Monday May 16, 2022 – DIA 322.78 +.17%, QQQ 298.44 -1.16%, SPY 400.09 -.41%%, IWM 177.22 -.48% CNN Fear & Greed Index @ 15 (Extreme Fear)
No high-impact economic data was released. Equity markets opened lower on lingering doubts about cryptocurrencies, and stable coins and the viability and safety of certain coin exchanges weighed on risk asset sentiment. WTI crude oil continued to move higher, closing at 113.95 +$3.46. As a result, Energy Services (XLE) 82.91 +2.64% led the 11 S&P 500 economic sectors. Healthcare Services (XLV) 129.55 +.74% took the second spot. Consumer Discretionary (XLY) 149.03 -2.16% was the worst-performing sector. Chevron (CVX) 173.01 +3.06% paced the DJIA, followed by Merck (MRK) 92.32 +2.11%. Boeing (BA) 124.05 -2.48% was the big detractor in the index, followed by Walt Disney (DIS) 105.18 -2.00%. Biotechnology firm Seagen (SGEN) 142.54 +5.09% led the NDX100. The stock has been on a run higher after the firm announced the CEO would be going on leave. Data services and monitoring company Datadog (DDOG) 97.19 -10.72% continued its downside volatile trend to lead the NDX100 lower. Occidental (OXY) 67.72 +5.68% led the S&P 500, followed by independent power producer NRG Energy (NRG) 44.07 +4.12%, Halliburton (HAL) 37.57 +4.07%, Marathon Oil (MRO) 27.98 +3.63%. Social media company Twitter (TWTR) 37.39 -8.18% dropped on continuing concerns about the viability of the Elon Musk takeover.
Tuesday May 17, 2022 – DIA 327.10 +1.34%, QQQ 306.17, +2.59%, SPY 408.32 +2.06%, IWM 182.64 +3.06% CNN Fear & Greed Index @ 15 (Extreme Fear)
For April, Retail Sales (MoM) were better than expected, .9% vs. .7%. Ex-Autos were better as well, .6% vs. .3%. Equity markets gapped higher on the open, led by Technology Services (XLK) 138.56 +2.90%, followed by Basic Materials (XLB) 84.67 +2.83%, and Financial Services (XLF) 34.14 +2.68%. Fed Chairman Jerome Powell gave a 2 pm speech that reinforced the Fed’s willingness to combat inflation. Boeing (BA) 132.05 +6.45% led the DJIA, followed by American Express (AXP) 161.85 +3.46%, and JPMorgan (JPM) 122.18 +3.31%. The big mover in the DJIA was Walmart (WMT) 131.35 -11.38% after the company missed on earnings and margins while giving downbeat forward guidance. Semiconductor-related shares were the stars of the day, leading the NDX100 Advanced Micro Devices (AMD) 102.47 +8.73% was upgraded from Neutral to Buy at Sandler O’Neil. KLA Corporation 351.51 +6.34% and Lam Research (LRCX) 512.27 +6.18% took the second and third spots. Pinduoduo (PDD) 40.16 +6.13% moved higher on indications the virus-related lockdowns in China were beginning to lift. Leading the Russell 1000 Cellular firm Altice USA (ATUS) 10.50 +12.30% Optimum Mobile was voted number one in customer satisfaction in the 2022 American Customer Satisfaction Index. Taking the second spot in the R1000 and jumping on an earnings beat and bullish guidance, electronic gaming firm Take-Two Interactive Software (TTWO) 123.08 +11.78% bolted higher.
Wednesday May 18, 2022 – DIA 315.55 -3.53%, QQQ 291.14 -4.91%, SPY 391.86, -4.03%, IWM 176.24 -3.50% CNN Fear & Greed Index @ 9 (Extreme Fear)
Building permits were a bit better than expected at 1819K vs. 1812K. Housing Starts were weaker than anticipated at 1724K vs. 1765K. Equity markets gapped lower from the start of the regular session in response to a huge earnings miss by retailer Target (TGT) 161.61 -24.93%. The firm weathered a margin squeeze due to supply chain issues, transportation costs, and guests that were not spending as much on discretionary items. Consumer Discretionary (XLY) 142.80 -6.54% took the most brutal hit of the 11 S&P 500 sectors. Consumer Staples (XLP) 71.83 -6.43% was the second-worst performer. By the close, all 30 DJIA members were negative, and the broader markets suffered losses of 9 to 1. Volume was greater than the day before but not climactic. Energy Services (XLE) 81.72 -2.56% fared the best of the S&P 500 sectors. In the DJIA, drug store retailer Walgreen’s Boots Alliance (WBA) 41.17 -8.39% was hit hardest, followed by Coca-Cola (KO) 61.20 -6.96%. In the NDX100, only two stocks were positive on the day, video gaming firm Electronic Arts (EA) 128.97 +.39% and drug manufacturer Gilead Sciences (GILD) 63.22 +.06%. Discount retailer Dollar Tree (DLTR) 133.80 -14.42% took the bottom spot in the index as investors pounded retail stocks on the Target earnings miss. On the positive side, off-price discount retailer TJX Corporation (TJX) 60.19 +7.12% revenues were soft, but the firm beat on earnings and managed margins above expectations.
Thursday May 19, 2022 – DIA 313.18 -.75%, QQQ 289.58 -.54%, SPY 389.46 -.61%, IWM 176.53 +.16% CNN Fear & Greed Index @ 12 (Extreme Fear)
Initial Jobless Claims were reported higher than expected at 218K vs. 200K, but still a low level. The Philadelphia Fed Manufacturing Survey for May came much lower than expected, 2.6 vs. 16. Equity markets opened mixed to higher before testing the lows of Wednesday. Interest rates eased as a flight to quality bid up treasury prices. The 10-Year Note (yield) Index (TNX) 28.55 -.31 moved lower. In the 11 S&P 500 economic sectors, Basic Materials (XLB) 82.62 +.71% performed best, followed by Healthcare Services (XLV) 128.22 +.22%. Consumer Staples (XLP) 70.55 -1.78% was the worst-performing sector. In the DJIA, United Healthcare (UNH) 478.44 +1.52% took the top spot, followed by Boeing (BA) 127.14 +1.29%. The big detractor in the averages was Cisco Systems (CSCO) 41.72 -13.73%, which reported a sales miss and gave downbeat guidance on component delivery issues. In the NDX100, electronic vehicle manufacturer Lucid Group 19.27 +11.00% led the index, followed by Synopsis (SNPS) 300.52 +10.25%, which moved higher on an earnings and revenue beat. In the R1000 index, Bill.com (BILL) 114.42 +12.58% led the index after announcing it would participate in an investor conference. The big disappointment in the index was Under Armour (UA) 8.18 -15.76% after the firm announced the unexpected departure of the CEO.
Friday, May 20, 2022 – DIA 312.42 -0.00, QQQ 288.68 -0.31%, SPY 389.63 +0.04, IWM 176.08 -.25% -CNN Fear & Greed Index @11 (Extreme Greed) – Options Expiration Day
No high-impact data was released. It was a highly volatile session from the opening. Equity markets gapped higher from the start but quickly succumbed to significant and persistent sell programs that abated in the early afternoon. Headlines hit the airwaves that stocks had entered the definition of a bear market on an intraday basis, down 20% from all-time-highs. That was enough to generate buying interest. By the end of the session, stocks closed mixed in a significant reversal. Healthcare Services (XLV) 129.78 +1.22% led the S&P 500 sectors, while Consumer Discretionary (XLY) 140.41 -1.74% continued to underperform as the biggest detractor in the index. In an earnings sell-off recovering bounce, Cisco Systems (CSCO) 42.94 +2.92% led the DJIA, followed by Salesforce.com (CRM) 159.65 +2.60%. Boeing (BA) 120.70 -5.07% continued to lag behind the index while hitting another 52-week low. In the NDX100, networking and internet security firm Palo Alto Networks (PANW) 478.68 +9.70% beat on earnings and revenue. Ross Stores (ROST) 71.87 -22.47% continued the carnage in the retail sector as the company missed on earnings and revenues.
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