Monday, 07/11/2022 – DIA 311.70 -.56%, QQQ 289.04 -2.14%, SPY 384.23 -1.14%, IWM 172.06 -2.01% CNN Fear & Greed Index @27 (Fear)
No high-impact economic data was released. Equity markets gapped down on the open in line with foreign markets and news that Elon Musk had pulled out of his Twitter acquisition. Communication Services (XLC) 54.99 -3.03% was the hardest hit of the eleven S&P 500 sectors, with Twitter (TWTR) 32.65 -11.30% the worst performer. The former Facebook, now Meta (META) 162.88 -4.68%, fell in sympathy. Consumer Discretionary (XLY) 142.36 -2.74% was the second-worst performing sector. Nike (NKE) 105.11 -2.61% led the DJIA lower, followed by Walt Disney (DIS) 93.64 -2.32%. With news of mandated casino closings in Macau and other restrictions in China, gaming stocks did poorly; Wynn Resorts (WYNN) 52.81 -6.46% and Las Vegas Sands (LVS) 32.31-6.31% both fell. China internet retailer Pinduoduo (PDD) 54.70 -10.03% fell on the same concerns becoming the worst performer in the NDX100. Even the cruise ship group underperformed on the news, with Carnival Cruise (CCL) 8.52 -5.77%, and Royal Caribbean (RCL) 32.59 -5.37% both down hard. Utilities (XLU) 70.26 +.63%, often viewed as a haven for money that must be invested at all times, was the only S&P500 sector to close positive on the day.
Tuesday, 07/12/2022 – DIA310.03 -.54%, QQQ 286.24 -.97%, SPY 380.87 -.87%, IWM 171.51 -.32% CNN Fear & Greed Index @26 (Fear)
No high-impact data was released. Equity markets opened lower and attempted a rally but came under selling pressure across the board on concerns of a potential recession taking hold of the US economy. The much-watched 2-year/10-year portion of the US Treasury yield curve became inverted by ten basis points, which has been noted to be predictive of recessions. WTI crude oil 95.65 -$8.44 tumbled on the worries of potential greater supply and the potential of demand destruction from a recession. As a result, Energy Services (XLE) 68.90 -1.95% was the hardest hit S&P500 economic sector, followed by Technology Services (XLK) 129.25 -1.37%. In the DJIA, Boeing (BA) 147.15 +7.42% performed best, as the company announced the highest deliveries since March of 2019. The next best was Walgreen’s Boots Alliance (WBA) 37.97 +1.44%. Salesforce.com (CRM) 166.33 -4.61% was the big laggard in the index, which fell in sympathy with ServiceNow (NOW) 427.94 -11.7% (comments on business conditions by CEO). In the NDX100 Lucid Group (LCID) 19.33 +4.32% was the top performer, as a prominent business publication featured an article on the low supply of new cars, prices above sticker, and a consumer shift to EVs. The big loser in the index was Atlassian Corporation PLC (TEAM) 192.67 -8.7%, also falling in sympathy with comments by the ServiceNow CEO. In the S&P 500 index, travel and entertainment shares rebounded to perform better on the day, American Airlines (AAL) 14.78 +9.98%, United Airlines (UAL) 38.23 +8.09%, and Carnival Cruise Lines (CCL) 9.13 +7.54% took the top three spots in performance. In the R1000 index Herbalife (HLF) 22.70 +15.17% bolted higher on an upgrade by Jefferies from Hold to Buy.
Wednesday, 07/13/2022 –DIA 307.75 -.72%, QQQ 285.65 -.21%, SPY 378.83 -.53%, IWM 171.32 -.09% CNN Fear & Greed Index @23 (Extreme Fear)
The Consumer Price Index reported at a 40-year high and a higher than expected 9.1% vs. 8.8%. Ex-Food & Energy was also higher than expected at 5.9% vs. 5.7%. Equity markets gapped down on the opening but spent the rest of the day climbing back, closing in the negative but at the top of the day’s range. Consumer Discretionary (XLY) 142.66 +.82% was the top S&P500 sector, followed by Consumer Staples (XLP) 72.64 +.07%. The following nine sectors closed in the red, with Industrial Services (XLI) 85.99 -1.22% the biggest laggard. Nike (NKE) 105.11 +1.30% led the DJIA, followed by Home Depot (HD) 287.18 +.72%. United Healthcare (UNH) 501.24 -2.56% was the laggard in the index. In the NDX100, China internet giant NetEase (NTES) 89.39 +3.35% led the index, followed by semiconductor equipment company ASML Holdings (ASML) 447.01 +2.88%. The worst performer in the index was pandemic favorite Zoom Video Communications, Inc. (ZM) 101.01 -6.46%. Also weighing on the index was industrial firm Fastenal (FAST) 46.77 -6.44%, which gapped down on an earnings miss. Leading both S&P500 and R1000 indexes, Twitter (TWTR) 36.75 +7.90% moved higher on indications from legal experts that Elon Musk may have to follow through on his original bid to acquire the company.
Thursday, 07/14/2022 – DIA 306.40 -.44%, QQQ 286.67 +.36%, SPY 377.91 -.24%, IWM 169.56 -1.03% CNN Fear & Greed @23 (Extreme Fear)
The much-anticipated headline number for the Producer Price Index was released at +11.3% vs. +10.7% (YoY). Ex-Food & Energy came slightly ahead of expectations at +8.2% vs. +8.1%. Equity markets gapped down on the opening for the second day in a row but battled back to close mixed with most indexes at the top of the day’s trading range. Technology Services (XLK) 130.09 +.92% was the top S&P500 economic sector performer, followed by Consumer Staples (XLP) 72.82 +.08%. Financial Services (XLF) 30.74 -1.91% was the hardest hit sector following the release of JPMorgan Chase (JPM) 108.00 -3.49%, which missed earnings due to an increase in reserves for bad debt and a halt in the company’s buyback program. Energy Services (XLE) 67.49 -1.89% was the second-worst performer on a continuation of selling in the sector. Boeing (BA) 147.15 +2.22% led the DJIA while continuing its recent outperformance. Apple, Inc. (AAPL) 148.47 +2.05% took second in the index. The Travelers Companies, Inc. (TRV) 155.68 -4.68% continued to fall ahead of its earnings release date of July 21. The NDX100 index was the leader on the day, with QUALCOMM (QCOM) 141.90 +4.62% at the top spot. The stock had shown good relative strength in previous sessions and broke out of a five-month downtrend. Costco (COST) 511.94 +4.01% took the second spot in the index. Moderna (MRNA) 159.92 -6.61%, a recent outperformer in the index, came under profit taking. Atlassian Corporation (TEAM) 184.98 -4.88% continued to struggle.
Friday, 07/15/2022 – DIA 312.66 +2.09%, QQQ 291.87 +1.81%, SPY 384.96 +1.87%, IWM 159.01 -.20% CNN Fear & Greed @27 (Fear)
Retail Sales were reported at +1% vs. +.8% anticipated. Ex-Auto Retail Sales were reported at +1% vs. +.6% expected. Michigan Consumer Sentiment was stronger and reported at an index level of 51.1 vs. 49.9. Equity markets gapped higher on better than expected data and relatively good earnings reports. Financial Services (XLF) 31.85 +3.38% was the top performer in the eleven S&P500 sectors as a strong earnings (trading revenue) report by Citibank (C) 49.98 +13.23% fired up the sector. State Street (STT) 65.67 +9.74% was the next best performer on much higher net-interest income. Communications Services (XLC) 55.41 was the second best sector as Netflix (NFLX) 189.11 +8.20% took flight, as the company announced an agreement with Microsoft (MSFT) 256.71 +1.04% to launch an ad-supported version of its service that could bring in $2 billion in additional revenue. China-related internets were underperformers: NetEase (NTES) 86.43 -1.72%, Baidu (BIDU) 140.09 -1.39%, JD.com (JD) 60.26 -1.28%. Popping on a report that a major hedge fund had taken a position in the company’s shares Pinterest (PINS) 20.40 +16.17% to lead the R1000 index. The stock peaked at 89.90 in February of 2021 and has been basing since late May 2022.
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