Market Recap Week Ending May 28

 

 

 

Tuesday – Dow (81) to 34,312, Nasdaq (4) to 13,657 and the S&P (9) to 4,188. Markets traded largely sideways today as only six of the eleven S&P sectors traded higher, led by Consumer Discretionary and Consumer Staples. Energy was the big loser, down 2.5% today. Consumer confidence was largely to blame as the number came in at 117.5 vs 119.5 expectations and vs April’s 121.7 print…New home sales also disappointed. April’s number was 863,000 vs expectations of 959,000. Supply continued to be an issue as the number of homes available for sale declined to a 3.8-month supply vs March’s 4.6 month supply. And while supply is limited, there is starting to be concern with demand as rising prices combined with more expensive financing may be starting to limit buyer’s options…Nordstrom (JWN) missed Q1 expectations and fell 6% after hours…Urban Outfitters traded up more than 7% due to better-than-expected quarterly earnings.

Wednesday – Dow +11 to 34,323 , Nasdaq +79 to 13,736 and the S&P +7 to 4,195. Dick’s Sporting Goods (DKS) rallied more than 15% after crushing earnings and revenue numbers…, American Eagle Outfitters (AEO) also crushed their numbers but traded down 1% post-close as the company did not give full year guidance…Snowflake (SNOW) reported revenue growth of 110% year over year but lost 70c/share and traded down 8% after hours.

Thursday – Dow +141 to 34,464, Nasdaq (1) to 13,735 and the S&P +5 to 4,200. Another day of split leadership in the markets as only six of the eleven S&P sectors traded higher today led by Industrials and Financials. Consumer Staples and Utilities were your worst performers. The 10-year traded up 3bp to 1.61%. On the economic news front jobless claims were better than expected at 406,000 vs expectations of 425,000 and last week’s print of 444,000. Durable goods orders plunged 1.3% in April vs expectations of a 0.9% increase. Q1 GDP was confirmed at 6.4% annualized rate vs expectations of a slightly higher 6.5% revised number. All this news taken together is a balm for inflation fears…A huge day of reckoning for the oil and gas industry today: a Dutch court ordered Royal Dutch Shell (RDS.A) to cut their greenhouse gas emissions by 45% by 2030, a shareholder meeting for Chevron (CVX) resulted in a resolution recommending that the company cut emissions and at ExxonMobil’s shareholder meeting, Engine No 1, a small advocacy investment firm won at least two seats on XOM’s board with a possibility of a third (the vote is too close to call at this time). Importantly, industry behemoth Blackrock, backed the board candidates nominated by Engine No. 1 as did the New York State Common Fund ($255 billion) and the California State Teachers Retirement System (CalStrs $300 billion)…Salesforce (CRM) rallied 4.75% after reporting better than expected Q1 earnings post-close…Ulta Beauty (ULTA) traded up 4.46% after-hours after more than doubling their earnings expectations and beat revs by 18%…Hewlett Packard (HPQ) traded down 1.87% after beating both top and bottom-line expectations…Dell Technologies (DELL) traded down slightly despite beating their Q1 earnings and revenue numbers.

Friday – Dow +64 to 34,529, Nasdaq +12  to 13,748 and the S&P +3 to 4,204. A slew of economic numbers left the market without much direction today. PCE (Personal Consumption Expenditure) rose 3.1% in April vs expectations of 2.9% and March’s number of 1.9%. Chicago PMI came in at 75.2, its highest reading since November of 1973. However, the University of Michigan’s May Consumer Confidence ticked lower at 82.9 vs expectations of 83 and the previous month’s reading of 88.3. Consumer Spending was in line at a 0.5% increase and Personal Income fell13.1% as Economic Impact Payments from the stimulus bill tailed off dramatically. The 10-year yield actually declined 3 bp to 1.58% despite the inflation numbers. As for equities, only six of the eleven sectors traded higher, led by Real Estate and Utilities. Consumer Discretionary and Communication Services were the laggards on the day. All that being said, and despite all the volatility experienced over the last several weeks, the S&P is merely 0.8% from its all-time high…The Meme stocks and WallStreetBets are back in the headlines. AMC Entertainment (AMC) popped 38% before closing down 1.5% on the day. GameStop also popped early only to finish down 12.71% on the day…

 

Disclaimer: This is not a recommendation to either buy or sell any of the securities listed above. I personally, or a family member’s account for which I control, own the following…Bitcoin (coin), Cardano (coin), Chainlink (coin), Ethereum (coin), ETHE, GBTC, and TSLA.