Wednesday's Market Tear Sheet - Stocks Rally On Declining Energy Prices And Strong PayPal Earnings.
- cashtonsaunders
- Aug 3, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, August 3, 6:45 AM.
Today's early market set up looked solidly positive. Major US indexes were in the green. Dow futures were up 106 points, Nasdaq futures up 36 points, and S&P futures were up 13 points. Asian markets ended mixed.
On The Bond Desk:
The US 10-Year Bond Yield at 2.741%, up 0.1350%.
Currency Desk:
Eurodollar: 1.01
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $93.59/barrel, down 0.88%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) up 0.53%, Shanghai down 0.71%, Hong Kong (Hang Seng) up 0.40%.
Major European markets closed higher. German (DAX) up 1.03%, France CAC 40 up 0.97%, London FTSE 100 up 0.49%.
Market And Sector Dynamics
US stock opened today's session meaningfully higher, with the Dow up 152 points, Nasdaq gained 106 points, and S&P up 23 points. WTI crude oil opened modestly higher at $93.92/barrel, and the US 10 Year Bond started trading at 2.737%, down 0.010%. Markets were responding to a decline in crude oil prices, and the US 10 Year Bond yield remained subdued.
Adding positive sentiment to the market was a strong earnings performance from PayPal after the close yesterday. The company beat earnings, hired a new Chief Financial Officer (CFO), announced a huge stock buyback program, and initiated new cost-cutting measures guided by Elliott Management, the active manager firm that recently took a $2.00 Billion stake in the firm. Investors showed their approval by sending share up more than ten percent.
Stocks painted a beautifully bullish chart today moving from the lower left to the upper right in full risk-on mode, to finish just off the high of the day.
Markets ripped higher in today's session with ten of the eleven S&P sectors ending the day higher, led by Technology, Consumer Discretion, Communication Services, Financials, Industrials, Healthcare, Utilities, Consumer Staples, Real Estate, and Basic Materials. Energy was the only sector that ended with losses.
Factors Influencing Today's Market
Better than expected earnings from PayPal, accompanied by cost-cutting, a share repurchase program, and a management shakeup.
Asian markets were mixed overnight, while European markets ended higher.
US 10 Year Bond Yield closed at 2.706%, down 1.46%.
WTI crude oil prices closed lower at $90.94/barrel, down 3.04%.
This week's EIA Petroleum Status Report shows US crude oil inventories grew 4.5 million barrels vs (-4.5) million barrels in the prior week.
The final read on July Composite PMI showed a contraction to 47.7 vs 47.0 consensus. (any reading below 50 is a contraction).
July ISM Services Index came in at 56.7 vs 53 consensus estimate.
Market Close Volume Traded And Advance Decline Ratio
At the close of trading today, all three US Indexes recorded significant gains. The Dow soared 416.33 points, Nasdaq skyrocketed 319.40 points, and the S&P gained 63.98 points. Total NYSE volume traded was a light 4.39 billion shares. Advancing shares outpaced Declining shares by 2.30:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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