Wednesday's Market Recap - Stocks Rally For A Second Day After Monday's Downturn.
- cashtonsaunders
- Jul 20, 2021
- 2 min read
What is The Premarket Telling Us?
July 21, 2021 7:15 AM.
US stock index futures are mixed to higher, with Dow futures up 140 points, Nasdaq futures down 17 points, and S&P futures up 11 points. Asian markets ended mixed overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.209%
Currency Desk:
Eurodollar: 1.17
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $68.22/barrel, up 1.52%.
On the Earnings Calendar:
Netflix reports mixed second quarter earnings after the closed yesterday evening. Also reporting last evening was Chipotle, which handily beat earnings, revenue, and guidance expectations.
Johnson and Johnson, Coca-Cola, and Verizon reported better than expected earnings results before the bell this morning, adding positive sentiment to markets.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed overnight. Japan (Nikkei 225) gained 0.58%, Shanghai up 0.73%, Hong Kong (Hang Seng) down 0.13%.
Major European markets ended with solid gains. German (DAX) gained 1.36%, France CAC 40 gained 1.85%, London FTSE 100 up 1.70%.
Market And Sector Dynamics
Markets opened moderately higher today. The Dow rose 189 points, the Nasdaq gained 43 points, and the S&P added 19 points. WTI crude oil also got off to a positive start, at $68.64/barrel, up 2.14%. The US 10 Year Bond Yield was flat at 1.268%.
Stock remained elevated for the entire trading session. After Monday's deep selloff, that left investor pondering whether that was the start of a correction, markets have turned around with a vengeance, sending stocks to just under their all time recent highs.
Although early, second quarter corporate earnings have come in well above expectations helping to push markets higher, even as Covid-19 Delta variant continues to ravage parts of the US where vaccination have lagged, due to vaccine hesitancy. More than 95% of infections and deaths from the virus is occurring among younger unvaccinated individuals, in the southern US states.
Eight of the eleven S&P sector ended the session with gains, led by Energy, Financials, Basic Materials, Industrials, Technology, Consumer Discretionary, Communication Services, and Healthcare. Utilities, Real Estate, and Consumer Staples ended lower.
Factors Influencing Today's Market
Better than expected second quarter earnings results from Chipotle, Johnson and Johnson, and Verizon.
US 10 Year Bond Yield closed at 1.292% up 5.72%.
WTI crude oil price closed at $70.25/barrel, up 4.20%.
This week's EIA Petroleum Status Report show US crude oil inventories grew by 2.1 million barrels, compared to a drawn down of -7.9 million barrels in the prior week.
Market Close Volume Traded And Advance Decline Ratio
When the markets closed, the major indexes were all higher. The Dow surged 286.01 points, Nasdaq gained 133.08 points, and the S&P gained 35.63 points. Total NYSE volume traded, a light 3.82 billion shares, with Advancing shares outpacing Declining shares by 2.77:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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