Thursday's Market Tear Sheet - Dow Down On Steady Rise In Initial Jobless Claims.
- cashtonsaunders
- Aug 4, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, August 4, 2022, 6:33 AM.
Futures were mostly flat to mildly higher three hours before the start of trading. Dow futures were up 71 points, Nasdaq futures up 62 points, and S&P futures were up 12 points. Asian markets ended gains overnight.
On The Bond Desk:
The US 10-Year Bond Yield at 2.748%, up 0.007%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $91.66/barrel, up 1.10%.
On the Earnings Calendar:
Chinese online giant, Alibaba beat earnings expectations before the start of trading this morning. Shares traded higher in the premarket.
Eli Lilly's earnings results disappointed investors. The company missed earnings estimates and traded lower.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended their session with gains. Japan (Nikkei 225) up 0.69%, Shanghai up 0.80%, Hong Kong (Hang Seng) up 2.06%.
Major European markets finished their session higher. German (DAX) up 0.55%, France CAC 40 up 0.64%, London FTSE 100 up 0.03%.
Market And Sector Dynamics
The markets opened mostly flat to start the day's trading. The Dow was down 41 points, Nasdaq gained 18 points, and the S&P was down a fraction (-0.74). WTI crude oil started off at $90.95/barrel, and the US 10 Year Bond hovered lower at 2.638%. Today's Bureau of Labor Employment Status Report showed three straight weeks of increased claims for unemployment benefits which were up 6,000 to 260,000. This would suggest that the labor market was slowing.
Better than expected earnings performance from Chinese online giant, Alibaba, a decline in crude oil prices, and a lower 10 Year Bond Yield allowed high technology growth stock to continue their rally. Stocks traded below the flat line in a choppy session today, as the markets looked for direction.
Today's session was mildly positive, with seven of the eleven S&P sectors ending with modest gains, led by Consumer Discretionary, Technology, Industrials, Communication Services, Real Estate, Utilities, and Basic Materials. Energy, Healthcare, and Financials were the main drag on markets today.
Factors Influencing Today's Market
Investors are becoming convinced that the Fed/FOMC could engineer a soft landing and avoid a deep recession.
This week's EIA Status Report showed 260,000 new claims for unemployment benefits compared to 254,000 in the prior week.
Asian and European markets ended their sessions with gains.
US 10 Year Bond Yield ended the session at 2.694%, down 0.47%.
WTI crude oil closed at $88.54/barrel, down 2.34%.
Market Close Volume Traded And Advance Decline Ratio
Markets were mixed when trading ended for the day. The Dow was down 85.68 points, Nasdaq gained 52.42 points. and the S&P lost 3.23 points. Total NYSE volume traded was a modest 4.31 billion shares. Declining shares slightly outpaced Advancing shares by 1.01:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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