Wednesday's Market Recap - Stocks Rally On 1st Quarter Earnings Results, & Strong US Economic Data.

What is The Premarket Telling Us?

April 21, 2021 7:37 AM.

This morning US stock futures are mostly flat, with Dow futures up 14 points, Nasdaq futures down 26 points, and S&P futures unchanged. Asian stocks fell overnight.

On The Bond Desk:

The US 10 Year Bond Yield at 1.562%, down 0.04%.

Currency Desk:

Eurodollar: 1.20

UK Pound: 1.39

Crude Oil:

WTI crude oil futures at $61.78/barrel, down 1.42%.

On the Earnings Calendar:

Chipotle reports first-quarter earnings after the closing bell.

In M&A News:

None to report

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What About The Asian And European Markets?

Major Asian markets ended with losses. Japan (Nikkei 225) down 2.03%, Shanghai was flat %, Hong Kong (Hang Seng) down 1.76%.

Major European markets ended modestly higher. German (DAX) up 0.44%, France CAC 40 up 0.74%, London FTSE 100 up 0.52%.

Market And Sector Dynamics

Markets opened flat to modestly lower to start the trading session. The Dow lost 13 points, Nasdaq fell 38 points, and the S&P fell 4 points. WTI crude oil started off at $61.01/barrel, up 2.65%, and the US 10 Year Bond Yield hovered at 1.568%, up 0.6 bps. While first-quarter earnings season has been better than expected, so far, shares of Netflix have sold off, after the company beat earnings and revenue expectation, but net subscriber numbers fell way short of expectation, as the pandemic lockdown did pull forward net new additions, which have now cooled off now that the reopening phase is in progress.

Stocks gradually climbed higher during the morning session, and continued the steady rise throughout the session, ending at the high of the day.

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

Factors Influencing Today's Market

Investors are optimistic that first-quarter earnings season will be better than expected

Shares of Netflix were a disappointment for markets as the company's net new subscriber additions fell way short of expectations.

Asian markets were lower, while European stocks were higher.

US 10 Year Bond Yield closed today at 1.559%, down 0.45%.

WTI crude oil closed today at $61.35/barrel, down 1.75%.

Market Close Volume Traded And Advance Decline Ratio

At the end of trading today, all three major indexes were higher. The Dow gained 316.01 points, Nasdaq gained 163.95 points, and the S&P added 38.48 points. Total NYSE volume traded, a modest 3.86 billion shares. Advancing shares outpaced Declining shares by 3.67:1.

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