Thursday's Market Recap - Stocks Slide As Investors Question The Health Of The US Consumer.
- cashtonsaunders
- May 19, 2022
- 2 min read
What is The Premarket Telling Us?
Thursday, May 19, 2022, 7:15 AM.
Stock index futures were pointing decidedly lower early, indicating the selloff will continue. Dow futures were down 360 points Nasdaq futures down 148 points, and S&P futures down 46 points. Major Asian markets were lower, overnight.
On The Bond Desk:
The US 10 Year Bond Yield, at 2.886%, down 0.082%.
Currency Desk:
Eurodollar: 1.05
UK Pound: 1.24
Crude Oil:
WTI crude oil futures, at $107.87/barrel, down 1.57%.
On the Earnings Calendar:
Kohl's reported quarterly results this morning. The company beat revenue expectations, but earnings missed estimates, due to higher costs. Walmart and Target had to contend with the same problem in their reports earlier this week.
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets mixed. Japan (Nikkei 225) down 1.89%, Shanghai up 0.36%, Hong Kong (Hang Seng) down 2.54%.
Major European markets ended lower. German (DAX) down 0.90%, France CAC 40 down 1.26%, London FTSE 100 down 1.82%
Market And Sector Dynamics
US markets started the trading the mixed. The Dow fell 313.94 points, Nasdaq was up 28 points, and S&P down 14 points. WTI crude oil was up 1.26%, to $113.83/barrel, and the US 10 Year Bond Yield, up 1.4 basis points, to 2.982%.
Markets traded below the flat line for most of the session, except for a brief tick into positive territory one hour before the close of trading.
Weakness in consumer staples and technology continued to pressure markets this week after quarterly earnings from retailers, Walmart, Target, and Kohl's, cast doubt on the health of the US consumer.
Eight of the eleven S&P sectors ended with losses today, led by Consumer Stapes, Technology, Industrials, Financials, Communication Services, Energy, Utilities, and Real Estate. Basic Materials, Healthcare, and Consumer Discretionary closed with modest gains.
Factors Influencing Today's Market
Stocks sold off as the health of the consumer is being questioned by investors.
This week's Initial Jobless Claims showed 218,000 new claims for unemployment, which was more than the 203,000 in the prior week and the 197,000 consensus estimate.
Sales of existing homes have been lower than expected for the last two months, suggesting rising interest rates may be slowing housing markets.
US 10 Year Bond Yield ticked lower today to close at 2.848%, down 1.26%.
WTI crude oil closed today at $112.21/barrel, up 2.39%.
Market Close Volume Traded And Advance Decline Ratio
US markets closed lower in today's trading. The Dow sank 236.94 points, Nasdaq fell 29.66 points, and the S&P lost 22.89 points. Total NYSE volume traded was a modest 5.16 billion shares. Advancing shares outpace Declining shares 1.08:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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