Midday Summary: Market continues retreat
The stock market opened flat today before giving way to selling pressure. Session lows were logged around midmorning, which brought the major indices below their respective 50-day moving averages. The market moves sideways near session lows currently.
The selling interest is broad based with many stocks moving lower. The advance-decline line favors decliners by a 4-to-1 margin at the NYSE and an 8-to-3 margin at the Nasdaq.
Every S&P 500 sector trades in the red with losses ranging from 0.5% (financials) to 4.0% (energy).
Energy complex futures are making big downside moves today, fueling the sizable move in the energy sector. WTI crude oil futures are down 5.9% to $91.25/bbl. Natural gas futures are down 3.0% to $9.05/mmbtu. This comes after Bloomberg reported that the EU is set to meet its gas storage filling goal two months ahead of target. Also, European Commission President von der Leyen said that an emergency intervention is being planned to rein in energy prices.
On an individual basis, retailers Best Buy (BBY 75.36, +1.65, +2.3%) and Big Lots (BIG 23.46, +1.96, +8.9%) have been able to buck the trend with earnings-driven gains. Notably, Baidu (BIDU 136.15, -11.17, -7.6%) is making sizable downside moves after also reporting better-than-expected quarterly results.
Meanwhile, Treasury yields are on the rise but came off their intraday highs. The 2-yr note yield is up two basis points to 3.45% while the 10-yr note yield is unchanged at 3.11%.
Reviewing overnight developments:
- The Conference Board’s Consumer Confidence Index rose to 103.2 in August (Briefing.com consensus 97.4) from a downwardly revised 95.3 (from 95.7) in July. This was the first increase in the index in four months. In the same period a year ago, the Consumer Confidence Index stood at 115.2.
- The key takeaway from the report is that even with the August improvement in confidence, the Expectations Index remains below 80.0, which suggests the continued presence of an elevated risk of recession.
- July JOLTS Job Openings totaled 11.239 million after the prior revised total of 11.04 million (from 10.698).
- June FHFA Housing Price Index rose 0.1% after the prior revised 1.3% increase (from 1.4%).
- June S&P Case-Shiller Home Price Index rose 18.6% (Briefing.com consensus 19.0%) following a prior 20.5% increase.
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Disclaimer: This content is only intended for informational purposes. Before making any investment, you should always do your own research and analysis.
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