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The Weekend Rip: May 22, 2022

We hope you’re enjoying the weekend! 😊

Friday’s late-day rally couldn’t stave off another week of losses. The good news is there are only five more days before the Memorial Day three-day weekend. πŸ–οΈ

Let’s recap and look to the week ahead.

What Happened?

πŸ“‰ U.S. stock market indexes recorded their seventh straight week of losses.Β 

πŸ›οΈ The consumer was in focus with earnings from Walmart, Target, BJ’s, and more. There were a few bright spots, but Target and Walmart’s margin pressures took center stage and sent consumer-related stocks into a tailspin.

🚚 Supply chain issues remained in focus, with Cisco missing earnings and Deere unable to fulfill demand, both citing supply chain disruptions in their earnings reports.

🟒 With stocks selling off, treasury bonds finally provided some relief to investor portfolios, rallying for the second week. 

πŸ”₯ The battle for your bids heated upΒ as Robinhood announced a new stand-alone app to hold crypto/NFTs, and FTX U.S. is expanding into stock trading.

πŸ“° It wouldn’t be a week without some Elon Musk-related news. The S&P 500’s ESG index removed Tesla, Twitter said it would hold Elon Musk to his offer to buy the company at the $44 billion price, and Elon Musk denied a report that accused him of sexual misconduct on a SpaceX jet.

πŸ’ Lastly, if you didn’t have enough on your mind this weekend, Monkeypox is now a thing. The World Health Organization met to discuss the recent viral outbreak, and President Joe Biden said “everybody” should be concerned about its spread.Β 

Those are the major stories from the week. And here are the final prints:

S&P 500 4,024 -2.41%
Nasdaq 11,805 -2.80%
Russell 2000 1,793 -2.55%
Dow Jones 32,197 -2.14%


Bullets from the Weekend

πŸš€ SpaceX is looking to raise new funding at a $127 billion valuation. The latest raise will bring in up to $1.725 billion at $70 per share, representing a 25% increase in its valuation since its last funding round. The new funds will help further work on two capital-intensive projects: the next generation rocket Starship and its global satellite internet network Starlink. CNBC has the details.

🏭 Hyundai to open a $5.5 billion electric vehicle plant in Georgia. The plant will employ at least 8,100 workers and is Hyundai’s first U.S. plant dedicated to assembling electric vehicles and producing vehicle batteries. It plans to start construction early next year and produce up to 300,000 vehicles per year in 2025. Georgia’s governor Brian Kemp called the plant “the largest economic development project in the state’s history.” Read more in U.S. News.

πŸš— Despite safer cars, fatalities on U.S. roads continue to rise. Roadway fatalities reached their highest level in 16 years in 2021, driven by distracted driving and increases sales of larger vehicles like trucks and SUVs, as well as the fact that cars are faster than they’ve ever been. Experts say it will take a combination of regulatory and behavioral changes to address this growing trend. CNBC has more.

The Brief

Need a concise summary of what’s going on this week? Look no further.Β Here’s an overview of important earnings and economic data for the trading week ahead.

Economic Calendar

5/23 Chicago Fed National Activity Index (8:30 AM ET)
5/24 S&P Global PMI (9:45 AM ET)
5/24 New Home Sales (10:00 AM ET)
5/25 Durable Goods Orders (8:30 AM ET)
5/25 EIA Crude Oil Inventories (10:30 AM ET)
5/25 FOMC Minutes (2:00 PM ET) ⭐
5/26 GDP Growth Rate Estimate (8:30 AM ET)
5/27 Personal Income (8:30 AM ET)
5/27 Michigan Consumer Sentiment (10:00 AM ET)

Eyes will be on Wednesday’s Fed Minutes, but here’s a full list of economic releases.

Earnings This Week

It’s a slow earnings week, with only 170 companies reporting. Investors will get further info on the health of the American consumer with companies like Costco, Dollar General & Dollar Tree, Advance Auto Parts, Toll Brothers, and others reporting.

Big tech sector earnings include NVIDIA, Alibaba, Baidu, and Zoom.Β 

Above is a quick summary. Check out the full Stocktwits earnings calendar to see the other names reporting this week.