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The CML Close - Stocks Down, VIX Down, Oil Up, Hedge Funds Bearish on Small Caps

Date Published:

Market indices were lower on the day other than the fickle Dow. NASDAQ led the drop. The price of crude oil rose yet again and the VIX was down.

This week is economic data heavy and hedge funds are getting yet more bearish on small caps.

SPX 4,008.01 -15.88 (-0.39%)
NASD 11,662.79 -142.21 (-1.2%)
DJIA 32,223.42 +26.76 (+0.08%)
R2K 1,783.43 -9.24 (-0.52%)
VIX 27.64 -1.23 (-4.26%)
Oil 114.15 +3.66 (+3.31%)

• Hedge funds are turning increasingly sour on small caps. Net Russell 2000 futures positioning has fallen to most negative level since August 2021.

• The MBA Purchase Index in the United States increased 4.5% to 255.40 points in the week ended May 6th 2022, despite a rise in borrowing costs as the spring housing market enters its historically busiest time. data shows."

Headlines of the Day
Stocks Waver as Recession Fears Weigh
The stock market was struggling to gain steam Monday, as investors digested a rally to close out last week. Markets are awaiting economic data out Tuesday.

The Fed Sure Sounds as If It Expects a Recession
The central bank chief’s confidence that the economy can avoid a downturn has taken a beating in just more than a week.

China’s Economic Activity Collapses Under Xi’s Covid Zero Policy
Factory output, retail plunged in April; joblessness rose. Economists say Covid restrictions mean slow recovery.

Goldman Sachs Cuts US Growth Forecasts for 2022 and 2023
Goldman sees US growing 2.4% in 2022 and 1.6% in 2023. Bank previously saw growth of 2.6% this year, 2.2% next.

Wheat Soars in Risk to Food Inflation as India Restricts Exports
India doesn’t ship much but war in Ukraine exacerbates issues. Wheat shortage poised to drive up global food costs even more.

Economic Data Results for 5-16-2022
United States NY Empire State Manufacturing Index
The New York Empire State Manufacturing Index surprisingly fell to -11.6 in May of 2022 from 24.6 in April, missing market forecasts of 17. Business activity in the New York State declined after a strong growth last month, as new orders decreased, and shipments fell at the fastest pace since early in the pandemic.

Economic Data Due Tomorrow on 5-17-2022
U.S. Retail Sales

United States Industrial Production

United States Retail Inventories Ex Autos

United States Business Inventories

United States Manufacturing Production

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