Monday, June 27, 2022 – DIA 314.36 -.21%, QQQ 292.45 -.73%, SPY 388.59 -.38%, IWM 175.74 +.37% CNN Fear & Greed Index @ 29 (Fear)
Durable Goods Orders for May came in better than expected, +.7% vs. +.1%. Ex-Defense was better as well, +.6% vs. -.5 expected. Ex-Transportation came better too +.7% vs. .3% expected. Pending Home Sales came much better than expected at +.7% vs. -3.7%. Equity markets opened higher but chopped around for a good percentage of the day, closing mostly lower. Energy Services (XLE) 73.69 +2.93% performed best on the day as WTI crude oil increased, closing at 109.80, up $2.18. Utilities (XLU) 69.57 +.81% was the second-best performer in the S&P 500 economic sectors. Consumer Discretionary (XLY) 145.45 -1.05% was the laggard. United Healthcare (UNH) 505.66 +2.02% led the DJIA, followed by Chevron (CVX) 147.57 +1.93%. Salesforce.com (CRM) 181.31 -2.48% was the worst performer, followed by Nike (NKE) 110.50 -2.13%. The NDX100 top three were China Internet companies Baidu (BIDU) 155.24 +2.58%, JD.com (JD) 65.62 +2.52%, and NetEase (NTES) 95.88 +2.44%, with the shares of each continuing to benefit from easing lockdowns and regulatory pressure. On the downside in the index, Lucid Group 18.39 -4.27% was the worst performer, followed by Okta Inc. (OKTA) 97.26 -3.95%. In the S&P 500 index, energy led the way as WTI crude oil continued to advance, closing at 111.69 +1.93%. Devon Energy (DVN) 57.79 +7.48%, Hess Corp. (HES) 106.96 +5.18%, and Marathon (MRO) 23.12 +4.85%, the top stocks. Pandemic favorite Etsy, inc. (ETSY) 80.65 -3.55% performed the worst.
Tuesday, June 28, 2022 – DIA 309.34 -1.60%,QQQ 283.54 -3.05%,SPY 380.65 -2.04%,IWM 172.44 -1.88% CNN Fear & Greed Index @26 (Fear)
Equity markets opened lower and kept moving lower throughout the session on the poor consumer confidence reading. The S&P / Case-Shiller Home Price Index for April (YoY) came slightly lower than expected at +20.4% vs. +20.6%. The Conference Board Consumer Confidence Survey fell 4 points to 98.7.
With the news that China had loosened travel restrictions, Energy Services (XLE) 75.68 +2.70% was the one bright spot, moving higher with WTI crude oil, which closed at 111.69 +$2.12. Energy Services dominated the leadership of the S&P 500 with Hess (HES) 112.92 +5.57%, Occidental (OXY) 61.71 +4.77%, Marathon (MRO) 24.13 +4.37%, and Diamondback (FANG) 129.80 +4.35% all advancing. Chevron (CVX) 149.94 +1.61% performed best in the DJIA, while Nike (NKE) 102.78 -6.99% fell on uninspiring earnings and increased inventories, leading the index lower. The second-worst performer in the index was Salesforce.com (CRM) 171.46 -5.43%. In the NDX100, Qualcomm (QCOM) 131.60 +3.48% took the top spot as a prominent analyst speculated the company would remain a leading supplier of a critical component for a 5G mobile modem for Apple Computer. On the downside, technology shares took a beating in the index, with DataDog (DDOG) 97.32 -7.49%, Mercadolibre (MELI) 665.00 -7.29%, and DocuSign (DOCU) 61.67 -6.83% being the worst performers.
Wednesday, June 29, 2022 –DIA 310.05 +.23%,QQQ 283.80 +.09%,SPY 380.34 -.08%,IWM 170.69 -1.01% CNN Fear & Greed Index @25 (Extreme Fear)
Core Personal Consumption Expenditure was slightly higher than expected at +5.2% vs. 5.1% for Q1. Gross Domestic Product for Q1 Annualized contracted -1.6% vs. -1.5 expected. The GDP Price Index was higher at +8.3% vs. +8.1% expected. Fed Chair Powell and ECB President Legarde spoke during the day on monetary policy. Powell said the Fed would err on the side of fighting inflation, and Legarde noted that inflation was sticky and hard to overcome. Crypto hedge fund Three Arrrows was ordered by a court to liquidate its holdings and return funds to investors. Interest rates declined, with The 10-Year Treasury Note (yield) Index (TNX) falling to 30.93 -1.13. Markets mainly consolidated from the previous day's active selling, with small caps weakest. Healthcare Services (XLV) 128.53 +.87% performed the best in the eleven S&P 500 economic sectors, followed by Consumer Staples (XLP) 72.13 +.63%, both low volatility defensive sectors. The weakest showing came from Energy Services (XLE) 73.05 -3.48%, which fell on a decline in WTI crude oil to 109.49 -$2.27. Mcdonald's (MCD) 247.74 +2.02% topped the DJIA, while Caterpillar (CAT) 183.48 -2.11% was the worst performer. Monster Beverage (MNST) 93.35 +2.80% topped the NDX100 while moving within striking distance of a 52-week high. Paychex Payroll Services firm (PAYX) 114.85 -4.20% fell on earnings. The firm beat on revenue and earnings but noted an expectation that growth would slow. General Mills (GIS) 74.72 +6.35% beat on revenue and organic sales. In M&A news, 2U, Inc. (TWOU) 10.92 +17.42% bolted higher on a buyout offer from India-based firm Byjus. Cruise ship firms were notably weak, with Carnival (CCL) 8.87 -14.13%, Royal Caribbean 36.02 -10.26%, Royal Caribbean (RCL) 36.02 -10.26%, and Norwegian Cruise (NCLH) 11.57 -9.33% the four worst performers in the S&P 500.
Thursday, June 30, 2022 – DIA 307.82 -.72%, QQQ 280.28 -1.24%, SPY 377.25 -.81%, IWM 169.36 -.78% CNN Fear & Greed Index @23 (Extreme Fear) – End of Q2
Initial Jobless Claims came at 231K vs. 228K expected. Personal Income for May (MoM) came as expected at +.5%, while Personal Spending came weaker at +.2% vs. +.5% expected. Chicago Purchasing Managers Index for June was weaker at 56 vs. 58 expected. Equity markets experienced a trap door opening in many stocks on the last day of the second quarter. The opening was deep enough that many stop orders went off before a significant rebound brought the markets near unchanged levels before selling resumed to close in the middle of the day's range. Utilities (XLU) 70.13 +1.11% was the top S&P 500 sector on the day, while the worst-performing sector, Energy Services (XLE) 71.51 -2.11%, traded in sympathy with WTI crude oil, which closed at 105.88 -$3.90. The Travelers (TRV) 169.13 +2.01% led the Dow 30 stocks, while Walgreen's Boots Alliance (WBA) 37.90 -7.27% performed the worst after beating on the top and bottom lines. Although that was the good news, it was still a down quarter as the COVID-19 vaccine, and related sales showed significant declines. Solar firm Enphase Energy (ENPH) 195.24 +5.74% topped the S&P 500. Pinterest (PINS) 18.11 -9.02% fell hard on introducing the company's new CEO.
Friday, July 1, 2022 – DIA 310.90 +1.00%, QQQ 282.13 +.66%, SPY 381.15 +1.03%, IWM 171.49 +1.26% CNN Fear & Greed Index @25 (ExtremeFear)
The S&P Global Manufacturing Index came stronger than expected at 52.7 vs. 52.4. The ISM Manufacturing Employment Index showed an unexpected contraction, reporting 47.3 vs. the expansionary reading of 50.2 expected. Utilities (XLU) 71.85 +2.45% again topped the eleven S&P 500 economic sectors, followed by Consumer Discretionary (XLY) 140.01 +1.84%. Technology Services (XLK) 127.41 +.23% was the clear laggard. McDonald's (MCD) 252.96 +2.46% led the Dow 30 stocks, followed by Coca-Cola (KO) 64.38 +2.34%. Both stocks showed breakouts from a declining trendline. DocuSign (DOCU) 61.22 +6.69% led the NDX100, with CrowdStrike (CRWD) 179.25 +6.34% coming in second. In a significant bout of selling pressure after bellwether Micron Semiconductor (MU) 53.65 -2.95% released earnings and a poor outlook, 12 of the top 13 losing stocks in the NDX100 were semiconductor or semiconductor equipment manufacturing company shares. Lam Research (LRCX) 394.83 -7.35% KLA Corporation (KLAC) 290.80 -7.15%, and ASML Holdings (ASML) 449.83 -5.47% were the worst hit in the group. In the retail sector of the R1000 index Etsy, Inc. (ETSY) 79.81 +9.02% rebounded on positive comments recently by two Wall Street firms. On the downside, Kohl's (KSS) 28.68 -19.64% ended talks to be acquired by Franchise Group.
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