Wednesday's Market Recap - Massive Equity Losses As Interest Rates Rise.
What is The Premarket Telling Us?
7:00 PM.
The market set up this morning is mildly positive in the early going, indicating stocks could be flat, to slightly higher at the open. session today. US bond yields are continuing to roil stocks, putting pressure on technology, industrials sectors.
Housing has been experiencing some weakness, as interest rates have ticked up, putting pressure on mortgage cost.
Homebuilders facing higher material costs, are having difficulty building homes for first-time home buyers.
On The Bond Desk:
The US 10 Year Bond Yield at 3.21%, down 0.02%.
Currency Desk:
Euro dollar: 1.14
UK Pound: 1.31
Crude Oil:
WTI crude oil futures at at $74.84/barrel, down 0.16%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets were modestly positive overnight. Japan (Nikkei 225) gained 0.16%, Shanghai rose 0.18%, Hong Kong (Hang Seng) added 0.08%.
Major European markets fell modestly in today's session. German (DAX) down 2.21%, France CAC 40 off 2.11%, London FTSE 100 lost 1.27%.
Market And Sector Dynamics
All the major indices opened the trading day lower. The Dow lost 11 points, Nasdaq slumped 44 points, and S&P down 6.44 points, as pressure from rising US bond yields continue to scare investors.
Less than a hour after the opening bell, the Dow was down 390 points, as the 10 year bond yield continued to tick up. The lone piece of positive news for the morning, was an upgrade of McDonald's by Guggenheim, with a $200/share price targe t. Technology and industrials, the major laggards early in the session. Amazon, Apple, Facebook, Twitter, and Netflix were the main contributors to the downside.
Stocks remained negative for the entire session, as investor fears regarding the Fed, rising bond yields, and inflation appears to have escalated tremendously. Many investors are questioning whether the Fed may be moving too fast in hiking interest rates
Shortly after mid-day the downside continued, with the Dow down more than 400 points. Market tone was extremely negative, but orderly.
All Eleven S&P sector closed the session solidly lower, led by technology, communication services, consumer discretionary, energy, industrials, financials, and basic materials.
Factors Influencing Today's Market
Rapidly rising 10 year bond yields, inflation fears roiled market in today's session.
US 10 year bond yield closed the session at 3.22%.
Crude prices declined as investor fear a decline in global growth. WTI crude oil closed at $73.17/barrel, down 2.39%.
McDonald's upgraded by Guggenheim, with a price target of $200/share.
European market close significantly lower in today's session.
Market Close Volume Traded And Advance Decline Ratio
At the end of the session the major indices tumbled lower. The Dow tanked 831.83 points, Nasdaq dived 315.97 points, and the S&P down 94.66 points. Total NYSE volume traded, a solid 4.45 billion shares. Declining shares outpaced Advancing shares by 8:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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