Wednesday's Market Recap - Fed Taper Worry And Discovery Of Omicron In US Tank Stocks.
- cashtonsaunders
- Dec 1, 2021
- 2 min read
What is The Premarket Telling Us?
Wednesday, November 1, 2021.
US stock futures were moderately elevated on the first trading day of December. Dow futures were up 314 points, Nasdaq futures up 233 points, S&P futures up 58 points. Asian markets closed with modest gains overnight.
On The Bond Desk:
The US 10 Year Bond Yield at 1.443%, down 0.087%.
Currency Desk:
Eurodollar: 1.13
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $69.18/barrel, up 4.53%.
On the Earnings Calendar:
Salesforce reported earnings after the close yesterday, the company beat earnings and revenue expectations, but guidance fell short of expectations. Shares were lower in premarket trading.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended their day higher. Japan (Nikkei 225) up 0.41%, Shanghai up 0.36%, Hong Kong (Hang Seng) up 0.76%.
Major European markets ended solidly higher. German (DAX) up 2.47%, France CAC 40 up 2.39%, London FTSE 100 up 1.55%.
Market And Sector Dynamics
Markets opened decidedly positive to start the first trading day of December. The Dow jumped 254 points, Nasdaq gained 178 points, and S&P gained 48 points. Crude oil was also off to a strong start at $68.48/barrel, up 3.48%, and the US 10 Year Bond Yield was up 3.7 basis points, to 1.478%. Stocks rallied convincingly higher during the morning session, which saw the Dow up 509 points around 11:30 AM., the high of the day.
During the early afternoon session, the rally showed signs of fading, during Fed Chair Powell's testimony to the House Finance Committee on Capitol Hill, where he reiterated his hawkish testimony of yesterday, in the Senate. Some in the markets thought that the Chairman would walk back some of his of comments yesterday, concerning speeding up the rate of the taper. When that did not happen, the market gradually sold off. The situation was made worst later in the afternoon when California announced the first case of the Omicron variant here in the US, which sent the major indexes into the red for the rest of the session.
Ten of the eleven S&P sectors ended with losses today, led by Communication Services, Consumer Discretionary, Industrials, Real Estate, Technology, Financials, Basic Materials, Energy, Consumer Staples, and Healthcare. Utilities ended with modest gains.
Factors Influencing Today's Market
Strong rally faded on Fed Chair Powell's testimony in the House, and discovery of the first Omicron variant case in the US.
Asian and European markets ended higher in their sessions.
US 10 Year Bond Yield closed at 1.419% down 2.56%.
WTI crude oil closed at $66.27/barrel, up 0.14%.
This week's EIA Petroleum Status Report shows US crude oil inventories fell 0.90 million barrels vs a build of 1 million barrels last week.
Final Read on November PMI Manufacturing came in weaker at 58.3 vs 59.1 expected.
November ISM Manufacturing rose 61.1 vs 60.8 in October.
ADP Private Sector Employment rose 534,000 vs 525,000 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
Trading today, the first day of December ended the same way November did, down. The Dow plunged 461.68 points, Nasdaq down 283.64 points, and the S&P down 53.96 points. Total NYSE volume traded, a moderate 5.37 billion shares. Declining shares outpaced Advancing shares by 2.44:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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