Friday's Market Tear Sheet - Stocks Fell On Weak Earnings From Deere And Higher Bond Yields.
- cashtonsaunders
- Aug 18, 2022
- 2 min read
What is The Premarket Telling Us?
Friday, August 19, 2022, 8:35 AM.
Stock futures were moderately in the red an hour before the start of trading. Dow futures were down 228 points, Nasdaq futures down 145 points, and S&P futures were down 38 points. Major Asian markets ended their day mixed.
On The Bond Desk:
The US 10-Year Bond Yield at 2.965%, up 0.0850%.
Currency Desk:
Eurodollar: 1.00
UK Pound: 1.18
Crude Oil:
WTI crude oil futures at $89.04/barrel, down 1.61%.
On the Earnings Calendar:
Deere missed quarterly earnings expectations, citing supply chain issues, but sees strong customer demand for next year.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets were mostly lower. Japan (Nikkei 225) down 0.04%, Shanghai down 0.59%, Hong Kong (Hang Seng) up 0.05%.
Major European markets ended mixed. German (DAX) down 1.12%, France CAC 40 down 0.94%, London FTSE 100 up 0.11%.
Market And Sector Dynamics
Markets opened triple digits lower under pressure from rising bond yields, disappointing earnings quarter from Deere, and uncertainty around the Fed/FOMC rate hike regime. The Dow fell 166 points, Nasdaq lost 124 points, and the S&P fell 26 points. WTI crude got off to a slightly lower start at $90.39/barrel, and the US 10 Year Bond opened higher at 2.961%. Deere missed analyst estimates for the quarter, which it attributed to supply chain issues. The company does see strong customer demand for next year.
Stocks traded below neutral for the entire session, with the Dow down 365 points, at the intraday low, an hour before the close of trading.
Eight of the eleven S&P sectors closed today's session with losses, led by Consumer Discretionary, Financials, Communication Services, Technology, Basic Materials, Industries, Real Estate, Consumer Staples, and Utilities. Healthcare and Energy ended mildly higher.
Factors Influencing Today's Market
Rising bond yields pressured stocks in today's session.
Weaker than expected quarterly earnings from Deere weighed negatively on markets in the session.
Asian markets ended mixed as did European markets.
US 10-Year Bond ended the session at 2.967%, up 3.12%.
WTI crude oil price closed at $90.77/barrel, up 0.30%.
This week's Baker Hughes Oil Rig count was unchanged at 601 total rigs.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading on Friday, markets ended the Dow was down 292.30 points, Nasdaq down 260.30 points, and S&P down 55.26 points. Total NYSE volume traded was a light 3.77 billion shares. Declining shares outpaced Advancing shares by 5.81:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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