Stocks Turn Volatile To The End Of Its Worst First-Half Since 1970
2:54 pm Thursday, June 30th, 2022
The market opened decidedly lower today with the Dow, Nasdaq, and S&P 500 dropping as much as 1.9%, 2.9%, and 2.1%, respectively, shortly after today’s open. The market may have bottomed out for the day around 10:00 a.m. ET with all the major indices steadily trending upward after that. The S&P 500, which fell to 3738.67 at this morning’s low, is back above 3,800.
Early sentiment was driven by growth concerns stemming from several pieces of negative news from overseas, the warning from RH Inc. (RH), and the Personal Income and Spending report for May.
Before the open, China reported weaker-than-expected manufacturing PMI data for June. Japan posted its weakest industrial production number since the onset of the pandemic crisis. Also, Sweden’s Riksbank announced an aggressive 50 basis point rate hike in its key policy rate.
Additionally, luxury furnishing retailer RH Inc. cut its fiscal year net revenue outlook for the second time in a month, citing a “deteriorating macroeconomic environment.”
Further stoking growth concerns, the Personal Income and Spending Report for May showed a 0.4% decline in real personal spending and a still elevated 4.7% year-over-year increase in the core-PCE Price Index.
Both the 2-yr and the 10-yr note yield are down below the 3.00% level. The 2-yr note yield is down 12 basis points to 2.96% while the 10-yr note yield is down 12 basis points to 2.99%.
Commodity prices are pulling back today. WTI crude oil futures are down 1.8% to $107.74/bbl. Natural gas futures are down 12.3% to $5.96/mmbtu. Unleaded gasoline futures are down 4.3% to $3.56/gal. Copper futures are down 1.9% to $3.70/lb.
Weekly initial claims for the week ending June 25 decreased by 2,000 to 231,000 (consensus 234,000) while continuing claims for the week ending June 18 decreased by 3,000 to 1.328 million.
