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Weekly Watchlist: Dow Drops 0.2% Amid Growth Concerns

The Dow Jones fell approximately 40 points on Monday, sending US equities marginally down this morning.  The Dow slipped 0.12% to 33,719.99, while the NASDAQ dropped 0.28% to 13,011.21. The S&P 500 likewise dipped, falling 0.30% to 4,267.13.

On Monday, consumer staples stocks rose 0.7%. Meanwhile, The Hershey Company (NYSE:HSY) gained 2%, while Constellation Brands, Inc. (NYSE:STZ) gained 1.2%.

Energy Stocks Slumped 3.8% in Monday Trade

The New York Empire State Manufacturing Index plummeted to -31.3 in August, the lowest level since May 2020.

Sunrise New Energy Co. Ltd. (NASDAQ:EPOW) shares increased 143% to $5.01. 

Sunrise New Energy announced that it has changed its name from Global Internet of the People, Inc. to Sunrise New Energy, starting August 10, 2022.

Viridian Therapeutics, Inc. (NASDAQ:VRDN) shares rose 60% to $23.45 after the firm posted better-than-expected second-quarter sales results. 

In addition, the business announced preliminary results from the 10mg/kg cohort in its current Phase 1/2 trial of VRDN-001 for thyroid eye disease (TED), a rare autoimmune illness in which the body’s immune system assaults the tissues around and behind the eyes.

Magic Empire Global Limited (NASDAQ:MEGL) shares rose 53% to $12.58 as a result of the company’s IPO earlier this month.

Equities are Trading Lower

IDEAYA Biosciences, Inc. (NASDAQ:IDYA) shares fell 35% to $10.15 on the company’s larger Q2 loss.

Treasure Global Inc. (NASDAQ:TGL) shares fell 24% to $6.40. The company recently priced its initial public offering (IPO) at $4 per share.

WeTrade Group, Inc. (NASDAQ:WETG) dropped 23% to $8.70. WeTrade just signed a $50 million sales agreement with Parkway Medical Limited to supply monkeypox viral test kits and antigen assays.

Also Illumina, Poshmark, Olo, and Other Friday’s Big Losers

Commodities

In commodity news, oil fell 4.3% to $88.12, while gold fell 1.3% to $1,791.20. Further, on Monday, silver sank 3% to $20.07, while copper fell 2.2% to $3.5885.

The European Market

Today’s European stock market performance was mixed. The eurozone’s STOXX 600 increased by 0.1%, London’s FTSE 100 decreased by 0.1%, and Spain’s IBEX 35 Index increased by 0.1%. 

The German DAX dipped 0.1%, the French CAC 40 fell 0.1%, while the Italian FTSE MIB Index rose 0.5%.

In July, wholesale prices in Germany increased by 19.5% year on year, following a 21.2% increase the previous month.

The Market

The Empire State Manufacturing Index in New York plummeted to -31.3 in August, the lowest level since May 2020.

In August, the NAHB housing market index declined for the eighth consecutive month to 49, the lowest reading since May 2020.

At 10:50 a.m. ET, Federal Reserve Governor Christopher Waller will talk.

At 11:30 a.m. ET, the Treasury will auction 3- and 6-month bills.

At 4:00 p.m. ET, the Treasury International Capital report for June will be released.

Poor Economic Data From China

On Monday, however, markets were dealing with poor economic data from China, while also anticipating significant retail earnings results. 

Several disappointing Chinese economic data indicators dragged on equities Monday morning. The government reported lower-than-expected increase in industrial production and retail sales.

Manufacturing investment has stagnated, while real estate investment has risen. 

The Chinese economy has struggled to recover from the effects of severe Covid controls, while its real estate sector has suffered from diminished cash flow as many homebuyers have ceased making mortgage payments in order to protest homebuilding delays.

However, there was some good news for consumers: crude oil prices fell following the dismal China statistics, indicating that gas costs will fall even further.

A Good Start For Retail Market

The attention is now on retailers’ earnings. Walmart, which made headlines earlier this summer by reducing its estimate and eliminating corporate employees, will provide investors with an update on how much inflation and overstocked inventory are eating into margins on Tuesday. 

Target, which is in the midst of its own inventory-reduction effort, reported on Wednesday. Home Depot and Lowe’s announce earnings on Tuesday and Wednesday, respectively. Finally, Kohl’s is scheduled to report on Thursday. 

After its transaction with Franchise Group fell through at the end of June, investors will be seeking for signs about the department store chain’s strategy.

Peloton Slows Down in the Pursuit of Expansion

 Peloton, the pandemic favorite, announced several dramatic measures on Friday as it finds methods to earn a profit as people return to gyms and the great outdoors to exercise. 

The linked fitness startup announced 780 job cuts, the closure of many retail sites, and the outsourcing of deliveries and other logistics operations to third parties.

“We have to get our revenues to stop decreasing and start increasing again,”

CEO Barry McCarthy wrote in a memo to employees on Friday. 

“Money is oxygen. “Life is oxygen.”

Peloton’s stock was down before the market started on Monday.

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Author

  • Phyllis Wangui

    Phyllis Wangui is a Financial Analyst and News Editor with qualifications in accounting and economics. She has over 20 years of banking and accounting experience, during which she has gained extensive knowledge of the forex, stock news, stock market, forex analysis, cryptos and foreign exchange industries. Phyllis is an avid commentator on these topics and loves to share her insights with others through financial publications and social media platforms.