Quick Telecast
Expect News First

Dow, S&P 500 edge lower in choppy trade after worst day for stocks in nearly 2 years

0 67


U.S. stocks were mostly lower in choppy trade late Thursday, following the worst slide in nearly two years for the S&P 500 index in the previous session, leaving the index down about 19% from its record, or close to a bear market.

What’s happening
  • The Dow Jones Industrial Average
    DJIA,
    -0.57%
    was 187 points lower, or 0.6%, at 31,300, but off the session’s 31,016.41 low.

  • The S&P 500
    SPX,
    -0.34%
    was off 15 points, or 0.4%, at 3,913, after flipping between small gains and losses.

  • The Nasdaq Composite
    COMP,
    +0.08%
    was flat near 11,418.

On Wednesday, the Dow Jones Industrial Average fell 1,165 points, or 3.6%, the S&P 500 declined 4%, and the Nasdaq Composite dropped 4.7%. The drop on Wednesday for the Dow and S&P 500 was the most since June 11, 2020. The intraday low of the year of 3,858.87 is in danger of being tested.

What’s driving markets

The S&P 500 is struggling for direction near bear-market territory as the Russia-Ukraine war, a slowdown in China’s economy, high inflation and rising interest rates cause investors to worry about corporate profits and economic growth.

“It’s kind of a piling on,” said Joe Quinlan, head of chief investment office market strategy at Merrill and Bank of America Private Bank, by phone. With retailers reporting the pinch of higher costs, questions have begun to percolate around if the U.S. could have a recession sooner than later.

“Retail cuts right at the heart of what drives the U.S. economy, i.e. consumers,” Quinlan said, adding that while the savings rate has come down from pandemic highs, the employment picture remains strong, even as it has gotten harder for many households to meet their energy and rent bills. “Retail cuts so close to the consumer, that pushed a lot of money off to the sidelines.”

Stocks have been choppy after Wednesday’s disappointing results from Target Corp.
TGT,
-4.96%.
Its earnings miss, a day after rival retailer Walmart
WMT,
-2.51%
also disappointed with its quarterly results, unnerved investors already rattled by the Federal Reserve’s interest-rate-hike campaign.

“We are at washed-out sentiment levels,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management, by phone. While he pointed to signs of some stability for equities on Thursday, he also talked of concerns about a potential economic slowdown as the S&P 500 moves closer to a bear-market, or a drop of at least 20% from its last peak.

“Right now, we are still thinking that things are likely to continue to slow, in term of growth, but avoid a recession,” Stucky said, while noting that consumers have been switching to spending on services, over goods, catching big retailers off guard. Credit markets, which typically sniff out an economic slowdowns before stocks, also haven’t been flashing clear warning signs yet, he said.

Shares of retailer Kohl’s Corp. KSS were higher, after shedding 11% in Wednesday’s selloff after reporting a wide miss on profit and sales.

Analysts noted that Target’s results showed consumers moving away from stay-at-home goods like furniture and televisions. The U.S. retail sales report released this week showed spending at bars and restaurants up nearly 20% from year-earlier levels, or more than double the overall retail spending rate.

See: Melvin Capital’s liquidation may have been the mystery catalyst behind Wednesday’s plunge in stocks

In U.S. economic data Thursday, first-time claims for unemployment benefits rose 21,000 last week to 218,000. The Philadelphia Federal Reserve’s regional manufacturing index dropped sharply to 2.6 in May, a two-year low, from 17.6 a month earlier.

Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the National Association of Realtors said Thursday. Compared with April 2021, home sales were down 5.9%. Economists polled by The Wall Street Journal had expected a decrease to 5.64 million units.

Companies in focus
  • Shares of Harley-Davidson Inc.
    HOG,
    -9.25%
    tumbled 8.2% Thursday, after the motorcycle maker said it would suspend all assembly and shipments for two weeks.

  • Tesla Inc.
    TSLA,
    +0.54%
    shares were up 0.1% after Wedbush analyst Dan Ives slashed his price target by 29%, citing “hard to ignore” headwinds in China, as COVID-related lockdowns have reduced demand. Ives reiterated the outperform rating he’s had on the electric vehicle maker since April 2021 but cut his price target to $1,000 from $1,400.

  • Cisco Systems Inc.
    CSCO,
    -13.41%
    shares fell 14% to lead Dow decliners after the network-equipment maker logged third-quarter revenue below analysts’ expectations and guided for lower fourth-quarter and fiscal 2022 revenue.

  • Further proving it wasn’t all gloom for the retail sector, shares of BJ’s Wholesale Club Holdings Inc.
    BJ,
    +8.15%
    jumped about 9% after the membership-based warehouse retailer reported fiscal first-quarter profit, revenue and same-store sales that rose above expectations.

  • Spirit Airlines Inc.
    SAVE,
    -1.26%
    on Thursday said its board has unanimously determined that JetBlue Airways Corp.’s
    JBLU,
    +3.58%
    $30-a-share cash offer isn’t in the best interest of the airline and its shareholders, urging the latter to reject the tender launched by JetBlue earlier this week. Spirit had already reiterated earlier in May its support for the merger deal with Frontier Group Holdings Inc.
    ULCC,
    +1.06%,
    that it had agreed before JetBlue made its offer. Spirit shares were up 0.3%, while JetBlue shares were up 4.1% and Frontier rose 1.6%.

What other assets are doing
  • The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    2.848%
    fell 5 basis points to 2.85%. Yields and debt prices move opposite each other.

  • The ICE U.S. Dollar Index
    DXY,
    -0.93%
    dropped 1%.

  • Bitcoin
    BTCUSD,
    +2.74%
    was up 3.4% near $30,000.

  • Oil futures rose, with the U.S. benchmark
    CL.1,
    +2.06%
    closing up 2.7% at $109.89 a barrel. Gold futures
    GC00,
    +1.33%
    closed up 1.3% to settle at $1,841.20 an ounce.

  • The Stoxx Europe 600
    SXXP,
    -1.37%
    closed down 1.4%, while London’s FTSE 100
    UKX,
    -1.82%
    dropped 1.8%.

  • The Shanghai Composite
    SHCOMP,
    +0.36%
    rose 0.4%, while the Hang Seng Index
    HSI,
    -2.54%
    dropped 2.5% in Hong Kong and Japan’s Nikkei 225
    NIK,
    -1.89%
    shed 1.9%.

—-Steve Goldstein contributed reporting


U.S. stocks were mostly lower in choppy trade late Thursday, following the worst slide in nearly two years for the S&P 500 index in the previous session, leaving the index down about 19% from its record, or close to a bear market.

What’s happening
  • The Dow Jones Industrial Average
    DJIA,
    -0.57%
    was 187 points lower, or 0.6%, at 31,300, but off the session’s 31,016.41 low.

  • The S&P 500
    SPX,
    -0.34%
    was off 15 points, or 0.4%, at 3,913, after flipping between small gains and losses.

  • The Nasdaq Composite
    COMP,
    +0.08%
    was flat near 11,418.

On Wednesday, the Dow Jones Industrial Average fell 1,165 points, or 3.6%, the S&P 500 declined 4%, and the Nasdaq Composite dropped 4.7%. The drop on Wednesday for the Dow and S&P 500 was the most since June 11, 2020. The intraday low of the year of 3,858.87 is in danger of being tested.

What’s driving markets

The S&P 500 is struggling for direction near bear-market territory as the Russia-Ukraine war, a slowdown in China’s economy, high inflation and rising interest rates cause investors to worry about corporate profits and economic growth.

“It’s kind of a piling on,” said Joe Quinlan, head of chief investment office market strategy at Merrill and Bank of America Private Bank, by phone. With retailers reporting the pinch of higher costs, questions have begun to percolate around if the U.S. could have a recession sooner than later.

“Retail cuts right at the heart of what drives the U.S. economy, i.e. consumers,” Quinlan said, adding that while the savings rate has come down from pandemic highs, the employment picture remains strong, even as it has gotten harder for many households to meet their energy and rent bills. “Retail cuts so close to the consumer, that pushed a lot of money off to the sidelines.”

Stocks have been choppy after Wednesday’s disappointing results from Target Corp.
TGT,
-4.96%.
Its earnings miss, a day after rival retailer Walmart
WMT,
-2.51%
also disappointed with its quarterly results, unnerved investors already rattled by the Federal Reserve’s interest-rate-hike campaign.

“We are at washed-out sentiment levels,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management, by phone. While he pointed to signs of some stability for equities on Thursday, he also talked of concerns about a potential economic slowdown as the S&P 500 moves closer to a bear-market, or a drop of at least 20% from its last peak.

“Right now, we are still thinking that things are likely to continue to slow, in term of growth, but avoid a recession,” Stucky said, while noting that consumers have been switching to spending on services, over goods, catching big retailers off guard. Credit markets, which typically sniff out an economic slowdowns before stocks, also haven’t been flashing clear warning signs yet, he said.

Shares of retailer Kohl’s Corp. KSS were higher, after shedding 11% in Wednesday’s selloff after reporting a wide miss on profit and sales.

Analysts noted that Target’s results showed consumers moving away from stay-at-home goods like furniture and televisions. The U.S. retail sales report released this week showed spending at bars and restaurants up nearly 20% from year-earlier levels, or more than double the overall retail spending rate.

See: Melvin Capital’s liquidation may have been the mystery catalyst behind Wednesday’s plunge in stocks

In U.S. economic data Thursday, first-time claims for unemployment benefits rose 21,000 last week to 218,000. The Philadelphia Federal Reserve’s regional manufacturing index dropped sharply to 2.6 in May, a two-year low, from 17.6 a month earlier.

Existing-home sales fell 2.4% to a seasonally adjusted annual rate of 5.61 million in April, the National Association of Realtors said Thursday. Compared with April 2021, home sales were down 5.9%. Economists polled by The Wall Street Journal had expected a decrease to 5.64 million units.

Companies in focus
  • Shares of Harley-Davidson Inc.
    HOG,
    -9.25%
    tumbled 8.2% Thursday, after the motorcycle maker said it would suspend all assembly and shipments for two weeks.

  • Tesla Inc.
    TSLA,
    +0.54%
    shares were up 0.1% after Wedbush analyst Dan Ives slashed his price target by 29%, citing “hard to ignore” headwinds in China, as COVID-related lockdowns have reduced demand. Ives reiterated the outperform rating he’s had on the electric vehicle maker since April 2021 but cut his price target to $1,000 from $1,400.

  • Cisco Systems Inc.
    CSCO,
    -13.41%
    shares fell 14% to lead Dow decliners after the network-equipment maker logged third-quarter revenue below analysts’ expectations and guided for lower fourth-quarter and fiscal 2022 revenue.

  • Further proving it wasn’t all gloom for the retail sector, shares of BJ’s Wholesale Club Holdings Inc.
    BJ,
    +8.15%
    jumped about 9% after the membership-based warehouse retailer reported fiscal first-quarter profit, revenue and same-store sales that rose above expectations.

  • Spirit Airlines Inc.
    SAVE,
    -1.26%
    on Thursday said its board has unanimously determined that JetBlue Airways Corp.’s
    JBLU,
    +3.58%
    $30-a-share cash offer isn’t in the best interest of the airline and its shareholders, urging the latter to reject the tender launched by JetBlue earlier this week. Spirit had already reiterated earlier in May its support for the merger deal with Frontier Group Holdings Inc.
    ULCC,
    +1.06%,
    that it had agreed before JetBlue made its offer. Spirit shares were up 0.3%, while JetBlue shares were up 4.1% and Frontier rose 1.6%.

What other assets are doing
  • The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    2.848%
    fell 5 basis points to 2.85%. Yields and debt prices move opposite each other.

  • The ICE U.S. Dollar Index
    DXY,
    -0.93%
    dropped 1%.

  • Bitcoin
    BTCUSD,
    +2.74%
    was up 3.4% near $30,000.

  • Oil futures rose, with the U.S. benchmark
    CL.1,
    +2.06%
    closing up 2.7% at $109.89 a barrel. Gold futures
    GC00,
    +1.33%
    closed up 1.3% to settle at $1,841.20 an ounce.

  • The Stoxx Europe 600
    SXXP,
    -1.37%
    closed down 1.4%, while London’s FTSE 100
    UKX,
    -1.82%
    dropped 1.8%.

  • The Shanghai Composite
    SHCOMP,
    +0.36%
    rose 0.4%, while the Hang Seng Index
    HSI,
    -2.54%
    dropped 2.5% in Hong Kong and Japan’s Nikkei 225
    NIK,
    -1.89%
    shed 1.9%.

—-Steve Goldstein contributed reporting

FOLLOW US ON GOOGLE NEWS

Read original article here

Denial of responsibility! Quick Telecast is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
buy kamagra buy kamagra online
Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock