Tuesday's Market Tear Sheet - Weak Caterpillar Earnings & Fed Governors' Comments Sent Stocks Lower.
- cashtonsaunders
- Aug 2, 2022
- 2 min read
What is The Premarket Telling Us?
Tuesday, August 2, 2022, 7:30 AM.
Futures were moderately negative two hours before the start of trading this morning. Dow futures were down 181 points, Nasdaq futures down 95 points, and S&P futures down 26 points. Asian markets were all lower, ahead of Speaker Pelosi's possible visit to Taiwan, later today.
On The Bond Desk:
The US 10-Year Bond Yield at 2.606%, down 0.0360%.
Currency Desk:
Eurodollar:1.02
UK Pound: 1.22
Crude Oil:
WTI crude oil futures at $94.25/barrel, up 0.38%.
On the Earnings Calendar:
Uber reported better than expected earnings results, beating revenue estimated. Shares rallied higher.
Caterpillar reported an earnings disappointment. Shares of this industrial company were down in the premarket.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed in negative territory in their sessions. Japan (Nikkei 225) lost 1.42%, Shanghai down 2.26%, Hong Kong (Hang Seng) down 2.36%.
Major European markets ended lower. German (DAX) down 0.23%, France CAC 40 down 0.42%, London FTSE 100 down 0.06%.
Market And Sector Dynamics
US markets opened lower with investors exercising caution ahead of Speaker Pelosi's visit to Taiwan later today, as well as, comments from two Federal Reserve governors reiterating that they were not done raising interest rates, and have more work to do. Last week there had been some indication in the markets that the Fed may pause at this juncture to assess the impact of interest hikes on the economy. There was even some wild speculation that the Fed could actually start cutting interest rates next year.
The Dow opened down 83 points, Nasdaq was down 74 points, and the S&P was down 18 points. WTI crude oil was mostly flat at $93.77/barrel, and the US 10 Year Bond hovered at the 2.55% level. Disappointing earnings from Caterpillar weighed down markets today, after the company sited withdrawal from Russia, shut down in China, and supply chain problems as key factors affecting the company's performance.
Trading was negative across the board today. All eleven S&P sectors ended the day with losses, led by Real Estate, Financials, Industrials, Basic Materials, Consumer Staples, Consumer Discretionary, Technology, Healthcare, Utilities, Energy, and Communication Services.
Factors Influencing Today's Market
Two Federal Reserve Governors shot down investor thought that the FOMC would pause interest rate hikes soon.
Speaker Nancy Pelosi pays a controversial visit to Taiwan.
Better than expected quarterly earnings from Uber before the start of trading.
Disappointing earnings results from Caterpillar sent shares of the company ending lower.
US 10 Year Bond closed at 2.747% up 6.96%.
WTI crude oil ended the day at $93.83/barrel, up 0.10%
Market Close Volume Traded And Advance Decline Ratio
At the end of trading on Tuesday, the Dow gave up 402.23 points, Nasdaq fell 20.22 points, and S&P lost 27.44 points. Total NYSE volume traded was a light 4.78 billion shares. Declining shares outpaced Advancing shares by 1.21:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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