The stock market was down on Monday as investors digested a rally to close out last week. Markets await economic data on Tuesday.
Shortly after opening, the
Dow Jones Industrial Average
fell 131 points, or 0.4%. the
slid 0.4%, while tech stock
With few new developments pushing stocks lower on Monday, there are “some of the worst sentiment we have ever seen,” wrote Andrew Brenner of NatAlliance Securities.
All three major indexes posted big gains from a low on Thursday afternoon through Friday’s close, with the Nasdaq up nearly 6% over the period. Federal Reserve Chairman Jerome Powell hinted in a media interview on Thursday that the central bank would not raise interest rates by three-quarters of a percentage point to combat high inflation, but rather by a half point at each of the next two meetings. That put the stock market, which feared higher rates would slow the economy, at ease.
Now traders are bracing for a slew of economic data that could provide clues about inflation and the Fed’s next move. Retail sales will hit the wires on Tuesday and economists expect a 1.1% month-over-month gain. But if too much of the increase in retail sales is driven by price hikes — or inflation — markets may get nervous about the Fed becoming more hawkish or aggressive in raising rates. . Industrial production also comes out, with economists looking for a 0.5% month-over-month increase.
“The market is increasingly worried about downside risks to activity, which means that measures such as industrial production and retail sales, both released this week, take on added importance,” wrote Andrew Hollenhorst.
Overall, something has to happen to “make the Fed less hawkish, which is what we need to help form a [market] bottom,” wrote Tom Essaye, founder of Sevens Report Research.
The recent bottom isn’t even that far off. As of Friday’s close, the S&P 500 is just 2.4% above its closing low for the year. Market participants are hoping to see that rallies can be sustained and indices can avoid making new lows, which would be a signal of weakening investor confidence.
Overseas, the pan-European
was 0.2% lower, and the
Here are seven stocks in motion on Monday:
(ticker: SAVE) jumped 9.3% after
Jet Blue Airways
(JBLU) launched a hostile takeover bid for the discount airline. Spirit rejected its previous $3.6 billion takeover proposal earlier this month in favor of a lower-priced deal from
(ULCC). JetBlue stock lost 3.7%, while Frontier Group Holdings gained 5.2%.
(MCD) was down 1.3% after the fast food giant announced it would pull out of Russia 30 years after entering the country.
(SHAK) gained 0.1% after being upgraded to Buy from Neutral at Northcoast.
(NFLX) rose 0.9% after being upgraded from Neutral to Outperform at Wedbush.
(SOFI) rose 3.6% after being upgraded from neutral to overweight at Piper Sandler.
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