Yes A checkmark with a circle around it close
Silver figurines of a bear and bull standing on top of a market chart

Stock Market News

Our market analysts keep you updated on the latest market trends including stock market data, news, market activity, and economic reports in the daily stock market commentary.

Opening | Midday | Closing

Closing Comment — Friday, July 01, 2022

DJIA: 31,097.26, up 321.83
S&P 500: 3,825.33, up 39.95
Nasdaq: 11,127.84, up 99.10

Stocks trim weekly losses; Bond yields drop

U.S. stocks staged an afternoon relief rally on Friday as Wall Street attempted to recover from the worst first half performance for the S&P 500 since 1970. The benchmark index reversed early session losses to climb 1.1%, though still posted a 2.2% weekly decline. The Dow jumped 321 points, trimming its five-day drawdown to 1.3%. The Nasdaq Composite added 0.9%, but still notched a weekly loss of 4.1%. Some attributed the day’s volatility to lighter than usual trading volume ahead of the holiday weekend.

Market participants seemed to overlook a disappointing update from the Institute for Supply Management (ISM). Their gauge of manufacturing activity fell to a two-year low of 53.0 in June from May’s 56.1 print. The new orders component contracted to 49.2 versus the prior month’s 55.1, marking the lowest reading since May 2020. Still, the release renewed worries of a looming recession, inspiring Treasuries to extend their recent rally. The yield on the 10-year note slumped 14 basis points (0.14%) to 2.88%, settling 25 basis points (0.25%) below where it ended last Friday (June 24). Meanwhile, the U.S. dollar rose 0.4% against a basket of its peers. In commodities, West Texas Intermediate crude climbed 2.3% to $108.16/barrel as disruptions in Libyan oil exports overshadowed prospects of dimming near-term demand prospects. Meanwhile, the industrial metal copper sank to a 17-month low.

All 11 S&P 500 sectors finished in positive territory, with the Utilities group pacing the gains with a 2.5% advance. Information Technology stocks underperformed on a relative basis, as a downbeat outlook from Micron Technology Inc. weighed on chipmakers.

Midday Comment — Friday, July 01, 2022

DJIA: 30,592.15, down 183.28
S&P 500: 3,763.24, down 22.14
Nasdaq: 10,953.06, down 75.68

Stocks lower midday; yields drop

U.S. stocks are declining near mid-session Friday as investors exhibit a cautious start to the second half of the year. A disappointing update from the Institute for Supply Management (ISM) is in focus, with their gauge of manufacturing activity falling to a two-year low of 53.0 in June from May’s 56.1 print. The new orders component contracted to 49.2 versus the prior month’s 55.1, marking the lowest reading since May 2020.

The S&P 500 is declining 0.6%, while the Dow is losing 179 points. The Nasdaq Composite is falling 0.7%. Worries of a looming recession continue to inspire a perceived risk-off mood, with Treasuries extending their recent rally. The yield on the 10-year note is slumping 15 basis points (0.15%) to 2.87%, on track to decline 26 basis points (0.26%) since last Friday (June 24). The U.S. dollar is gaining 0.5% against a basket of its peers. In other data, construction spending unexpectedly dipped 0.1% in May following a upwardly revised 0.8% rise in April. Separately, a final update on the S&P Global manufacturing Purchasing Managers’ Index (PMI) was upwardly revised to 52.7 from the initial 52.4 print.

Seven of 11 S&P 500 sectors are trading in negative territory, with Technology leading laggards amid a weakness in chipmakers. Micron Technology Inc. is falling 5.6% after providing a downbeat assessment for the current quarter. In other corporate news, Kohl’s Corp. is sinking 21.5% after announcing it has ended talks to sell its business. Breadth is negative on issues by 3:2 on the NYSE and 5:4 on the Nasdaq. Composite NYSE volume is nearly 1.8 billion shares.

Opening Comment — Friday, July 01, 2022

DJIA: 30,775.43, down 253.88
S&P 500: 3,785.38, down 33.45
Nasdaq: 11,028.73, down 149.16

Stocks set for a cautious start to July

U.S. futures are pointing to a lower open on Friday as investors exhibit a cautious start to the second half of the year. Lingering market headwinds related to heightened inflation and aggressive monetary policy tightening remain front of mind. This morning, the Dow is losing 0.4%, while the S&P 500 is down 0.5% in pre-market action. The Nasdaq 100 is trading 0.6% below fair value on the GLOBEX. Trading volume may be light heading into the holiday weekend, which could exacerbate volatility in today’s session. Yesterday, U.S. stocks finished firmly lower, as a disappointing update on consumer spending renewed recessionary concerns. An update showed personal spending, which makes up a large component of US gross domestic product, rose just 0.2% in May. Real personal spending (adjusted for inflation) declined 0.4%, the first negative reading this year. The S&P 500 lost 0.9% and capped its worst start to a year since 1970 with an 8.4% monthly decline. The Dow shed 253 points, extending its June drawdown to 6.7%. Both benchmarks notched their largest quarterly losses since the pandemic-induced slump during the start of 2020, falling 16.5% and 11.3%, respectively. Meanwhile, the Nasdaq Composite lost 1.3% for the day and 8.7% for the month, pushing the index to its worst three-month period since 2008 (-22.4%).

Worries of a looming recession continue to inspire a perceived risk-off mood, with Treasuries extending their recent rally. The yield on the 10-year note is falling eight basis points (0.08%) to 2.94%, on track to decline 19 basis points (0.19%) since last Friday’s (June 24) close. The benchmark yield settled just 15 basis points (0.15%) higher last month after briefly hitting a peak of 3.50% in mid-June following the Federal Reserve’s (Fed) aggressive 0.75% rate hike. On the data front today, the Institute for Supply Management’s (ISM) gauge of manufacturing activity will hit the tape at 10:00am ET, with the figure expected to ease to 54.5 in June from the prior month’s 56.1 print. A final update on the S&P Global manufacturing Purchasing Managers’ Index (PMI) is anticipated to confirm the initial 52.4 reading, which marked a decline from May’s 57.0 figure. Rounding out the docket, construction spending likely climbed 0.4% in May.

In corporate news, chipmaker Micron Technology Inc. (MU) is falling 4.3% after providing a downbeat assessment for the current quarter as the company sees demand for smartphones and PC easing in the back half of the year. Meanwhile, Kohl’s Corp. (KSS) is sinking 15.8% in pre-market trading after announcing it has ended talks to sell its business. The retailer also trimmed its guidance for its fiscal second quarter amid moderating consumer spending.

Investment Implementation ("II") is a team within Wells Fargo Investment Institute, Inc. (WFII). WFII is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.

The information in this report was prepared by Investment Implementation. Opinions represent II's opinion as of the date of this report and are for general information purposes only and are not intended to predict or guarantee the future performance of any individual security, market sector or the markets generally. II does not undertake to advise you of any change in its opinions or the information contained in this report. Wells Fargo & Company affiliates may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report. The information contained herein constitutes general information and is not directed to, designed for, or individually tailored to, any particular investor or potential investor.

This report is not intended to be a client-specific suitability or best interest analysis or recommendation, an offer to participate in any investment, or a recommendation to buy, hold or sell securities. Do not use this report as the sole basis for investment decisions. Do not select an asset class or investment product based on performance alone. Consider all relevant information, including your existing portfolio, investment objectives, risk tolerance, liquidity needs and investment time horizon. The material contained herein has been prepared from sources and data we believe to be reliable but we make no guarantee to its accuracy or completeness.

Wells Fargo Advisors is registered with the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority, but is not licensed or registered with any financial services regulatory authority outside of the U.S. Non-U.S. residents who maintain U.S.-based financial services account(s) with Wells Fargo Advisors may not be afforded certain protections conferred by legislation and regulations in their country of residence in respect of any investments, investment transactions or communications made with Wells Fargo Advisors.

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.