Monday- Markets Closed for Federal Juneteenth Holiday
Tuesday, 06/21/22 – DIA 305.29 +2.20%, QQQ 281.08 +2.33%, SPY 375.07 +2.52%, IWM 168.14 +1.79% CNN Fear & Greed Index @19 (Extreme Fear)
Existing Home Sales for May (MoM) came within expectations of 5.41M annualized, down -8.6% from May last year. Equity markets gapped higher following better markets in Europe. Stocks traded with an upward bias in light volume for the rest of the session. All eleven S&P 500 economic sectors closed up on the day. In the first place, Energy Services (XLE) 76.44 +5.18% rebounded from the prior two weeks of heavy selling, with Diamondback (FANG) 132.28 +8.17% leading the sector, followed by ExxonMobil (XOM) 91.48 +6.22%, Phillips 66 (PSX) 95.98 +7.12%, and Schlumberger (SLB) 38.82 +5.95%. Consumer Discretionary (XLY) 139.67 +2.86% was the second-best S&P 500 sector, with Tesla (TSLA) 711.11 +9.35% jumping on reports of managerial workforce reductions. On the downside, Bath & Body Works (BBWI) 30.36 -9.45% fell to new 52-week lows. United Healthcare (UNH) 480.32 +6.25% led the 30 stock DJIA, popping on news of a subsidiary’s acquisition of EMIS Group in the United Kingdom. In last place, Communication Services (XLC) 54.09 +.71% underperformed as Meta Platforms (META) 157.05 -4.09% fell on news the firm had settled a DOJ action about discriminatory advertising practices related to the Fair Housing Act.
Wednesday, 06/22/2022 – 304.61 -.22%, QQQ 280.67 -.15%, SPY 374.38 -.18%, IWM 167.80 -.20% CNN Fear & Greed Index @22 (Extreme Fear) – Day 1 Fed Chair Powell Testimony to Congress.
No high-impact data was released on the day. Equity markets gapped down on the opening ahead of Fed Chair Jerome Powell’s testimony before Congress. As the time approached the appointed time of his speaking, stocks rallied. Stocks chopped around for the rest of the session, closing with mild losses. In the 11 economic sectors of the S&P 500Real Estate (XLRE) 40.13 +1.62% as interest rates dropped on the Powell testimony, dropping the 10-Year Note (yield) Index (TNX) 31.56 -1.51. Healthcare Services (XLV) 124.30 +1.39%, the second-best performing sector. United Healthcare (UNH) 489.68 +1.95% led the 30 stock DJIA, followed by Johnson & Johnson (JNJ) 175.74 +1.58%. Energy Services (XLE) 73.27 -4.02% continued under pressure from the rhetoric coming from the White House. DJIA component Chevron (CVX) 147.87 -4.35% continued its downdraft from its recent peak on June 8th at 182.40. Energy issues across the board were under selling pressure; Marathon (MRO) 23.10 -7.23, APA Corporation 37.50 -7.06%, ConocoPhillips (COP) 93.06 -6.27% were hardest hit in the sector. On a regulatory event, Altria Group (MO) 41.50 -9.19% sold off on the news the FDA would ban JUUL vaping products and would also move to mandate zero levels of nicotine in cigarettes. On the news that the U.S. economy might be falling into recession, Basic Materials (XLB) 74.53 -1.32% was the second-worst performer, as copper producer, Freeport McMoRan (FCX) 31.32 -7.96% led the sector lower. On the downside, in the NDX100, china related internet shares came under what appeared to be profit-taking from recent outperformance, Pinduoduo (PDD) 60.36 -4.27%, JD.com (JD) 61.22 -3.50%, and Baidu (BIDU) 142.69 -2.02% dropped.
Thursday, 06/23/2022 – DIA 306.74 +.70%, QQQ 284.85 +1.49%, SPY 378.06 +.98%, IWM 169.83 +1.20% CNN Fear & Greed Index @23 (Extreme Fear) – Day 2 Fed Chair Powell Testimony to Congress.
Initial Jobless Claims came in close to expectations at 229K. The S&P Global Composite Purchasing Managers Index (preliminary) for June was weaker than expected at 51.2 vs. 53.7. The S&P Global Manufacturing PMI (preliminary) for June was much weaker than expected at 52.5 vs. 56. Equity markets gapped higher on the open and traded higher through Powell’s testimony. Stocks found some selling pressure into the 1 pm hour but recovered into the close. Utilities (XLU) 67.83 +2.35% performed best on the day, followed by Healthcare Services (XLV) 127.09 +2.24%. Salesforce.com (CRM) 173.05 +3.34% led the DJIA followed by Merck (MRK) 92.00 +3.19%, and Nike (NKE) 108 +2.94%. Caterpillar (CAT) 178.67 -4.88% was the clear DJIA laggard, falling on recession talk. Energy Services (XLE) 79.59 -3.71% was the worst performer in the S&P eleven economic sectors, followed by Basic Materials (XLB) 73.54 -1.37%. In the NDX100, multiple names bolted higher on what appeared to be bargain hunting in beaten-down issues. Data analytics and security firm Datadog (DDOG) 100.60 +10.44%, Cloud security firm Zscaler (ZS) 162.76 +9.15%, and digital identity security firm Okta, Inc. (OKTA) 93.40 +8.58% led the index higher. All appear to have similar chart patterns. On the downside, Airbnb (ABNB) 388.76 -3.83% continued to struggle at a recent support. In the S&P 500 FactSet Research (FDS) 388.76 +8.01% led, while enterprise software developer Ceridian HMS (CDAY) 48.28 +7.24%. The two worst performers in the index were agricultural input/fertilizer firms, Mosaic (MOS) 45.24 -9.57%, and CF Industries (CF) 80.60 -9.01%.
Friday, 06/24/2022 – DIA 315.05 +2.71%, QQQ 294.61 +3.43%, SPY 389.94 +3.14%, IWM 175.09 +3.10% CNN Fear & Greed Index @28 (Fear)
Michigan Consumer Sentiment Index for June came in at 50.0 vs. 50.2 expected. New Home Sales for May were stronger than expected at 696K vs. 588K. Sales grew 10.7% from April. Equity markets gapped higher on the open and continued to move higher throughout the session as expectations for rate hikes moderated. The advance was broad advancers beat decliners 5 to 1. Interest rates were stable to slightly higher, with the 10-Year Note (yield) Index (TNX) 31.25 +.57 in the middle of the recent range. Basic Materials (XLB) 76.46 +3.97% was the best performing S&P 500 economic sector, followed by Communication Services (XLC) 56.94 +3.81% and Technology Services (XLY) 146.93 +3.77%. Salesforce.com (CRM) 185.92 +7.44% led the 30 stock DJIA, followed by Goldman Sachs (GS) 302.75 +5.79% and Boeing Aircraft (BA) 141.53 +5.64%. Energy Services (XLE) 71.59 +1.32% was the laggard sector, followed by Healthcare Services (XLV) 129.20 +1.66%. Beaten down growth names led the NDX100 advance with Okta, Inc (OKTA) 101.26 +8.42%, the best performer, followed by Airbnb (ABNB) 103.51 +8.14%. The one stock negative in the index was EV manufacturer Lucid Group (LCID) 19.21 -.47%. In the S&P 500, travel and Entertainment shares lifted the index, with Royal Caribbean (RCL) 41.76 +15.77%, Norwegian Cruise Lines (NCLH) 13.22 +15.36%, and Penn National Gaming (PENN) 32.12 +12.66% leading. On the downside, Lending Tree (TREE) 50.55 -7.87% fell after cutting second-quarter guidance.
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