Friday's Market Recap - Stocks Faded A Strong Morning Rally To End Markedly Lower.
- cashtonsaunders
- Sep 1, 2022
- 2 min read
What is The Premarket Telling Us?
Friday, September 2, 6:41 AM.
US stock futures were flat this morning ahead of the Bureau of Labor release of the August Employment Report, due out at 8:30 AM. Dow futures were down 15 points, Nasdaq futures down 36 points, and S&P futures down 4 points. Major Asian markets closed mixed.
On The Bond Desk:
The US 10-Year Bond Yield at 3.265%, up 0.132%.
Currency Desk:
Eurodollar: 1.00
UK Pound: 1.15
Crude Oil:
WTI crude oil futures at $88.35/barrel, up 2.01%.
On the Earnings Calendar:
Strong quarterly earnings from chipmaker, Broadcom.
Stellar quarterly earnings from at leisure company, Lululemon.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) down 0.04%, Shanghai up 0.05%, Hong Kong (Hang Seng) down 0.82%.
Major European markets closed sharply higher. German (DAX) added 3.33%, France CAC 40 up 2.21%, London FTSE 100 up1.86%.
Market And Sector Dynamics
US stocks opened solidly higher on Friday, buoyed by the release of the August employment data, which the markets considered a goldilocks report, not too hot to encourage the Fed to keep hiking interest rates, and not too weak to signal an imminent economic recession. The Dow was up 228 points, Nasdaq up 100 points, and the S&P up 35 points. WTI crude oil kicked off the day at $87.17/barrel, up 0.65%. The US 10-Year Bond started the day at 3.257%, up 0.006%.
The Dow remained in positive territory during the morning and early afternoon session, before turning negative, after news broke that Russia had closed its Nordstream One natural gas pipeline to Europe. At the intraday high, the Dow was up 360 points, and both the Nasdaq and S&P were markedly higher as well. The markets remained negative into the close of trading.
China also figured in today's markets as that country has once again implemented Covid-19 shutdowns in some of its key industrial regions, under its Zero Covid policy, casting additional fear in the markets.
Ten of the eleven S&P sectors closed with losses in today's trading, led by Communication Services, Real Estate, Healthcare, Consumer Staples, Technology, Utilities, Industrials, Consumer Discretionary, Financials, and Basic Materials. Energy ended the day with gains.
Factors Influencing Today's Market
August employment data shows 315,000 new jobs, and the unemployment rate ticked up to 3.7% (goldilocks report, not too strong, not weak.)
Strong earnings from Broadcom and Lululemon.
Russia closed down its Nordstream One gas line to Europe
Report of some new lockdowns in parts of industrial China.
Dow intraday high up more than 360 points, before sinking on Nordstream One news.
US 10-Year Bond ended today at 3.195%, down 2.08%.
WTI crude oil closed today at $86.87/barrel, up 0.30%.
This week's Baker Hughes Oil Rig count fell 9 to 596 total.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all the major US indexes were negative. The Dow lost 337.98 points, Nasdaq lost 154.26 points, and the S&P was down 42.59 points. Total NYSE volume traded was a light 3.67 billion shares. Declining shares outpaced Advancing shares by 1.36:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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