The stock market traded lower Monday after last week's sell-off as retailers prepared for a big week of earnings.
The Nasdaq composite fell 0.8% and the S&P 500 was down 0.3%. The Dow Jones Industrial Average was flat. Last week, the Dow suffered its seventh consecutive week of losses, its longest losing streak since July 2001.
The small-cap Russell 2000 was also flat Monday.
Consumer discretionary and technology stocks led sector losses, while energy stocks gained.
Even with Friday's moderate gains, all major indexes are down sharply this year.
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32190.14 | -6.52 | -0.02 |
| S&P 500 | (0S&P5) | 4012.69 | -11.20 | -0.28 |
| Nasdaq | (0NDQC ) | 11710.35 | -94.65 | -0.80 |
| Russell 2000 | 178.11 | +0.04 | +0.02 | |
| IBD 50 | 30.73 | +0.31 | +1.02 | |
Last Update: 11:50 AM ET 5/16/2022 |
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Volume was running lower on the Nasdaq and on the NYSE vs. the same time on Friday.
Russia-Ukraine Crisis Increases As NATO Applies Pressure
Over the weekend, both Finland and Sweden announced their bids to join NATO. Russia has warned both countries and NATO that it would take "retaliatory steps" to their joining NATO.
McDonald's and French automaker Renault on Monday became the latest companies to announce asset sales in Russia, part of the ongoing international response to Russia's attack on Ukraine. McDonald's shares were down 0.8% Monday.
Oil prices increased, with crude oil up 0.7% to $111.30 a barrel. Occidental Petroleum was among the oil stocks that gained Monday, up nearly 5%. Occidental is already extended amid a rebound from its 10-week moving average.
European stock markets were mixed, with the London FTSE Index up 0.3% and the German DAX and Paris CAC 40 both showing losses of less than 1%. Asian markets were also mixed after China reported consumer spending and factory output tumbled in April. Growth in infrastructure investment also slowed sharply, China's National Bureau of Statistics reported on Monday.
China's headline jobless rate surged to a two-year high 6.1%.
"We believe the operation of the economy is gradually improving," Fu Linghui, China's statistics chief, said on Monday. "The pace of recovery in consumption will accelerate as the impact of the epidemic is brought under control."
Stock Market Looks To Retailer Earnings
JetBlue Airways stock fell 5% after it said it plans to launch a hostile takeover attempt for discount carrier Spirit Airlines. Spirit rejected JetBlue's $3.6 billion offer in favor of a previous deal with Frontier Airlines. Spirit shares jumped more than 10%, and Frontier gained 5%.
Fertilizer stocks gained, with CF Industries up nearly 3%. CF stock, Friday's IBD Stock Of The Day, rebounded off the 50-day moving average. The bounce offered an entry for aggressive investors. Intrepid Potash also gained more than 6%.
Twitter stock dropped more than 5% after Elon Musk said the company's legal team accused him of violating a nondisclosure agreement. On Friday, Musk said his $44 billion deal to acquire Twitter was on hold due to questions regarding the number of fake accounts.
Griffon shares soared more than 20% after the company said it is considering a sale or merger. The construction products maker cited a "profound disconnect" between the share price and the underlying value of the company.
Investors prepared for a big week of earnings, with Home Depot, Walmart, Cisco and Zim Integrated Shipping all on deck over the next few days.
The Innovator IBD 50 ETF, a benchmark for growth stocks, gained 1%, helped by energy and shipping stocks.
Follow Michael Molinski on Twitter @IMmolinski
