D&D Note (7.12.2022) ~ Stocks Fall in Final Hour of Trading with Bonds Yields Falling Oil Falling and Dollar Rising ~
Markets had been in the green during todays session until a fake CPI report got circulated around the street in the final hour of trading which is most likely the causation of the big swoosh down in stocks.
Once that report was confirmed to be fake markets came off the lows into the close. The real CPI report on inflation comes out tomorrow morning.
Bond yields fell today and the 2-10 Year yield curve spread remains inverted and on pace for its flattest close since 2007.
The Euro reached parity with the US dollar for the first time in 20 years hitting lowest level since 2002.
Oil slides on strong dollar and renewed Covid-19 shutdowns in China.
London’s Heathrow airport caps departing passengers at 100,000 in a sign that airline troubles are not confined to the US and is a global problem as we come out of the Pandemic.
Covid hospitalizations have doubled since May in the US but deaths remain low.
Stock Specific News:
Earnings season started today kicking off with PepsiCo which reported better-than-expected quarterly profit and revenue and raised its revenue outlook for the year.
Twitter sues Elon Musk to enforce original merger agreement.
Microsoft fell after Morgan Stanley cut its price target to $354 from $372 citing the company is not immune to macro risks.
Gap fell after being downgraded to equal weight by Wells Fargo saying they can’t recommend a stock that has so many internal problems.
Boeing soared over 8% leading the DOW today after it reported deliveries hit highest monthly level since March 2019 with 51 airplanes in June totaling 216 during first half of 2022.
Canoo an EV maker surged 77% after Walmart agreed to purchase 4,500 of the companies delivery vans and can purchase up to 10,000.
Closing Markets (as of 1:45pm PST)
DOW down -0.62%
S&P 500 down -0.92% (3,9818.80)
NASDAQ down -0.95%
VIX up 4.28% to 27.29
2 Year Note down -2.57bp to 3.05%
10 Year Note down -2.31bp to 2.97%
Oil down -8.07% to $95.69 a barrel.
Gold down -0.45% to $1723.90 an ounce.
Bitcoin down -4.72% to $19,484.59
Ethereum down -8.16% to $1,046.20
~ Dave James / Principal Trader and Market Strategist