D&D Note (7.11.2022) ~ Stocks Sink Ahead of Earnings Season and CPI Report ~
The major US indices all finished lower on the day as investors look ahead to Wednesday CPI report on inflation the start of earnings season this week.
The US dollar could create major headwinds for S&P 500 and big tech company earnings. Many companies could use the strong dollar as a reason to be be conservative and guide down on future earnings.
In another sign the housing market is cooling down homebuyers are canceling deals at the highest rate since the pandemic began.
In a worrying sign Russia temporarily halts gas flows via major pipeline to Europe.
Stock Specific News:
AMD has its price target at Barclays cut to $85 from $115.
Rivian trades lower after a report saying that 5% of workforce could get laid off, this despite just recently announcing they delivered more EV’s than Ford.
Twitter shares fall 8% after Elon Musk pulls out of the deal and now this will be heading to years of court battles.
Wynne Ressorts and Las Vegas Sands both fell over 8% today after Macao initiated a week-long shutdown to deal with the Covid-19 outbreak.
Lululemon fell 4% after being downgraded by Jefferies to hold citing rising competition.
Under Armor dropped over 4% after being downgraded by Jefferies to neutral saying the fundamentals are lagging.
Meta Platforms sank 4% after Needham downgraded to underperform citing the investment in the meta verse will take too long to pay off.
Closing Markets (as of 1:15pm PST)
DOW down -0.52%
S&P 500 down -1.15% (3,9854.43)
NASDAQ down -2.26%
VIX up 6.216% to 26.17
2 Year Note down -4.53bp to 3.06%
10 Year Note down -9.59bp to 2.99%
Oil down -1.078% to $103.66 a barrel.
Gold down -0.695% to $1730.30 an ounce.
Bitcoin down -1.77% to $20,509.61
Ethereum down -2.62% to $1,141.45
~ Dave James / Principal Trader and Market Strategist