Thursday's Market Tear Sheet - Is The US Economy In A Recession? The Market Doesn't Think So.
- cashtonsaunders
- Jul 28, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, July 28, 2022, 7:00 AM.
US stock futures were mildly negative in the 7: 00 AM hour. Dow futures down 48 points, Nasdaq futures down 72 points, and S&P futures down 9 points. Asian stocks were mixed in their sessions.
On The Bond Desk:
The US 10-Year Bond Yield at 2.734% down 0.053%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $99.26/barrel, up 2.06%.
On the Earnings Calendar:
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.36%, Shanghai up 0.21%, Hong Kong (Hang Seng) down 0.38%.
Major European markets closed mixed. German (DAX) up 116 0.88%, France CAC 40 up 1.30%, London FTSE 100 down 2.98%.
Market And Sector Dynamics
Markets got off to a modestly negative start with the Dow up 40 points, Nasdaq rose 17 points, and S&P added 10 points. WTI crude oil open for trading at $98.08/barrel, up 0.82%, and the US 10 Year Bond Yield traded at 2.763%, down 0.789%.
Markets turned lower shortly after the open, following the release of the US GDP data showing GDP fell (-0.90%), the second consecutive quarter of negative GDP growth, which is the technical definition of a recession. The Dow fell 200 points on that news. After that brief search for direction, however, the markets recovered and returned to positive territory remaining elevated for the rest of the session. Strong quarterly earnings results from Master Card (MA), passage of the Chips Bill by the Senate, an agreement on a Reconciliation Bill by Senator Manchin and Senator Schumer, and an agreement by Jetblue to buy Sprint for $3.8 Billion in cash all added positive sentiment to the markets taking stocks higher.
Seven of the eleven S&P sectors ended the day with gains, led by Real Estate, Utilities, Basic Materials, Consumer Discretionary, Consumer Staples, Technology, Financials, Healthcare, and Energy. Communication Services ended lower.
Factors Influencing Today's Market
US GDP data contracted for the second consecutive quarter, falling by -0.90%
This week's Initial Jobless Claims rose 256,000 vs 249.000 estimated. (more than expected)
Strong earnings results from Master Card (MA) were a positive catalyst for markets today.
Passage of the Chips Bill by the US Senate and an agreement between Senator Manchin and Senator Schumer was also cheered by investors.
In merger news, Jetblue agreed to buy Spirit Airlines in a cash deal worth $3.8 billion.
US 10 Year Bond Yield closed at 2.671%, down 4.11%.
WTI crude oil closed today at $96.42/barrel, down 0.86%.
Market Close Volume Traded And Advance Decline Ratio
The major indexes rallied in today's trading. At the close, the Dow gained 332.04 points, Nasdaq gained 130.17 points, and the S&P gained 48.82 points. Total NYSE volume traded was a modest 4.31 billion shares. Advancing shares 3.15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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