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Technology Stocks : Semi Equipment Analysis
SOXX 426.02-2.0%Feb 3 3:59 PM EST

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To: Return to Sender who wrote (88671)7/18/2022 10:13:50 PM
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Market Snapshot

siliconinvestor.com

Dow 31074.49 -215.65 (-0.69%)
Nasdaq 11360.02 -92.37 (-0.81%)
SP 500 3830.92 -32.31 (-0.84%)
10-yr Note



NYSE Adv 1604 Dec 1456 Vol 862 mln
Nasdaq Adv 2116 Dec 2248 Vol 4.9 bln


Industry Watch
Strong: Energy, Consumer Discretionary, Materials

Weak: Utilities, Health Care, Real Estate, Communication Services, Information Technology, Consumer Staples


Moving the Market
-- A much weaker than expected NAHB Housing Market Index for July

-- A Bloomberg report suggesting Apple will slow hiring and spending for some divisions next year

-- Inability to maintain early buying efforts







Closing Market Summary
18-Jul-22 16:25 ET

Dow -215.65 at 31074.49, Nasdaq -92.37 at 11360.02, S&P -32.31 at 3830.92
[BRIEFING.COM] The stock market opened decidedly higher, attempting to build on Friday's gains. The early upward momentum in the S&P 500 found some resistance around the 3,900 mark. The release of the July NAHB Housing Market Index at 10:00 a.m. ET took the steam out of the broader market. After that, the market held onto modest gains and moved mostly sideways until a Bloomberg article suggested Apple (AAPL 147.07, -3.10, -2.1%) plans to slow hiring and spending for some divisions next year to ease the impact of the economic downturn. The market sold off on the news and closed barely above session lows.

The early buying conviction was fueled by a general rebound attempt as well as positive corporate news from Goldman Sachs (GS 301.26, +7.39, +2.5%) and Boeing (BA 147.72, -0.02, -0.01%). Goldman Sachs reported better-than-expected earnings and approved a 25% increase in its quarterly dividend. Boeing traded up on news that Delta Air Lines (DAL 31.14, +1.05, +3.5%) will modernize its single-aisle fleet with up to 130 Boeing 737 MAX jets.

Also adding to the early sentiment was a Wall Street Journal article that noted the Fed is likely to hike 75 basis points at its next meeting, versus a feared 100 basis point rate hike.

The market started its deterioration today after the July NAHB Housing Market Index release came in at 55. The drop from 67 to 55 was the largest monthly drop in the 37-year series other than the drop seen in April 2020.

Each of the main indices was able to keep above the unchanged mark until a Bloomberg report suggested Apple plans to slow hiring and spending for some divisions, which let the rest of the air out of the market. With a lack of leadership, just about everything slumped into the close.

Eight of the 11 S&P 500 sectors closed in the red with losses ranging from 0.5% (financials) to 2.2% (health care). The only sectors to gain on the day were energy (+2.0%), materials (+0.2%), and consumer discretionary (+0.2%).

Market breadth was mixed with advancers slightly outpacing decliners at the NYSE and decliners slightly outpacing advancers at the Nasdaq.

The 2-yr Treasury note yield closed the session three basis points higher at 3.16% and the 10-yr note yield rose three basis points to 2.96%.

Tomorrow's economic data will be limited to June Housing Starts (Briefing.com consensus 1.598 million; prior 1.549 million) and Building Permits (Briefing.com consensus 1.680 million; prior 1.695 million) at 8:30 a.m. ET.

Ahead of tomorrow's open, the earnings reports will be headlined by Johnson & Johnson (JNJ 174.23, -4.00, -2.2%), Lockheed Martin (LMT 387.28, -11.10, -2.8%), Halliburton (HAL 28.85, +0.99, +3.6%), and Hasbro (HAS 79.42, +0.21, +0.3%).

  • Dow Jones Industrial Average: -14.5% YTD
  • S&P 400: -19.1% YTD
  • S&P 500: -19.6% YTD
  • Russell 2000: -22.5% YTD
  • Nasdaq Composite: -27.4% YTD



Market near session lows before the close
18-Jul-22 15:30 ET

Dow -93.10 at 31197.04, Nasdaq -49.25 at 11403.14, S&P -17.15 at 3846.08
[BRIEFING.COM] Each of the major indices remains near the lows of the day heading into the close.

The 2-yr Treasury note yield closed the session three basis points up to 3.16% and the 10-yr note yield rose three basis points to 2.96%.

Tomorrow's economic data will be limited to June Housing Starts (Briefing.com consensus 1.598 million; prior 1.549 million) and Building Permits (Briefing.com consensus 1.680 million; prior 1.695 million) at 8:30 a.m. ET.

After the close, IBM (IBM 138.80, -1.07, -0.8%) will report quarterly earnings. Ahead of tomorrow's open, the earnings reports will be headlined by Johnson & Johnson (JNJ 175.22, -3.01, -1.7%), Lockheed Martin (LMT 390.59, -7.89, -2.0%), and Novartis AG (NVS 82.81, -1.74, -2.1%).


Energy sector holds strong as market pulls back
18-Jul-22 15:00 ET

Dow -116.32 at 31173.82, Nasdaq -67.82 at 11384.57, S&P -20.90 at 3842.33
[BRIEFING.COM] The market has reached new lows recently, still fading away after the Bloomberg report a short time ago that suggests Apple (AAPL 147.46, -2.71, -1.8%) plans to slow hiring and spending for some divisions next year to ease the impact of the economic downturn.

The market lost steam but oil prices are continuing to climb. WTI crude oil futures are up 5.2% to $102.69/bbl. Unleaded gasoline futures are up 1.9% to $3.27/gal. Natural gas futures are up 6.7% to $7.39/mmbtu.

On a related note, the S&P 500 energy sector (+2.4%) is the best performer by a wide margin with every component trading in positive territory. One of the top performing constituents is Halliburton (HAL 28.81, +0.95, +3.4%) ahead of its earnings report before tomorrow's open.


Markets holding losses; Carnival, cruise peers pepper top of standings
18-Jul-22 14:30 ET

Dow -51.79 at 31238.35, Nasdaq -16.06 at 11436.33, S&P -10.74 at 3852.49
[BRIEFING.COM] The major averages now hold modest declines across the board, the S&P 500 (-0.28%) showing the steepest move lower.

S&P 500 constituents Carnival (CCL 9.75, +0.57, +6.21%), Hess (HES 99.96, +4.75, +4.99%), and Generac (GNRC 224.14, +9.08, +4.22%) pepper the top of today's standings. Cruise names, including CCL, aided in part by general strength in consumer discretionary names, HES outperforms as crude oil futures resume their advance, while GNRC moves higher amid record temperatures across much of Europe.

Meanwhile, Progressive (PGR 112.26, -3.82, -3.29%) is today's top decliner despite a dearth of corporate news.


Gold higher amid dollar weakness; market hit on reports Apple plans to slow spending next year
18-Jul-22 14:00 ET

Trading off worst fears
There is a nice bid in the futures market this morning that is following on the heels of the nice bid in the cash market that was seen on Friday. Presumably, this morning's bid is grounded in Friday's market behavior, which went a long way toward cutting last week's losses.

Currently, the S&P 500 futures are up 29 points and are trading 0.7% above fair value, the Nasdaq 100 futures are up 113 points and are trading 0.7% above fair value, and the Dow Jones Industrial Average futures are up 259 points and are trading 0.9% above fair value.

While carryover momentum is winning some strong attribution for this morning's positive bias, there are some corporate news catalysts as well.

Goldman Sachs (GS) impressed with its second quarter earnings results and large upside revenue surprise. It is trading 3.3% higher in pre-market action. Bank of America (BAC) for its part is up 0.2% after coming up shy of analysts' expectations.

Separately, Boeing (BA) has helped the futures market take flight. It is up 4.0% after Delta (DAL) placed an order for up to 130 737 MAX jets; meanwhile, The Wall Street Journal is reporting that the aircraft manufacturer might soon resume 787 deliveries.

There will be a pickup in June quarter earnings results this week. IBM (IBM) reports after today's close, but it will be next week when the reporting activity goes into full swing.

A market staring at an inverted yield curve and fretting over the specter of an eventual recession will want to be comforted with reassuring earnings guidance. That is the key more so than the actual results. That includes both quantitative and qualitative guidance.

The Federal Reserve's monetary policy action, of course, is feeding the recession concerns along with the persistence of high inflation.

Remarkably, there is also some attention this morning to the notion that the bid in the futures market is an expression of relief that the Fed is likely going to raise the target range for the fed funds rate by "only" 75 basis points at next week's FOMC meeting (July 26-27) instead of a feared 100 basis points.

The market, though, trades off its worst fears; hence, it becomes a positive in its mind that its worst fear (100 basis points) is unlikely to be met, notwithstanding the fact that its second worst fear (75 basis points) is still scary, both in scope and the basis for such an aggressive move.

Inflation is a big problem, but, again, a positive spin is being placed on the inflation problem. Specifically, the "peak inflation" narrative is gaining some traction as a catalyst for the positive turn in the stock market.

Well, we've heard that before... and here we are. Now, we just have to see where things go. Market participants teased themselves with this idea several months ago, but it was roughly a month ago that the S&P 500 traded below 3,700. Today, it will push 3,900 at the open, which is a long way from its peak.

-- Patrick J. O'Hare, Briefing.com

Dow -32.77 at 31257.37, Nasdaq -15.79 at 11436.60, S&P -6.65 at 3856.58
[BRIEFING.COM] The broader market got hit after Bloomberg headlines that Apple (AAPL 147.85, -2.32, -1.54%) plans to slow hiring and spending for some divisions next year to ease impact of economic downturn.

Gold futures settled $6.60 higher (+0.4%) to $1,710.20/oz, aided in part weakness in the greenback.

Meanwhile, the U.S. Dollar Index is down about -0.7% to $107.28.

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