Monday 06/06/2022 – DIA 329.45 +.03%, QQQ 307.22 +.33%, SPY 411.79 +.30%, IWM 187.87 +.43% CNN Fear & Greed Index @30 (Fear)
No high-impact data was released on the day. Equity markets rallied early in the quiet session in a test of overhead resistance but paired the advance by the close. Based on the better employment data from Friday, Consumer Discretionary (XLY) 154.55 +1.00% led the eleven S&P 500 economic sectors, followed by Basic Materials (XLB) 87.49 +.95%. The Traveler’s (TRV) 176.98 +1.60% led the DJIA, followed by International Business Machines (IBM) 142.88 +1.20%. Amgen (AMGN) 245.44 -1.21% was the weakest in the index. The NDX100 was led by china internet firms JD.com (JD) 60.21 +6.53% and Pinduoduo (PDD) 53.75 +5.60%, as the regulatory environment in China appeared to be lightening up for the tech industry. Okta (OKTA) 95.00 -3.44% was the weakest performer in the index as the stock pulled back from the prior week’s advance. In the S&P 500, tool manufacturer & distributor Stanley Black & Decker (SWK) 120.32 +5.79% led the advance, followed by emergency backup power supply firm Generac Holdings (GNRC) 284.34 +5.75%. Social media firm Twitter (TWTR) 39.56 -1.5% fell on continued speculation that the deal to acquire the company by Elon Musk may not close.
Tuesday 06/07/2022 – DIA 332.17 +.83%, QQQ 309.87 +.86%, SPY 415.74 +.96%, IWM 1900.90 +1.61% CNN Fear & Greed Index @31 (Fear)
No high-impact data was released on the day. Secretary Yellen was on the dock to testify before Congress on the inflation picture, the country’s supply-chain challenges, and the Ukraine conflict. Equity markets started the day in the hole but advanced as the session wore on, closing broadly higher. Energy Services (XLE) 92.08 +2.99% led the eleven S&P 500 economic sectors, followed by Industrials (XLI) 97.24 +1.34%. Salesforce.com (CRM) 187.15 +2.34% led the 30 stock DJIA with Chevron (CVX) 180.20 +1.91% in second place. Walmart (WMT) 123.37 -1.20% was the big detractor in the index. Leading the NDX100 Chinese internet firm Pinduoduo (PDD) 59.19 +10.12% continued its advance from the previous session. Amazon (AMZN) 123.00 -1.43%, whose stock was split 20 for one on Monday, was the laggard in the S&P500, followed by Ross Stores (ROST) 80.51 -1.01%. Energy firm APA Corporation (APA) 51.39 +5.85% led the S&P 500 with Valero (VLO) 145.08 +4.61%, ExxonMobil (XOM) 103.37 +4.58%, and ConocoPhillips 122.71 +4.45% showing great relative strength. Taking the second spot in the S&P 500, consumer staples and condiment supplier JM Smucker’s (SJM) 130.31 +5.72% reported better than expected earnings. On the downside, fertilizer producer The Mosaic Companies (MOS) 57.18 -4.00% came under continued selling pressure. In the R1000 index, Iovance Biotherapeutics (IOVA) 8.32 +10.49% continued its rally from the recent collapse in the stock.
Wednesday 06/08/2022 – DIA 329.38 -.84%, QQQ 307.64 -.72%, SPY 411.22 -1.09%, IWM 187.95 -1.55% CNN Fear & Greed Index @32 (Fear)
No High impact data was released on the day. Equity markets opened mixed but succumbed to selling pressure throughout the session. Interest rates rose in response to concerns about ECB tightening prospects. The 10-year Note (yield) Index rose to 30.29 +.57%, putting pressure on stock indexes. WTI crude oil continued to advance to 122.46 +$3.05. Energy Services (XLE) 92.28 +.22% was the only positive performer in the S&P 500 economic sectors. Real Estate (XLRE) 43.16 -2.40% was the hardest hit, followed by Basic Materials (XLB) -2.08%. Bucking the downtrend in most industrial stocks, Caterpillar (CAT) 229.80 +1.19% performed best in the 30 stock DJIA. Also bucking the trend in technology shares, Salesforce.com (CRM) 189.19 +1.09% helped buoy the index. Intel (INTC) 41.23 -5.28% had the greatest drop in the DJIA, followed by Goldman Sachs (GS) 314.68 -2.12%. In the NDX100, Chinese internet firms continued to advance on the back of the perception of a better economic and regulatory backdrop. Pinduoduo (PDD) 64.95 +9.73% led the index followed by JD.com (JD) 66.47 +7.66%. Semiconductor-related shares were notably weak in the NDX100, with Intel (INTC) 41.23 -5.28% the worst performer. Advanced Micro Devices (AMD) 101.90 -3.21%, Micron Technology (MU) 68.60 -3.05%, and Applied Materials 112.46 -2.78% fell. In the S&P 500, the two top performers were Hospitality and gaming firms, Las Vegas Sands (LVS) 37.39 +4.35% and Wynn Resorts 70.28 +4.18%. In the Russel 1000 index, Iovance Biotherapeutics (IOVA) 9.14 +9.86% continued its advance. Also, in the R1000 index, media and television streaming platform company Roku, Inc. (ROKU) 101.88 +9.05% popped on reported speculation of a potential buyout by Netflix.
Thursday 06/09/2022 – DIA 323.00 -1.94%, QQQ 299.40 -2.68%, SPY 401.44 -2.38%, IWM 183.57 -2.07% CNN Fear & Greed Index @ 32 (Fear)
Initial Jobless Claims were reported higher than expected but still at a very low level, 229K vs. 210K. Equity markets opened the session down and traded tentatively in a range until breaking lower in the last hour of trading as bids faded in front of Friday’s CPI print. All eleven S&P 500 economic sectors closed decisively lower, with defensives like Consumer Staples (XLP) 72.23 -1.50% faring the best. Communication Services (XLC) 58.34 -3.07% was the hardest hit, followed by Technology Services (XLK) 136.33 -2.67%. Home Depot (HD) 299.86 +.78% was the only one of the 30 DJIA stocks to close up on the day. Boeing (BA) 133.73 -4.23% was the index’s biggest loser, followed by Disney (DIS) 103.30 -3.76%. In the NDX100 Index (QQQ), only four stocks closed positive, with NXP Semiconductors (NXPI) 184.22 +4.04% spiking on reported takeover speculation. Vaccine manufacturer Moderna (MRNA) 134.29 -9.76% was pounded ahead of next week’s advisory panel meeting for COVID-19 vaccinations for children under 5. Cruise Line stocks were notably weak, Carnival (CCL) -9.28%, Norwegian Cruise (NCLH) 13.76 -9.17%, and Royal Caribbean (RCL) 49.37 -8.19% with all falling on slowing demand and higher costs. Hospitality and gaming stocks gave back the advance from the previous day, Wynn Resorts (WYNN) 66.28 -5.69% and Las Vegas Sands (LVS) 35.29 -5.62% fell.
Friday 06/10/2022 – DIA 314.37 -2.67%, QQQ 288.84 -3.53%, SPY 389.80 -2.90%, IWM 178.59 -2.71% CNN Fear & Greed Index @28 (Fear)
The Consumer Price Index for May (YoY) came hotter than expected, +8.6% vs. +8.3%. Ex-Food & Energy was higher as well, +6.0% vs. 5.9%. The Michigan Consumer Sentiment Index was the lowest recorded at 50.2 vs. the 58 expectation. Markets gapped lower on the data release and stabilized at lower levels before a rally attempt in the afternoon, but near the close, that attempt was dashed. Consumer Discretionary (XLY) 144.47 -3.99% was the hardest hit sector, followed by Technology Services (XLK) 131.09 -3.84%. The defensives, Consumer Staples (XLP) 71.92 -.43% and Healthcare Services (XLV) -1.61% fared best. Walmart (WMT) 121.70 +.56% was the only stock positive in the DJIA. Dow, Inc. (DOW) 61.87 -6.06% was the worst performer in the index, followed by Goldman Sachs (GS) -5.65%. Chinese Internet companies Pinduoduo (PDD) 59.95 +2.13% and NetEase (NTES) 105.65 +1.82% led the NDX100 showing continued relative strength. Legal document and electronic signature software provider DocuSign (DOCU) 65.93 -24.53% was hammered on the release of disappointing earnings and billings. In the S&P 500, Newmont Mining (NEM) 66.85 +3.52% moved higher in a surge in gold. Hospitality and gaming company Caesars Entertainment (CZR) 45.50 -9.29% was the hardest hit in the index.
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