Wednesday Market Recap - Fed Chair Powell Appear To Confirm A Quarter Point At March Meeting.
- cashtonsaunders
- Mar 3, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, March 2, 2022, 7:30 AM.
US stock futures trended moderately higher early in the premarket. Dow futures rose 244 points, Nasdaq futures up 113 points, and S&P futures up 32 points. Fed Chair, Jerome Powell testifies before the House Finance Committee, on Capitol Hill this morning, and could give some clue as to the size of any potential rate hike in March, especially against the backdrop of geopolitical tensions between Russia and Ukraine. Asian markets ended lower.
On The Bond Desk:
The US 10 Year Bond Yield at 1.707%, down 0.1320%.
Currency Desk:
Eurodollar: 1.11
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $109.75/barrel, up 6.13%.
On the Earnings Calendar:
Salesforce reported better than expected quarterly results, beating earnings and revenue expectations. Shares of the company are up in the premarket.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended lower today. Japan (Nikkei 225) down 1.68%, Shanghai down 0.13%, Hong Kong (Hang Seng) down 1.88%.
Major European markets closed higher in their session. German (DAX) up 0.69%, France CAC 40 up 1.59%, London FTSE 100 up 1.36%.
Market And Sector Dynamics
Markets opened the trading session convincingly positive, after yesterday's sell-off. The Dow gained 191 points, Nasdaq gained 51 points, and S&P gained 23 points. WTI crude oil extended its gains, up another 6.7%, to $110.37/barrel, and the US 10 Year Bond ticked higher at 1.789%, up 7.8 basis points.
Today, unlike yesterday, Investors adopted a risk-on posture, as investors appear to like what they heard from Fed Chair, Jerome Powell's first day testimony to the House, where he all but guaranted a twentyfive basis points rate hike at their March FOMC meeting, later this month. The Fed's main focus at this point is to control existing inflationary pressures build up in the economy, which could kill economic growth.
The rally was broadbased and convincingly bullish. Crude oil continued to soar again, as an existing tight oil supply, could be made worst as sanction against Russian, takes hold, further reducing existing supply in the oil markets, pushing market even higher.
All eleven S&P sectors ended today firmly in positive territory, led by Financials, Basic Materials, Energy, Industrials, Technology, Consumer Discretionary, Real Estate, Healthcare, Utililities, Consumer Staples, and Communication Services.
Factors Influencing Today's Market
Markets were in risk-on mode in today's trading.
Fed Chairman, Jerome Powell testified before the House Financial Committed this morning, and all but guaranteed a quarter point rate hike at their March meeting. Investor liked what they heard.
Major Asian markets ended lower oday, while European markets ended with gains.
US 10 Year Bond Yield ended the session at 1.878%, up 9.49%.
WTI crude oil price closed today at $110.84/barrel, up 7.18%.
Last week's EIA Petroleum Status Report showed US crude oil inventory fell 2.6 million barrels, vs a build ov 4.5 million barrels in the prior week.
February ADP Private Payroll came grew by 475,000 vs the 320, 000 concensus estimates.
Market Close Volume Traded And Advance Decline Ratio
Markets rallied in today's session. The Dow gained 596.40 points, Nasdaq gained 219.56 points, and the S&P gained 80.28 points. Total NYSE volume traded was a modest 5.32 billion shares. Advancing shares outpaced Declining shares by 2.69:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
Comments