Markets closed at or near session lows on this first trading day of a new week, after seeing a decent holiday-shortened last week continuing the bounce off our lows four weeks back. While much of the recession fears and Q2 earnings worry have already been priced into the market, whether or not we’ve seen the lows for the year is very much an open question.
The Dow dropped -0.52% on the day, -162 points, while the tech-heavy Nasdaq fared noticeably worse: -2.26%, -262 points. The S&P 500 split the difference, -1.15% on the day, while the small-cap Russell 2000 nearly notched as bad a session as the Nasdaq: -2.21%. Only the Dow spent any time in positive territory today.
That said, we’ve definitely been enjoying a bounce off our June lows overall — Dow +5%, S&P and Russell +6%, Nasdaq +8% — but without much direction early in the week, market participants aren’t exactly keeping the faith that markets will sustain and continue these gains. Q2 earnings will give us some answers, as will Wednesday’s
Consumer Price Index (CPI)
report, but the jury is still out which direction these numbers are headed.
More immediately, we’re still seeing Covid lockdowns mar China’s economic rebound, especially regarding the gaming industry today. Shutdowns across Macau — its massive gambling district a boat ride from Hong Kong — have sent international gaming companies down on the day, such as
Wynn Reports
WYNN
-6.5% and
Las Vegas Sands
LVS
-6.2%. We also saw the fallout — or the latest chapter — in the Elon Musk/
Twitter
TWTR
saga take down that share price -11.3% today.
Tomorrow morning we’ll get Q2 results from
PepsiCo
PEP
, which is expected to bring in flat earnings year over year, $1.72 per share. The stock has been a model of consistency over the past decade-plus — not necessarily always beating earnings estimates but never missing them. PepsiCo carries a Zacks Rank #4 (Sell) into the earnings announcement, but has outperformed its sector, down less than -2% year to date and +14% in the past year.
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