Wednesday's Market Tear Sheet - Hot European Inflation Report Scared Investor Today.
- cashtonsaunders
- Aug 17, 2022
- 2 min read
What is The Premarket Telling Us?
Stock futures were modestly lower early in the premarket indicating a lower open. Investors were anticipating the release of the last FOMC minutes, eager to get some incite into the Feds thinking on continued interest rate hikes. Major Asian markets ended their session lower, overnight.
On The Bond Desk:
The US 10-Year Bond Yield at 2.820%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.20
Crude Oil:
WTI crude oil futures at $87.10/barrel.
On the Earnings Calendar:
Home improvement retailer, Lowe's reported better than expected earnings before the bell this morning.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets. Japan (Nikkei 225) up1.23%, Shanghai up 0.45%, Hong Kong (Hang Seng) up 0.46%.
Major European markets fell in today's trading. German (DAX) lost 2.04%, France CAC 40 lost 0.97%, London FTSE 100 lost 0.27%.
Market And Sector Dynamics
The markets opened moderately lower this morning ahead of the release of the Fed/FOMC minutes later this afternoon. The Dow lost 192 points, Nasdaq lost 128 points, and S&P lost 32 points. News that European inflation rose 10% led by rising food and energy costs pressured markets across the pond, as well as our markets, here at home.
Markets traded mostly below neutral for the entire day, but went positive for a brief moment after the release of the FOMC minutes shortly after 2:00 PM. Unfortunately, it could not hold on to those gains and fell back into negative territory just before the markets closed.
Market tone was negative and the selloff was broad-based with ten of the eleven S&P sectors ending with losses, led by Communication Services, Basic materials, Industrials, Technology, Healthcare, Financials, Real Estate, Consumer Staples, and Utilities. Energy finished higher.
Factors Influencing Today's Market
Fed/FOMC minutes of the last meeting suggested they were focused on continuing 50 - 75 bps rate hikes to meet their inflation target.
European market down today as inflation up10% inflation in food and energy prices soar.
US 10 Year Bond Yield closed at 2.90%, up 2.9%.
WTI crude oil closed today at $87.70/barrel, up 1.35%.
This week's EIA Petroleum Status Report showed US oil inventories fell/draw 7.1 million barrels, compared to 5.5 million build-up in the prior week.
Market Close Volume Traded And Advance Decline Ratio
US stocks traded lower today. At the close the Dow was down 171.69 points, Nasdaq lost 164.43 points, and the S&P fell 31.16 points. Total NYSE volume traded a light 3.92 billion shares. Declining shares outpaced Advancing shares by 3.98:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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