Wednesday's Market Recap - Stock Rally Fades After FOMC Policy Decision.
- cashtonsaunders
- Jan 26, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, January 26, 2022, 7:35 AM.
Stock futures are highly elevated early in the session. Dow futures were up 355 points, Nasdaq futures up 273 points, and S&P futures up 61 points. Strong earnings results from Microsoft after the close yesterday have added positive sentiments to the markets. Major Asian markets ended mixed in their session.
On The Bond Desk:
The US 10 Year Bond Yield at 1.783%, up 0.048%.
Currency Desk:
Eurodollar: 1.12
UK Pound: 1.35
Crude Oil:
WTI crude oil futures at $86.44/barrel, up 0.98%.
On the Earnings Calendar:
At&t and Verizon reports better than expected earnings results before the opening bell.
Tesla and Intel report earnings after the closing bell today.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets closed mixed. Japan (Nikkei 225) down 0.44%, Shanghai up 0.66%, Hong Kong (Hang Seng) up 0.01%
Major European markets ended nicely higher in their session. German (DAX) up 2.22%, France CAC 40 2.11%, London FTSE 100 up1.33%
Market And Sector Dynamics
US stocks opened today's session solidly higher. The Dow gained 242 points, Nasdaq gained 314 points, and S&P gained 60 points. WTI crude oil was also on the move early, up1.16% to $86.59/barrel, while the US 10 Year Bond slipped 1.4 basis points, to 1.771%. Better than expected earnings report from Microsoft, after the closing bell yesterday, appears to be the catalyst that sparked positive sentiment the market needed.
The major US indexes remained highly elevated for most of the session, before moderating after the announcement of the FOMC's policy decision shortly after 2:OO PM. The markets sold off precipitously during Chair Powell's press conference which followed the announcement. Investors appear concerned that the Fed Chair did not deviate from his hawkish stance.
Nine of the eleven S&P sectors ended the session with losses, a turnaround from earlier in the day. Real Estate, Basic Material, Industrials, Communication Services, Utilities, Consumer Staples, Healthcare, and Energy ended lower. Technology and Financials ended with gains.
Factors Influencing Today's Market
After an early strong and very positive session stocks sold off after the Fed announced its policy decision, and press conference.
Better than expected earnings from Microsoft pushed markets higher for most of the session.
US 10 Year Bond Yield closed today at 1.873%, up 5.44%.
WTI crude oil close today at $87.22/barrel, up 1.89%.
Last week's EIA Petroleum Status Report showed US crude oil inventories grew by 2.4 million barrels vs 0.5 million barrels in the prior week.
New Home Sales for December grew a strong 811,000 vs 760,000 in November.
Market Close Volume Traded And Advance Decline Ratio
Stocks ended mixed in Wednesday's trading, as the market sold off after the Fed's policy decision and the Chairman's press conference. The Dow lost 129.64 points, Nasdaq added 2.82 points (flat), and S&P lost 6.52 points. Total NYSE volume traded a moderate 5.60 billion shares. Declining shares outpaced Advancing shares 2.15:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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