Friday's Market Recap - A Weaker Than Expected IBM Quarter Pressured Markets Today.
- Jan 22, 2021
- 2 min read
What is The Premarket Telling Us?
8:45 AM.
The futures are moderately lower at this point, forty-five minutes ahead of the opening bell. Dow futures down 237 points, Nasdaq down 86 points, and the S&P futures down 27 points. Asian markets closed their session lower, while we slept.
On The Bond Desk:
The US 10 Year Bond Yield at 1.08%, up
Currency Desk:
Eurodollar: 1.21
UK Pound: 1.36
Crude Oil:
WTI crude oil futures at $51.55/barrel, down 2.97%.
On the Earnings Calendar:
IBM misses fourth-quarter earnings results after the close yesterday, sending shares lower in today's session.
Next week will be a big week for earnings.
In M&A News:
None to report.
What About The Asian And European Markets?
Major Asian markets traded lower. Japan (Nikkei 225) fell 0.44%, Shanghai fell 0.40%, Hong Kong (Hang Seng) lost 1.60%.
Major European markets closed lower. German (DAX) down 0.24%, France CAC 40 down 0.56%, London FTSE 100 fell 0.30%.
Market And Sector Dynamics
Markets fell early, under extreme pressure caused by a weak earnings quarter from IBM. The company beat earnings, but revenue missed badly. After opening sharply lower, stocks fell even lower with the Dow down 260 points, a little more than one hour after the open. The markets recovered nicely a short while later, with the Dow down a mere 78 points, at noon. Stocks remained at that level for the rest of the session, before losing momentum just before the close of the session.
Eight of the eleven S&P sectors ended lower in today's session, led by Financials, Energy, Industrials, Basic Materials, Consumer Discretionary, Technology, Consumer Staples, and Healthcare. Real Estate, Utilities, and Communication Services ended the session modestly higher.
Factors Influencing Today's Market
IBM missed earnings put pressure on the markets today.
Asian and European Markets were both lower in their sessions.
US 10 Year Bond Yield ended today at 1.086%, down 2.14%.
WTI crude oil closed at 52.27/barrel, down 1.62%.
This week's Baker Hughes US Oil Rig count rose 2 rigs to 289 total.
Market Close Volume Traded And Advance Decline Ratio
Markets ended today's session mixed, with the Dow down 179.03 points, Nasdaq gained 12.15 points,
and S&P fell 11.60 points. Total NYSE volume traded, a modest 5.11 billion shares. Advancing shares outpaced Declining shares by 1.14:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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