Tuesday's Market Recap - Stocks Tank As Bond Yields Rise.

What is The Premarket Telling Us?

January 18, 2022, 7:00 AM.

US stock index futures were decidedly lower at two and a half hours before the start of trading. Dow futures down 241 points, Nasdaq futures down 258 points, and S&P futures down 49 points. Investors were responding to an uptick in the US 10 Year Bond yield. Asian markets ended mixed overnight.

On The Bond Desk:

The US 10 Year Bond Yield ticked markedly higher at 1.827%, up 0.055%

Currency Desk:

Eurodollar: 1.13

UK Pound: 1.35

Crude Oil:

WTI crude oil futures at $84.95/barrel. up 1.35%.

On the Earnings Calendar:

Goldman Sachs reported

In M&A News:

Microsoft is buying Activision Blizzard video game company in a deal worth $68.7 Billion.

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What About The Asian And European Markets?

Major Asian markets ended mixed. Japan (Nikkei 225) was down 0.27%, Shanghai added 0.80%, Hong Kong (Hang Seng) down 0.43%.

Major European markets also fell in their session. German (DAX) fell 1.01%, France CAC 40 down 0.94%, London FTSE 100 fell 0.63%.

Market And Sector Dynamics

A few minutes after the opening bell, here is where stocks were trading. The Dow plunged 550 points, Nasdaq sank 285 points, and the S&P fell 68 points. WTI crude oil prices also got off to a positive start at $84.65/barrel, up 0.99%, and the US 10 Year Bond Yield hovered at 1.84%, up 0.68 basis points.

Markets remained under pressure for the entire trading session with deep selloff across all sectors. At the low of the session, the Dow was down 640 points shortly after 1:00 PM., as investors feared that because of inflation pressure, the Fed would be forced to hike interest rate which would stymy economic activity. As a result, the markets have been repricing shares to compensate for rising bond yields.

Ten of the eleven S&P sectors ended in the red today, led by Technology, Financials, Communication Services, Consumer Discretionary, Consumer Staples, Healthcare, Basic Materials, Utilities, Industrials, and Real Estate. The Energy sector was modestly higher.

Factors Influencing Today's Market

Goldman Sachs reported disappointing fourth-quarter earnings results before the start of trading this morning.

Microsoft to buy Activision Blizzard video game company.

Asian markets ended mixed, while European markets ended with losses.

The US 10 Year Bond Yield ticked threateningly higher today at 1.872%, up 3.47%.

WTI crude oil prices ended today at $86.11/barrel, up 2.89%.

Market Close Volume Traded And Advance Decline Ratio

When trading closed today, all the three major indexes were deep in the red, as the sell-off continued. The Dow plunged 543.34 points, Nasdaq dived 386.86 points, and the S&P lost 85.74 points. Total NYSE volume traded a modest 4.76 billion shares. Declining shares outpaced Advancing shares by 5.52:1.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.