Tuesday's Market Tear Sheet - Another Down Day For Stocks Due To InflationFear.

cashtonsaunders
Aug 22, 2022
2 min read

Updated: Aug 24, 2022

What is The Premarket Telling Us?

Tuesday, August 23, 2022, 7:11 AM.

US stock futures were flat at the seven o clock hour. Dow futures down 1 point, Nasdaq futures up 3 points, and S&P futures neutral. Asian markets were all lower overnight.

On The Bond Desk:

The US 10-Year Bond Yield at 3.037%, up 0.048%

Currency Desk:

Eurodollar: 0.993

UK Pound: 1.17

Crude Oil:

WTI crude oil futures at $91.91/barrel, up 1.72%.

On the Earnings Calendar:

Zoom reported disappointing quarterly results after the close yesterday. Shares of the company fell in the extended markets.

Palo Alto reported strong quarterly earnings results which sent shares of the company sharply higher in the extended markets.

In M&A News:

None to report

What About The Asian And European Markets?

Major Asian markets were down. Japan (Nikkei 225) fell 1.19%, Shanghai down 0.05%, Hong Kong (Hang Seng) down 0.78%.

Major European markets traded lower across the pond. German (DAX) down 0.27%, France CAC 40 down 0.26%, London FTSE 100 down 0.61%.

Market And Sector Dynamics

Markets opened today's trading session mostly flat. The Dow was down 31 points, Nasdaq down 9 points, and S&P added a fraction 0.56 point.

WTI crude oil was slightly higher at the start at $90.83/barrel, up $0.60, and the US 10 Year Bond started out at 3.020%, mostly unchanged.

Retailers Macy's and Nordstrom disappointed markets this morning by reporting weaker than expected earnings, including cuts in their profit outlooks. Shares of both companies fell today.

Except for a brief moment above the flat line during the morning stocks traded in negative territory for the entire session, as investors exercise caution ahead of the Federal Reserve's meeting in Jackson Hole, Wyoming, later this week. Markets are hoping to gauge what the Fed will do at their next meeting in September. Does recent US Data on inflation give them a reason to hike by 75 basis points or 50 basis points? That's the market's dilemma.

Seven of the eleven S&P sectors ended with losses today, led by Real Estate, Healthcare, Communication Services, Utilities, Consumer Staples, Financials, and Technology. Energy, Basic Materials, Consumer Discretionary, and Industrials.

Factors Influencing Today's Market

Investors remain cautious about inflation and the Federal Reserve ahead of the Fed meeting in Jackson Hole, Wyoming on Thursday & Friday.
Shares of Palo Alto rallied today after the company reported strong quarterly earnings results.
Shares of Zoom fell in today's session after the company reported a disappointing earnings quarter.
US 10-Year Bond closed at 3.059%, up 117%.
WTI crude oil closed the day at $93.74/barrel, up 3.89%.

Market Close Volume Traded And Advance Decline Ratio

US stock markets took another leg down today, with the Dow down 154.02 points, Nasdaq down 0.27 point, and the S&P down 9.26 points. Total NYSE volume traded was a light 3.87 billion shares. Declining shares outpaced Advancing shares by 1.34:1.

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