Wednesday's Market Recap - Dow Again Fades Early Rally To End The Day Flat.

cashtonsaunders
Oct 12, 2021
2 min read

Updated: Oct 14, 2021

What is The Premarket Telling Us?

US stock futures were comfortable higher, two and a half hours before the opening bell. Asian markets closed mixed in their session.

On The Bond Desk:

The US 10 Year Bond Yield @ 1.580%, down 0.034%.

Currency Desk:

Eurodollar: 1.15

UK Pound: 1.36

Crude Oil:

WTI crude oil futures at $80.12/barrel, down 0.64%.

On the Earnings Calendar:

JPM reported strong earnings results today. The bank handily beat earnings, revenue and all other metrics.

In M&A News:

None to report

What About The Asian And European Markets?

Major Asian markets closed mixed. Japan (Nikkei 225) down 0.32%, Shanghai up 0.42%, Hong Kong (Hang Seng) down 1.43%

Major European markets ended with gains. German (DAX) gained 0.68%, France CAC 40 up 0.75%, London FTSE 100 up 0.16%.

Market And Sector Dynamics

Stocks opened the trading session mildly positive. The Dow rose 29 points, Nasdaq gained 85 points, and the S&P added 13 points. WTI crude oil ticked lower early to $79.92/barrel, down 0.82%, while the US 10 Year Bond hovered at 1.551%, down 2.9 basis points.

The Dow hit an intraday high, up 70 points shortly after the open, but went negative a short while later, reaching an intraday low, down 260 points, shortly after 10:00 AM. Markets gradually returned to positive territory during the remainder of the session, and did turn positive briefly, but failed to hold on to those gains.

Third quarter earnings season kicked off today with JPMorgan reporting a stellar results, perhaps setting expectation for the rest of the bank that will report later this week.

Today's release of Fed Minutes of their last meeting failed to deliver any additional color to the Chairman Powell's press conference after the meeting two weeks ago. All the FOMC members were in agreement regarding the taper timetable. Supply chain

Traders enjoyed a broad based rally, which saw nine of the eleven S&P sectors finishing with gains, led by Utilities, Basic Materials, Technology, Consumer Discretionary, Real Estate, Consumer Staples, Industrials, and Healthcare. Financial and Energy ended with mild losses.

Factors Influencing Today's Market

Federal Reserve meeting minutes confirmed the decisions at it last meeting regarding the tapering.
US 10 Year Bond ticked lower today, to close at 1.542%, down 1.88%.
WTI crude oil closed at $80.69/barrel, up 0.06%
Asian markets closed mixed, while European markets ended modestly positive.
September Consumer Price Index (CPI) came in a better than expected 0.4% vs 0.3% estimated.

Market Close Volume Traded And Advance Decline Ratio

US markets ended mixed today, with the Dow flat, Nasdaq gained 105.71 points, and the S&P gained 13.15 points. Total NYSE volume traded, a light 3.61 billion shares. Advancing shares outpaced Declining shares nearly 2:1.

Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.