Tuesday's Market Recap - Stocks Rally Broadly As Fed Chair Confirmation Hearing Occurs In Senate.
- cashtonsaunders
- Jan 11, 2022
- 2 min read
What is The Premarket Telling Us?
January 11, 2022, 7:30AM.
US stock futures were modestly higher early in the premarket. Dow futures were up 68 points, Nasdaq futures up 80 points, and S&P futures up 16 points. Asian markets were lower overnight. Investors will be laser-focused on Fed Chair, Jerome Powell's reconfirmation hearing in the Senate this morning.
On The Bond Desk:
The US 10 Year Bond Yield at 1.780%, up 0.0090%
Currency Desk:
Eurodollar: 1.13
UK Pound: 1.35
Crude Oil:
WTI crude oil futures at $61.23/barrel, down 1.46%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended lower in their sessions. Japan (Nikkei 225) down 0.90%, Shanghai 0.73%, Hong Kong (Hang Seng) down 0.18%.
Major European markets closed higher. German (DAX) rose 1.10%, France CAC 40 up 0.95%, London FTSE 100 up 0.2%.
Market And Sector Dynamics
Stocks opened mixed to start today's trading session, with the Dow up 22 points, Nasdaq up 7 points, and the S&P down 0.07 of a point. WTI crude oil started off higher at $79.76/barrel, up 1.96%, while the US 10 Year pulled back 0.20 basis points to 1.7780%.
As has been the case since the start of the new year, markets headed lower after the open, as investors appeared cautious ahead of Fed Chair, Jerome Powell's reconfirmation hearing scheduled this morning in the Senate. Markets have been skittish all last week on worry that the Federal Reserve plans to reduce the taper, and begin interest rate hikes, would hurt corporate earning, and US economic growth. Shares of technology stocks have borne the brunt of those losses so far this year.
Stocks turned around shortly before eleven o clock and continued to rally during the Fed Chair's question and answer session in the Senate and gained momentum during the remaining session. Chairman Powell did not retract any of the FOMC policy plans but calmly reiterated their policy stance, and confirmed that the US economy was very strong. The Chairman appeared confident that he could guide the economy to a soft landing.
Market fears appeared to have been calmed by the chairman's remarks.
Today's market rally was broad-based and market tone was positive. Eight of the eleven S&P sectors ended the session with gains, led by Energy, Technology, Basic Materials, Consumer Discretionary, Communication Services, Financials, Healthcare, and Industrials. Utilities, Real Estate, and Consumer Staples were ended lower.
Factors Influencing Today's Market
Stocks rallied across the board today as a re-confirmation hearing for the Fed Chair Powell took place in Senate.
Asian markets ended lower in their session today, while European markets ended with gains.
US 10 Year Bond Yield closed at 1.746%, down 0.50%.
WTI crude oil closed at $81.27/barrel, up 3.89%.
Market Close Volume Traded And Advance Decline Ratio
The three major indexes were all higher at the close. The Dow gained 183.15 points, Nasdaq gained 210.62 points, and the S&P added 42.78 points. Total NYSE volume traded, a light 4.11 billion shares. Advancing shares outpaced Declining shares by 2.79:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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