ratio
At the end of trading the three major indexes were modestly higher. The Dow gained 10.59 points, Nasdaq gained 80.82 points, and the S&P added 7.86 points. Total NYSE volume traded, a modest 4.20 billion shares. Advancing shares outpaced Declining shares by 2:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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