Wake Up Wall Street (SPY) (QQQ): Don't wake up! It's scary out here! 492 companies from S&P 500 finish red
Here is what you need to know on Thursday, May 19:
Wake up? Who wants to wake up to this nightmare. Certainly not stock investors as Wednesday saw Target shed the most since the infamous 1987 stock market crash. The US consumer is getting more selective, and retailers do not like it. Margin pressure is huge as inflation and rising costs begin to really bite. Finally, we know our end game. We now just have to get through the cycle. This ends in a US recession in early 2023 most likely, but it ends with the Fed being stuck behind the curve far longer than thought with inflation continuing to remain a sore spot.
Wednesday's decline was basically as broad as one could get. Nearly 90% of stocks closed lower, and of the S&P 500 a whopping 492 closed lower. Stand up those eight saviors: TJX Companies (TJX), Assurant (AIZ), NRG Energy (NRG), Progressive (PGR), Electronic Arts (EA), EPAM Systems (EPAM), Gilead Sciences (GILD) and Pinnacle West Capital Corporation (PNW). That is it out of 500 stocks! Meanwhile, the biggest losers are like a who's who of retail.
The dollar continues to come off recent highs, and it is down to 103.23 for the dollar index now. Oil has dropped on global recession fears to $106.50, while Gold is up to $1,834. Bitcoin is up to $29,400. Bond yields are all lower as safe haven buying came in, especially at the long end.
European markets are lower: Eurostoxx -0.9%, FTSE and Dax both -1.7%.
US futures are also lower: Nasdaq, Dow and S&P are all down 1.1%.
Wall Street Top News (SPY) (QQQ)
Turkey remains negative about Sweden and Finland's application for NATO membership.
US jobless claims: 218k versus 200k expected.
US Philly Fed Index: 2.6 versus 15 estimate.
Lucid (LCID) speeds up plans for Saudi Arabian factory.
Bath & Body Works (BBWI) cuts outlooks, stock slumps.
Under Armour (UAA) CEO stepping down.
Canada Goose (GOOS) surprises with profit, stock up 6%.
Spirit Airlines (SAVE) says shareholders should reject Jet Blue (JBLU) offer.
BJ Wholesale (BJ) up on strong earnings.
Grab Holdings (GRAB) up on earnings.
Cisco (CSC) down 10% on earnings.
Kohls (KSS) down 9% on earnings.
Eagle Materials (EXP) up 3% on earnings.
Tesla (TSLA) out of ESG Index.
Upgrades and downgrades
Source: Benzinga Pro
Economic releases
The author is long Apple and short Tesla and Twitter.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
