|
|
By Alex Eule
| Monday, July 11 The
Calm Before the Storm. Things are about to get busy. Earnings
season kicks off this week, with PepsiCo reporting tomorrow, Delta
Air Lines reporting on Wednesday, and then most of the big
banks reporting on Thursday and Friday. In the middle of that, investors will
be treated to new inflation data that could spark additional fears about
rising prices. When it's released on Wednesday, economists expect the June
consumer price index to show an 8.8% year-over-year gain, accelerating from
May's 8.6% annualized rate. On Friday, we'll get a new read into the state of
the consumer, with June retail sales data. But for now, on a more quiet Monday,
investors were focused on new Covid cases, including the first confirmed case
of the BA.5 Omicron sub-variant in Shanghai. The development raises fears of
new lockdowns in Chinese cities given the country's zero-Covid policy.
Separately, officials announced a weeklong lockdown in Macau, China's
gambling center and home to casinos owned by Wynn
Resorts and Las Vegas Sands. Those stocks
both fell about 6% on Monday. Covid-sensitive cruise lines had a rough
day, as well, with Carnival, Royal
Caribbean, and Norwegian Cruise Lines each
down at least 5%. Twitter,
the S&P 500's worst performing
stock on the day, finished down 11.3%, with investors reacting to
Friday's news that Elon Musk was seeking to walk
away from his $44 billion deal to buy the social media company. Twitter
shares closed the day at $32.65, a 40% discount to Musk's $54.20 offer price
agreed to in April. Barron's Eric Savitz writes that Twitter
shares could have more downside in store if the deal actually falls apart.
"Most Street analysts seem to think that Twitter as an independent
company with no acquisition potential based on the current outlook would
trade in the $25 to $30 a share range," Eric writes. Today, the tech-heavy Nasdaq
Composite, fell 2.3%, snapping a five-day winning streak,
while the S&P 500 was off 1.2%.
Earnings season has never felt more needed. More on that below. |
|
|
DJIA: -0.52% to 31,173.84 The Hot Stock: Cboe
Global Markets +2.3% Best Sector: Utilities +0.6%
|
No comments:
Post a Comment