Lackluster earnings from major retail names weighed on sentiment
The 2022 stock market selloff gained momentum on Wednesday, after gloomy earnings reports from several major retailers spiked investors' anxieties about the impact of inflation. As such, the Dow erased more than 1,100 points, logging its worst day since June 2020, alongside the S&P 500. Elsewhere, the tech-heavy Nasdaq closed with a hefty triple-digit loss. Wall Street's "fear gauge," the Cboe Market Volatility Index (VIX), surged in response, scoring its best day in nearly two weeks.
Continue reading for more on today's market, including:
- Why you should avoid this shoe giant before earnings.
- What triggered this retailer to hit multi-year lows.
- Plus, how to play the S&P 500's dip; blue-chip home improvement stock slides; and casino earns analyst praise.
The Dow Jones Average (DJI - 31,490.07) dropped 1,164.5 points, or 3.6% today. No blue-chip components turned in a win today, and Walgreens Boots Alliance (WBA) trailed to long list of laggards with an 8.4% drop.
The S&P 500 Index (SPX - 3,923.68) shed 165.2 points, or 4% for the day, while the Nasdaq Composite (IXIC - 11,418.15) lost 566.4 points, or 4.7% for the session.
Lastly, the Cboe Market Volatility Index (VIX - 30.96) added 4.9 points, or 18.6%.
5 Things to Know Today
- A hotly contested U.S. Senate Republican primary in Pennsylvania could potentially drag into next week. (Reuters)
- Google's Russian subsidiary is reportedly filing for bankruptcy. (MarketWatch)
- Schaeffer's Senior Quantitative Analyst Rocky White breaks down how the S&P 500 could recover from a six-week slide.
- Analyzing Lowe's stock's post-earnings dip.
- Why Jefferies loves this casino stock.
Oil Prices Fall Despite U.S. Inventories, Gas Supplies Dip
Oil prices fell today, after the broader-market selloff weighed on sentiment across asset markets. Black gold's fall came even after data showed an unexpected dip in U.S. crude inventories, as well as a drop in gasoline supplies. For the session, June-dated crude lost $2.81, or 2.5%, to settle at $109.59 per barrel.
In addition, following back-to-back wins, gold futures hit pause today. The market's volatility turned investors to the greenback, with the U.S. Federal Reserve's recent inflation-combatting comments giving them the extra push. In response, June-dated gold today lost $3.00, or 0.2%, to settle at at $1,815.90 an ounce.