We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The topsy-turvy nature of current market conditions continued today: up ahead of the open, down at the close. The Dow had another wide swing — 700 points from highs to lows intra-day — and closed -177 points, -0.54%. The Nasdaq dropped -0.72% while the S&P 500 was even a smidge worse, -0.75%. The small-cap Russell 2000 outperformed the others, -0.49% by the close.
Manufacturing reports for May were mixed, but within an historically healthy range: the S&P Global PMI Manufacturing headline came in at 57.0, beneath the 57.5 from the previous month and estimated 57.3 for last month. ISM Manufacturing, however, grew to 56.1% versus 55.4% for April and 54.5% expected. As we saw in other releases today, Manufacturing is holding its own in our current economy.
JOLTS data for April came in-line with expectations for 11.4 million job openings, down only slightly from the 11.5 million reported for March. Job quits were also dead-even month over month at 4.4 million, with the March number revised slightly downward. In today’s Beige Book, all districts reported a still-tight labor market in the U.S., and this data would bear this out.
Elsewhere in the Beige Book, consumer softness and weaker residential real estate marked the period, with four districts reporting growth slowing from the previous report and three explicitly concerned about a coming recession. Labor market tightness were seen as the biggest obstacle to growth, followed by supply chain issues. In some coastal districts, hiring freezes are being undertaken for the first time since early in the pandemic.
Labor market assessment works as something of a precursor to jobs reports beginning tomorrow — which brings us not only weekly jobless claims but a one-day-delayed ADP (ADP - Free Report) private-sector payroll release — and Friday, where we’ll get the non-farm payroll report from the U.S. government. It’s expected 299K private-sector jobs were created last month, whereas the consensus for non-farm payrolls is 328K.
Chewy (CHWY - Free Report) shares have blasted off more than +20% in late trading this Wednesday, on a swing to positive earnings for its fiscal Q1 report: +$0.04 per share versus expectations of -$0.12. Revenues were lower than expected, however: $2.43 billion in the quarter, versus $2.47 billion in the Zacks consensus. It’s the first positive earnings quarter in the company’s last three.
GameStop (GME - Free Report) also reported Q1 results after Wednesday’s close, putting up reverse mixed numbers from Chewy: a bottom line of -$2.08 per share missed the -$1.37 expected by a wide margin, though revenues in the quarter came in at $1.38 billion, ahead of the $1.35 billion in the Zacks consensus. Shares popped +6% on the news in late trading; the stock is still -20% year to date and -57% from this time a year ago.
Image: Bigstock
Stock Market Rollercoaster Continues into June
The topsy-turvy nature of current market conditions continued today: up ahead of the open, down at the close. The Dow had another wide swing — 700 points from highs to lows intra-day — and closed -177 points, -0.54%. The Nasdaq dropped -0.72% while the S&P 500 was even a smidge worse, -0.75%. The small-cap Russell 2000 outperformed the others, -0.49% by the close.
Manufacturing reports for May were mixed, but within an historically healthy range: the S&P Global PMI Manufacturing headline came in at 57.0, beneath the 57.5 from the previous month and estimated 57.3 for last month. ISM Manufacturing, however, grew to 56.1% versus 55.4% for April and 54.5% expected. As we saw in other releases today, Manufacturing is holding its own in our current economy.
JOLTS data for April came in-line with expectations for 11.4 million job openings, down only slightly from the 11.5 million reported for March. Job quits were also dead-even month over month at 4.4 million, with the March number revised slightly downward. In today’s Beige Book, all districts reported a still-tight labor market in the U.S., and this data would bear this out.
Elsewhere in the Beige Book, consumer softness and weaker residential real estate marked the period, with four districts reporting growth slowing from the previous report and three explicitly concerned about a coming recession. Labor market tightness were seen as the biggest obstacle to growth, followed by supply chain issues. In some coastal districts, hiring freezes are being undertaken for the first time since early in the pandemic.
Labor market assessment works as something of a precursor to jobs reports beginning tomorrow — which brings us not only weekly jobless claims but a one-day-delayed ADP (ADP - Free Report) private-sector payroll release — and Friday, where we’ll get the non-farm payroll report from the U.S. government. It’s expected 299K private-sector jobs were created last month, whereas the consensus for non-farm payrolls is 328K.
Chewy (CHWY - Free Report) shares have blasted off more than +20% in late trading this Wednesday, on a swing to positive earnings for its fiscal Q1 report: +$0.04 per share versus expectations of -$0.12. Revenues were lower than expected, however: $2.43 billion in the quarter, versus $2.47 billion in the Zacks consensus. It’s the first positive earnings quarter in the company’s last three.
GameStop (GME - Free Report) also reported Q1 results after Wednesday’s close, putting up reverse mixed numbers from Chewy: a bottom line of -$2.08 per share missed the -$1.37 expected by a wide margin, though revenues in the quarter came in at $1.38 billion, ahead of the $1.35 billion in the Zacks consensus. Shares popped +6% on the news in late trading; the stock is still -20% year to date and -57% from this time a year ago.
Questions or comments about this article and/or its author? Click here>>