S&P 500 Index

+58.48 (+1.44%)
StockTwits Share  Twitter Share  Facebook Share

The CMLviz Close  - Stock and Bond Markets Tanked, Oil Rises, Productivity Dropped - 05-05-2022

Date Published:

Stocks and bonds fell hard a day after the market rallied on the FOMC meeting. On the NYSE, 94% of stocks were down on the day versus 6% rising. NASDAQ saw 87% of stocks fall versus 13% rising.

VIX rose and Crude oil inched higher.

SPX 4,146.87 -153.30 (-3.56%)
NASD 12,317.69 -647.169 (-4.99%)
DJIA 32,997.97 -1,063.09 (-3.12%)
R2K 1,871.15 -78.77 (-4.04%)
VIX 31.40 +5.98 (+23.52%)
Oil 108.41 +0.60 (+0.56%)

• Dow ends down over 1,000 points, Nasdaq falls 5% as stocks erase post-Fed gains.
• The US aims to spur oil production by refilling emergency crude stockpile.

Headlines of the Day
Stocks Crater in Sharp Turnabout After Fed Rally
The surge in stocks that followed the Federal Reserve decision proved short lived, with traders worried that officials could struggle to fight persistently high inflation amid the lingering threat of a recession.

Powell Vows to Cool Prices With Hikes That Risk Economy Pain
Fed chief sets aggressive path, stops short of drastic action. Expresses confidence rate hikes won’t induce recession

Oil Rises With OPEC+ Ratifying a Small Output Hike
Alliance agrees output hike amid limited spare capacity. EU plans a phaseout of crude, fuels imports from Russia

E-commerce stocks plummet as consumers pull back online spending
Shoppers are eager to head back to brick-and-mortar stores, while inflation is stoking fears that consumers are pulling back their spending on some items to still afford the essentials.

Russian War Leads EU Bloc to Push for Faster Trade Deals
At least 10 member states call for accelerating trade deals. New Asian partnership seen as ‘wake-up’ call for Europe. The signatories want faster negotiations with New Zealand, Australia, India and Indonesia, while speeding the implementation of accords agreed with Chile, Mexico and the Mercosur bloc of countries, which include Argentina, Brazil, Uruguay and Paraguay.

Economic Data Results for 5-4-2022
United States Initial Jobless Claims
U.S. initial claims for unemployment insurance are low even though they rose by 19,000 to 200,000 in the week ended April 30 versus estimates of 180,000. The four-week moving average in initial claims edged higher, rising from 180,000 to 188,000 in the week ended April 30. Continuing claims for unemployment insurance benefits fell from 1.403 million to 1.384 million in the week ended April 23. The four-week moving average in continuing claims dropped from 1.453 million to 1.417 million. The insured unemployment rate remained very low at 1%.

United States Nonfarm Labour Productivity
Nonfarm labor productivity in the US slumped an annualized 7.5 percent in the first quarter of 2022, much more than market expectations of a 5.4 percent drop and following a downwardly revised 6.3 percent expansion in the previous period. It was the steepest contraction in nonfarm labor productivity since the third quarter of 1947.

United States Nonfarm Unit Labour Cost
Unit labor costs in the US nonfarm business sector surged by 11.6 percent in the first quarter of 2022, above market forecasts of a 9.9 percent.

30y mortgage rates
30y mortgage rates have risen to highest since 2009

Economic Data Due Tomorrow on 5-5-2022
United States Unemployment Rate

United States Non Farm Payrolls

United States Labor Force Participation Rate

United States Average Hourly Earnings MoM

Get the In the Know - End of Day Market Wrap


The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Capital Market Laboratories (“The Company”) does not engage in rendering any legal or professional services by placing these general informational materials on this website.

The Company specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if we have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.

The Company makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated."