Tuesday's Market Tear Sheet - Investors Went On A Broad-Based Buying Spree Today.
- cashtonsaunders
- Jul 19, 2022
- 2 min read
What is The Premarket Telling Us?
Tuesday, July 19, 2022.
Stock futures were modestly higher in the premarket, as investors appeared ready to claw back yesterday's modest losses. Asian markets were mixed in their sessions overnight. IBM reported quarterly earnings after the close of trading yesterday, The company beat on both the top and bottom line, and forward guidance was good, but investors feared that currency issue could pressure its earnings going forward. Shares of IBM rose in the aftermarket but turned lower in today's premarket session.
On The Bond Desk:
The US 10-Year Bond Yield at 2.960%, up 0.03%
Currency Desk:
Eurodollar: 1.02
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $100.27/barrel, down 2.27%.
On the Earnings Calendar:
Netflix reports quarterly earnings after the closing bell this evening.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.65%, Shanghai up 0.04%, Hong Kong (Hang Seng) down 0.89%.
Major European markets closed higher. German (DAX) up 2.69%, France CAC 40 up 1.79%, London FTSE 100 up 1.01%.
Market And Sector Dynamics
Markets opened the session moderately positive. The Dow gained 94 points, Nasdaq gained 155 points, and S&P gained 30 points. Crude oil opened for trading today, below the $100 level, at $98.86/barrel, and the US 10 Year Bond Yield started the day at 2.986%.
Stocks maintained upward momentum from the opening bell, remained solidly elevated for the entire session, and closed at the high of the day, driven by consensus among investors that Q2 earnings season so far has been better than feared, and that the fear of imminent recession had subsided, somewhat. While investors remained worried about continued aggressive rate hikes by the Federal Reserve, supply chain issues, and the fallout of Putin's use of oil as a political weapon in Europe and elsewhere. Investors chose to remove those issues from the wall of worry, at least for today.
Today's rally was broad-based with all eleven S&P sectors ending with solid gains in today's session, led by Communication Services, Industrials, Energy, Basic Material, Consumer Discretionary, Financials, Technology, Real Estate, Consumer Staples, and Utilities.
Factors Influencing Today's Market
Although early, earnings for the second quarter so far, have been better than first feared.
Asian and European markets were mostly higher in their sessions.
US 10 Year Bond Yield ticked higher at 3.028%, up 1.31%.
WTI Crude oil closed today at $100.45/gallon, up 1.04%.
June Housing Starts and Permits came in weaker than expected 1.559 vs 1.588 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
US stocks soared significantly higher today. At the close of trading the Dow surged 754.44 points, Nasdaq jumped 353.10 points, and the S&P gained 105.84 points. Total NYSE volume trade was a light 4.09 billion shares. Advancing shares outpaced Declining shares by nearly 5:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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