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Market Recap: Wednesday, October 7

Stocks rose Wednesday after numerous Twitter posts from President Donald Trump, who announced his support for specific virus relief measures, despite saying earlier that he told negotiators to end stimulus talks until after the election. The three major indices extended gains intraday Wednesday after dropping on Tuesday.

Video Transcript

SEANA SMITH: Welcome back to "The Final Round" here on Yahoo Finance. Just around 20 seconds left in the trading day, and stocks rallying here into the close, although it's been a rally for most of the day. We had the Dow up 544 points right around the highs of the day. The S&P up just around 1.7%, and the NASDAQ up nearly 2%.

Of course, we've heard mixed messages from the White House over the past 24 hours. But investors are now hopeful that we will get some sort of stimulus deal.

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And that does it for the trading day. Again, a big rally on the Street. We have the Dow, NASDAQ, and S&P all closing at their highest level in a month. The Dow transports notching a record close here. Taking a look at some of those gains, with the Dow up just over 500 points as we shake out the final trades of the day.

Salesforce, the biggest gainer in the Dow, up nearly 4%. We're also seeing big gains from Boeing and UnitedHealth. Taking a look at this sector action today, broad gains here across the board, all 11 of the sectors in the green. Materials, industrials, and consumer discretionary are the leaders.

Taking a look at some of those industrial names. UPS and Deere among the names here hitting a new high. So that, of course, is something to note in today's action.

The reopening trade getting a little bit of a boost. Airlines, of course, are amongst the leaders there, with American, United here up just over 4% and Delta up 3 and 1/2%. And of course, this comes on the heels that we could get some targeted aid here from Congress, so those stocks getting a huge boost today.

We've also seen some of the other reopening trades like Royal Caribbean up just around 2%, LiveNation up more than 1% here. So investors turning more optimistic at least than they were yesterday in today's market action.

But I want to kick it over to Jared Blikre here to help me break down some of the final trades here into the closing. Jared, we are looking at a very different market than we were just 24 hours ago.

JARED BLIKRE: Yeah, definitely. Things were looking a bit more pessimistic. We sold off into the close yesterday. And then in the futures and following hour-- because the futures don't settle until 5:00 PM and then take off at 6:00 PM Eastern-- they were going down more.

But now we see a five-day price action in the S&P 500 looking pretty positive, right back up near yesterday's highs before that 3:45 PM, where they were about sell-off. And just looking at the one month here, there's been a lot of chatter on Twitter that the major indices have basically all formed this inverse head and shoulders pattern.

There, we got the head, we got the left shoulder, and there's the right, just tracing out here. If you look at the NASDAQ, pretty similar story, although we have a neck line that's a little bit more diagonal. Dow right there with it, Russell 2000. Well, Russell 2000 has outperformed. And so that is actually trending up right now. that's the same pattern there.

And you mentioned the transports-- very important. Hard to be bullish-- I mean hard to be bearish when you have the transports making new highs. Now you do want to see Dow theory confirm that with the Dow making new highs, but to each their own. And we had to take a little time here with those sectors that drive the Dow, which are mainly the value and cyclical ones. Those have been trending higher recently.

And let's just take a look at some of those because those are-- those have been important drivers. When tech has been flagging as of late, they've tended to pick up the pace here themselves. So materials, that's one of these sectors that are doing well right now. These are the record highs, marching up towards those.

Consumer discretionary-- that's heavily weighted towards Amazon. But you can see we have the highest prices here since early September, just like the major indices. Industrials, a similar story here. We've got multiple talks that we have to clear.

But if we can get a footing here-- and we'll take a little bit longer look-- we do have this kind of broadening megaphone pattern here. A lot of these sectors seem poised to break to the upside. There is a lot of news that could bring it to the downside. And we could see some frustration here.

But things are pointing in the bullish direction. There's a lot of positive breath here. Won't get into the advance decline lines, but suffice to say that they are doing well. NASDAQ 100 heat map, we got Amazon up 3%, a big part of consumer discretionary, about 23% of that sector. Amazon and Microsoft, 1.7% and 1.9%.

Only Facebook really stumbling here, having some potential antitrust concerns. But, you know, who doesn't if you're a big cap here? And then some of the other sectors, let's just take a look at that heat map quickly.

So materials, discretionary, industrials, healthcare, and tech all outperforming today to the downside. Real estate and utilities, those underperform-- not surprising, given that they tend to react this way when we have the 10-year T-Note yield heading higher.

Our canaries here, we got retail, regional banks, transports, IPOs, software, biotech, chip stocks, I could go on, value, all outperforming. So pretty good mix here today.