Wednesday's Market Recap - Stocks Plunged On Disappointing Earnings From Target.

What is The Premarket Telling Us?

Wednesday, May 18, 2022, 7:00 AM.

Stock index futures were modestly lower at the seven o clock hour. Dow futures down 98 points, Nasdaq futures down 84 points, and S&P futures down 19 points. Asian markets ended their session mixed.

On The Bond Desk:

The US 10 Year Bond Yield, at 2.968%, up 0.091%.

Currency Desk:

Eurodollar: 1.05

UK Pound: 1.24

Crude Oil:

WTI crude oil futures at $113.49/barrel, up 0.97%.

On the Earnings Calendar:

Following Walmart's disappointing earnings yesterday, retailer Target, reported disappointing earnings before the bell this morning. The company missed earnings, but revenues and same-store sales did beat estimates. Shares of the company were down 24% in the premarket.

In M&A News:

None to report

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What About The Asian And European Markets?

Major Asian markets ended mixed Japan (Nikkei 225) up 0.94%, Shanghai down 0.24%, Hong Kong (Hang Seng) up 0.20 %.

Major European markets closed lower. German (DAX) down 1.26%, France CAC 40 up down 1.20%, London FTSE 100 1.07%.

Market And Sector Dynamics

• Target's disappointing earnings report this morning, and Walmart's yesterday have investors trying to read the retail landscape, and diagnose the health of the consumer.

• Fed Chair Powell's hawkish speech yesterday afternoon to the Wall Street Journal, which the market ignored yesterday, also spooked investors today.

• Asian markets ended mixed, while European markets were lower.

• US 10 Year Bond Yield closed at 2.888%, down 3.59%.

• WTI crude oil price closed at $106.91/barrel, down 4.97%

Factors Influencing Today's Market

Markets were under pressure from the start of trading this morning after Target reported disappointing earnings before the start of trading.

That report followed a similar disappointing earning report from Walmart yesterday morning. The Dow opened down 314 points, Nasdaq plunged 168 points and the S&P gave up 48 points.

Negative market sentiment persisted throughout the session sending stocks sinking lower as the session continued incurring broad-based losses across all sectors. The markets went straight down from the upper left to the lower right, to close at the low of the session.

Market tone was markedly negative during the session with all eleven S&P sectors ending the day with significant losses, led by Consumer Discretionary (6.59%), Consumer Staples (6.38%), Technology (4.74%), Industrials (3.75), Communication Services (3.41%), Basic Materials 3.17%), Real Estate (2.95%), Financials (2.80%), Energy (2.75%), Healthcare (2.60%), and Utilities (1.03%).

Market Close Volume Traded And Advance Decline Ratio

Stocks plunged lower in today's trading sending the Dow down 1164.52 points, Nasdaq tumbled 566.37 points, and S&P dived 165.17 points. Total NYSE volume traded was a light 5.16 billion shares. Declining shares outpaced Advancing shares better than 5:1.

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