Piper Sandler chief investment strategist Michael Kantrowitz tells investors to stay defensive, and not to call a market bottom until 2023.
U.S. stocks were lower again on Thursday as concerns over Federal Reserve interest rate hikes and high inflation continue to worry investors.
The Dow Jones Industrial Average was down 330 points, or 1.04%, while the S&P 500 fell 0.62% and the Nasdaq climbed 0.2%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DJI | n.a. | n.a. | n.a. | n.a. |
| SP500 | S&P 500 | 3901.22 | -22.46 | -0.57% |
| I:COMP | NASDAQ COMPOSITE INDEX | 11464.799841 | +46.65 | +0.41% |
Oil is trading around $106 per barrel.
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On the economic data front, new U.S. jobless claims rose to a four-month high of 218,000 for the week ending May 14, up from 197,000 the previous week, according to the Labor Department. Continuing claims, or the number of people already collecting unemployment benefits, fell to 1.317 million for the week ending May 7, the lowest level since December 1969.
The Philadelphia Fed’s manufacturing index dropped to a reading of 2.6 in May from 17.6 the previous month, marking the lowest level of activity in two years.
Existing-home sales fell for the third straight month in April to a seasonally adjusted annual rate of 5.61 million. Sales were down 2.4% from the prior month and 5.9% from one year ago. The median existing-home sales price increased at a slower year-over-year pace of 14.8% to $391,200. With slower demand, the inventory of unsold existing homes climbed to 1.03 million by the end of April, or the equivalent of 2.2 months of the monthly sales pace.
INFLATION, SUPPLY CHAIN ISSUES AFFECTING AMERICANS’ SPENDING HABITS: WHAT TO DO TO HELP
In earnings, BJ’s Wholesale Club beat Wall Street expectations with adjusted earnings per share of 87 cents on revenue of $4.5 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BJ | BJS WHSL CLUB HLDGS INC | 57.73 | +4.32 | +8.08% |
| KSS | KOHL’S CORP. | 43.52 | +0.49 | +1.13% |
Meanwhile, Kohl’s slid more than 5% after the retailer missed Wall Street estimates with adjusted quarterly earnings of 11 cents per share and slashed its full-year earnings guidance. The company posted a lower but better-than-expected revenue of $3.72 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ROST | ROSS STORES INC. | 92.80 | -0.26 | -0.28% |
| VFC | VF CORP. | 45.97 | -2.26 | -4.69% |
| AMAT | APPLIED MATERIALS INC. | 111.34 | -5.50 | -4.71% |
Ross Stores, V.F. Corp. and chip equipment maker Applied Materials are all set to deliver results after the bell on Thursday.
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Spirit Airlines’ board of directors are urging its shareholders to reject JetBlue Airways’ $30 per share tender offer. Spirit, which has agreed to merge with Frontier Airlines, has said a potential JetBlue transaction would have trouble receiving regulatory approval.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SAVE | SPIRIT AIRLINES INC. | 19.42 | -1.22 | -5.91% |
| JBLU | JETBLUE AIRWAYS CORP. | 9.92 | -0.30 | -2.94% |
| ULCC | FRONTIER GROUP HOLDINGS | 9.93 | +0.49 | +5.19% |
Cisco Systems is down more than 9% after cutting its full-year forecast. The company reported adjusted earnings per share of 87 cents on revenue of $12.84 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CSCO | CISCO SYSTEMS INC. | 41.91 | -6.45 | -13.33% |
The networking equipment maker said its revenue during the quarter was negatively impacted by COVID lockdowns in China and the war in Ukraine.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBWI | BATH & BODY WORKS INC. | 38.94 | -3.90 | -9.10% |
Bath & Body Works has fallen more than 5% after cutting its full-year earnings guidance due to inflation and increased investments. The company reported better-than-expected earnings of 64 cents per share on revenue of $1.45 billion.
Bitcoin is trading above the 29,000 per coin level.
