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U.S. stocks drop on recession fears, Nasdaq closes at new bear market low

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  • Tesla gains 3.3% in choppy trade
  • Southwest Airlines slips 5.2% on government scrutiny
  • Indexes down: Dow 1.1%, S&P 500 1.20%, Nasdaq 1.35%

Dec 28 (Reuters) – Wall Street’s main indexes ended weaker on Wednesday, with the Nasdaq hitting a 2022 closing low, as investors grappled with mixed economic data, rising COVID cases in China, and geopolitical tensions heading into 2023.

The Nasdaq Composite (.IXIC) ended at 10,213.288, the lowest since the bear market began in November 2021 after the index hit a record high. The last time the Nasdaq ended lower was in July 2020. Its previous closing low for 2022 was 10,321.388 on Oct. 14.

“There was no Santa rally this year. The Grinch showed up this December for investors,” said Greg Bassuk, chief executive at AXS Investments in Port Chester, New York.

December is typically a strong month for equities, with a rally in the week after Christmas. The S&P 500 index (.SPX) has posted only 18 Decembers with losses since 1950, Truist Advisory Services data show.

“Normally a Santa Claus Rally is sparked by hopes of factors that will drive economic and market growth,” Bassuk said. “The negative and mixed economic data, greater concerns around COVID reemergence and ongoing geopolitical tensions and … all of that also translating Fed policy is all impeding Santa (from) showing up at the end of this year.”

All 11 of the S&P 500 (.SPX) sector indexes fell on Wednesday. Energy stocks (.SPNY) were the biggest losers, dipping over 2.2% as worries over demand in China weighed on oil prices.

Investors have been assessing China’s move to reopen its COVID-battered economy as infections surged.

“With this current combination of rising cases with an opening up of China restrictions, we’re seeing that investors are concerned that the ramifications are going to spread through many different industries and sectors as it did in the earlier COVID period,” Bassuk said.

The benchmark S&P 500 (.SPX) is down 20% year-to-date, on track for its biggest annual loss since the financial crisis of 2008. The rout has been more severe for the tech-heavy Nasdaq Composite (.IXIC), which closed at the lowest level since July 2020.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

While recent data pointing to an easing in inflationary pressures has bolstered hopes of smaller interest rate hikes by the Federal Reserve, a tight labor market and resilient American economy have spurred worries that rates could stay higher for longer.

Markets are now pricing in 69% odds of a 25-basis point rate hike at the U.S. central bank’s February meeting and see rates peaking at 4.94% in the first half of next year. .

Shares of Tesla Inc (TSLA.O) gained 3.3% in choppy trade, a day after hitting the lowest level in more than two years. The stock is down nearly 69% for the year.

Southwest Airlines Co (LUV.N) dropped 5.2% a day after the carrier came under fire from the U.S. government for canceling thousands of flights.

Apple Inc (AAPL.O), Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O) fell between 1.5% and 3.1% as the U.S. 10-year Treasury yield recovered from a brief fall to rise for a third straight session.

The Dow Jones Industrial Average (.DJI) fell 365.85 points, or 1.1%, to 32,875.71; the S&P 500 (.SPX) lost 46.03 points, or 1.20%, at 3,783.22; and the Nasdaq Composite (.IXIC) dropped 139.94 points, or 1.35%, to 10,213.29.

Declining issues outnumbered advancers on the NYSE by a 3.77-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.

The S&P 500 posted seven new 52-week highs and seven new lows; the Nasdaq Composite recorded 75 new highs and 421 new lows.

Volume on U.S. exchanges was 8.59 billion shares, compared with the 11.3 billion average for the full session over the last 20 trading days.

Reporting by Echo Wang in New York; Additional reporting by Amruta Khandekar and Ankika Biswas in Bengaluru; Editing by Sriraj Kalluvila, Anil D’Silva and Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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Tesla, megacap growth stocks pull Nasdaq lower; Dow rises

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  • Tesla slumps on report of reduced output plan
  • China ADRs rise on reopening optimism
  • Indexes mixed: Dow up 0.40%, S&P down 0.11%, Nasdaq down 0.80%

Dec 27 (Reuters) – The tech-heavy Nasdaq came under pressure on Tuesday following declines in some megacap growth stocks and Tesla, while optimism around an economic recovery in China after the country further eased its COVID-19 curbs helped cap losses.

Tesla Inc (TSLA.O) tumbled 8.1% to hit a more than two-year low after Reuters reported that the electric vehicle maker plans to run a reduced production schedule at its Shanghai plant into January. The stock has lost more than two-thirds of its value this year.

Megacap growth stocks Apple Inc (AAPL.O), Alphabet Inc (GOOGL.O) and Amazon.com Inc (AMZN.O) slipped between 1% and 1.5% as U.S. Treasury yields rose.

The declines made consumer discretionary (.SPLRCD) and technology (.SPLRCT) the worst performers among major S&P 500 (.SPX) sector indexes.

However, sectors closely tied to the economy, such as industrials (.SPLRCI), materials (.SPLRCM) and energy (.SPNY), advanced, helping the Dow Jones (.DJI) to eke out gains.

“What you’re seeing is a battle between investors who are doing year-end tax selling and investors that believe that normal inflows in January will lead to a better market,” said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.

Meckler also pointed to thin trading volumes playing its part in market volatility.

Growth stocks have been under pressure this year from a rise in U.S. Treasury yields after the Federal Reserve embarked on an aggressive interest rate hike campaign to tame a surge in inflation, with investors turning to high dividend-yielding value stocks such as energy.

The S&P 500 growth index (.IGX) has tumbled 30% this year, compared with a 7% drop for the value index (.IVX).

U.S.-listed shares of Chinese firms such as JD.Com Inc , Alibaba Group Holding Ltd and Pinduoduo Inc (PDD.O) climbed between 2% and 3.8% after China said it would stop requiring inbound travelers to go into quarantine starting Jan. 8.

Investors are hoping for a so-called “Santa rally” at the end of what has been a largely disappointing month for U.S. equities.

The S&P 500 (.SPX) and the Nasdaq (.IXIC) have lost around 5.7% and 9% so far in December and are on track for their biggest yearly loss since 2008 as the monetary policy tightening sparked worries of the economy tipping into a recession.

Economic data so far has offered little hope. Inflation has cooled further, but not enough to discourage the U.S. central bank from driving interest rates to higher levels next year.

Money markets are pricing in 59% odds of a 25-basis-point interest rate hike at the Fed’s February meeting and expect rates peaking at 4.98% in May. .

At 11:52 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 133.48 points, or 0.40%, at 33,337.41, the S&P 500 (.SPX) was down 4.22 points, or 0.11%, at 3,840.60, and the Nasdaq Composite (.IXIC) was down 83.89 points, or 0.80%, at 10,413.97.

Southwest Airlines Co (LUV.N) shed 4.9% after cancelling thousands of flights, piling more pressure on the S&P 500.

Declining issues outnumbered advancers for a 1.01-to-1 ratio on the NYSE and 1.43-to-1 ratio on the Nasdaq.

The S&P index recorded five new 52-week highs and three new lows, while the Nasdaq recorded 61 new highs and 311 new lows.

Reporting by Amruta Khandekar and Ankika Biswas in Bengaluru;
Editing by Vinay Dwivedi and Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

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Business

Dow Jones Futures: Nasdaq Breaks Key Level, Apple Dives; Here’s The Silver Lining

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Dow Jones futures were little changed in after-hours trade, along with S&P 500 futures and Nasdaq futures. Software giant Adobe rose late on an earnings beat, while big Cathie Wood holding Exact Sciences (EXAS) skyrocketed on a rival’s clinical trial.




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The stock market rally suffered damaging losses Thursday, with the major indexes breaking below key levels to one-month lows.

Blame a second-day reaction to the hawkish Fed rate hike outlook, weak U.S. and China economic data, various corporate news for Netflix (NFLX) and Nucor (NUE) and a bearish analyst call for Nvidia (NVDA).

Leading stocks, including from the industrial, infrastructure, chip and solar sectors, fell back modestly and sometimes sharply.

But the dark clouds do contain a silver lining: The market is no longer tempting investors into taking new positions.

Apple (AAPL) suffered its worst one-day loss since late September, while Amazon.com (AMZN) is nearing its bear market bottom. Microsoft (MSFT) pulled back, but to a key support area. Nvidia stock fell back below its 200-day line on a grim day for chip stocks.

Tesla (TSLA) did hit a fresh bear-market low Thursday, but closed slightly higher. Elon Musk disclosed yet another round of Tesla stock sales late Wednesday.

Earnings, Other News

Adobe (ADBE) reported better-than-expected Q4 2022 earnings late Thursday on in-line revenue growth. The business software giant guided slightly lower on fiscal Q1 revenue, but up on earnings. ADBE stock popped more than 4% after hours. Shares closed down 3.3% to 328.71. Adobe stock has rebounded from late September lows, but is still well below its 200-day line.

Guardant Health (GH) reported key results for its blood test for colorectal cancer in average-risk adults. While Guardant Health noted the results were high enough to win Medicare reimbursement, GH stock crashed 35%. Meanwhile, EXAS stock shot up more than 20%. Exact Sciences makes Cologuard, a stool-based DNA test for colorectal cancer.

Global IT and consulting giant Accenture (ACN) reports early Friday. ACN stock closed down 3.4%, but found support at its 50-day line, a day after falling back below its 200-day.

Darden Restaurants (DRI) earnings also are due Friday morning. DRI stock dipped 0.7% to 142.95 on Thursday, but rebounded from near its 50-day line. The Olive Garden parent has a 149.90 buy point from a cup-with-handle base.

Dow Jones Futures Today

Dow Jones futures were flat vs. fair value. S&P 500 futures and Nasdaq 100 futures edged lower.

The 10-year Treasury yield rose 1 basis point to 3.46%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Stock Market Rally

The stock market rally sold off sharply Thursday.

Before the open, November retail sales showed an unexpected 0.6% decline. The Philly Fed and New York Fed regional surveys for December also pointed to contraction. But jobless claims declined significantly, exactly what the Fed doesn’t want to see.

That’s all followed weaker-than-expected Chinese industrial production and retail sales figures. Fast-easing Covid restrictions may offer a boost, but China is likely beginning a massive wave of infections that could deter activity.

The Dow Jones Industrial Average sank 2.3% in Thursday’s stock market trading, its worst performance in three months. The S&P 500 index slumped 3.2%. The Nasdaq composite tumbled 3.5%. The small-cap Russell 2000 skidded 2.5%.

U.S. crude oil prices retreated 1.5% to $76.11 a barrel. Gasoline futures slumped 3.5%. Natural gas prices leapt 8.4%.

The 10-year Treasury yield fell 5 basis points to 3.45%, just a bit from last week’s three-month low of 3.4%. But that likely reflects recession fears more than easing inflation. The two-year Treasury yield, more closely tied to Fed policy, was little changed Thursday. The two-year yield is down sharply since early November.

Why This IBD Tool Simplifies The Search For Top Stocks

ETFs

Among growth ETFs, the iShares Expanded Tech-Software Sector ETF (IGV) slumped 3.5%, with MSFT stock a major holding. The VanEck Vectors Semiconductor ETF (SMH) tumbled 3.8%, back below its 200-day line. NVDA stock is a big SMH component.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) sold off 4.9%, just above November’s five-year low. ARK Genomics ETF (ARKG) retreated 3.5% to a six-month closing low. Tesla stock is a major holding across Ark Invest ETFS. Cathie Wood added to Ark’s overall TSLA stake on Wednesday. EXAS stock also is a top 10 Ark Invest holding.

SPDR S&P Metals & Mining ETF (XME) gave up nearly 4%. U.S. Global Jets ETF (JETS) descended 2.55%. SPDR S&P Homebuilders ETF (XHB) edged down 0.6%, with some strong performers. The Energy Select SPDR ETF (XLE) dipped 0.6%. The Health Care Select Sector SPDR Fund (XLV) gave up 1.8%

Five Best Chinese Stocks To Watch Now

Megacap Stocks

Apple stock tumbled 4.7% to 136.60, its worst one-day loss since Sept. 29. Shares are close to their October-November lows, with the June bear-market low of 129.04 not much further.

AMZN stock sank 3.4% to 88.45. That’s approaching the Nov. 9 bear-market low of 85.87.

Microsoft stock retreated 3.2% to 249.01, but found support at its 21-day line. Shares had tested the 200-day line in the prior two sessions.

Nvidia stock fell back 4.1% to 169.52, tumbling below its 200-day line after retaking that key level on Monday. HSBC initiated Nvidia stock with a reduce rating and a 136 price target. The Nvidia sell-off, as well as a Western Digital (WDC) downgrade, helped lead a chip sell-off.

Tesla stock dipped Thursday morning to a fresh two-year low of 153.28 before rebounding to close up 0.5% at 157.67. Shares are still down 12% this week. Late Wednesday, CEO Elon Musk disclosed selling 22 million TSLA shares on Dec. 12-14 for $3.6 billion, adding to Tesla investors’ frustrations. But, that likely means Musk’s latest selling is over.

Meanwhile, Tesla is offering 10,000 free Supercharger miles for anyone buying a Model 3 or Y in the U.S. before year-end, on top of a $3,750 discount. Tesla is encouraging people to take delivery now, boosting Q4 figures, rather than wait for Jan. 1 for new EV tax credits.

Tesla Vs. BYD: Which EV Giant Is The Better Buy?

Market Rally Analysis

The stock market rally had a clear-cut bad day. The Nasdaq composite and Russell 2000 tumbled below their 50-day moving averages for the first time in just over a month. The S&P 500, which had been hitting resistance at the 200-day line, gapped below the 21-day line. The Dow Jones also is well below its 21-day, heading toward its 50-day and 200-day lines.

All the major indexes are at their lowest levels since Nov. 10, when they gapped up on the October consumer price index. The Nasdaq is about where it was on the Oct. 21 follow-through day.

Most leading stocks came under pressure, some finding support and others not. There were a few winners, such as Lennar (LEN) and Nordson (NDSN) on earnings, but those are the exception.

Megacap stocks such as Apple, Amazon and Tesla are in serious trouble. Microsoft’s 200-day line resistance isn’t a good sign. Nvidia stock and the VanEck Semiconductors ETF falling below the 200-day line is definitely discouraging.

Is the market uptrend, from the Oct. 13 low to the Dec. 13 high, just a bear market rally coming to a close? It’s too soon to say. It’s also possible that the market will rebound, or now trade in a sideways manner.

Time The Market With IBD’s ETF Market Strategy

What To Do Now

A choppy market rally is dangerous because it lures investors into stocks that are flashing buy signals, then immediately reverses lower.

But let’s say you bought on relative weakness in the market, such as pullbacks to the 21-day line, over the past few weeks? Well, the indexes are all undercutting their recent lows. So even those trades are likely struggling unless you took quick profits.

Investors should probably be reducing exposure, if only because individual stocks aren’t working.

The silver lining? Few stocks are flashing buy signals while the market is clearly weakening. It’s easier to stay out in that environment.

But stay engaged. A couple good days could revive the market rally and buoy stocks back into buy areas. So run your screens and update your watchlists. Look for stocks holding key support levels, such as the 21-day or 50-day lines. Some big recent winners are now pulling back to the 50-day/10-week lines.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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The 200-Day Average: The Last Line Of Support?



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Business

Rivian, GlobalFoundries Joining Nasdaq 100 Index; Apple Chipmaker, China Stocks Falling Off

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Tesla (TSLA) rival Rivian Automotive (RIVN) and chip foundry GlobalFoundries (GFS) are among six stocks that will join the Nasdaq 100 index before the open on Dec. 19, while Apple (AAPL) chipmaker Skyworks Solutions (SWKS) and China search engine giant Baidu (BIDU) are among the looming deletions.




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Nasdaq (NDAQ) announced late Friday that Rivian stock, Global Foundries, CoStar Group (CSGP), Warner Bros. Discovery (WBD), GlobalFoundries, Baker Hughes (BKR) and Diamondback Energy (FANG) will be added as part of an annual reshuffling.

Both Rivian and GFS stock came public in November 2021. Warner Bros. Discovery was forged in April 2022 from AT&TT spinning off its Warner Bros. unit and merging it with Discovery.

Meanwhile, VeriSign (VRSN), Splunk (SPLK), Baidu, Match Group (MTCH), DocuSign (DOCU), NetEase (NTES) and SWKS stock will drop off.

RIVN stock fell 1% in Monday’s premarket as the EV startup walked away from talks with Mercedes-Benz to jointly build an EV van factory in Europe. Most other entering or departing Nasdaq 100 stocks moved only slightly or were not yet trading.

The Nasdaq 100 index includes the 100 largest non-financial companies listed on the Nasdaq. Apple stock, Microsoft (MSFT), Google parent Alphabet (GOOGL), Amazon.com (AMZN), Nvidia and Tesla stock are currently the largest weights on the Nasdaq 100.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Allegro Microsystems, CubeSmart To Join S&P MidCap 400



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S&P 500, Nasdaq snap losing streaks after jobless claims rise

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  • Weekly jobless claims rise in line with estimates
  • Moderna, Pfizer up as FDA authorizes updated COVID boosters
  • Exxon climbs after boosting buyback program
  • Indexes up: Dow 0.55%, S&P 0.75%, Nasdaq 1.13%

Dec 8 (Reuters) – The S&P 500 (.SPX) ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow.

Wall Street’s main indexes had come under pressure in recent days, with the S&P 500 shedding 3.6% since the beginning of December on expectations of a longer rate-hike cycle and downbeat economic views from some top company executives.

Such thinking had also weighed on the Nasdaq Composite (.IXIC), which had posted four straight losing sessions prior to Thursday’s advance on the tech-heavy index.

Stocks rose as investors cheered data showing the number of Americans filing claims for jobless benefits increased moderately last week, while unemployment rolls hit a 10-month high toward the end of November.

The report follows data last Friday that showed U.S. employers hired more workers than expected in November and increased wages, spurring fears that the Fed might stick to its aggressive stance to tame decades-high inflation.

Markets have been swayed by data releases in recent days, with investors lacking certainty ahead of Federal Reserve guidance next week on interest rates.

Such behavior means Friday’s producer price index and the University of Michigan’s consumer sentiment survey will likely dictate whether Wall Street can build on Thursday’s rally.

“The market has to adjust to the fact that we’re moving from a stimulus-based economy – both fiscal and monetary – into a fundamentals-based economy, and that’s what we’re grappling with right now,” said Wiley Angell, chief market strategist at Ziegler Capital Management.

The Dow Jones Industrial Average (.DJI) rose 183.56 points, or 0.55%, to close at 33,781.48; the S&P 500 (.SPX) gained 29.59 points, or 0.75%, to finish at 3,963.51; and the Nasdaq Composite (.IXIC) added 123.45 points, or 1.13%, at 11,082.00.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 7, 2022. REUTERS/Brendan McDermid

Nine of the 11 major S&P 500 sectors rose, led by a 1.6% gain in technology stocks (.SPLRCT).

Most mega-cap technology and growth stocks gained. Apple Inc (AAPL.O), Nvidia Corp (NVDA.O) and Amazon.com Inc (AMZN.O) rose between 1.2% and 6.5%.

Microsoft Corp (MSFT.O) ended 1.2% higher, despite giving up some intraday gains after the Federal Trade Commission filed a complaint aimed at blocking the tech giant’s $69 billion bid to buy Activision Blizzard Inc . The “Call of Duty” games maker closed 1.5% lower.

The energy index (.SPNY) was an exception, slipping 0.5%, despite Exxon Mobil Corp (XOM.N) gaining 0.7% after announcing it would expand its $30-billion share repurchase program. The sector had been under pressure in recent sessions as commodity prices slipped: U.S. crude is now hovering near its level at the start of 2022.

Meanwhile, Moderna Inc (MRNA.O) advanced 3.2% after the U.S. Food and Drug Administration authorized COVID-19 shots from the vaccine maker that target both the original coronavirus and Omicron sub-variants for use in children as young as six months old.

The regulator also approved similar guidance for fellow COVID vaccine maker Pfizer Inc (PFE.N), which rose 3.1%, and its partner BioNTech, whose U.S.-listed shares gained 5.6%.

Rent the Runway Inc (RENT.O) posted its biggest ever one-day gain, jumping 74.3%, after the clothing rental firm raised its 2022 revenue forecast.

Volume on U.S. exchanges was 10.07 billion shares, compared with the 10.90 billion average for the full session over the last 20 trading days.

The S&P 500 posted 15 new 52-week highs and three new lows; the Nasdaq Composite recorded 82 new highs and 232 new lows.

Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Sriraj Kalluvila, Anil D’Silva and Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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S&P, Nasdaq extend losing streaks amid rising recession worries

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  • Apple down after Morgan Stanley cuts Dec shipment target
  • Tesla falls on production loss worries
  • Carvana records worst-ever daily drop
  • Indexes: Dow flat, S&P down 0.19%, Nasdaq 0.51%

Dec 7 (Reuters) – The S&P 500 and Nasdaq closed down on Wednesday after a choppy session on Wall Street, as investors struggled to grasp a clear direction as they weighed how the Federal Reserve’s monetary policy tightening might feed through into corporate America.

For the benchmark S&P 500 (.SPX), it was the fifth straight session that it has declined, while the Nasdaq (.IXIC) finished down for the fourth time in a row. The Dow snapped a two-session losing streak, as it ended unchanged from the previous day.

The Nasdaq was dragged down by a 1.4% drop in Apple Inc (AAPL.O) on Morgan Stanley’s iPhone shipment target cut and a 3.2% fall in Tesla Inc (.IXIC) over production loss worries.

Markets have also been rattled by downbeat comments from top executives at Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) on Tuesday that a mild to more pronounced recession was likely ahead.

Fears that the U.S. central bank might stick to a longer rate-hike cycle have intensified recently in the wake of strong jobs and service-sector reports.

More economic data, including weekly jobless claims, producer price index and the University of Michigan’s consumer sentiment survey this week, will be on the watch list for clues on what to expect from the Fed on Dec. 14.

“It feels like we’re in this very uncertain period where investors are trying to ascertain what’s more important, as policymakers are slowing down on rates but the data is not playing ball,” said Craig Erlam, senior market analyst at OANDA.

“The market is trying to balance the headwinds and the tailwinds and this is causing some confusion.”

The CBOE volatility index (.VIX), also known as Wall Street’s fear gauge, closed at 22.68, its highest finish since Nov. 18.

[1/2] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 29, 2022. REUTERS/Brendan McDermid

Money market participants see a 91% chance that the Fed will increase its key benchmark rate by 50 basis points in December to 4.25%-4.50%, with rates peaking in May 2023 at 4.93%.

The S&P 500 (.SPX) lost 7.34 points, or 0.19%, to close at 3,933.92 and the Nasdaq Composite (.IXIC) dropped 56.34 points, or 0.51%, to finish at 10,958.55. The Dow Jones Industrial Average (.DJI) was flat, ending on 33,597.92.

Concerns about a steep rise in borrowing costs have boosted the dollar, but dented demand for risk assets such as equities this year. The S&P 500 is on track to snap a three-year winning streak.

Three of the 11 major S&P sector indexes were higher, with healthcare (.SPXHC) one of them. Technology (.SPLRCT) and communication services (.SPLRCL), down 0.5 and 0.9% respectively, were the worst performers.

Energy (.SPNY) fell for its fifth straight session. The sector’s performance was weighed by U.S. crude prices falling again, settling at the lowest level in 2022, as concerns over the outlook for global growth wiped out all of the gains since Russia’s invasion of Ukraine exacerbated the worst global energy supply crisis in decades.

Carvana Co (CVNA.N) had its worst day as a public company, losing nearly half its stock value, after Wedbush downgraded the used-car retailer’s stock to “underperform” from “neutral” and slashed its price target to $1.

Meanwhile, United Airlines (UAL.O) traded 4.1% lower. Unions representing various workers at the airline said they would join forces on contract negotiations.

Travel-related stocks were generally down. Delta Air Lines (DAL.N) and American Airlines Group (AAL.O) were 4.4% and 5.4% lower respectively, with cruise line operators Carnival Corp (CCL.N) and Norwegian Cruise Line Holdings (NCLH.N) and accommodation-linked Airbnb Inc (ABNB.O) and Booking Holdings (BKNG.O) all falling between 1.7% and 4.4%.

Volume on U.S. exchanges was 10.29 billion shares, compared with the 10.98 billion average for the full session over the last 20 trading days.

The S&P 500 posted seven new 52-week highs and seven new lows; the Nasdaq Composite recorded 61 new highs and 307 new lows.

Reporting by Shubham Batra, Ankika Biswas, Johann M Cherian and Shashwat Chauhan in Bengaluru and David French in New York; Editing by Vinay Dwivedi, Shounak Dasgupta and Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

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Stock Market Today: Dow, Nasdaq and S&P 500 Close Down, Erasing Most of Last Week’s Gains – The Wall Street Journal

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  1. Stock Market Today: Dow, Nasdaq and S&P 500 Close Down, Erasing Most of Last Week’s Gains The Wall Street Journal
  2. Stock market news live updates: Stocks fall ahead of more economic data Yahoo Finance
  3. Dow slides 400 points on fears the Fed will keep tightening into a recession CNBC
  4. Dow Jones Futures Fall In Resilient Market Rally; Tesla Stock Falls On Production Cut | Investor’s Business Daily Investor’s Business Daily
  5. CNN Fear & Greed Index In ‘Greed’ Zone After November Jobs Data – Powell Industries (NASDAQ:POWL), DLH Hl Benzinga
  6. View Full Coverage on Google News

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Nasdaq leads Wall Street lower after hawkish Fed comments By Reuters

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© Reuters. FILE PHOTO: Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/File Photo

By Shubham Batra and Ankika Biswas

(Reuters) – Wall Street’s main indexes slipped on Monday, with the tech-heavy Nasdaq down about 1%, as hawkish comments from a U.S. Federal Reserve official tempered hopes of the central bank toning down its aggressive monetary policy approach.

Federal Reserve Governor Christopher Waller, a voting member of the rate-setting committee this year, said on Sunday that markets should now pay attention to the “endpoint” of rate increases, not the pace of each move, and that the endpoint was likely “a ways off”.

The comments follow a softer-than-expected inflation report last week, which had buoyed hopes that the Fed could scale back its hefty interest rate hikes and helped drive a euphoric market rally.

The in the previous session logged its biggest weekly percentage gain in about five months, while the tech-heavy Nasdaq notched its best week since March.

In the week ahead, focus will be on a slew of economic data including retail sales numbers on Wednesday as well as speeches by several Fed officials for further clues on the outlook for interest rates.

“The market is expecting the Fed to continue its hawkish rhetoric on rates. That could all change once we get more confirmation on inflation in December,” said Peter Cardillo, chief market economist at Spartan Capital Securities.

Traders now expect the Fed to hike interest rates in December by a half point, and expect terminal rate in the range of 4.75%-5.0% next year.

At 9:42 a.m. ET, the S&P 500 was down 17.25 points, or 0.43%, at 3,975.68, and the was down 115.13 points, or 1.02%, at 11,208.20.

The was down 7.84 points, or 0.02%, at 33,740.02. Gains in drugmakers including Johnson & Johnson (NYSE:) and Amgen (NASDAQ:) limited declines on the blue-chip index.

As U.S. Treasury yields edged up, technology and growth names such as Microsoft Corp (NASDAQ:), Apple Inc (NASDAQ:) and Amazon.com Inc (NASDAQ:) slipped between 1% and 3%. [US/]

The S&P 500 information technology sector was down 1.2% and among the leading sectoral decliners on the benchmark index.

Tesla (NASDAQ:) Inc fell 3.4% as Chief Executive Elon Musk said “I have too much work on my plate” when asked about his recent acquisition of Twitter and his leadership of the electric-vehicle maker.

Chinese leader Xi Jinping and U.S. President Joe Biden met on Monday for long-awaited talks that come as relations between their countries are at their lowest in decades, marred by disagreements over a host of issues from Taiwan to trade.

Among other stocks, Biogen Inc (NASDAQ:) and Eli Lilly (NYSE:) gained 3.4% and 1.4%, respectively, after the failure of Swiss rival Roche’s Alzheimer’s disease drug candidate.

Theater operator AMC Entertainment (NYSE:) jumped 6.5% as Marvel’s latest film “Black Panther: Wakanda Forever” grossed $330 million globally in its opening weekend, while Hasbro Inc (NASDAQ:) fell 7.4% after BofA Global Research downgraded the toymaker’s stock.

Declining issues outnumbered advancers for a 2.08-to-1 ratio on the NYSE and a 1.65-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and no new low, while the Nasdaq recorded 23 new highs and 21 new lows.

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Business

Nasdaq futures fall after weak Amazon guidance adds pressure to tech rout

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Nasdaq 100 futures were lower Friday after disappointing Amazon earnings added to the already pressured index.

Futures tied to the Nasdaq dropped 0.84% Dow Jones Industrial Average futures were fractionally lower and S&P 500 futures lost 0.53%.

Amazon led the declines in extended trading, having plunged after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance.

Apple shares were initially lower too after the company reported weaker-than-anticipated iPhone revenue, but they have since reversed higher. The company still beat Wall Street estimates for quarterly earnings and revenue.

Tech names were a dark cloud over the market in regular trading, too. Earlier in the day, the Nasdaq Composite lost 1.6%, due to a rout in Meta and other tech stocks, and the S&P 500 fell 0.6%. Meanwhile, the Dow rose 194.17 points, or 0.6%, for its fifth straight day of wins, helped by GDP data that hinted that inflation may be waning.

SoFi head of investment strategy Liz Young said the pain investors are feeling in earnings was inevitable and necessary to move forward in the current cycle.

“We’ve been waiting for this to happen,” she said on CNBC’s “Closing Bell: Overtime.” “There’s usually a sequence of events: First the market goes, then earnings go, then the economy goes. So this is finally that part where we’re seeing earnings get hit and I don’t think it’s any mistake that it’s tech getting hit the most. Tech is what has been under pressure in this market since the beginning.”

“This is just another check on the list of things that we need to get through before we can really be done with this part of the cycle,” she added.

The Dow and S&P are on pace to end the week higher by about 3% and 1.5%, respectively. The Nasdaq is set to finish slightly lower.

Friday brings a quieter day for earnings. As investors digest the bloodbath in tech, they’ll have Chevron and Exxon Mobil on deck before the bell as well as AbbVie and Colgate-Palmolive.

In economic data, traders are looking forward to the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, as well as consumer sentiment and pending home sales.

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Business

Nasdaq futures fall after weak Amazon guidance adds pressure to tech rout

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Traders on the floor of the NYSE, Oct. 21, 2022.

Source: NYSE

Nasdaq 100 futures were lower Thursday night after disappointing Amazon earnings added to the already pressured index.

Futures tied to the Nasdaq dropped 0.6%. Dow Jones Industrial Average futures fell 0.5%, and S&P 500 futures lost 0.07%.

Amazon led the declines in extended trading, having plunged after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance.

Apple shares were initially lower too after the company reported weaker-than-anticipated iPhone revenue, but they have since reversed higher. The company still beat Wall Street estimates for quarterly earnings and revenue.

Tech names were a dark cloud over the market in regular trading, too. Earlier in the day, the Nasdaq Composite lost 1.6%, due to a rout in Meta and other tech stocks, and the S&P 500 fell 0.6%. Meanwhile, the Dow rose 194.17 points, or 0.6%, for its fifth straight day of wins, helped by GDP data that hinted that inflation may be waning.

SoFi head of investment strategy Liz Young said the pain investors are feeling in earnings was inevitable and necessary to move forward in the current cycle.

“We’ve been waiting for this to happen,” she said on CNBC’s “Closing Bell: Overtime.” “There’s usually a sequence of events: First the market goes, then earnings go, then the economy goes. So this is finally that part where we’re seeing earnings get hit and I don’t think it’s any mistake that it’s tech getting hit the most. Tech is what has been under pressure in this market since the beginning.”

“This is just another check on the list of things that we need to get through before we can really be done with this part of the cycle,” she added.

The Dow and S&P are on pace to end the week higher by about 3% and 1.5%, respectively. The Nasdaq is set to finish slightly lower.

Friday brings a quieter day for earnings. As investors digest the bloodbath in tech, they’ll have Chevron and Exxon Mobil on deck before the bell as well as AbbVie and Colgate-Palmolive.

In economic data, traders are looking forward to the Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, as well as consumer sentiment and pending home sales.

Read original article here