Tuesday's Market Recap - Stocks Sold Off Mildly After Strong June CPI Print And Strong Bank Earnings
- cashtonsaunders
- Jul 12, 2021
- 2 min read
What is The Premarket Telling Us?
July 13, 2021 6:05 AM.
Stock futures are mostly flat at this hour. Dow futures up 12 points, Nasdaq futures up 9 points, and S&P futures were unchanged. Asian markets ended higher overnight.
On The Bond Desk:
The US 10 Year Bond Yield 1.376%, up 0.01%.
Currency Desk:
Eurodollar: 1.18
UK Pound: 1.39
Crude Oil:
WTI crude oil futures at $74.12/barrel, up 0.03%.
On the Earnings Calendar:
Goldman Sachs and JPMorgan reported strong quarterly earnings.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended higher. Japan (Nikkei 225) rose 0.52 %, Shanghai up 0.53%, Hong Kong (Hang Seng) up 1.63%.
Major European markets ended lower. German (DAX) down 0.01%, CAC 40 down 0.01%, FTSE 100 down 0.01%.
Market And Sector Dynamics
Markets opened mildly lower, with the Dow down 28 points, Nasdaq down 20 points, and the S&P fell 7 points. WTI crude oil was slightly higher at $$74.19/barrel, up 0.12%, and the US 10 Year Bond Yield slipped 0.4 basis points, to 1.358%.
After yesterday's record high closes for all three major indexes, stock have pulled back this morning, despite strong earnings performances from Goldman Sachs, and less stellar, by solid performance from JPMorgan. The bank handily beat earnings, and revenue, but trading revenues came up less than expected.
The Bureau of Labor Consumer Price Index (CPI) for June rose 0.9%, after jumping 0.6% in May, confirming the economy is firing on all cylinders, and is in great shape. The market did not respond in one way or the other after this solid report.
The Dow remained below the neutral line for the entire trading session, but slipped lower during afternoon trading.
Today's moderate selloff saw ten of the eleven S&P sectors ended the day lower, led by Real Estate, Consumer Discretionary, Financials, Industrials, Basic Materials, Utilities, Energy, Communication Services, Healthcare, and Consumer Staples. Technology was modestly higher.
Factors Influencing Today's Market
June Consumer Price Index (CPI) rose 0.9% vs 0.6% in May, confirming strong economic growth.
Strong quarterly earnings report from Goldman Sachs, and JPMorgan Chase.
US 10 Year Bond ended the day at 1.418%, up 3.69%.
WTI crude oil closed today at $75.16/barrel, up 1.43%.
Asian markets ended with gains, while European stocks ended with losses.
Market Close Volume Traded And Advance Decline Ratio
When trading ended today all three major indexes were lower. The Dow fell 107.38 points, Nasdaq lost 55.69 points, and the S&P fell 15.42 points. Total NYSE volume traded, a light 3.74 billion shares. Declining shares outpaced Advancing shares by 2.97:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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