Thursday's Market Tear Sheet - Stocks Up On Less Bad Earnings, Falling Crude Prices And Bond Yields
- cashtonsaunders
- Jul 21, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, July 21, 2022, 8:30 AM.
US stock futures were mostly lower in the premarket. Dow futures were down 125 points. Nasdaq futures were down12.25 points, and S&P futures were down 11.75 points. Asian markets ended their sessions mixed. Across the pond, the European Central Bank, raised its interest rate by fifty basis points, for the first time in eleven years.
On The Bond Desk:
The US 10-Year Bond Yield at 3.036%, up 0.017%.
Currency Desk:
Eurodollar: 1.02
UK Pound: 1.19
Crude Oil:
WTI crude oil futures at $95.15/barrel, down 4.74%.
On the Earnings Calendar:
Snap reports quarterly earnings after the closing bell today.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.44%, Shanghai down 0.99%, Hong Kong (Hang Seng) down 1.51%.
Major European markets closed mixed. German (DAX) down 0.27%, France CAC 40 up up 0.27%, London FTSE 100 up 0.09%.
Market And Sector Dynamics
Markets opened the trading session mostly lower with the Dow down 136 points, Nasdaq up 10 points, and the S&P down 6 points. WTI crude oil started the day lower at and the US 10 Year Bond Yield started off at 3.021%.
Investors were responding positively to a decline in the 10 Year Bond Yield, falling crude oil prices, and a better-than-expected overall earnings performance so far, and particularly from Tesla, the catalyst which drove market sentiment higher in the session.
The rally was broad-based with nine of the eleven S&P sectors ending higher in today's session, led by Consumer Discretionary, Healthcare, Technology, Basic Materials, Real Estate, Industrials, Financials, Consumer Staples, and Utilities. Energy and Communication Services were lower.
Factors Influencing Today's Market
European Central Bank raised its interest rates by fifty basis points (0.50%), for the first time in eleven years.
Tesla beats quarterly earnings estimates, which sent shares higher, lending positive sentiment to today's session.
This week, Initial Jobless Claims rose more than expected at 251,000 vs 244,000 in the prior week, suggesting a weakening job market.
US 10-Year Bond Yield closed today at 2.882%, down 4.89%.
WTI crude oil price ended today at $93.78/barrel, down 6.11%.
Market Close Volume Traded And Advance Decline Ratio
US stocks rallied for a third consecutive day. At the close of trading the Dow gained 162.06 points, Nasdaq gained 161.96 points, and the S&P gained 35.05 points. Total NYSE volume traded was a modest 4.13 billion shares. Advancing shares by 1.63:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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