Thursday's Market Tear Sheet - A Solid Broad-Based Rally Ahead Of Powell's Remarks Tomorrow.
- cashtonsaunders
- Aug 25, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, August 25, 6:44 AM.
US stock futures were solidly positive ahead of the start of trading. Dow futures were up 101 points, Nasdaq futures up 95 points, and S&P futures were up 23 points. Asian markets also ended higher overnight.
On The Bond Desk:
The US 10-Year Bond Yield at 3.106%, up 0.0520%
Currency Desk:
Eurodollar: 0.99
UK Pound: 1.18
Crude Oil:
WTI crude oil futures at $94.73/barrel, down 0.17%.
On the Earnings Calendar:
Buy now pay later (BNPL) Affirm reports quarterly results after the close of trading this evening.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended higher Japan (Nikkei 225) was up 0.58%, Shanghai up 0.97%, Hong Kong (Hang Seng) up 3.59%.
Major European markets closed mixed higher. German (DAX) was up 0.39%, France CAC 40 down 0.08%, London FTSE 100 up 0.11%.
Market And Sector Dynamics
Five minutes after the opening bell US markets were mixed. The Dow was down 54 points, Nasdaq was up 56 points, and the S&P was up 10 points. WTI crude oil began the day higher at $95.35/barrel, up 0.48%, and the US 10 Year Bond Yield remained unchanged at 3.109%.
Markets kept looking for direction today ahead of Fed Chair Jerome Powell's expected remarks in Jackson Hole tomorrow morning. Stocks turned mildly positive during the morning, with the Dow up 160 points, around 11:00 AM, but retreated to the flat line shortly after midday, before rallying steeply into the close of the session. An intraday decline in crude oil prices, and US 10 Year Bond Yield allowed for the rally in growth stocks.
Today's rally was broad-based, and all eleven S&P sectors participated, led by Basic Materials, Communications Services, Technology, Real Estate, Industrials, Financials, Consumer Discretionary, Healthcare, Energy, Utilities, and Consumer Staples.
Factors Influencing Today's Market
Uncertainty surrounding Jerome Powell's remarks in Jackson Hole tomorrow hangs over markets.
Preliminary read on second quarter GDP came in at minus -0.6% vs -0.9% consensus estimate.
US 10 Year Bond Yield closed today at 3.031%, down 2.51%
WTI crude oil ended the day at $92.52/barrel, down 2.20%.
This week's Initial Jobless Claims Report showed 243,000 new claims for unemployment benefits vs 255,000 expected.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading, all the major US indexes were meaningfully higher. The Dow gained 322.55 points, Nasdaq gained 207.74 points, and the S&P gained 58.35 points. Total NYSE volume traded was a light 3.57 billion shares. Advancing shares outpaced Declining shares by 3.84:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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