Stocks drop as May concludes, Powell-Biden talk inflation, oil adds 9.5% for month
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| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $32,991.97 | -220.99 | -0.67% |
| SP500 | $4,132.47 | -25.77 | -0.62% |
| I:COMP | $12,081.39 | -49.74 | -0.41% |
All three of the major U.S. averages ended the final trading day of May lower but for the month, the S&P 500 and Dow Jones Industrial Average eked out modest gains of 0.01% and 0.04%, respectively. However, the Nasdaq Composite lost over 2%. In commodities, oil closed at $114.67 per barrel after adding 9.5% for the month.
Former editor and publisher of The Gartman Letter Dennis Gartman, Payne Capital Management President Ryan Payne and Morgan Stanley Wealth Management senior vice president Jim Lacamp discuss markets and the economy.
Sotheby’s chairman and worldwide head of sales for global fine art Brooke Lampley discusses the Macklowe Collection and the red-hot art market.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SAVE | $21.00 | +0.46 | +2.24% |
| JBLU | $10.84 | +0.23 | +2.17% |
| ULCC | $10.60 | +0.14 | +1.34% |
Airport tarmac exteriors
Institutional Shareholder Services, the leading independent proxy advisory firm, supports JetBlue's bid for Spirit over Frontier.
“We are pleased that ISS recognized that our proposal offers Spirit shareholders superior value and has a clear path to completion,” said Robin Hayes, chief executive officer, JetBlue. “The ISS report highlights the flawed process that the conflicted Spirit Board followed, which only underscores the need for Spirit’s Board to now come to the table and negotiate – this time in good faith – with JetBlue. Spirit shareholders can send that strong message to their Board by voting against the Frontier transaction and against adjournment.“ISS highlighted that a deal with JetBlue will bring more value and cash certainty. We believe it is clear a combined JetBlue-Spirit will bring more competition with the Big Four airlines driven by the power of the JetBlue Effect, supporting our conviction that we can achieve regulatory approval for our transaction,” Hayes said in a press release.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TOL | $51.10 | +1.07 | +2.14% |
| LEN | $81.17 | +2.26 | +2.86% |
| DHI | $74.78 | +1.92 | +2.64% |
| MTG | $13.75 | +0.08 | +0.59% |
Home prices remained hot through March keeping sellers in the driver's seat.
"Top Gun: Maverick," the long-awaited sequel to the 1986 Tom Cruise film, earned the biggest movie launch of his career bringing in a projected $151 million at the box office during Memorial Day weekend. The figure marks the biggest preview gross for Paramount Pictures and the highest preview for the Memorial Day holiday.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| IMAX | $17.39 | +1.32 | +8.21% |
| AMC | $14.36 | -0.07 | -0.45% |
| CNK | $17.14 | +0.97 | +6.00% |
Federal Reserve Chairman Powell, President Biden
Investors kicked off the shortened holiday week on a down note as U.S. stocks fell with the Dow Jones Industrial Average leading the drop ahead of a rare meeting between President Biden and Federal Reserve Chairman Jerome Powell. In commodities, oil surged to the $120 per barrel level following the European Union’s partial ban of Russian crude.
Nelson Peltz of Trian
Shares are global products giant Unilever jumped after announcing activist investor Nelson Peltz will join its board of directors.
Crop scouts survey drought-stressed spring wheat near Grandin, North Dakota.
Some farmers in North Dakota are unable to plant as much wheat crop as they normally would because of heavy rain burdening farmers across the state.
The U.S. is the fourth-largest wheat exporter in the world.
Given the global food crisis and Russia's war in Ukraine that curbed wheat exports from both countries, the world cannot afford to lose additional supply of the grain.
Read the full story: US wheat crop hurt by dry winter and spring's heavy rain
Convicted healthcare tech fraudster Elizabeth Holmes is asking a judge to overturn jurors’ decision, arguing that there was "insufficient" evidence for them to reach their "guilty" verdicts, according to recent court papers.
Convicted healthcare tech fraudster Elizabeth Holmes is asking a judge to overturn jurors’ decision, arguing that there was "insufficient" evidence for them to reach their "guilty" verdicts, according to recent court papers.
Holmes, the 38-year-old founder and former CEO of Theranos, was convicted in January on three counts of wire fraud and one counts of conspiracy to commit fraud. But the jury’s decision should be thrown out because "the evidence is insufficient to sustain the convictions," Holmes’ attorneys argued in a motion on Friday.
"Because no rational juror could have found the elements of wire fraud and conspiracy to commit wire fraud beyond a reasonable doubt on this record, the Court should grant Ms. Holmes’ motion for judgment of acquittal," the filing, "Ms. Holmes’ Reply In Support Of Motion For Judgment Of Acquittal," further states.
Holmes was acquitted on four other counts of fraud and conspiracy that alleged she deceived patients who paid for Theranos blood tests. The jury deadlocked on three remaining charges.The verdict came after the eight men and four women on the jury spent three months sitting through a complex trial that featured reams of evidence and 32 witnesses — including Holmes herself.
Holmes faces up to 20 years in prison, but is free on $500,000 bail while awaiting her sentencing scheduled for September.
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U.S. stocks were trending lower heading into Tuesday’s session on Wall Street after the three-day Memorial Day holiday.
U.S. stocks were choppy heading into Tuesday’s session on Wall Street after the three-day Memorial Day holiday as a key U.S. inflation reading eased in April, according to reports.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| I:DJI | $33,212.96 | +575.77 | +1.76% |
| SP500 | $4,158.24 | +100.40 | +2.47% |
| I:COMP | $12,131.13 | +390.48 | +3.33% |
The data showing an easing of April inflation, alongside some strong earnings, has pushed shares of retailers sharply higher.
Dollar Tree, Ulta Beauty and Ross Stores were among the week's biggest winners in the S&P 500, gaining at least 20% apiece.
Meanwhile, U.S. consumers appeared reluctant to let high gas prices and travel costs keep them from their Memorial Day weekend plans and were expected to keep powering the economy.
For months, worries about high inflation and the path of Federal Reserve rate increases have weighed on the market. Investors have grown concerned that interest rate hikes could tip the economy into a downturn.
Many of the extended rate-hiking cycles in recent decades have eventually led to contractions, according to Deutsche Bank.
Fears of that worst-case scenario appeared to abate last week as stocks kept rising after the Fed's latest meeting minutes showed that central bank officials thought they would need to raise interest rates by a half-percentage point at each of the next two meetings.
Major indexes built on those gains late last week and then surged Friday, ending the week near their session highs. The S&P 500 gained 100.40 points, or 2.5%, to close Friday at 4158.24. The Dow Jones Industrial Average added 575.77 points, or 1.8%, to 33212.96. The tech-heavy Nasdaq added 390.48 points, or 3.3%, to 12131.13.
Some investors said stocks had fallen too far, too fast. A deep selloff has made valuations more attractive, encouraging some investors to buy the dip.
High inflation has been chipping away at Americans' wallets and raising concerns about a recession, leading to low levels of confidence. Concerns about economic growth have lingered, driving government bond yields lower, off the highs hit earlier in May. The yield on the benchmark 10-year U.S. Treasury note dropped to 2.748% Friday and has fallen for three consecutive weeks. Yields and prices move in opposite directions.
Meanwhile, overseas, the pan-continental Stoxx Europe 600 added 1.4%. In Asia, Hong Kong's Hang Seng rose 2.9%. Japan's Nikkei 225 added 0.7%. The Shanghai Composite gained 0.2%.
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Cryptocurrency was trading lower early Tuesday morning as Bitcoin, Ethereum and Dogecoin were showing losses overnight.
Cryptocurrency was trading lower early Tuesday morning as Bitcoin, Ethereum and Dogecoin were showing losses overnight.
Bitcoin was trading at slightly above $31,550, down 0.50% or about $160 per coin for the day. For the week, however, Bitcoin was trading up almost 9%. For May, Bitcoin was trading down nearly 16%.
Ethereum was also down, trading around $1,970 per coin, down 1.14% or about $23.70 for the day. For the week, Ethereum was trading higher by slightly more than 1% and for May, it was trading down more than 27%.
Dogecoin was also lower, trading at approximately 8.63 cents during the overnight hours, down slightly more than 1.5%, or $0.001. For the week, Dogecoin was trading up nearly 5.5%. For May, it was down approximately 31%.
The average price for a gallon of gasoline in the U.S. rose to $4.622 early Tuesday morning, according to the latest numbers from AAA.
The average price for a gallon of gasoline in the U.S. rose early Tuesday morning, according to the latest numbers from AAA.
On Tuesday, the average price per gallon was $4.622, up $0.003 from Monday.
One week ago, the price stood at $4.598, while a month ago, gas sold for $4.178.
One year ago, the average price for a gallon of gasoline in the U.S. was $3.046 per gallon.
Meanwhile, the price of a gallon of diesel dipped for the second straight day, dropping to $5.521 from Monday’s price of $5.523.
Both Brent crude and West Texas have posted gains since Wednesday.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| USO | $85.46 | +0.87 | +1.03% |
| CVX | $178.28 | +1.69 | +0.96% |
| XOM | $97.59 | +0.95 | +0.98% |
Oil prices extended gains on Tuesday after the EU agreed to slash oil imports from Russia, fueling worries of a tighter market already strained for supply amid rising demand ahead of peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.19, or 1.8%, to $123.86 a barrel at 0650 GMT, after earlier rising to $124.10 - its highest since March 9. The more active August contract rose $2.25 to $119.85.U.S. West Texas Intermediate (WTI) crude was trading at $119.12 a barrel, up $4.05, or 3.5%, from Friday's close. There was no settlement on Monday due to the U.S. Memorial Day holiday.
Both benchmarks have posted daily gains since Wednesday.
European Union leaders agreed in principle to cut 90% of oil imports from Russia by the end of 2022, resolving a deadlock with Hungary over the bloc's toughest sanction yet on Moscow since the invasion of Ukraine three months ago.
"It is definitely very bullish for the oil price, building on supply tensions. The oil price is now heading to the highs in March," said Tina Teng, market analyst at CMC Markets. The reopening of China is also underpinning prices, Teng added.
Oil prices soared in March to their highest since 2008 and have risen more than 55% so far this year.
They should draw further support as demand from China is expected to pick up after the easing of COVID-19 curbs.
Shanghai has announced an end to its two-month-long lockdown, and will allow the vast majority of people in China's largest city to leave their homes and drive their cars from Wednesday.
On the production side, OPEC+ is set to stick to last year's deal at its meeting on Thursday, with a modest July output hike by 432,000 barrels per day, six OPEC+ sources said, rebuffing Western calls for a faster increase to lower surging prices.
Members from the group - the Organization of the Petroleum Exporting Countries and allies led by Russia - maintain that the oil market is balanced and that the recent price hikes are not related to fundamentals.
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