Tuesday's Market Tear Sheet - A Hotter Than Expected CPI Report Sent Stocks Tumbling.
- cashtonsaunders
- Sep 13, 2022
- 2 min read
What is The Premarket Telling Us?
Tuesday, September 13, 2022, 6:32 AM.
US stock futures were nicely higher for a fifth straight session three hours ahead of the start of trading. Dow futures were up 143 points, Nasdaq futures up 54 points, and S&P futures up 19 points. Major Asian markets ended mixed.
On The Bond Desk:
The US 10-Year Bond Yield at 3.36%, up 0.041%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.17
Crude Oil:
WTI crude oil futures at $88.62/barrel. up 0.93%.
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 mixed. Japan (Nikkei 225) up 0.25%, Shanghai up 0.05%, Hong Kong (Hang Seng) down 0.10%.
Major European markets ended lower today. German (DAX) down 1.59%, France CAC 40 down 1.39%, London FTSE 100 down1.17%
Market And Sector Dynamics
US markets opened markedly negative in response to the hotter than expected CPI report, released by the government at 8:30 AM. The Dow plunged 530 points, Nasdaq plummeted 342 points and S&P down 85 points. WTI crude oil started the day off at $88.06/barrel, up 0.32%, while the US 10 Year Bond hovered at 3.344%, down 0.014%.
Markets were under pressure for the entire session as investors voted with their feet, after the release of the CPI report which showed that inflation was not coming down fast enough, so the Fed will have to continue its large rate hikes. Because of this report, many investors believe that a 0.75% rate hike was almost guaranteed later this month. Some also believe a 100% hike is a distinct possibility. Market trended even lower in the afternoon session, to close at the low of the session.
Today's selloff was broad-based and deep, and market tone was mostly negative but orderly. All eleven S&P sectors ended with significant losses, led by Communication Services (5.63%), Technology (5.35%, Consumer Discretionary (5.22%), Real Estate (3.84%), Industrials (3.79%), Financials (3.77%), Basic Materials (3.54%), Consumer Staples (3.31%), Healthcare (3.27%), Utilities (2.69%), and Energy (2.45%).
Factors Influencing Today's Market
Today's Consumer Price Index (CPI) report showed an increase of 0.1% vs -0.1% estimates, and higher than the neutral in August.(M/M).
US 10-Year Bond Yield close today at 3.412%, up 1.61%.
WTI crude oil price ended today at $87.60/barrel, down 0.21%.
Major Asian markets ended mixed today, while European markets ended lower.
Market Close Volume Traded And Advance Decline Ratio
US stocks tumbled sharply lower in today's trading with the Dow sinking 1276.37 points, Nasdaq plunging 632.84 points, and the S&P dived 177.72 points. Total NYSE volume traded was a light 4.22 billion shares. Declining shares outpaced Advancing shares by more than 7:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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