The CML Close - End of Day Wrap - 05-19-2022
Markets
Large cap indices fell while small caps rose on the day. The VIX fell and Crude rose.
Consumer psychology is falling. Existing home prices fall.
| • SPX | 3,900.79 | -27.89 | (-0.58%) |
| • NAS | 11,388.50 | -29.66 | (-0.26%) |
| • DJIA | 31,253.13 | -236.94 | (-0.75%) |
| • R2K | 1,780.56 | +5.72 |
(+0.32%) |
| • VIX | 29.36 | -1.53 | (-4.94%) |
| • Oil | 111.42 | +1.83 | (+1.67%) |
• Barron's reports that while the jury is out on whether the Fed can successfully rein in inflation at a 40-year high without causing a recession, an encouraging number of economists see inflation peaking, and remain confident that the Fed will avoid a policy misstep.
• Governments are struggling with fallout from China’s trade weight and the U.S. is coordinating with allies on a unified approach to China.
Headlines of the Day
Cratering Markets Blowing a Bigger Hole in Consumer Psychology
To the extent there’s a pullback, it’s a ripple, says Paulsen. But when stocks are down like this, it can weigh on sentiment
New York Fed Warns of Worrisome New Pressure on Global Supply Chain
New York Fed releases April update to its new logistics gauge. Slower euro-area, Chinese delivery times affect April reading.
Target's Earnings Were About More than Target
Target’s disappointing earnings confirmed that consumers are still spending, but they are buying fewer discretionary items such as clothing and home goods and paying more for food and other items because of inflation. Lower-income shoppers aren’t the only ones feeling pinched.
Goldman, JPMorgan Strategists See Recession Fears as Overblown
Market is pricing a recession, but it’s not inevitable. Other strategists see stock slump as only just beginning.
Retail U.S. gasoline prices, already at a record high of $4.576 a gallon on Wednesday, could surpass $6 a gallon this summer
Retail U.S. gasoline prices, already at a record high of $4.576 a gallon on Wednesday, could surpass $6 a gallon this summer because the amount of supply in storage has dwindled amid rising demand for gas, said Natasha Kaneva, head of global commodities research at J.P. Morgan.
Economic Data Results for 5-19-2022
United States Jobless Claims
The 4-week moving average of US jobless claims, which removes week-to-week volatility, was 199,500 in the week ended May 14th, an increase of 8,250 from the previous week's revised average. The previous week's average was revised down by 1,500 from 192,750 to 191,250.
United States Existing Home Sales
Existing home sales in the US declined by 2.4% to a seasonally adjusted annual rate of 5.61 million in April of 2022, the lowest since June of 2020 and slightly below forecasts of 5.65 million. Sales went down for a third consecutive month, in another sign the housing market is cooling, as higher home prices and mortgage rates have reduced buyer activity.
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