Stock market indexes traded mixed into Monday's lunch hour, awaiting big tech reports and Wednesday's Federal Reserve decision.
The Dow Jones Industrial Average rose 0.3% in the first half of the market day. The S&P 500 gained 0.2% while the Nasdaq composite brought up the rear, shedding 0.3%.
Monday's volume fell precipitously compared to the same time on Friday, dropping more than 14% on the Nasdaq and 12% on the S&P 500.
The 10-year Treasury yield rose to 2.81%, gaining ground after two straight losing sessions. The yield hit its lowest level since May on Friday. West Texas Intermediate crude oil futures added $1.91 to $96.59, finding buyers near the $95 level.
Treasury Secretary Janet Yellen turned heads in a Sunday "Meet The Press" interview, insisting she doesn't believe that two consecutive quarters of negative GDP signal a recession.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 31989.48 | +90.19 | +0.28 |
| S&P 500 | (0S&P5) | 3970.13 | +8.50 | +0.21 |
| Nasdaq | (0NDQC ) | 11803.78 | -30.33 | -0.26 |
| Russell 2000 | 180.75 | +1.24 | +0.69 | |
| IBD 50 | 26.95 | +0.14 | +0.52 | |
Last Update: 12:12 PM ET 7/25/2022 |
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That bearish signal has been part of market lore for decades, leading market watchers to wonder how much politics played in her comments.
Squarespace fell 1.9% after reporting a Q2 profit of 45 cents per share, beating estimates by 24 cents per share. The website building and e-commerce platform provider lost ground after lowering Q3 and fiscal year 2022 guidance. Squarespace came public on the national exchanges May 19, 2021.
Ahead Of The Fed
The Federal Reserve meets on Tuesday for a two-day meeting, with narrow consensus that bankers will raise interest rates by 75 basis points on Wednesday. Speculation about a more aggressive 100 basis point hike has eased in the last week. Recent forward-looking data predicts the economy will slow and bring down inflationary pressure forcefully in the next six months.
There won't be dot-plot projections from the Fed until the September meeting, so Chairman Jerome Powell's 2:30 p.m. news conference Wednesday will be the main event. His comments about September and beyond are likely to have a greater impact on price action than the 2 p.m. news release.
Big Tech Earnings Flood
Approximately 175 S&P 500 components will report earnings in this week's stock market, comprising about half of the index's total market capitalization.
This is also the heaviest week of second-quarter earnings season for big tech reports. Google parent Alphabet reports in Tuesday's post-market, along with Microsoft. Facebook parent Meta Platforms takes center stage after Wednesday's closing bell while Amazon.com and Apple wrap up the confessionals on Thursday.
Big tech stocks have struggled in 2022 and no widely held names are close to high-odds buy points. Market watchers will focus their attention on META and Alphabet advertising revenue to gauge the impact of inflationary pressures. Of course, Apple will be a major highlight, with legitimate concerns that higher prices will translate into lower iPhone demand.
Keep up-to-date on upcoming earnings by checking the IBD earnings calendar.
Monday Stock Market Highlights
World Wresting Entertainment gapped up on Monday, gaining 8.8% after embattled Chairman and CEO Vince McMahon earlier announced his retirement.
The company raised Q2 revenue guidance at the same time, lifting the stock through the 68.83 buy point of a 282-day cup-with-handle pattern. Loop Capital also upgraded WWE to buy on Monday.
IBD 50 component Encore Capital Group advanced 0.6% on Monday and is trading within 6% of the 72.77 buy point. The stock has carved a 104-day cup pattern since posting an all-time high in February. The relative strength line rose to another 52-week high Monday.
The company is forecast to post a profit of $2 per share in the Aug. 3 earnings release. Annual earnings should grow for the sixth straight year in 2022, but 2023 estimates forecast a 23% decline, due to growing odds for a recession.
IBD component Genuine Auto Parts traded within the 5% buy zone for the fourth day in a minor move Monday. The retail/wholesale auto parts industry has moved steadily up IBD's Industry Group Rankings in the last six weeks, signaling rising relative strength. It stood at 64 out of 197 sectors at the start of June, rising to 40th place three weeks ago and 30th last week.
Pilgrim's Pride rallied 2.1% and lifted within 7% of the 34.76 buy point of a base-on-base formation. This poultry producer reports earnings after the close on Wednesday, with S&P Capital IQ forecasting a profit of $1.16 per share.
