Stocks Hover Around 52-Week Low Ahead of Earnings Season
2:23 pm Monday, October 10th, 2022
It has been another rough session for the equity market. The major averages opened to modest gains and quickly reserved course. A poor showing from semiconductor and mega cap stocks has weighed heavily on the market, along with some concerning remarks from JPMorgan Chase CEO Jamie Dimon.
Mr. Dimon made comments earlier that piled onto the existing negative disposition in the market. According to CNBC, Mr. Dimon said he expects the U.S. to enter a recession in 6-9 months, adding that he thinks the S&P 500 could easily fall another 20%. The stock market falling to its lows of the day coincided with his remarks.
The S&P 500 has dropped below 3,600 again. Mega cap stocks are exhibiting weakness today with the Vanguard Mega Cap Growth ETF (MGK) trading down 1.8% versus a 1.3% loss in the S&P 500 and the Invesco S&P 500 Equal Weight ETF (RSP). Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN) show some of the steepest losses for the group.
Semiconductors also lead the market lower with the PHLX Semiconductor Index down 4.2%. Many index components fell to new 52-week lows today as the industry continues to adjust to the revenue warning from Advanced Micro Devices (AMD) and added export controls to degrade China’s ability to develop advanced military systems.
The losses in Microsoft, Apple (AAPL), and the semiconductor stocks are dragging the S&P 500 information technology sector (-2.2%) to last place on the day. The only sector with a gain is utilities, which is up 0.4%.
The Treasury market is closed today in observance of Columbus Day/Indigenous Peoples’ Day.
There is no U.S. economic data of note today. Participants are in wait-and-see mode ahead of the key PPI and CPI reports later this week.
