The CML Close - Stocks Down, VIX Down, Oil Up, Hedge Funds Bearish on Small Caps
Markets
Market indices were lower on the day other than the fickle Dow. NASDAQ led the drop. The price of crude oil rose yet again and the VIX was down.
This week is economic data heavy and hedge funds are getting yet more bearish on small caps.
| • SPX | 4,008.01 | -15.88 | (-0.39%) |
| • NASD | 11,662.79 | -142.21 | (-1.2%) |
| • DJIA | 32,223.42 | +26.76 | (+0.08%) |
| • R2K | 1,783.43 | -9.24 | (-0.52%) |
| • VIX | 27.64 | -1.23 | (-4.26%) |
| • Oil | 114.15 | +3.66 | (+3.31%) |
• Hedge funds are turning increasingly sour on small caps. Net Russell 2000 futures positioning has fallen to most negative level since August 2021.
• The MBA Purchase Index in the United States increased 4.5% to 255.40 points in the week ended May 6th 2022, despite a rise in borrowing costs as the spring housing market enters its historically busiest time. data shows."
Headlines of the Day
Stocks Waver as Recession Fears Weigh
The stock market was struggling to gain steam Monday, as investors digested a rally to close out last week. Markets are awaiting economic data out Tuesday.
The Fed Sure Sounds as If It Expects a Recession
The central bank chief’s confidence that the economy can avoid a downturn has taken a beating in just more than a week.
China’s Economic Activity Collapses Under Xi’s Covid Zero Policy
Factory output, retail plunged in April; joblessness rose. Economists say Covid restrictions mean slow recovery.
Goldman Sachs Cuts US Growth Forecasts for 2022 and 2023
Goldman sees US growing 2.4% in 2022 and 1.6% in 2023. Bank previously saw growth of 2.6% this year, 2.2% next.
Wheat Soars in Risk to Food Inflation as India Restricts Exports
India doesn’t ship much but war in Ukraine exacerbates issues. Wheat shortage poised to drive up global food costs even more.
Economic Data Results for 5-16-2022
United States NY Empire State Manufacturing Index
The New York Empire State Manufacturing Index surprisingly fell to -11.6 in May of 2022 from 24.6 in April, missing market forecasts of 17. Business activity in the New York State declined after a strong growth last month, as new orders decreased, and shipments fell at the fastest pace since early in the pandemic.
Economic Data Due Tomorrow on 5-17-2022
U.S. Retail Sales
United States Industrial Production
United States Retail Inventories Ex Autos
United States Business Inventories
United States Manufacturing Production
Get the CML Close - End of Day Market Wrap
Legal
The information contained on this site is provided for general informational purposes, as a convenience to the readers. The materials are not a substitute for obtaining professional advice from a qualified person, firm or corporation. Consult the appropriate professional advisor for more complete and current information. Capital Market Laboratories (“The Company”) does not engage in rendering any legal or professional services by placing these general informational materials on this website.
The Company specifically disclaims any liability, whether based in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, or special damages arising out of or in any way connected with access to or use of the site, even if we have been advised of the possibility of such damages, including liability in connection with mistakes or omissions in, or delays in transmission of, information to or from the user, interruptions in telecommunications connections to the site or viruses.
The Company makes no representations or warranties about the accuracy or completeness of the information contained on this website. Any links provided to other server sites are offered as a matter of convenience and in no way are meant to imply that The Company endorses, sponsors, promotes or is affiliated with the owners of or participants in those sites, or endorse any information contained on those sites, unless expressly stated."