The major indexes saw similar price action as they retreated from their intraday highs as well. Mega-Cap Index rose about 1.5% earlier in the session but relinquished most of its gains to close just 0.31% higher on the day. If yields and the dollar continue to rise, it could mean another hit to growth and multinational stocks. Index ($DXY) seemed to find support yesterday just below the 102 mark. The eight-basis-point jump helped to strengthen the U.S. The 10-year Treasury yield (TNX) jumped back over 3% once again on Monday to close at 3.038%. Despite better-than-expected earnings and revenue for its fiscal fourth quarter, SJM said it is adjusting its 2022 sales forecasts 2% lower. However, J.M Smucker (SJM) signaled some bad news in the consumer staples sector. Also, G-III Apparel Group (GIII) surged on earnings beat and a raise of forward guidance. One retail gainer was Kohl’s (KSS), trading up nearly 10% before the open on the news that Franchise Group (FRG) has offered to buy the Wisconsin-based store chain for $60 per share. But natural gas futures traded at a new 52-week high. Crude oil futures were also slightly lower. That said, RBOB gasoline futures were falling before the market open dropping 1.85%. The bad news is that getting to the store remains expensive as gas prices hit another all-time high with the AAA average hitting $4.92. On the bright side, bargain shoppers are likely to see a lot of good deals in the stores and online which could help bring down the price inflation consumers have been dealing with in the short term. The Cboe Market Volatility Index (VIX) also rose 3.63% in premarket action. Nasdaq 100 futures were down 1.12% while the S&P 500 futures slipped 0.81%. The news dragged equity index futures lower ahead of the open. Walmart fell 3.29% on the news and Amazon (AMZN) dropped 2.37% as investors expect other retailers to have similar issues. Target slashed its second-quarter operating margin projections from 5.3% to just 2% and pledged to mark down a buildup of inventory to prepare for a strong back-to-school and holiday shopping seasons. The move, Target’s second guidance cut in a month, sent equity futures and many competing retailers tumbling before the open. (Tuesday Market Open) Just three weeks after Walmart (WMT) and Target (TGT) reported surprising earnings misses, Target shares slid 9% in premarket trading after the retailer lowered its 2022 earnings guidance. Shawn Cruz Director of Derivative Strategy, TD Ameritrade Will Dividends Maintain Popularity As Yields Move Higher? Rising Yields, Stronger Dollar Cut Monday’s Market Gains Target Again Lowers Guidance, Pulling Many Retail Stocks and Equity Index Futures Lower
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