D&D Note (6.28.2022) ~ Consumer Confidence Report Sends Stocks Lower ~
Markets started the day with a strong rally but quickly collapsed after the Consumer confidence numbers were released.
The Consumer confidence index fell to 98.7 down from 103.2 in May and missing the estimate of 100. This weak economic data led investors to again fear recession and stock sold off.
Cathie Wood of ARK Investments says the US is already in recession and she was wrong on inflation admitting they underestimated the severity and lasting effect of inflation. She said “We think a big problem out there is inventories, the increase of which I’ve never see this large in my career. I’ve been around for 45 years.”
In another round of economic sanctions due to the war in Ukraine the US blocks gold imports from Russia.
Stock Specific News:
AirBnB makes party ban permanent.
Nike fall despite beating on earnings after the bell last night.
Disney rose after saying Shanghai Disneyland will reopen this week.
United, American and Delta Airlines all rose today after China reduced Covid quarantine time for international travelers.
Boston Beer dropped after being downgraded to sell by Goldman Sachs citing waining popularity of the Truly hard seltzer.
Morgan Stanley rose higher after increasing its dividend by 11%.
Closing Markets (as of 1:15pm PST)
DOW down -1.56%
S&P 500 down -2.01% (3,821.55)
NASDAQ down -2.98%
VIX up 5.23% to 28.36
2 Year Note up 0.03bp to 3.12%
10 Year Note down -0.19bp to 3.18%
Oil up 2.237% to $112.12 a barrel.
Gold down -0.192% to $1821.55 an ounce.
Bitcoin down -3.01% to $20,265.37
Ethereum down -3.46% to $1,159.44
~ Dave James / Principal Trader and Market Strategist
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