Monday's Market Tear Sheet - Stock Staged A Moderate Rally Ahead Of Wednesday's Fed Decision.
- cashtonsaunders
- Sep 19, 2022
- 2 min read
What is The Premarket Telling Us?
Monday, September 19, 2022, 7:44 AM.
US stock futures were solidly negative early. Dow futures were down 262 points, Nasdaq futures down 119 points, and S&P futures were down 35 points. This is the beginning of a very important week for investors. The Fed/FOMC is scheduled to begin its September meeting on Tuesday and will announce its policy decision on Tuesday afternoon. A 0.75 basis point hike is anticipated by the markets. Queen Elizabeth was laid to rest today after a state funeral at Westminster Abby, attended by dignitaries from across the globe, including President Biden, and First Lady Jill Biden.
On The Bond Desk:
The US 10-Year Bond Yield at 3.448%, down 0.011%.
Currency Desk:
Eurodollar: 0.99
UK Pound:1.13
Crude Oil:
WTI crude oil futures at $82.67/barrel, down 2.87%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended the day lower. Japan (Nikkei 225) down 1.11%, Shanghai down 0.35%, Hong Kong (Hang Seng) down 1.04%
Major European markets ended mixed today. German (DAX) gained 0.49%, France CAC 40 fell 0.26%, London FTSE 100 down 0.62%.
Market And Sector Dynamics
Half an hour after the opening bell the major US indexes were mildly lower. The Dow was down 64 points, and Nasdaq was down19 points, and the S&P was down 7 points. WTI was down a fraction at $85.21/barrel, and US 10 Year Bond was at 3.448%.
Stocks were under pressure, as Investors were being cautious ahead of the Fed/FOMC September policy meeting which begins tomorrow.
Markets are anticipating either a seventy-five or one hundred basis points rate hike announcement on Wednesday. The consensus estimate is for a 75 basis point hike.
Market sentiment has was further weakened after President Biden appeared on 60 Minutes on Sunday evening and declared that the Pandemic was over, and that sent shares of drugmakers, Moderna, Pfizer, and BioNTech lower.
Stocks opened the session lower but turned around mid-morning, but traded in a narrow range for most of the remaining session, before gaping higher into the close of trading
Nine of the eleven S&P sectors closed with gains in today's session, led by Basic Materials, Consumer Discretionary, Industrials, Utilities, Financials, Technology, Consumer Staples, and Consumer Staples. Healthcare and Consumer Staples ended lower.
Factors Influencing Today's Market
Investors were cautious ahead of the Fed/FOMC policy meeting which begins tomorrow.
President Biden appeared on 60 Minutes Sunday evening and declared that the Pandemic was over, sending shares of the drugmaker, Moderna, Pfizer, and BioNTech lower.
US 10 Year Bond ended today at 3.494%, up 1.13%.
WTI crude oil closed price closed at $85.73/barrel, up 0.73%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended on Monday, the three major US markets were higher. The Dow gained 197.26 points, Nasdaq gained 86.62 points, and the S&P gained 26.56 points. Total NYSE volume traded was a light 3.77 billion shares. Advancing shares outpaced Declining shares by1.39:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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