Stock Futures Slip Following Rocky First Half of the Year

The S&P 500 just marked its worst H1 since 1970

Deputy Editor
Jul 1, 2022 at 9:17 AM
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Following a dismal second quarter for all three major benchmarks, Dow Jones Industrial Average (DJIA) futures are down 86 points ahead of the open, while futures on the Nasdaq-100 Index (NDX) and S&P 500 Index (SPX) inch lower as well -- the latter having just closed its worst first half of the year since 1970. Inflation doesn't appear to be easing up, either, and a possible recession is still at the forefront of traders' minds. Meanwhile, the 10-year Treasury yield fell to a nearly one-month low earlier this morning.  

Continue reading for more on today's market, including:

  • Costco stock typically outperforms in July. 
  • A look at elf Beauty stock after yesterday's surge
  • Plus, KSS is plunging after ending buyout talks; and analyst bears slam FDX and MU.  

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw over 1 million call contracts and 752,755 put contracts traded on Thursday. The single-session equity put/call ratio fell to 0.74, and the 21-day moving average stayed at 0.64.
  2. Kohl's Corporation (NYSE:KSS) is plummeting premarket, down 18.5%, after the retailer confirmed that it has abandoned talks to be bought by Franchise Group (FRG). The company also cut its current-quarter outlook as customers become more cautious with their spending. 
  3. Berenberg downgraded FedEx Corporation (NYSE:FDX) to "hold" from "buy," with a price-target cut to $275 from $330, citing rising inflation and near-term earnings risks. Stifel threw in a bear note this morning as well, cutting its price target to $288 from $298. FDX is down 1.8% before the bell. 
  4. Micron Technology Inc (NASDAQ:MU) is down 5.7% in electronic trading, after a gloomy forecast overshadowed its upbeat fiscal third-quarter results. In response, BofA Global downgraded the stock to "neutral" from "buy," while no fewer than eight other analysts slashed their price targets. Should these losses hold, MU will extend its recent two-year lows. 
  5. Today will bring the S&P Global U.S. manufacturing PMI, the ISM manufacturing index, and construction spending.

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Economic Data in Focus Overseas

Asian markets kicked off the second half of the year on a low note. Japan’s Nikkei led the losses with a 1.7% drop, after the Bank of Japan’s (BoJ) quarterly tankan business sentiment survey showed the region’s large manufacturers worsened during the April-to-June period, with the headline index coming in at 9, down from the previous period’s reading of 14. Meanwhile, the Shanghai Composite in China turned in a much more muted loss of 0.3%, as traders eyed the Caixin/Markit manufacturing Purchasing Managers’ Index for June, which came in at a better-than-expected 51.7, compared to last month’s 48.1 reading. This marks a move to growth from contraction, separated by the 50-mark. Elsewhere, the South Korean Kospi lost 1.2%, and the Hong Kong Hang Seng was closed for holiday.

In Europe, stocks are modestly lower midday as the major bourses come off their worst quarters since the pandemic began in 2020. Also weighing on markets is a massive year-over-year jump in the euro zone’s inflation reading, up to a record high of 8.6% for June. At last glance, the London FTSE 100 is down 0.4%, the French CAC 40 is 0.2% lower, and the German DAX is down 0.3%.

 

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