Connect with us


Dow struggles for direction as weak Chinese data fuels pressure on stocks, and global recession worries grow




Dow industrials had a marginally positive finish on Monday, while the S&P 500 saw its gains evaporate entirely in the final hour of trading, extending a stock market selloff following a batch of weak data from from China and the United States which fueled further concerns about the state of the global economy.

How did the stocks trade?
  • The Dow Jones Industrial Average DJIA,
    ended up 26.76 points, or less than 0.1%, at 32,223.42.

  • The S&P 500 SPX,
    closed down 15.88 points, or 0.4%, at 4,008.01. It has completed six of the last eight trading days, according to Dow Jones Market Data.

  • The Nasdaq Composite COMP,
    ended down 142.21 points, or 1.2%, at 11,662.79. That’s down 27% from its all-time high close of 16,057.44 reached on November 19, 2021.

Last week, the Dow Jones fell 2.1%, the S&P 500 2.4% and the Nasdaq 2.8%. It was the S&P 500’s sixth weekly week, its longest losing streak since June 2011. The Nasdaq also fell for a sixth straight week, booking its longest losing streak since November 2012.

Lily: Nowhere to hide? What’s next as stocks plummet to bear market amid stagflation fears

What drove the markets?

The Dow Jones and S&P 500 struggled to hold onto gains earlier on Monday after Friday’s modest relief rally, which left stocks sharply lower again last week. Some investors remain skeptical about the central bank’s ability to control inflation without causing a sharp slowdown.

On Monday, the New York Fed’s Empire State Business Conditions Index, an indicator of manufacturing activity in the state, fell 36.2 points to minus 11.6 in May. Economists expected the index to fall slightly to 16.5, according to a Wall Street Journal survey. Any reading below zero indicates deteriorating conditions.

Earlier today, fresh economic data out of China appeared to trigger some concern among investors as that country revealed the continued fallout from recent COVID shutdowns. The data complicates an already murky picture for U.S. investors, experiencing a bear market for tech stocks and near one for the S&P 500.

To see: Despite the rebound, the S&P 500 is close to the bear market. Here’s the number that matters

Today’s market turmoil is driven by China, COVID and the threat of recession, said Hans Olsen, chief investment officer of Fiduciary Trust Company in Boston. Add to that cocktail a rising rate environment, and investors are a little confused wondering where to take shelter from the whirlwind of bad news.

From our perspective, the market volatility we’re seeing is a function of a fundamental repricing of risk caused by the normalization of interest rates in an environment of stubbornly high inflation, Olsen said in an email to MarketWatch. . We are in the early innings of this competition between growth, inflation, COVID, and a market-determined interest rate.

Goldman Sachs lowered its U.S. growth outlook for 2022 to 2.4% from 2.6% previously, and to 1.6% from 2.2% for 2023, fearing an uncertain growth trajectory and tightening financial conditions. The bank also cut its S&P 500 target again, to 4,300.

Lily: Very, very high risk of recession, warns Goldmans Lloyd Blankfein

Meanwhile, former Fed Chairman Ben Bernanke told the New York Times the United States could enter a period of stagflation for the first time since the 1970s.

Monday’s stock action still offered some glimmers of hope, particularly in the afternoon when the Dow Jones and S&P 500 both traded higher.

We’re all worried that due to rising rates we’ve lost the dip buyer, said Eric Leve, chief investment officer at Bailard, an asset and wealth manager that has overseen $5.5 billion. in March. Have seen the first evidence that the dip shopper is still around. For now, its defensive names that continue to support the market, those with good earnings growth and dividend yields.

Retailers will be in the spotlight this week, with Walmart Inc. WMT,
and Home Depot Inc.
are due to report on Tuesday, and Target Corp.

Lowe Cos.
later in the week. Deere & Co.
is another big name expected this week. Walmart Revenue Snapshot: Walmart’s exposure to low-income consumers gives analysts pause

US wheat futures W00,
surged after India said it would curb nearly all exports of the commodity. The country suffered an intense heat wave that damaged its crops, while world agricultural prices have risen this year following Russia’s invasion of Ukraine.

Which companies were targeted?
  • McDonald’s Corp.
    plans to reserve a charge of $1.2-1.4 billion to exit the Russian market. Its shares ended down 0.4%.

  • Shares of Spirit Airlines Inc.
    finished 13.5% higher after JetBlue Airways Corp.
    launched a tender offer to buy the discount airline. Earlier this month, Spirit rejected an offer from JetBlue, preferring to stick with a competing offer from Frontier Group Holdings Inc.
    JetBlue shares closed 6.1%, while Frontier shares ended up 5.9%.

  • Shares of ManTech International Corp.
    ended up 15% after the IT services provider for U.S. defense and federal civilian agencies announced an agreement for an acquisition by an investment company Carlyle Group Inc.
    in an all-cash transaction valued at $4.2 billion. Carlyle shares closed 0.3%.

How have other assets traded?
  • The yield of the 10-year note TMUBMUSD10Y,
    fell 5.5 basis points to 2.877%. Yields and debt prices move in opposite directions.

  • Oil futures ended sharply higher, with West Texas Intermediate crude for delivery in June CLM22,
    up $3.71, or 3.4%, to close at $114.20 a barrel on the New York Mercantile Exchange as gasoline futures hit another closing record high.

  • Gold futuresGC00 also ended higher, settling at $1,814 an ounce.

  • In European equities, the Stoxx Europe 600 SXXP,
    ended down less than 0.1%, while London’s FTSE 100 UKX,
    closed up 0.6%.

  • In Asia, the Shanghai CompositeCN:SHCOMP fell 0.3%. Meanwhile, the Hang Seng HK:HSI index ended up 0.3% and Japan’s Nikkei 225JP:NIK rose 0.5%.

Barbara Kollmeyer contributed to this article.

See interviews with Fed Chairman Jerome Powell, CEOs of companies including Wells Fargo, Moderna and FanDuel. Register for Virtual Access to The Wall Street Journals Future of Everything Festival, May 17-19. (Select a virtual pass for free access.)




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]