Tuesday's Market Tear Sheet - Fed Has Markets Firmly In Its Grip.
- cashtonsaunders
- Aug 30, 2022
- 2 min read
What is The Premarket Telling Us?
Tuesday, August 30, 2022, 8:15 AM.
US stocks looked all set to rally on Tuesday morning, as indicated by the futures, which were comfortable in the green. Dow futures were up 192 points, Nasdaq futures up 123 points and S&P futures were up 29 points.
On The Bond Desk:
The US 10-Year Bond Yield at 3.110%, up 0.075%.
Currency Desk:
Eurodollar: 1.00
UK Pound: 1.17
Crude Oil:
WTI crude oil futures at $94.26/barrel, down 2.83%.
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 1.14%, Shanghai down 0.42%, Hong Kong (Hang Seng) down 0.37%.
Major European markets closed mixed. German (DAX)up 0.53%, France CAC 40 down 0.19%, London FTSE 100 down 0.88%.
Market And Sector Dynamics
Markets opened modestly positive but faded those gains fifteen minutes later with the Dow down 12 points, Nasdaq down 3 points, and the S&P down 7 points. Markets were respionding to the release of higher than expected JOLTS (Job Openings Report), and a stronger than expected
Consumer Confidence report, confirming continued strength of the labor economy. This would mean that the Fed would have to continue raising rates for longer to dampen inflation, and that's a negative for equity markets.
Markets traded comfortably in the red for the entire session. At the intraday low the Dow was down nearly 420 points, but recovered a fraction of those losses by the close of trading.
All eleven S&P sectors closed with losses today, led by Energy, Basic Materials, Industrials, Utilities, Real Estate, Consumer Discretionary, Technology, Consumer Staples, Communication Services, Healthcare, and Financials.
Factors Influencing Today's Market
The Fed has finally gotten the markets attention.
JOLTS Job Openings) came in better than expected at 11.23 million jobs vs 10.3 million jobs estimated.
Consumer Sentiment for August was better than expected 103.2 vs 97.4 expected
Reports of new zero covid lockdowns in certain areas in China.
US10 Year Bond Yield closed at 3.112%, down 0.06%.
WTI crude oil price ended today at $92.09/barrel, down 5.07%.
Market Close Volume Traded And Advance Decline Ratio
At the end of trading today, the major US indexes were all lower for a third straight day. The Dow lost 308.12 points, Nasdaq fell 134.53 points, and the S&P lost 44.45 points. Total NYSE volume traded was a light 3.85 billion shares. Declining shares outpaced Advancing shares by 3.76:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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