Thursday's Market Tear Sheet - Stocks Faded Early Rally As Crude Oil Prices And Bond Yields Rise.
- cashtonsaunders
- Aug 11, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, August 11, 2022, 7:00 AM.
Stock futures pointed to a higher start early, driven by a strong quarterly earnings performance reported by Disney, after the close of trading yesterday evening. Dow futures were up 150 points, Nasdaq futures were up 25 points, and S&P futures up 14 points. Asian markets traded mixed overnight.
On The Bond Desk:
The US 10-Year Bond Yield at 2.786%, down 0.011%.
Currency Desk:
Eurodollar: 1.03
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $92.87/barrel, up 1.02%.
On the Earnings Calendar:
Disney reported a strong earnings quarter, beating analyst earnings and revenue estimates, including strong subscriber growth.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) down 0.65 %, Shanghai up 1.60%, Hong Kong (Hang Seng) up 2.32%.
Major European markets closed modestly mixed. German (DAX) down 0.05%, France CAC 40 up 0.33%, London FTSE 100 down 0.55%.
Market And Sector Dynamics
Five minutes after the market opened, the major indexes were convincingly higher. The Dow gained 211 points, Nasdaq up 64 points, and the S&P up 23 points. The US 10 Year Bond Yield opened at 2.739%, down 0.047 basis points. WTI started the day at 91.55/barrel, down 0.413%, and the US 10 Year Bond opened at up 0.21%.
Strong quarterly earnings from Disney buoyed markets today, as did July the July PPI which added confirmation to yesterday's CPI, that showed inflation has cooled. At the high, the Dow was up 300 points, about an hour after the open. Stocks gradually turned lower halfway through the morning session, as crude oil and the US Bond Yields ticked higher later in the session. Market tone was mildly negative.
Six of the eleven S&P sectors ended today with mild losses, led by Healthcare, Consumer Discretionary, Real Estate, Technology, Consumer Staples, and Utilities. Energy, Financials, Industrials, Basic Materials, and Communication Services ended the day higher.
Factors Influencing Today's Market
Disney reported better-than-expected second-quarter earnings results, including strong subscriber growth.
Lower than expected July PPI data released today show inflation cooling. The number came in at -0.5% vs 0.3% consensus estimate.
This week's Initial Jobless Claims showed 262,000 new claims for unemployment benefits, an increase of 14,000.
US 10 Year Bond Yield closed at 2.889%, up 3.76%.
WTI crude oil ended trading today at $94.34/barrel, up 2.62%.
Both Asian and European markets were mostly lower.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading stocks ended mixed. The Dow gained 27.16 points, Nasdaq lost 74.89 points, and the S&P fell 2.97 points. Total NYSE volume traded was a modest 4.66 billion shares. Advancing shares outpaced Declining shares by 1.47:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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