In today’s post market wrap live from the Meta trading room traders discussed US stock, options and futures markets after the recovery from Monday’s selloff. Listen to our technical and market psychology read on the day. Around the table today we talk about trading in year-end markets, trade plans and what to look forward to in crypto and the metaverse, hysteria, geopolitics and Omicron into 2022 with @Mayhem4Markets and @MetaJohnny1
Enjoy live commentary from Our Trading Room at YouTube as the day wraps up – feel free to like and share
- WTI crude futures settled $71.12 up $2.51 or 3.66%. High $71.50. Low $68.56.
- U.S. Dollar was mostly weaker with commodity currencies led by the New Zealand and Australia dollar higher.
- U.S. Dollar Index decreased 0.1% to 96.49
- Dow industrial average 35492.69, up 560 points or 1.6%
- S&P index 4649.22, up 81.21 points or 1.78%
- NASDAQ index 15341.07 up +360.14 or 2.40%
- Russell 2000 outperformed up 3.0%
- CBOE Volatility Index dropped 8.1% to 21.01
- Apple $171.62 -$7.62 -4.26%
S&P 500 sector watch:
- Nine of the 11 S&P 500 sectors closed higher.
- Led by the energy (+2.9%), information technology (+2.6%), consumer discretionary (+2.5%), and financials (+2.0%) sectors with 2-3% gains.
- Defensive-oriented utilities (-0.2%) and consumer staples (-0.1%) sectors were lower.
- S&P 500 +23.8% YTD
- Nasdaq Composite +19.0% YTD
- Dow Jones Industrial Average +16.0% YTD
- Russell 2000 +11.6% YTD
In the Treasury market, the 2-yr yield rose five basis points to 0.67%, and the 10-yr yield rose seven basis points to 1.49%. Strong U.S. 20-year Treasury Bond Auction with High Yield of 1.942%
The US Treasury 20-Year Bond Sale performed much better than expected, garnering a A rating across the Fixed Interest desk. The tail was -2.3 basis points with WI level at time of the auction 1.965% and the high yield of 1.942% at the auction. Ahead of the auction U.S. Treasuries yields were higher across the curve (bearish). The 2-yr yield was up three basis points to 0.65%, 10-yr yield up three basis points to 1.45%. 30-yr yields up 6.5 bps.
Nike reported stronger than expected Q2 2022 results after the close Monday. Nike’s consumer demand in $NKE’s biggest market North America, was vigorous. Business in China remains pivotal with varying backlash in China amid global tensions saw sales down 20%. Nike’s strong digital revenue growth continued.
Memory chip maker Micron reported better than expected earnings after the close Monday boosted by data-center sales growing over 70% year over year from cloud demand and the resurgence of enterprise IT investment. Strong DRAM bit shipments for the cloud, graphics, PC and notebook, 5G and automotive markets continued.
Coming into Year end the IPO market is winding down. This week we have just four IPOs scheduled to raise around $50 million for the week. Cerberus Cyber Sentinel (CISO), Incannex Healthcare (IXHL), Intensity Therapeutics (INTS) and Nuvo Group (NUVO) are expected to debut this week.
WTI Oil futures have rallied back from the recent dump. Last week EIA reporting a crude draw -4584Kbbl (incl +1294kbbl build at Cushing). Gasoline stocks drew -719kbbl. Utilization rose +.2% to 89.8%. Production Unchanged at 11,700 kbpd.
Heading into Christmas and cold temperatures around us gas withdrawal season is in swing. While in Europe natural gas futures are back to near all-time highs again US natural gas futures are softer reacting to domestic weather models. Last week EIA reported a draw of -88Bcf of working gas in storage as expected. With the global energy crisis LNG exports continue to grow but we balance supply shortages with deliverability.
Tomorrow US Data, Watch
- 07:00 Weekly MBA Mortgage Applications Index
- 08:30 Chicago Fed National Activity (Nov)
- 08:30 Core PCE Prices (Q3)
- 08:30 Third estimate for Q3 GDP,
- 10:00 Conference Board’s Consumer Confidence Index for December,
- 10:00 Existing Home Sales for November,
- 10:30 DOE Crude Oil Inventories
Tuesday Earnings Include
- CarMax, Cintas and Paychex
Trust you all had a great day, sleep well and get your trading plan sorted.
Any questions please feel free to ask them below. Trade Smart!