Monday 05/09/2022 – DIA 322.60 -1.97%, QQQ 297.15 -3.91%, SPY 398.17 -3.20%, IWM 174.90 -4.21% CNN Fear & Greed Index @ 22 (Extreme Fear)
No high-impact economic data was released. Equity markets opened unchanged to slightly higher but then came under selling pressure due to continued fears of inflation, corporate profits, and a tightening monetary policy. Energy Services (XLE) 76.00 -8.27% was hit hardest by a big drop in the price of WTI crude oil 102.36 -$7.41. Real Estate (XLRE) 42.74 -4.66% was the second-worst performer, followed by Consumer Discretionary (XLY) 135.30 -4.26%. Industrial manufacturer 3M (MMM) 152.38 +1.91% cushioned the drop in the DJIA ahead of the company’s annual meeting on Tuesday. Walmart (WMT) 151.31 +1.17% took second place. But the big hits to the index were from Boeing (BA) 133.31 -10.47%, and Chevron (CVX) 159.25 -6.70%. Defensive sectors held up best, with Consumer Staples (XLP) 76.69 -.04% taking the top spot in the 11 S&P 500 economic sectors. Kraft-Heinz (KHC) 44.19 +1.38% topped the NDX100 followed by Amgen (AMGN) 239.24 +1.16%. Former pandemic favorite, Latin American internet retailer MercadoLibre (MELI) 770.99 -16.88% was the worst performer in that index, followed by digital identity software provider Okta (OKTA) 88.83 -13.29%. In the S&P 500, Newell (NWL) 24.26 +7.92% moved higher. The maker of household products such as Rubbermaid appeared to gain buying interest after a dividend was declared. Two travel and entertainment stocks fared the worst in the index; Norwegian Cruise Lines (NCLH) 15.95 -12.70% and Royal Caribbean (RCL) 61.41 -12.08% dropped. Energy names that were hit hardest were Schlumberger (SLB) 38.04 -11.60%, Devon (DVN) 62.02 -11.01%, Occidental (OXY) 57.84 -10.93%.
Tuesday 05/10/2022 – DIA 321.83 -.24%, QQQ 300.76 +1.21%, SPY 399.09 +.23%, IWM 174.95 -.83% CNN Fear & Greed Index @ 22 (Extreme Fear)
No high-impact economic data was released, but there were multiple speeches by Fed governors and the head of the Treasury, Janette Yellen. Stocks opened higher only to sell off by mid-morning on continuing concerns about interest rates, inflation, and the economy. Stocks were mixed by the close of the session. Real Estate (XLRE) 41.79 -2.22% had the biggest drop in the 11 S&P 500 sectors, followed by Financial Services (XLF) 33.61% -.88%. Technology Services (XLK) 137.19 +1.52% was the top performer in the index. Semiconductor chip manufacturers were standouts on the day, with Nvidia (NVDA) 175.95 +3.81%, and Avago (AVGO) 581.39 +3.28%, Intel (INTC) 44.01 +2.18%, and Texas Instruments (TXN) 168.24 +2.00% all moving higher. Coinbase Global (COIN) 72.99 -12.60%, a crypto-currency exchange, fell on investor concerns about risk assets. In M&A news, Biohaven Pharmaceuticals (BHVN) 140.00 +68.39% announced Pfizer would acquire it for 11.6 billion dollars. Also, in a standout performance on the day, Appian Corporation (APPN) 59.62 +38.59% won a big court decision against Pegasystems (PEGA) 52.25 -20.75% in a standout performance. The day’s big disappointment, Upstart Holdings (UPST) 33.61 -56.42%, was cut in half after reporting earnings. The artificial intelligence lending platform warned that the increase in interest rates was starting to affect financial performance.
Wed. 05/11/2022 – DIA 318.46 -1.05%, QQQ 291.84 -2.97%, SPY 392.75 -1.59%, IWM 170.60 -2.49% CNN Fear & Greed Index @ 20 (Extreme Fear)
The Consumer Price Index came in higher than anticipated at +8.3% vs. +8.1% (YoY). Ex-Food & Energy came in higher at +6.2% vs. +6.0% as well. Equity markets were higher in the pre-market but reversed after the inflation data was released. Cryptocurrencies and cryptocurrency exchanges were in focus for many traders as Coinbase (COIN) 53.72 -26.4% posted a loss and missed on the revenue. Management stated on the earnings call that the firm experienced a decline in trading and the amount of transacting traders. The stock hit a high of 368.90 back in November. Energy Services (XLE) 77.78 +1.34%, bucked the overall market trend by advancing as WTI crude oil hit 105.18 +$5.42. Baker Hughes (BKR) 32.49 +5.42% and Hess Corporation (HESS) 109.69 +3.71% led the sector. Consumer Discretionary (XLY) 145.55 -3.56% led the S&P 500 lower, with Technology Services (XLK) 132.86 -3.16% underperforming the index. Apple (AAPL) 146.50 -5.18% was the clear laggard in the DJIA, followed by Salesforce.com (CRM) 161.27 -3.52%. In the NDX100, Electronic Arts (EA) 120.49 +7.97% led the index. The video game maker announced a miss on revenue, but investors reacted positively to the management’s discussion of an increase in new titles. Electronic vehicle manufacturer Lucid Group (LCID) 13.86 -13.10% was the worst performer in the NDX100, followed by Latin American internet retailer MercadoLibre 679.68 -12.24%.
Thursday 05/12/2022 – DIA 317.64 -0.265, QQQ 291.15 -0.24%, SPY 392.34, -0.10%, IWM 172.60 +1.17% CNN Fear& Greed Index @ 6 (Extreme Fear)
Initial Jobless Claims were reported slightly higher than anticipated but still at a historically low level of 203K vs. 195K. Equity markets opened lower on continued worries that the selloff in cryptocurrencies and stable coins might affect the overall financial system. Bitcoin dipped as low as $25K on the fears. Interest rates declined on a flight to quality trade, given the tumult in the coin world. The 10-Year Note (yield) Index dropped to 28.17 -1.04. Later in the day, Treasury Secretary Janet Yellen commented that the stablecoin situation would not pose a systemic risk in her opinion, which lifted markets into the close of the session for a bullish reversal. Communication Services (XLC) 57.66 +1.09% was the strongest S&P 500 economic sector; Dish Network (DISH) 20.01 +14.60% bounced from a poor earnings selloff the previous day. The second-best sector on the day was Healthcare Services (XLV) 127.25 +.97%; Merck (MRK) 90.83 +1.84% took third in the DJIA, with Amgen (AMGN) 244.72 +1.70% taking the fourth spot. Electric vehicle manufacturer Lucid Group (LCID) 15.69 +13.20% paced the NDX100, followed by Splunk (SPLK) 93.76 +6.59%, which rallied from a previous earnings-driven selloff. Luxury goods retailer Tapestry (TPR) 30.63 +15.50% bolted higher as the company announced better than expected earnings and revenue.
Friday 05/13/2022 – DIA 322.23 +1.45%, QQQ 301.94 +3.71%, SPY 401.72 +2.39%, IWM 178.07 +3.17 CNN Fear & Greed Index @ 12 (Extreme Fear)
Michigan Consumer Sentiment Index for May was reported at a disappointing 59.1 vs. the 64 expected. Equity markets gapped higher in a continuation of Thursday’s late-day reversal. Risk-on was the order of the day as Consumer Discretionary (XLY) 152.32 +3.94% bolted higher, followed by Energy Services (XLE) 80.78 +3.42%, and Technology Services (XLK) 135.86 +3.32%. Nike (NKE) 113.01 +4.74% led the DJIA, followed by Salesforce.com (CRM) 166.91 +4.05%. Healthcare Services (XLV) 128.60 +1.06% took last place in the S&P economic sectors. Johnson & Johnson (JNJ) 176.85 -.57%, Amgen (AMGN) 243.40 -.54%, and Merck (MRK) 90.41 -.46% were the worst performers in the DJIA. Leading the NDX100, electric vehicle manufacturer Lucid Group (LCID) 18.01 +14.79% continued its rally from the previous day. Internet legal document service provider DocuSign (DOCU) 79.17 +13.36% was the second-best performer in the index. Gaming companies took the top spots in the S&P 500; Las Vegas Sands (LVS) 34.68 +15.06%, and Wynn Resorts (WYNN) 66.27 +13.17% moved higher upon indications that the lockdowns in Shanghai might be ending. On the downside, Twitter (TWTR) 40.72 -9.67% dropped on a tweet from Elon Musk that he had put his acquisition of the social media company on hold until more due diligence questions could be answered.
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