Friday's Market Tear Sheet - Mixed Session Dow Rallied, Nasdaq & S&P Fell.

What is The Premarket Telling Us?

Friday, July 5, 2022, 6:35 AM.

US stock futures were mostly flat a few hours before the start of trading. Dow futures were up 38 points, Nasdaq futures down 16 points, and S&P futures down 0.25 point. Major Asian markets ended with gains overnight.

On The Bond Desk:

The US 10-Year Bond Yield at 2.676%, down 0.072%.

Currency Desk:

Eurodollar: 1.02

UK Pound: 1.21

Crude Oil:

WTI crude oil futures at $88.53/barrel, down 0.01%.

On the Earnings Calendar:

None to report

In M&A News:

Amazon is buying iRobot for $1.7 Billion.

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What About The Asian And European Markets?

Major Asian markets ended with gains. Japan (Nikkei 225) up 0.87%, Shanghai up 1.19%, Hong Kong (Hang Seng) up 0.14%.

Major European markets closed lower. German (DAX) lost 0.65%, France CAC 40 down 0.63%, London FTSE100 down 0.11%.

Market And Sector Dynamics

US markets opened distinctly lower with the Dow down 217 points, Nasdaq Down 158 points, and the S&P down 40 points. WTI crude oil opened moderately lower at $88.06/barrel, and the US 10 Year Bond also started the day lower at 2.677%. Markets are responding to a blowout July employment which showed 528,000 new jobs were created, and the unemployment rate fell to 3.5%.

The Dow remained lower during the morning session as investors assessed what that hot employment number meant to the Federal Reserve - would they be forced to continue with their aggressive rate hike posture? Markets gradually turned around during the early afternoon session and closed moderately higher.

With the bulk of the second quarter in the rearview mirror, investors were looking for a new catalyst to sustain the rally. Crude oil rallied slightly in today's trading, while the US 10 Year Bond Yield had a nice bounce off yesterday's closing yield, and this held back high-tech growth stock in today's session.

Six of eleven S&P sectors ended the day with losses led by Consumer Discretionary, Communication Services, Utilities, Technology, Consumer Staples, and Healthcare. Energy, Financials, Materials, Real Estate, and Industrials were higher.

Factors Influencing Today's Market

The July Employment Report showed the US economy created 528,000 new jobs with the unemployment rate fell to 3.5%

• Amazon to acquire iRobot in a $1.7 Billion deal.

• Major Asian markets ended higher, but European markets closed with mild losses.

• US 10 Year Bond Yield closed at 2.827%, up 4.94%.

• WTI crude oil closed at $89.01%, up 0.53%.

• This week's Baker Hughes US Oil Rig count fell 7 Rigs to 598 total.

Market Close Volume Traded And Advance Decline Ratio

US markets finished mixed today. The Dow gained 76.75 points, Nasdaq lost 63.03 points, and the S&P fell 6.75 points. Total NYSE volume traded was a light 4.10 billion shares. Declining shares outpaced Advancing shares by 1.10:1.

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