Wall Street's benchmark S&P 500 (SP500) on Friday notched a three-week losing streak for the first time since mid-April. The S&P's (SP500) ...
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| | Top News  jcrosemann/iStock via Getty Images Wall Street's benchmark S&P 500 (SP500) on Friday notched a three-week losing streak for the first time since mid-April. The S&P's (SP500) fellow major average, the tech-heavy Nasdaq Composite (COMP:IND), suffered an even steeper weekly decline and has ended up in correction territory. A combination of disappointing quarterly reports from members of the "Magnificent 7" club and a stunning reversal in the narrative around monetary policy weighed on investor sentiment this week. The latter development came about after the Federal Reserve finally hinted that a rate cut "could be on the table as soon as September." However, soft readings on U.S. manufacturing and construction spending and a significantly weak nonfarm payrolls report sparked fears that the Fed had slowed down the economy too much and led to several calls for aggressive policy easing. For the week, the S&P (SP500) and the blue-chip Dow (DJI) both retreated -2.1% each, while the Nasdaq Composite (COMP:IND) slipped -3.4%. Read a preview of next week's major events in Seeking Alpha's Catalyst Watch. | | Economy "The borrowing just keeps marching along, reckless and unyielding," said Maya MacGuineas of the Committee for a Responsible Federal Budget, as the U.S. national debt crossed $35T for the first time. Recall that the deficit hit $34T earlier this year and passed $33T just three months before that. The tide of red ink is swelling at a much faster pace than expected amid increased interest costs and mandatory spending on federal programs. The Congressional Budget Office last month even projected that the national debt would rise to a record 122% of GDP in 2034. ( 67 comments) | | Earnings Earnings season took center stage this week, with prominent players posting a mixed bag of Q2 results. Kicking things off was Microsoft, ( MSFT) whose AI-fueled cloud division grew less than expected, prompting shares to fall 2.8% AH on Tuesday. Next up was Meta ( META), which soared 7.2% AH on Wednesday as its results reassured investors about underlying growth, especially in its core advertising business. Intel ( INTC) later plunged 20% after it announced layoffs and suspended its dividend, while Amazon ( AMZN) sank 8%, dragged down by its sales and AI spending outlook. Meanwhile, Apple ( AAPL), ticked up 0.6% AH on Thursday as its results were not as bad as feared. ( 34 comments) | | Energy The Biden administration is buying over 40M barrels of oil to replenish the U.S. emergency stockpile, but needs more money from Congress for additional purchases. Following a record drawdown to tame crude prices after Russia's invasion of Ukraine, the Strategic Petroleum Reserve now holds 375M barrels, compared to 600M barrels at the start of 2022. In other news, U.S. crude futures ( CL1:COM) jumped more than 4% on Wednesday after top Hamas leader Ismail Haniyeh was killed in Tehran. It came just hours after a strike took out a senior Hezbollah commander in Beirut, ratcheting up fears of a regional war across the Middle East. ( 71 comments) | | New Technology Minnesota became the second U.S. state to implement flying car regulations, following the lead of New Hampshire, which passed similar legislation back in 2020. The so-called "Jetsons Law" allows airplane-to-car hybrids to register as motor vehicles, but instead of a traditional license plate, they will be permitted to use their tail number. Flying cars will also have to "take off and land from a suitable airfield," meaning no descents onto roadways or public highways (barring an emergency). While traditional planemakers and airlines are investing in flying taxis, eVTOL prototypes and transportation partnerships, most carmakers are sitting this one out. ( 59 comments) | | Stocks August began with a bang on Thursday, with the Dow ( DJI) ending the first session of the month down almost 500 points. Volatility made an appearance as markets tried to size up the economic landscape, while the 10-year Treasury yield ( US10Y) slid below 4.00% for the first time since February. It was a stark difference from the celebratory atmosphere on Wednesday after Fed Chair Jay Powell announced that a September rate cut was on the table. Weak data triggered some worries that the Fed may fall behind the curve, especially after the unemployment rate climbed to 4.3%, but others feel that a soft landing is going according to schedule, with a healthy summer pullback or even a correction that's finally due amid stretched valuations. | | Notable Ratings From SA Analysts | | Weekly Movement U.S. Indices
Dow -2.1% to 39,737. S&P 500 -2.1% to 5,347. Nasdaq -3.4% to 16,776. Russell 2000 -6.7% to 2,109. CBOE Volatility Index +42.7% to 23.39.
S&P 500 Sectors
Consumer Staples +1.2%. Utilities +4.3%. Financials -3%. Telecom +1.3%. Healthcare +0.7%. Industrials -2.8%. Information Technology -4%. Materials -1.4%. Energy -3.7%. Consumer Discretionary -4.3%. Real Estate +2.8%.
World Indices
London -1.3% to 8,175. France -3.5% to 7,252. Germany -4.1% to 17,661. Japan -4.7% to 35,918. China +0.5% to 2,905. Hong Kong -0.5% to 16,946. India -0.4% to 80,982.
Commodities and Bonds
Crude Oil WTI -3.9% to $74.14/bbl. Gold +3.4% to $2,486.1/oz. Natural Gas -1.4% to 1.978. Ten-Year Bond Yield -0.2 bps to 3.792.
Forex and Cryptos
EUR/USD +0.5%. USD/JPY -4.67%. GBP/USD -0.54%. Bitcoin -9%. Litecoin -8.7%. Ethereum -8.3%. XRP -5.4%.
Top S&P 500 Gainers
ResMed (RMD) +14%. DexCom (DXCM) +13%. Labcorp Holdings (LH) +12%. Match Group (MTCH) +10%. C.H. Robinson Worldwide (CHRW) +10%.
Top S&P 500 Losers
Intel (INTC) -31%. Moderna (MRNA) -29%. Western Digital (WDC) -16%. Micron Technology (MU) -15%. MGM Resorts International (MGM) -15%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section. | | Seeking Alpha's Wall Street Breakfast Podcast Seeking Alpha's Wall Street Breakfast podcast brings you all the news you need to know for your market day. Released by 8:00 AM ET each morning, it is a quick listen that you can put on as you get ready to start your working day. | | | | |
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