The CML Close - End of Day Wrap - 05-24-2022
Technology stocks were hit particularly hard off of an earnings pre-announcement from SNAP, calling out poorer than expected macro conditions resulting in lower revenue and EBITDA guidance than originally issued just one-month ago.
The Dow rose slightly, while the other indices are fell as did crude oil. VIX rose on the day.
• Economic data and a Snap Inc. warning filled the market with all the news it needed.
• New home sales in the United States sank 16.6% month-over-month to a seasonally adjusted annual rate of 591,000 in April of 2022, the lowest since April of 2020 and well below forecasts of 750,000 data shows.
• The Richmond Fed Manufacturing Index tumbled to a -9 reading, down from +16 last month and the lowest reading since May 2020."
Richmond Fed Manufacturing Index
Headlines of the Day
Stocks Slide as Snap's Warning Rekindles Recession Worries
A profit and revenue warning from Snap sent technology shares and the broader market tumbling after a strong rally Monday.
US New-Home Sales Plunge to Lowest Since Start of Pandemic
Purchases of new single-family homes fall by most since 2013. Median price hits a record, though housing inventory improves.
Global Trade Rebound Stalls as War, Covid Hit Supply Chains
Russia’s war triggered sharp price rises for food and energy. China’s virus lockdowns have disrupted trade and production.
US Job Jumpers Reconsider and Quit Again Soon After
Says one recruiting agency: ‘We get a lot of people who come to us after two months, three months, even two weeks sometimes, and just say, ‘I made a mistake.’’
Swamped U.S. Seaports Are Bracing for an Earlier Peak Shipping Season
Gateways stretched thin by record cargoes and congestion say this year’s crush will come weeks early, as importers try to ensure their goods arrive ahead of the fall shopping season.
Economic Data Results for 5-24-2022
S&P Global Services PMI Flash
The S&P Global US Services PMI fell to 53.5 in May of 2022 from 55.6 in the previous month, the lowest in four months and below market consensus of 55.2, a preliminary estimate showed.
S&P Global Manufacturing PMI Flash
The S&P Global Flash US Manufacturing PMI fell to 57.5 in May of 2022 from 59.2 in April, pointing to the slowest growth in factory activity in three months.
New Home Sales
New home sales in the United States sank 16.6% mom to a seasonally adjusted annual rate of 591,000 in April of 2022, the lowest since April of 2020 and well below forecasts of 750,000, as rising construction and mortgage costs weigh on buyers' affordability.
Richmond Fed Manufacturing Index
The Richmond Fed composite manufacturing index was at -9 in May of 2022 from 14 in the previous month. It was the first negative reading since September of 2021, and the lowest since May of 2020.
Economic Data Due Tomorrow on 5-25-2022
United States MBA Mortgage Applications
United States MBA Purchase Index
United States Durable Goods Orders
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