Tuesday's Market Tear Sheet - Stocks Fell On Weak Earnings From Walmart And General Motors.
- cashtonsaunders
- Jul 25, 2022
- 2 min read
What is The Premarket Telling Us?
US stock futures were weak early, indicating a lower open. Dow futures were down 161 points, Nasdaq futures down 60 points, and S&P down 17 points. Major Asian markets ended lower. Disappointing earnings from Walmart after the close of trading yesterday weighed down markets early in the session.
On The Bond Desk:
The US 10-Year Bond Yield at 2.820% up 0.037%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.19
Crude Oil:
WTI crude oil futures at $98.23/barrel, up 1.58%.
On the Earnings Calendar:
Coca-Cola, Mcdonald's, and 3M reported better than expected earnings results.
Walmart reported disappointing earnings after the close of trading yesterday, and General Motor reported weaker than expected earnings before the start of trading today.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets were mixed overnight. Japan (Nikkei 225) down 0.16%, Shanghai up 0.83%, Hong Kong (Hang Seng) up 1.67%.
Major European markets ended lower. German (DAX) down 0.86%, France CAC 40 down 0.42%, London FTSE 100 was flat.
Market And Sector Dynamics
Ten minutes after the opening markets were lower across the board primarily on weakness from shares of Walmart, after a disappointing earnings report. General Motors (GM) also reported weaker than expected earnings further pressuring markets. The Dow was down 95 points, Nasdaq down 116 points, and the S&P was down 21 points. WTI crude oil was off to a positive start at $98.04/barrel, up 1.38%, and the US 10 Year Bond Yield hovered at 2.718%.
Stocks traded below neutral for the entire session and closed just off the low of the session, as investors tried to determine whether Chairman Powell and the FOMC will be able to successfully, hike interest rates just enough to curb inflation without pushing the US economy into a recession.
Market tone was mostly negative with eight of the eleven S&P sectors ending the day with losses, led by Consumer Discretionary, Communication Services, Technology, Financials, Energy, Basic Materials, and Industrials. Utilities, Healthcare, and Real Estate ended the day lower.
Factors Influencing Today's Market
Disappointing quarterly earnings results by Walmart weighed down market sentiment in the session, despite better-than-expected earnings from 3M, Coca-Cola, and McDonald's.
The Fed's/FOMC began its August interest rate policy meeting today. Investors are expecting a 0.75% interest rate hike tomorrow afternoon.
Asian markets ended mixed, but European markets ended lower.
US 10 Year Bond closed today at 2.803%, down 0.38%.
WTI crude oil ended today at $94.98/barrel, down 1.78%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended on Tuesday, all three major indexes were lower. The Dow fell 228.50 points, Nasdaq lost 220.09 points, and the S&P lost 45.79 points. Total NYSE volume traded was a very light 3.80 billion shares. Declining shares outpaced Advancing shares by 1.38:1
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments