The VIX briefly exceeded the psychologically significant 20 mark on Thursday
It’s been a week of ups and downs on Wall Street. Investors returned from a long holiday weekend on Tuesday to one worse than expected purchasing managers index (PMI) for June who the S&P 500 Index (SPX) to break his seven-day winning streak and die Dow Jones Industrial Average (DJI) lose over 200 points. The Nasdaq composite (IXIC) barely held another record close as 10-year US Treasury bond yields inexplicably fell. While it was a mystery why bond yields collapsed this week – reaching their lowest level since late February by Thursday – the decline sent the Nasdaq to another record high by Wednesday’s closing, followed by the S&P 500. The Dow also reversed after this Minutes of the Federal Reserve’s meeting in June were released, with the central bank admitting that the recent surge in inflation this year came as a surprise.
Markets spiraled out of control on Thursday and concerns about the global economic recovery re-emerged. The worldwide spread of the Covid-19 Delta variant, which led Japan to use it as a Emergency in Tokyo ahead of the Olympics, cold water doused several key sectors, including those closely related to the economic reopening, and Semiconductor stocks. The Cboe volatility index However, (VIX) soared Thursday, overtaking the psychologically meaningful 20 mark in the middle of the session, before leveling off slightly below. today, the Dow is trying to offset the nearly 500 point drop it suffered yesterday and all three indexes are aiming for weekly gains.
Biggest analyst calls of the week
The brokerage group had a lot to say this week. Last, Levi Strauss & Co (LEVI) gained a number of bulls after winning while United Airlines (UAL) managed two separate price target hikes despite the sector coming under fire on Thursday. In the meantime, Raymond recommended that James scoop something up Sunnova energy (NOVA) in the slump and JP Morgan Securities called Whirlpool (WHR) a “top selection” in front of his results report.
Government crackdowns put pressure on the technology sector
It’s been a turbulent week for the tech sector. Talks about Antitrust regulations in Washington DC weigh on big tech today as the US government tries to crack down on anti-competitive tactics. alphabet Some of these practices came under pressure on Google’s Android app store, causing the stock to drop from Thursday’s record high.
Amazon.com (AMZN) also hit a record high earlier this week after it was revealed that the U.S. Department of Defense canceled its 10-year JEDI cloud computing with Microsoft (MSFT), which was valued at $ 10 billion and given to the company in 2019 was awarded.
New Government Regulations in China dumped U.S. publicly traded stocks of several major Chinese technology stocks, including JD.com (JD), which stumbled upon news that DiDi Global (DIDI) public ridesharing app could not be downloaded because regulators were conducting cybersecurity reviews.
The winning season starts with banks on deck
Profits are back in focus next week, with bank names JPMorgan Chase (JPM), Bank of America (BAC), PNC (PNC), Morgan Stanley (MS) and Wells Fargo (WFC) opening the newest season. PepsiCo (PEP), Delta Air Lines (DAL) and United Health (UNH) will also publish their corporate reports. Investors can also look forward to a monthly report from the Organization of Petroleum Exporting Countries (OPEC), especially after the organization struggled to reach conditions to increase production.
In the meantime, read Senior Vice President of Research Todd Salamone’s thoughts on a potential sector corrections in the second half of the year. Also, Senior Quantitate Analyst Rocky White stock looks at the healthy profits from the first half of the year and what it could mean for the future.