Friday's Market Recap - A Netflix-Driven Selloff Sent Stocks Plunging.

What is The Premarket Telling Us?

January 21, 2022, 7:00 AM.

US stock futures were mostly negative in the premarket. The Dow was down 74 points, Nasdaq futures down 118 points, and S&P futures down 20 points. Major Asian markets were mostly lower in their session, overnight.

On The Bond Desk:

The US 10 Year Bond Yield at 1.779%, down 0.048%.

Currency Desk:

Eurodollar: 1.13

UK Pound: 1.35

Crude Oil:

WTI crude oil futures at 84.55/barrel. up 1.17%.

On the Earnings Calendar:

Netflix reported disappointing earnings after the close yesterday casting a negative sentiment over the markets.

In M&A News:

None to report.

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What About The Asian And European Markets?

Major Asian markets ended mixed. Japan (Nikkei 225) down 0.90%, Shanghai lost 0.91%, Hong Kong (Hang Seng) gained 0.05%.

Major European markets ended lower. German (DAX) down 1.94%, France CAC 40 down 1.75%, London FTSE 100 down 1.20%.

Market And Sector Dynamics

Markets started off the day modestly negative, partly on negative sentiment after a disappointing quarterly earnings report from Netflix after the closing bell yesterday. The Dow was down 70 points, Nasdaq down 58 points, and S&P down13 points. WTI crude got off to a slightly lower start, at $84.95/barrel, down 0.7%. US 10 Year Bond Yield also moderated to 1.756%, down 7.8 basis points.

The Dow attempted to stage a recovery midway through the morning session, but the rally faded, and the index remained below the flat line for the rest of the day and closed at the intraday low. Today's selloff was broad-based and deep.

All the eleven S&P sectors traded lower today, led by Communication Services, Consumer Discretionary, Basic Materials, Financials, Energy, Technology, Healthcare, Industrials, Utilities, and Real Estate. Consumer Staples ended the session slightly higher.

Factors Influencing Today's Market

• A disappointing quarterly earnings report from Netflix sent markets plunging today.

• US 10 Year Bond Yield closed lower today at 1.770%, down 2.24%.

• WTI crude oil ended trading at $84.84/barrel, down 2.37%.

• Last week's Baker Hughes US Oil Rig count fell 1 to 491 total.

Market Close Volume Traded And Advance Decline Ratio

It was another down day for the three major US indexes. The Dow plunged 450.02 points, Nasdaq plummeted 385.10 points, and the S&P sank 84.79 points. The NYSE volume traded a moderate 5.83 billion shares. Declining shares outpaced Advancing shares by 4:1.

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