Friday's Market Tear Sheet - Strong Quarterly Earnings From Apple And Amazon Drove Stocks Higher.
- cashtonsaunders
- Jul 29, 2022
- 2 min read
What is The Premarket Telling Us?
Friday, July 29, 2022, 8:00 AM.
US stock futures were moderately positive at this hour, following yesterday's convincing rally. Dow futures were up 72 points, Nasdaq futures up 124, and S&P futures up 26 points. Asian markets traded lower in their session.
On The Bond Desk:
The US 10-Year Bond Yield at 2.681%, down 0.053%.
Currency Desk:
Eurodollar: 1.02
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $98.57/barrel, up 2.23%.
On the Earnings Calendar:
Apple and Amazon beat quarterly earnings expectations after the close of trading yesterday. Shares of both companies rallied higher in the aftermarket.
In M&A News:
Yesterday, Jetblue announced an agreement to buy Spirit Airlines for $3.8 billion in cash.
What About The Asian And European Markets?
Major Asian markets ended lower today. Japan (Nikkei 225) down 0.05%, Shanghai down 0.89%, Hong Kong (Hang Seng) down 2.37%.
Major European markets finished higher. German (DAX) gained 1.52%, France CAC 40 up 1.72%, London FTSE 100 1.06%.
Market And Sector Dynamics
Markets opened today's trading session mostly higher. The Dow slipped 17 points, but the Nasdaq was up 56 points, and the S&P added 12 points. WTI crude oil started the day higher at $97.41/barrel, up 1.03%, and the US 10 Year Bond 2.678%, up 0.2621%. Strong quarterly earnings from Amazon and Apple after the close of trading yesterday. While inflation remains a big concern, the real question being asked by pundits and economists alike, is are we in a recession? Yesterday's GDP report showed the US GDP contracted for a second consecutive quarter, which is a technical definition of a recession, but the labor market remains strong, with the employment rate at 3.6%, and the consumer balance sheets are flushed with cash, and consumer spending remains elevated.
Market performance today charted from the lower left to the upper right, in a true risk-on fashion. Market tone was positive and the rally was broad-based. Nine of the eleven S&P sectors ended with gains today, led by Energy, Consumer Discretionary, Industrials, Technology, Financials, Basic Materials, Utilities, Communication Services, and Real Estate. Consumer Staples and Healthcare ended lower.
Factors Influencing Today's Market
Strong quarterly earnings results from Apple and Amazon drove today's market action.
US 10 Year Bond Yield closed at 2.658%, down 0.48%.
WTI crude oil ended with gains today at $98.16/barrel, up 1.80%
This week's Baker Hughes Oil Rig count rose 9 rigs to 767 total.
Chicago PMI for July came in lower than expected 52.1 vs 56.0 consensus estimate.
July Consumer Sentiment held at 51.5 vs 51.1 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading on Friday, markets were higher. The Dow soared 315.50 points, Nasdaq gained 228.09 points, and S&P gained 57.06 points. Total NYSE volume traded was a modest 4.65 billion shares. Advancing shares outpaced Declining shares by 2.54:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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