SWS Market Update - March 10, 2022

The major U.S. stocks dropped on Thursday after inflations reports showed the highest level of inflation (7.9%) in four decades. Additionally, the cease fire talks between Russian and the Ukrainian officials did not come to an agreement, which is causing uncertainty in the global market.

The S&P 500 and the Dow Jones Industrial Average are both in a correction. The S&P 500 went down 0.43% to close at 4259.52. The Dow Jones Industrial Average fell 0.34% to close at 33174.07. The Nasdaq Composite dropped 0.95% to close at 13129.96.

Economic Reports

Initial jobless claims for the job ending March 5 went up from 216,000 to 217,000.

Continuing jobless claims for the week ending February 26 also reported an increase to 1.49 million, up from 1.47 million the week before.

Consumer price index was 0.8% in February, up from 0.6% previously.

Core CPI saw a slight drop from 0.6% to 0.5% in February.

CPI (year-over-year) went up in February to 7.9%, in comparison to 7.5% the month before.

Core CPI (year-over-year) also reported an increase in February from 6.0% to 6.4%.

Real nonfederal nonfinancial debt (SAAR) increased in the fourth quarter from 0.0% to 0.4%.

Real household wealth (SAAR) ticked up in the fourth quarter from 2.3% to 8.6%.

Federal budget deficit in February was -$217 billion.

Markets

The SP 500 is down by 0.43% to close at 4259.52. The index is down 2.38% over five days, down 5.43% over one month, down 8.74% over three months and up 8.13% over one year.

The trailing P/E is 24.21 compared to 45.02 one year ago and estimated future P/E 19.25. Dividend yield is currently 1.42 compared with 1.49 one year ago.

Leading stocks were HAL up 8.93%, BKR up 8.67%, MOS up 7.74%, AMZN up 5.41% and EOG up 5.37%.

Trailing stocks were ETSY down 5.35%, EPAM down 4.86%, MSCI down 4.69%, MU down 4.68% and NOW down 4.64%.

The Dow Jones Industrial Average went down 0.34% to close at 33174.07. The DOW is down 1.84% over five days, down 5.87% over one month, down 7.22% over three months and up 2.12% over one year.

The trailing P/E is 18.42 compared with 33.05 year ago and an estimated future P/E of 17.63. The current dividend yield is 2.15% compared with 1.86 one year ago.

Leading stocks were CVX up 2.74%, WMT up 2.27%, DOW up 1.39%, UNH up 1.21% and CAT up 0.96%.

Trailing stocks were AAPL down 2.72%, PG down 2.57%, CSCO down 2.16%, INTL down 2.04% and AMGN down 1.95%.

The NASDAQ composite went down 0.95% and closed at 13129.96. NASDAQ is down 3.01% over five days, down 7.44% over one month, down 15.39% over 3 months and down 2.01% over one year.

Leading stocks were HYMC up 138.10%, AGRI up 102.37%, HOTH up 38.79%, AQB up 37.86% and SLRX up 26.59%.

Trailing stocks were TIG down 51.70%, FOSL down 37.51%, TXMD down 27.50%, SNTG down 22.22%, and ACMR down 22.05%.

The MidCap SP400 went down by 0.03% to close at 2596.37. The SP400 is down 2.30% for the past 5 days, down 3.18% for the past month, down 6.52% for the past 3 months and down 0.94% over the past year.

Leading stocks were X up 7.32%, CLF up 7.00% and HFC up 6.05%.

Trailing stocks were HAE down 5.98%, OLLI down 5.45% and GXO down 5.32%

The SmallCap SP600 is down by 0.13% to close at 1299.60. The SP600 is down 1.32% for the past 5 days, down 0.34% for the past month, down 5.65% for the past 3 months and down 6.21% over the past year.

Leading stocks were EBIX up 31.39%, GCO up 11.78% and RES up 8.82%.

Trailing stocks were FOSL down 37.51%, AMN down 9.19% and PNTG down 8.80%.

The CBOE VIX is down by 6.84% and closed at 30.23. The VIX is down 0.82% over five days, up 26.43% over one month, up 75.55% over three months and up 37.97% over one year.

On the New York stock exchange 1360 stocks advanced and 1937 declined, while on Nasdaq 1699 advanced and 2892 declined.

There were 44 new 52 week highs and 241 new 52 week lows on NYSE with 26 new highs and 313 new lows on NASDAQ.

The 2 year Treasury note yield is 1.687% and 10 year is 1.970%. The 10-year yield is up 23.8% over five days, up 2.7% over one month, up 48.4% three months ago, and up 34.1% one year ago.

SP500 Sector Performance % Change:

Energy +3.07

Consumer Discretionary +1.16

Utilities +0.73

Real Estate +0.36

Materials +0.18

Health Care -0.03

Industrials -0.12

Communication Services -0.75

Financials -0.80

Information Technology -1.76

Energy has been up 5.69% over five days, up 12.58% over one month, up 37.01% over three months and up 46.34% over one year.

Information Technology has been down 3.79% over five days, down 8.26% over one month, down 14.51% over three months and up 10.75% over one year.