4:10pm: Certain tech players find footing after a rocky start to the week
The Nasdaq managed to right the ship by the closing bell, finishing up 114 points, 1%, at 11,738. For the other major indices, it was another story. The Dow lost 85 points, 0.4%, to close at 32,160, while the S&P 500 eked out a gain of 10 points, 0.3%, to land at 4,001.
Netflix Inc (NASDAQ:NFLX) and Microsoft Corporation (NASDAQ:MSFT), did their part to life the tech-laden exchange higher, picking up 2.6% and 1.9%, respectively.
The modest gain for S&P 500 came just a day after the index fell below 4,000 to its lowest level since March 2021.
Meanwhile, Dow players JPMorgan Chase & Co (NYSE:JPM). and 3M Company each lost more than 2%, and International Business Machines Corporation dropped nearly 4% to drag the blue-chip index lower for the fourth consecutive session.
12:05pm: Early gains lost at noon
After starting the day higher on Tuesday, US stocks had slid at noon as investors remain cautious amid growing recession fears.
At midday, the Dow had slipped 209 points or 0.6% to 32,036 points.
The S&P 500 had dropped 0.3%, with the Nasdaq steady at 11,638 points.
IG chief market analyst Chris Beauchamp said stomach-churning volatility continued to dominate financial markets.
“After the sharp falls of last Friday and yesterday, some cautious buying has come in, but it looks like the best that they buyers can muster is a holding action for now,” Beauchamp said.
“Selloffs like these are never one-way affairs, so we can’t rule out a bounce, but since recession concerns appear to be rising by the day it is unlikely that equities will be able to sustain this for too long.”
Meanwhile, following the release of disappointing fiscal 3Q earnings on Tuesday morning, including a greater-than-expected loss and a steep decline in sales, shares of Peloton Interactive (NASDAQ:PTON) Inc had dropped about 14%. Shortly after noon, Peloton shares was trading at about $12.
CMC Markets UK chief market analyst Michael Hewson said after a dismal 2Q, Peloton had adjusted its 3Q revenue estimates to $971.6 million but even with such a low bar the company had still managed to miss out, reporting revenue of $964.3 million.
“If you thought things couldn’t get any worse for the Peloton share price with the shares already at record lows, and down over 90% from their pandemic peaks, then you’d have been wrong,” Hewson said.
After reporting a lower-than-expected loss in its 1Q earnings yesterday, cinema chain AMC Entertainment Holdings (NYSE:AMC) Inc had dipped about 6.5%, trading at about $11.70 per share.
“This has helped the shares rise in early trade, with the new Spiderman and Batman films helping to push revenues up to $785.7 million, above estimates of $769.9 million, and a huge improvement on last years $148.3 million,” Hewson said.
However, he noted that the company’s optimistic outlook could not hide its $5.5 billion debt.
10am: Proactive North America headlines:
Match Group (NASDAQ:MTCH) files lawsuit against Google
Western Magnesium poised to bring magnesium production back to the US amid global demand surge
BTU Metals says it is prioritizing next targets at Dixie as it completes four drill holes
Ultra Lithium completes sale of 60% of Georgia Lake and Forgan Lake properties in Ontario to Yahua and enters joint venture
HealthLynked (OTCQB:HLYK) says its FemTech app Oohvie will be a major contributor to revenue growth as it releases enhanced version of app
Vox Royalty (TSX-V:VOX) says it expects revenues from its Otto Bore royalty in 2023
i-80 Gold secures key water rights for Nevada Cove mine with property aqcuisition; posts 1Q revenue of $2.8M
Fireweed Zinc acquires Gayna River project in Canada’s Northwest Territories
Lucky Minerals (TSX-V:LKY, OTC:LKMNF) says trenching at its Ecuador gold discovery has identified additional mineralization ahead of its upcoming drill program
Golden Minerals reports 1Q revenue of $7.5M as Rodeo gold-silver mine produces 3,787 gold-equivalent ounces
Doré Copper Mining marks "major accomplishment" with release of positive PEA for Chibougamau camp restart
Therma Bright to seek approval for its AcuVid COVID-19 rapid antigen saliva test from Health Canada
Trust Stamp (NASDAQ:IDAI, EURONEXT:AIID) signs Memorandum of Understanding with African Institute for Mathematical Sciences
Canada Silver Cobalt begins exploration at its Eby-Otto gold property near Kirkland Lake in Ontario
Clean Air Metals appoints engineer Mike Garbutt as chief operating officer
Gold Resource Corp reports robust financial results and strong balance sheet for 1Q 2022
Tocvan Ventures closes previously announced non-brokered private placement of units for gross proceeds of $346,200
Planet 13 Holdings announces second location of its planned Florida dispensary network in the city of Port Richey
FSD Pharma (CSE:HUGE, NASDAQ:HUGE) closes $16.4M sale of former cannabis processing plant
Wellbeing Digital Sciences (NEO:MEDI.AQN, OTCQB:KONEF) becomes founding sponsor of Women in Psychedelics (WIP) Network
Plurilock says Aurora Systems subsidiary won purchase orders worth US$1.41M in April
9:40am: US stocks jump at the open
US stocks have opened in the green today as bargain-hunting investors make their move following the worst day for global stocks since June 2020 yesterday, with the S&P 500 closing below 4,000 points for the first time since March 2021.
Shortly after the open, the Dow had gained 405 points or 1.2% at 32,651 points.
The S&P 500 and the Nasdaq had also jumped 1.4% and 1.8% respectively.
UK & EMEA OANDA senior market analyst Craig Erlam observed a small recovery in the markets on Tuesday as investors dusted themselves off following the rout at the start of the week, however, he noted there continued to be a huge amount of worry about a recession.
“Given the record of central banks in correctly anticipating the path of inflation and interest rates over the last 12 months, perhaps investors are right to treat their forecasts with a large dose of scepticism,” Erlam said.
“The inflation data from the US on Wednesday will naturally be heavily scrutinized as a result, with investors looking for signs of pressure easing. We’ll need to see a sharp decline in the coming months for concerns to abate.”
6.30am: Stocks seen opening higher
US markets are expected to open higher, recovering from the worst day for global stocks since June 2020, as bargain hunters take advantage of the selloff.
Futures for the Dow Jones Industrial Average gained 0.65% in Tuesday pre-market trading, while those for the broader S&P 500 index rose 0.77% and the Nasdaq added 1.38%.
Markets fell sharply on Monday as inflation, rising interest rates, recessionary fears and the continued impact of China’s pandemic restrictions and the war in Ukraine weighed on the minds of investors.
Tech stocks were worst hit, pushing the Nasdaq 4.3% lower to a fresh 2022 low of 11,623. The S&P 500 shed 3.2% to 3,991, below the psychological 4,000 level, while the Dow closed 2% lower at 32,246.
While Wall Steet sank the most in two years, Neil Wilson, chief market analyst at Markets.com, pointed out that Bitcoin briefly sank under $30,000, MicroStrategy dived 25%, Tesla was off 9%, Coinbase fell 20% and Cathie Wood’s ARKK exchange-traded fund (ETF) declined almost 10% amid a total rout of the tech sector.
“The wheels off, at least certainly for a lot of the quack investments, crypto shills and the rest of those who mistook a free-money, debt-fuelled momentum bubble for real hard cash,” Wilson said. “Yesterday was carnage, but was it capitulation? Stock markets in Europe and US futures are attempting to rally this morning but we still question whether the bottom is in. (It's) likely to be a short-covering rally for now as I feel we are not at max fear levels yet.”
Wilson noted that commodities weren’t spared either, with gold tumbling to $1,852 and remaining under pressure Tuesday morning. Brent Crude Oil (LSE:BRENT) was steady at around $105 a barrel after deciding close to 6% on Monday.
"It was the worst day for global stocks since June 2020," Wilson added. "The difference between then and today is the Fed no longer has the market’s back and there is not a few trillion in stimulus cheques incoming. And the Fed won’t blink unless there is a top in inflation – CPI data tomorrow will be watched carefully.”