The stock market dropped slightly after a terrible April as another wave of earnings reports hits the markets. The benchmark Treasury yield continues to climb and the pace of manufacturing gave signs it may be beginning to slow.
The Nasdaq gained 0.3%, while the S&P 500 fell 0.3%. The Dow Jones Industrial Average fell 0.4%. Volume rose on the NYSE and Nasdaq compared with the same time on Friday.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32819.15 | -158.06 | -0.48 |
| S&P 500 | (0S&P5) | 4114.51 | -17.42 | -0.42 |
| Nasdaq | (0NDQC ) | 12350.07 | +15.43 | +0.13 |
| Russell 2000 | 185.46 | +0.51 | +0.28 | |
| IBD 50 | 32.17 | -0.28 | -0.86 | |
Last Update: 12:12 PM ET 5/2/2022 |
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The price of crude oil fell 1.8% to $102.85 a barrel. The yield on the 10-year Treasury note climbed 5 basis points to 2.98%, the highest since November 2018. The Fed meets Tuesday and Wednesday to make an expected half-point rate hike. Investors also are watching how the Fed plans to reduce its massive balance sheet.
In economic news, the seasonally adjusted S&P Global U.S. Manufacturing Purchasing Managers' Index climbed to 59.2 in April from 58.8 in March. It was lower than initial estimates of 59.7, indicating that the pace of manufacturing activity may be slowing. Still, the rate of overall growth accelerated for the third month in a row, and was the sharpest gain since September.
Worst One-Month Decline Since March 2020
The S&P 500 tumbled 8.8% for the month, the largest one-month decline since the pandemic bear market in March 2020.
The Nasdaq sold off 13.3% in April in the largest monthly decline since October 2008, according to Dow Jones Market Data. The Nasdaq's four-week losing streak is now the worst since April, 2020.
Chipmaker Onsemi smashed Wall Street's targets for the first quarter and guided higher for the current period. ON stock rose 2% on the news.
The Phoenix-based company, previously known as ON Semiconductor, earned an adjusted $1.22 a share on sales of $1.945 billion in the March quarter. Analysts polled by FactSet expected Onsemi earnings of $1.05 a share on sales of $1.91 billion. On a year-over-year basis, Onsemi earnings soared 249% while sales climbed 31%.
Real estate stocks were the worst performers. The S&P Real Estate Select ETF dropped 2% Monday morning. Prologis fell 4%, adding to Friday's 7.4% sell-off.
Public Storage lost a further 2% after dropping 6% Friday. Earnings are due out later this afternoon. Analysts expect Public Storage to earn $2.33 a share on sales of $986 million. Shares have fallen below their buy point of 377.46 off a flat base, creating a round-trip sell signal.
Innovator IBD 50 ETF fell 0.8% Monday morning.
SSR Mining fell below its 50-day moving average in heavy trading a day ahead of its first-quarter earnings report. The producer of gold, silver and zinc is threatening to erase gains from its Feb. 24 breakout.
Stock Market Embraces Upcoming Earnings
Spirit Airlines slid more than 9% after the company rejected JetBlue's $3.6 billion buyout offer. Instead, it will continue with an original plan to merge with Frontier Group Holdings.
"We believe a combination of JetBlue and Spirit has a low probability of receiving antitrust clearance so long as JetBlue's Northeast Alliance with American Airlines remains in existence," Spirit said in a statement. JetBlue shares rose 0.7%, while Frontier fell 3.8%.
After today's close, Arista Networks reports first-quarter results. The stock is forming a base and has been holding just above the 200-day moving average the past several days.
Fertilizer makers Nutrien and Mosaic will announce Q1 earnings after the close today. Both stocks are testing their 10-week moving averages. Fertilizer prices have been jumping after Russia's invasion of Ukraine and other supply-chain problems.
Follow Michael Molinski on Twitter @IMmolinski
