Energy infuses energy into markets!
Good morning,
Whoa! Quite a Monday it was!
Are you among those who want to stop Jeff Bezos from re-entering earth post his space trip?... Oh c’mon!!
Ok! The markets finally shrugged off concerns surrounding Fed’s hawkish policy and roared back. Dow rallied 580 points, its best rally since March 5, even as S&P gained 1.4% and Nasdaq 0.8%.
What is interesting is the fact that commodities, facing a slump since the past week, backed Monday’s rally at the S&P, with a 4.29% spike in the Energy sector alone.
It took about a week of moving back and forth for the markets to finally be able to digest new economic projections by the Fed. Did the markets overdo with a Fed inspired sell off ? Guess we will never know!
But the good news,
S&P 500: 4225 58.34 (1.40% )▲NASDAQ: 14141 111.1 (0.79%)▲Dow Jones: 33877 586.8 (1.76%)▲After a slump last week - 6% in the financials sector, 5% in Energy and 3% in Industrials - the equity sectors on Monday were up and spiking.
Energy (4.29%▲) led the way followed by the Financials (2.35%▲) and Real Estate (1.92%▲). Utilities (-1.29%▼), however, could not cash in on the positive market.
As expected, some Energy stocks showed great promise, including EOG Resources Inc (EOG, 7.16%▲), Devon Energy Corporation (DVN, 6.92%▲), Occidental Petroleum Corporation (OXY, 5.39%▲) and Conoco Philipps (COP, 5.08%▲).
Raven Industries Inc (RAVN, 49.27%▲) soared after CNH Industrial struck a deal to buy the agricultural equipment maker at a 34% premium to Raven’s four-week volume-weighted average stock price. RAVN’s relative volume was 38.5.
Lydall (LDL, 85%▲), the filtrations material maker, zoomed after the announcement of it being acquired by PE-backed Unifrax. Its relative volume was 65.3.
Despite the upward spike in the market, some Tech giants ended up on the losing end. Nvidia Corporation (NVDA, -1.13%▼), Amazon Inc (AMZN, -0.94%▼) and Netflix Inc (NFLX, -0.75%▼) were among the losers.
The European Central Bank President, Chistine Lagarde, has calmed the nerves in EU markets-concerning growing fears around US Fed’s signal on stimulus mitigation-by saying that the US and the Euro Zone were in, “different situations”. The effect could be seen in the market with the pan-European Stoxx-600 spiking by 0.1% (03.30 Am ET). The Banking and Mining stocks made gains after taking a hammering last week.
Positivity weaned off as the day progressed.
FTSE: 7071 9.66 (0.14%)▲CAC: 6587 -14.83 (-0.22%)▼DAX: 15546 -55.81 (-0.36%)▼*As of 6:00 am ET
Nikkei slumped more than 4% on Monday. With more than 3% gains this morning it led the recovery in Asian markets, after Monday’s positivity in the US markets.
Hang Seng: 28309 -179.2 (-0.63% )▼NIKKEI: 28884 873.3 (3.12%)▲Shanghai: 3557 28.23 (0.80%)▲Sensex: 52588 14.25 (0.03%)▲Ahead of Powell’s testimony, before the Congress today, the US Dollar stabilised after giving up some of the gains made last week. The greenback index stands at 92.03, up by 0.14%.
Euro / $: 1.18 -18p (-0.16%)▼
GBP / $: 1.39 -48p (-0.35%)▼
CNY / $: 6.76 -72p (-0.10%)▼
JPY / $: 110.4 0.12 (0.11%)▲Earnings:
There are no noteworthy earnings !!
Commodities, after a brief slump, have made a comeback on Monday. China, in continuation to its crackdown on “hoarders and speculators” has started investigating “malicious speculation” in the Iron Ore market and vowed to punish the wrong doers.
Lumber: $932.5 34.6 (3.85%)▲Copper: $4.18 0.02 (0.50%)▲Iron Ore:$212.7 -1.46 (-0.68%)▼Crude Oil: $75.1 0.28 (0.37%)▲The 10 year US Treasury Yield fell to a February low of 1.36% on Monday but has bounced back considerably since.
10 yr US Gov: 1.51% (1.38%)▲10 yr UK Gov: 0.80% (3.24%)▲10 yr Euro zone:-0.18% (0.01%)▲
*As of 6:00 am ET
The Bitcoin has plunged 11.3% over the last seven days, amid a Chinese crackdown. China has asked miners in Sichuan province to stop operations, on Friday, the move wiping off $300 Billion from Crypto market.
Cryptocurrency updates:
BTC: $32179 -3.26%▼
ETH: $1895 -6.59%▼
BCH: $446 -12.00%▼
LTC: $124 -11.17%▼
We are done for today! With the hope that the markets continue with this green run, we promise to see you Wednesday morning!
Warm Regards
Team Researchfin.ai
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