Here is what you need to know on Tuesday, May 10:
Monday provided yet more volatility and drama for equity investors if indeed any more was needed. After last week's purge and then surge we had a manic Monday. We witnessed all the major indices and sectors closing lower. The Nasdaq as ever the laggard losing over 4%. The energy sector (XLE) this year's darling, shed over 8% as oil prices fell. There was no safe haven for equities as panic totally dominated.
The real question is was this capitulation or is there more to come? We now have had two 90% downside capitulation days in the past three sessions. Historically, this is not positive and they tend to group reasonably close together. However, for the most part, the earnings season was ok and prices are being passed onto consumers.
Wednesday's CPI reading will be vital and will perhaps provide the catalyst for a bear-market rally. No arguing about it now, we are in a bear market.
Oil lost significant ground as Chinese demand slows, down to $102. The dollar index is flat at 103.67 and Bitcoin is bouncing to $32,100. Gold is higher at $1,862.
European markets are higher: Eurostoxx +1.9%, FTSE +1% and Dax +1.6%.
US futures are also higher: S&P +1%, Dow +0.7% and Nasdaq +1.7%.
Wall Street top news (QQQ) (SPY)
Fed member Williams sees a soft landing.
France and China pledge to help Russia and Ukraine achieve peace through dialogue.
Peloton (PTON) down 25%, here we go again as earnings miss. CNBC
Vroom (VRM) up 30% on strong earnings beat.
Novavax (NVAX) misses on EPS and revenue.
Norwegian Cruise Line (NCLH) says bookings exceeding pre pandemic levels. CNBC.
Duke Realty (DKE) Prologis looks to buy it.
Li Auto (LI) up on strong earnings, but weak outlook.
Warner Music Group (WMG) up on earnings.
Tesla (TSLA) China car sales plummet in April.
Groupon (GRPN) down on earnings.
Upgrades and downgrades
Source: Benzinga Pro
Economic releases
*The author is short Tesla and Twitter.
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