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SWS Market Update - Major U.S. stocks drop after Chairman's Jackson Hole speech



Federal Reserve Chairman Jerome Powell announced on Friday that the Fed will raise interest rates to continue aggressively fight inflation. Although inflation slowed in July, Mr. Powell said that this slight drop of 0.1% in July “falls far short” of what the Federal Reserve “will need to see before we are confident that inflation is moving down.”


U.S. stocks dropped on Friday after the Chairman’s speech with the Dow Jones Industrial Average experiencing its largest single-day drop since May falling 3.03% to 32283.40. The S&P 500 declined 3.37% to close at 4057.66. The Nasdaq Composite dropped 3.94% to close at 12141.71.


Economic Reports

PCE price index monthly went down from 1.0% to -0.1% in July.


Core PCE price index monthly was 0.1% in July, compared to 0.6% previously.


PCE price index year-over-year was 6.3% in July.


Core PCE price index year-over-year fell from 4.8% to 4.6% in July.


Real disposable incomes increased in July from -0.2% to 0.3%.


Real consumer spending was 0.2% in July.


Nominal personal incomes were also 0.2% in July.


Nominal consumer spending was 0.1%, lower than economists had predicted at 0.5% for July.


Trade in goods, advance was -$89.1 billion in July.


UMich consumer sentiment index (final) went from 55.1 in July to 58.2 in August.


UMich 5-year inflation expectations dropped from 3.0% to 2.9% in August.


Markets

The SP 500 went down by 3.37% to close at 4057.66. The index is down 4.04% over five days, down 1.76% over one month, down 2.42% over three months and down 10.02% over one year.

The trailing P/E is 22.84 compared to 31.26 one year ago and estimated future P/E 18.37. Dividend yield is currently 1.54 compared with 1.31 one year ago.

Leading stocks were EA up 3.57%, MOH up 3.36%, TTWO up 1.59%, CF up 0.81% and COP up 0.04%.

Trailing stocks were MMM down 9.54%, NVDA down 9.23%, HPQ down 8.94%, ALGN down 7.52% and MPWR down 7.53%.


The Dow Jones Industrial Average went down 3.03% to close at 32283.40. The DOW is down 4.22% over five days, down 1.71% over one month, down 2.80% over three months and down 8.95% over one year.

The trailing P/E is 19.00 compared with 23.86 year ago and an estimated future P/E of 17.79. The current dividend yield is 2.18% compared with 1.78 one year ago.

Leading stocks were CVX down 0.74%, MRK down 1.12%, VZ down 1.12%, TRV down 1.27% and JNJ down 1.71%.

Trailing stocks were MMM down 9.54%, CRM down 4.99%, INTL down 4.39%, NKE down 4.36% and MSFT down 3.86%.


The NASDAQ composite went down 3.94% and closed at 12141.71. NASDAQ is down 4.44% over five days, down 2.01% over one month, up 0.09% over 3 months and down 19.75% over one year.

Leading stocks were NERV up 58.19%, OLB up 39.67%, EVBG up 17.39%, TEDU up 16.84% and AHI up 16.80%.

Trailing stocks were MOB down 39.67%, DOMO down 27.83%, ATHX down 25.63%, STBX down 24.96%, and GCT down 23.41%.


The MidCap SP400 went down by 2.96% to close at 2500.25. The SP400 is down 3.02% for the past 5 days, down 0.50% for the past month, down 1.56% for the past 3 months and down 9.64% over the past year.


The SmallCap SP600 went down by 3.20% to close at 1225.50. The SP600 is down 3.36% for the past 5 days, down 1.17% for the past month, down 1.88% for the past 3 months and down 10.88% over the past year.


The CBOE VIX is up by 17.36% and closed at 25.56. The VIX is up 24.08% over five days, up 19.83% over one month, down 0.62% over three months and up 55.95% over one year.


On the New York stock exchange 428 stocks advanced and 2751 declined, while on Nasdaq 809 advanced and 3788 declined.

There were 28 new 52 week highs and 97 new 52 week lows on NYSE with 37 new highs and 173 new lows on NASDAQ.


The 2 year Treasury note is 3.384% and the 10 year is 3.043%. The 10-year yield is up 6.1% over five days, up 38.3% over one month, up 28.9% three months ago, and up 172.0% one year ago.


SP500 Sector Performance % Change:

Information Technology -4.28

Consumer Discretionary -3.88

Communication Services -3.86

Industrials -3.51

Materials -3.14

Financials -3.03

Health Care -2.80

Real Estate -2.54

Consumer Staples -2.48

Utilities -1.54

Energy -1.07

Energy has been up 4.27% over five days, up 5.12% over one month, down 5.93% over three months and down 70.47% over one year.

Information Technology has been down 5.58% over five days, down 3.08% over one month, down 1.02% over three months and down 11.79% over one year.



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