Stock Markets Today: Stocks Drop on Mixed Economy Data Dump

Investors have a lot to think about in the latest announcement from the Federal Reserve Board of Governors tomorrow, but on Tuesday they were forced to consider piling economic data first and do little. There was no.

Today’s largest data shows that the US Producer Price Index (PPI) rose 0.8% month-on-month in May, beating economists’ expectations.

“Core CPI also rose 0.7% after the May CPI report [month-over-month], PPI data adds evidence of strong inflationary pressures in the economy,” said BofA Securities strategist.

Retail sales on Tuesday, May, were down 1.3% month on month, below expectations for a more modest 0.7% decline.

Barclays economists Jonathan Miller and Michael Gappen said: “May’s headline decline was concentrated in the consumer durables category, with particularly strong growth in March.” “May estimates in particular show that spending on cars, parts, furniture and electronics has decreased significantly, but all these categories are still running at a very high level. . “

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And industrial production last month improved 0.8% month-on-month, but remained below pre-pandemic levels.

“Overall, the numbers are a bit disappointing, but they haven’t changed the story,” Michael Rainking, senior market strategist at the New York Stock Exchange, said on Tuesday’s data dump. “Recent economic data, assuming the market will begin to resolve some of its fundamental effects, supply chain constraints and bottlenecks (which we will hear a lot about tomorrow) as we approach the third quarter. Will be discounted. “

On Tuesday, several pockets in the market showed strength. oil supply as Exxon mobile ((((XOM, +3.6%) and Chevron ((((CVX, +2.2%) Oil futures rose 1.8% to $72.12 a barrel, reaching a two-year high. Both the industrial sector (+0.4%) and utilities (+0.3%) also closed reasonably in the black.

However, the main indices have almost fallen, Dow Jones Industrial Average 0.3% discount on 34,299, S&P 500 It fell 0.2% to 4,246, Nasdaq Composite Index It fell 0.7% to 14,072.

Other actions at the fair today:

• small cap Russell 2000 It fell 0.3% to 2,320.
• Draft Kings ((((DKNG, -4.2%) took a hit today after Hindenburg Research stated it was short in sports betting stocks. In some critiques of DKNG, Hindenberg’s report cited an investigation by SBTech, a European tech company that merged with DraftKings as part of its broader scope. Special Purpose Acquisition Company (SPAC) Trading Demonstrates a long-standing, continuous track record in the black market.
• Sage therapies ((((Sage, -19.3%) was a significant drop after biotechnology reported Phase 3 data on the depressant drugs it produces. biogen ((((BIIB, -2.5%). The treatment met its main goal in late-stage trials, but there was still uncertainty about the drug’s long-term efficacy.
• gold futures To finish at $1,856.40 an ounce, we fell 0.5% and posted a third consecutive loss.
• The CBOE Volatility Index (VIX) It rose again on Tuesday, rising 3.8% to 17.02.
• Bitcoin Prices came in at $39,946.86, up 0.6%, after temporarily surpassing $41,200 today. (Bitcoin trades 24 hours a day. Prices listed here are from 4pm on each trading day.)

Where you can still find value

After a shaky start to 2021, growth began to weigh on a valuable tug-of-war, but the environment still seems to favor the latter.

“While growth is slowing due to the sharp recovery in 2021, the 2022 outlook rarely predicts the rarity of economic growth that significantly outperformed growth stocks at the end of the last cycle.” Said Karl Ludwigson, Manager Research Director. For the investment company Bel Air Investment Advisors. “In addition, the expected phasing out of asset purchases by the Fed should lead to higher 10-year yields, even if overnight rates remain stable around zero. This prioritizes value over growth stocks. Because the latter depends on future cash flows. “

But now that that value has gone up for about half a year… what value is left?

You can always rely on Value ETF To make a choice for you, their methodology may differ from some stocks when their prices change from low to high.

If you choose for yourself, we can at least steer you in the right direction 15 dividend aristocratsFor example, it is much more affordable than its peers who pay more.

Of course, if you want to expand your search beyond the 65 dividend aristocrat’s roundup, you can find a variety of stocks that haven’t yet been rated as nosebleeds. These 16 value stocks We offer great basics, monetization and of course decent pricing, all in small steps. Check them out.