- The major indices have experienced their worst week since January. The NASDAQ index is down -5.6 percent.
- The higher-than-expected CPI reversed premarket stock gains, sending the major indices lower. A drop in Michigan consumer sentiment did not help the overall mood.
- The weekly percentage declines in the Dow, S&P, and NASDAQ were the worst since January 21.
- The Dow Jones is down 10 of the last 11 weeks.
- The NASDAQ and S&P are down 9 of the last 10 weeks.
- All 11 S&P sectors fell. Consumer discretionary was the worst performing sector, falling by more than -4.1 percent. Financials fell -3.65 percent, while technology fell -3.9 percent. Consumer staples was the best performer, with a -0.38 percent decline.
- • The Dow industrial average fell -880.02 points, or 2.73 percent, to 31392.80.
- The S&P 500 index fell -116.96 points, or 2.91 percent, to 3900.85.
- The NASDAQ index dropped -414.19 points, or 3.52 percent, to 11340.03.
- At 1800.28, the Russell 2000 fell -50.57 points, or -2.73 percent.
Walmart was the only Dow stock to gain ground, rising 0.63 percent. The best of the worst were on display:
- Verizon fell -0.16%;
- Procter & Gamble fell -0.36%
- Walgreens boots fell -0.43%.
- Coca-Cola dropped -0.58 percent.
Tesla has proposed a 3 for 1 stock split following the close. The stock ended the day at $696.69. It is currently trading at $716.23 in after-hours trading.
This week, Amazon stock experienced a 20 for 1 stock split. Following a gain on Monday, the shares are down -10.38 percent for the week.
- On Friday, US crude fell 84 cents, capping a seventh week of gains.
- Oil fell 84 cents to $120.67, closing above $120 for the first time since 2008.
- WTI fell 84 cents on Friday but gained $1.80 on the week. It’s the highest Friday finish since 2008.
- Earlier this year, when the Ukraine war broke out, oil spiked as high as $130.50, but it was a short-lived spike that ended that week at $109.33. Despite Chinese lockdowns, increased OPEC supply, and the SPR release, the latest rally has been driven by signs of persistent shortages. The risk of rapidly slowing global growth amid higher rates is the next challenge.
- So far, crude has passed all of the tests, and technically, there isn’t much standing in the way of a return to $130.
- Even with the current bearishness in stocks and bonds, the 0.7 percent drop is hardly significant. WTI fell as low as $118.33, but has since recovered more than $2.
- Demand destruction is likely, in part because gasoline and diesel prices are higher than they should be due to refinery issues. Yesterday, retail gasoline prices in the United States averaged $5 per gallon for the first time in history.
Ethereum has challenged the $1700 level a half-dozen times since definitively breaking above it in March 2021, dropping to the lowest since early-2021.
With today’s 6.3 percent drop, it is now at its lowest level since then.
The $1700 or just below level was repeatedly challenged and held several times in a significant way.
The graph shows how important this level is.
Bitcoin has also made several lows in the $28,800/$29,000 range, with one brief dip to $25,390 in May. It’s also testing those lows.
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