Wednesday's Market Tear Sheet - Stocks Soar After Release Of Lower Than Expected CPI Data.
- cashtonsaunders
- Aug 9, 2022
- 2 min read
What is The Premarket Telling Us?
Wednesday, August 9, 2022, 7:28 AM.
Barring the release of a hotter than expected July CPI data later this morning, markets were looking modestly higher early in the premarket. Dow futures were up 64 points, Nasdaq up 44 points, and the S&P up 10 points. Asian markets ended their session lower, overnight.
On The Bond Desk:
The US 10-Year Bond Yield at 2.797%, up 0.032%.
Currency Desk:
Eurodollar: 1.02
UK Pound: 1.21
Crude Oil:
WTI crude oil futures at $88.85/barrel, down 1.82%.
On the Earnings Calendar:
Disney reports after the closing bell this evening.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets ended mixed Japan (Nikkei 225) down 0.65 %, Shanghai down 0.54%, Hong Kong (Hang Seng) down 2.07%.
Major European markets closed modestly higher. German (DAX) up 1.23%, France CAC 40 up 0.52%, London FTSE 100 up 0.25%.
Market And Sector Dynamics
Markets were off to the races from the 'get go' with the Dow up 442 points, Nasdaq up 292 points, and S&P up 70 points. WTI crude oil opened up slightly up at $90.48/barrel, and the US 10 Year Bond Yield started the day at 2.786% unchanged. Investors were cheering a lower-than-expected July Consumer Price Index (CPI) which came in at 0 vs 0.2% expected month over month, and 8.50% Year over Year, confirming inflation has began to slow, which is exactly what investors were hoping for.
Markets traded at those lofty elevated levels for the entire session, at the high, the Dow was up almost 600 points, before giving back a fraction ot those gains shortly before the close of trading.
Market tone was very positive in today's session and the rally was broad-based with all eleven S&P sectors ending with solid gains, led by Basic Materials, Consumer Discretionary, Technology, Communication Services, Financials, Industrials, Real Estate, Healthcare, Consumer Staples, Energy, and Utilities.
Factors Influencing Today's Market
A lower-than-expected July Consumer Price Index CPI suggested inflation had peaked and may be cooling.
Major Asian markets ended lower, and European markets were higher.
US 10 Year Bond closed today at 2.785%, up a modest 0.06%.
WTI crude oil closed at $91.93/barrel, up 1.58%.
This week's EIA Petroleum Status Report showed US crude oil inventories grew by 5.5 million barrels vs 4.5 million in the prior week.
Market Close Volume Traded And Advance Decline Ratio
Stocks rocketed higher in trading on Wednesday. At the close, the Dow soared 535.10 points, Nasdaq surged 360.88 points, and S&P gained 87.77 points. Total NYSE volume traded was a modest 4.56 billion shares. Advancing shares outpaced Declining shares by 5.37:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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