Markets collapse - Dow down 3.5% in single day
- Thread starter dukkha
- Start date
floridafan
Verified User
Is that why so many companies have experienced record profits?
you need to catch up. Walmart profits decreased 25%, etc.
floridafan
Verified User
One company does not reflect the entire economy, just look at the profits of oil producers and distributors.
Althea
Althea told me...
The Fed poured billions into the market during Covid. People were losing jobs, not paying rent, and having a hard time feeding children, but corporations needed money for dividend hikes and share buybacks.
Now the the Fed dumped the corporate bonds, the market is leveling out. In essence, the fantasy is over. I don't think it's the bottom yet. I'm waiting a little longer to start buying.
Now the the Fed dumped the corporate bonds, the market is leveling out. In essence, the fantasy is over. I don't think it's the bottom yet. I'm waiting a little longer to start buying.
Stringfellow Hawk
Member
thank you Joe Biden and the democrats
Walmart slides and rattles retail sector with lowered profit guidance
https://seekingalpha.com/news/38398...source=from.flipboard.com&utm_medium=referral
https://seekingalpha.com/news/38398...source=from.flipboard.com&utm_medium=referral
https://seekingalpha.com/news/3840325-nasdaq-sp-500-dow-jones-stock-market
Panic that inflation is cutting deep into corporate profits sparked a wave of Wall Street selling on Wednesday. With consumer stocks leading the retreat, the Dow Jones Industrial Average tumbled almost 1,200 points, marking the ninth largest single-day point drop in history.
Meanwhile, the S&P 500 and Nasdaq Composite each shed more than 4%. The sell-off came as investors dumped consumer names following disappointing earnings numbers from Target.
The Dow finished -3.6%, the S&P 500 closed -4.0% and the Nasdaq ended -4.7%.
The Dow Jones posted a decline of 1,164.52 points, ending the day at 31,490.07. The S&P 500 dropped 164.67 points to close at 3,924.18. The Nasdaq sank 566.37 to conclude trading at 11,418.15.
All 11 of the S&P sectors finished deep in the red. With the retail sell off, Consumer Discretionary and Consumer Staples both plunged more than 6%. There was also heavy selling in Info Tech and Industrials.
Target plunged 25% after announcing results earlier Wednesday that echoed the margin problems Walmart reported earlier in the week. The downbeat results had reverberations throughout the sector, including an outsized impact on mall stocks.
In the bond market, U.S. Treasury yields fell across the board. The 10-year Treasury yield declined 8 basis points at 2.90%, while the 2-year shed two basis points to hit 2.68%.
On the economic front, April housing starts fell more than expected, while building permits also dropped.
"Starts and permits are likely to fall sharply over the next few months, tracking the downshift in new home sales, which in turn follows the ongoing rollover in mortgage applications," Pantheon Macro's Ian Shepherdson said. "Demand likely has not yet hit bottomed, allowing for the usual lag between increases in rates and the response from potential homebuyers, so we think sales and starts could easily fall through the end of the summer."
"Housing punches above its weight in driving opinions about the state of the broad economy, so the rollover we expect to see is a key part of our story that the Fed will switch from 50bp hikes to 25bp in July or September."
Retail and housing stumbles are adding to speculation of a recession, which is now the base case for Wells Fargo. But MKM is skeptical.
MKM's Michael Darda pointed out in a note that the National Bureau of Economic Research, the official arbiter of U.S. business cycles, defines a recession "as a period of declining production, sales, income and employment usually lasting more than a few months. There is nothing in the data (so far) that would come close to meeting this definition. The common refrain that a recession is 'two negative quarters of GDP growth' is a widely held but errant assumption."
Darda added: "Moreover, the nearly universal assumption propounded on financial TV, a holdover from the previous cycle, that every stock market correction is a 'growth scare' is belied by the behavior of credit markets which have tightened very little relative to the decline in equity prices or the ongoing upward sloping nature of yield curves that actually predict recessions."
Panic that inflation is cutting deep into corporate profits sparked a wave of Wall Street selling on Wednesday. With consumer stocks leading the retreat, the Dow Jones Industrial Average tumbled almost 1,200 points, marking the ninth largest single-day point drop in history.
Meanwhile, the S&P 500 and Nasdaq Composite each shed more than 4%. The sell-off came as investors dumped consumer names following disappointing earnings numbers from Target.
The Dow finished -3.6%, the S&P 500 closed -4.0% and the Nasdaq ended -4.7%.
The Dow Jones posted a decline of 1,164.52 points, ending the day at 31,490.07. The S&P 500 dropped 164.67 points to close at 3,924.18. The Nasdaq sank 566.37 to conclude trading at 11,418.15.
All 11 of the S&P sectors finished deep in the red. With the retail sell off, Consumer Discretionary and Consumer Staples both plunged more than 6%. There was also heavy selling in Info Tech and Industrials.
Target plunged 25% after announcing results earlier Wednesday that echoed the margin problems Walmart reported earlier in the week. The downbeat results had reverberations throughout the sector, including an outsized impact on mall stocks.
In the bond market, U.S. Treasury yields fell across the board. The 10-year Treasury yield declined 8 basis points at 2.90%, while the 2-year shed two basis points to hit 2.68%.
On the economic front, April housing starts fell more than expected, while building permits also dropped.
"Starts and permits are likely to fall sharply over the next few months, tracking the downshift in new home sales, which in turn follows the ongoing rollover in mortgage applications," Pantheon Macro's Ian Shepherdson said. "Demand likely has not yet hit bottomed, allowing for the usual lag between increases in rates and the response from potential homebuyers, so we think sales and starts could easily fall through the end of the summer."
"Housing punches above its weight in driving opinions about the state of the broad economy, so the rollover we expect to see is a key part of our story that the Fed will switch from 50bp hikes to 25bp in July or September."
Retail and housing stumbles are adding to speculation of a recession, which is now the base case for Wells Fargo. But MKM is skeptical.
MKM's Michael Darda pointed out in a note that the National Bureau of Economic Research, the official arbiter of U.S. business cycles, defines a recession "as a period of declining production, sales, income and employment usually lasting more than a few months. There is nothing in the data (so far) that would come close to meeting this definition. The common refrain that a recession is 'two negative quarters of GDP growth' is a widely held but errant assumption."
Darda added: "Moreover, the nearly universal assumption propounded on financial TV, a holdover from the previous cycle, that every stock market correction is a 'growth scare' is belied by the behavior of credit markets which have tightened very little relative to the decline in equity prices or the ongoing upward sloping nature of yield curves that actually predict recessions."
Althea
Althea told me...
[FONT="]Walmart reported a 25 percent drop in profits to $2.1 billion for the quarter ending April 30. That translated into $1.30 per share, below the $1.48 expected by analysts.[/FONT]
[FONT="]Revenues rose 2.4 percent to $141.6 billion.[/FONT]
oil isnt discretionary spending, and that is strickly driven by supply and demand
basically consumers are buying food and energy, and paying rents and mortgages.
I'm not sure about auto.
Also Apple (largest US company) was down 22%
gotta eat , pay the rent, and drive to work
i think you are correct. Rate increases should have started much earlier -
but Biden/Congress was too busy inflating the money supply
the classic end to runaway inflation is a recession
why are you highlighting that revenue rose?
Life is Golden
The Sage
Brandon says print more money.
This is going to end worse than that.... the collapse of the dollar as a reserve currency and the end of the current world economic order.
China will decide the next one, but there will be a depression before they do, likely at least a decade.
floridafan
Verified User
I dont expect you to know anything about the stock market, but one would think you would have some meager abilities with math. In your example above the difference between $1.48 in earnings and $1.30 is not anywhere close to 25%. Try instead 12%.
I shouldn't really blame you, since you just post whatever your handlers give you, without a single thought of its accuracy.
Airstrip One
Completely Effed
Don't worry, Brandon will take care of that problem as well.
PostmodernProphet
fully immersed in faith..
what percentage of sales were the profits of oil companies in 2020 versus 2022?.....
How long will gas prices be so high?
Waldenback said there is no ceiling, but it's certainly possible for the national average to go above $5 at some point this year.
"If we're saying the situation is like it is now, then I still think we're going to see fairly high prices for possibly the entire year and possibly longer," he said.
prices later this week could be closer to $5 per gallon than $4, as demand continues to edge higher and inventories of both gasoline and diesel continue to decline, temperatures warm and motorists get back outside and we near the Memorial Day weekend, the start of the summer driving season," De Haan said. "There isn’t much reason to be optimistic that we’ll see a plunge any time soon."
https://www.usatoday.com/story/money/2022/05/17/why-gas-prices-continue-rise-record/9798086002/
Waldenback said there is no ceiling, but it's certainly possible for the national average to go above $5 at some point this year.
"If we're saying the situation is like it is now, then I still think we're going to see fairly high prices for possibly the entire year and possibly longer," he said.
prices later this week could be closer to $5 per gallon than $4, as demand continues to edge higher and inventories of both gasoline and diesel continue to decline, temperatures warm and motorists get back outside and we near the Memorial Day weekend, the start of the summer driving season," De Haan said. "There isn’t much reason to be optimistic that we’ll see a plunge any time soon."
https://www.usatoday.com/story/money/2022/05/17/why-gas-prices-continue-rise-record/9798086002/