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The CML Close - Markets Fell, Inflation Expectations are Falling, Unretiring is Now a Thing - Market Wrap 05-09-2022

Date Published:

Stocks fell again, compounding losses from the two sessions prior.

Today, all of the market indices fell, while VIX rose. Crude oil also fell.

The Bureau of Labor Statistics releases the consumer price index for April on Wednesday. Analysts expect a gain of 8.1% over last year, or 5.9% excluding volatile food and energy prices. The March readings rose 8.5% and 6.5% respectively.

SPX 3,991.36 -131.98 (-3.20%)
NASD 11,623 -521.41 (-4.29%)
DJIA 32,245 -653.80 (-1.99%)
R2K 1,761.27 -78.29 (-4.26%)
VIX 35.04 +4.85 (+16.06)
Oil 102.29 -7.48 (-8.81%)

• Inflation outlook for consumers falls from record high, Fed survey shows.
• ‘Unretirement’ is becoming a hot new trend in the sizzling U.S. labor market.
• Capitulation from the crowd may help signal a market bottom.

Headlines of the Day
Stocks Slide as Selloff Resumes, With Tech Faring the Worst
Stocks continued to sell off Monday, as bond yields marched to new highs. Either way, all confidence in the stock market seems to have slipped away.

Inflation outlook for consumers falls from record high, Fed survey shows
Inflation expectations over the next year fell to a median 6.3% in April, a 0.3 percentage point decrease from the record high the previous month. Still, household spending is projected to rise a record 8% over the next year, according to a New York Fed survey of consumers. Consumer expectations for gas price increases fell to 5.2%, a 4.4 percentage point drop that came as oil prices edged lower in April.

More Than Half U.S. Firms in China See Lockdowns Hitting Revenue
AmCham survey shows companies plan to reduce investment. Covid restrictions lead to loss of foreign staff at U.S. firms

China’s Export Growth Weakens to 2020 Low as Lockdowns Bite
Export growth in April in dollar terms slowed to 3.9% from a year earlier, compared to an increase in March of 14.7%, customs data showed Monday. That’s the weakest pace since June 2020 but faster than the median estimate of a 2.7% gain in a Bloomberg survey of economists.

Trading Russian Oil Will Become Harder From Mid-May, Vitol Says
Commodity firms will find it much harder to buy and sell Russian oil from the middle of this month, according to the world’s biggest independent crude trader, as Europe tightens sanctions on Moscow for invading Ukraine.

Economic Data Results for 5-9-2022
United States Consumer Inflation Expectations
US consumer inflation expectations for the year ahead fell to 6.3% in April of 2022 from a record high of 6.6% in March. Expectations about year-ahead price changes fell sharply by 4.4 percentage points to 5.2% for the price of gas and other decreases were also seen for food (-0.2 percentage points to 9.4%) and medical care (-0.1 percentage point to 9.5%).

United States Wholesale Inventories
Wholesale inventories in the US increased 2.3% mom to $840.3 billion in March of 2022, matching initial estimates.

Economic Data Due Tomorrow on 5-10-2022
Redbook YoY 07/MAY

United States IBD/TIPP Economic Optimism Index

Get the In the Know - End of Day Market Wrap


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