Friday's-Market Tear Sheet - Stocks Faded Early Rally To End Moderately Lower.

cashtonsaunders
Jul 21, 2022
2 min read

What is The Premarket Telling Us?

Friday, July 22, 2022, 8:00 AM.

Stock futures were mostly flat in the premarket with Dow futures up 41 points, Nasdaq futures down 37 points, and S&P futures down 6 points. Asian markets ended mixed in their sessions.

On The Bond Desk:

The US 10-Year Bond Yield started the day at 2.910%, down 0.1260%.

Currency Desk:

Eurodollar: 1.01

UK Pound: 1.19

Crude Oil:

WTI crude oil futures at $95.28/barrel, down 1.11%.

On the Earnings Calendar:

American Express reported a blowout earnings quarter before the opening bell.

Twitter reported disappointing quarterly earnings performance, which many investors anticipated because of the ongoing saga between the company and Elon Musk, who offer to by the company for $54.20/share, which he has now withdrawn leading to a court fight.

In M&A News:

None to report

What About The Asian And European Markets?

Major Asian markets ended mixed Japan (Nikkei 225) up 0.40%, Shanghai down 0.06%, Hong Kong (Hang Seng) up 0.17%.

Major European markets closed mildly higher in trading today. German (DAX) up 0.05%, France CAC 40 up 0.25%, London FTSE 100 up 0.08%.

Market And Sector Dynamics

Markets were mixed at the open. The Dow gained 163 points, Nasdaq fell 35 points, and S&P was up 7 points. WTI got off to a lower start at $95.65/barrel, down 0.61%, and the US 10 Year Bond hovered at 2.787%.

Markets held up nicely for most of the morning session buoyed by strong earnings from American Express, which accounted for more than 100 Dow points early in the session. The markets gradually lost momentum during the afternoon session with the Dow down more than 300 points shortly after 2:00 PM, the intraday low. The Index rebound moderately into the close.

Today's session was moderately positive early but turned negative intraday. Eight of the eleven S&P sectors ending in with losses led by Communication Services, Technology, Energy, Basic Materials, Consumer Discretionary, Financials, Healthcare, and Industrials. Utilities, Real Estate, and Consumer Staples ended the day with gains.

Factors Influencing Today's Market

The disappointing earnings performance by Snap and Twitter weighed down markets, taking shares of industry cohorts like META, and Google, down in sympathy.
American Express reported blowout earnings sent shares up 2% in the session and helped to stem the negative tide.
US 10 Year Bond Yield closed at 2.752%, down 4.51%.
WTI crude oil closed today at $94.88/barrel, up 1.17%
This week's Baker Hughes Oil Rig count was unchanged at 599 total rigs.
Both Manufacturing and Services PMI for July have moderated since the June read.

Market Close Volume Traded And Advance Decline Ratio

At the end of trading for the week on Friday, the Dow sank 137.61 points, Nasdaq fell 225.50 points and S&P lost 37.32 points. Total NYSE volume traded was a light 4.01 billion shares. Declining shares outpaced Advancing shares by 1.46:1.

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