Dow Loses Nearly 130 Points as Recession Anxieties Crop Up

A brief inversion in the 10- and 2-year Treasury yields stoked investor fears

Digital Content Manager
Jul 5, 2022 at 4:27 PM
facebook twitter linkedin


Stocks saw a mixed settlement on Tuesday as investors kept a wary eye on the 10-year Treasury yield and the 2-year Treasury yield, which made a brief inversion earlier in the day. This has been a strong indicator of an upcoming recession in the past. In response, the Dow lost 129 points, after earlier shedding over 700 points, while the S&P 500 finished the day with a muted gain. The Nasdaq, meanwhile, managed to bounce back from its earlier losses, and settled the day with a more than 1% pop, as growth-focused tech stocks gained some steam.

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

  • Why 1 analyst hit Tesla stock with a bear note today. 
  • The exchange stock staring up at stiff resistance on the charts. 
  • Plus, a breakdown of PSMT; LEVI gears up for earnings; and; HPQ gets a downgrade.

The Dow Jones Average (DJI -  30,967.82) lost 129.4 points, or 0.4% for the day. Nike (NKE) led the gainers, adding 3.1%. Chevron (CVX) paced the laggards with a 2.6% drop.

The S&P 500 Index (SPX - 3,831.39) gained 6.1 points, or 0.2% for the day. Meanwhile, the  Nasdaq Composite (IXIC - 11,322.2) rose 194.4 points, or 1.8% for the session.

Lastly, the Cboe Market Volatility Index (VIX - 27.54) added 0.01 point, or 0.04% for the day.

closing summary July5

nyse nasdaq July5

5 Things to Know Today

  1. Over in the U.K., British Chancellor Rishi Sunak has put in his resignation, joining health Secretary Sajid Javid, in what appears to be a protestation against Prime Minister Boris Johnson's leadership. (CNBC)
  2. The suspect in the Highland Park, Illinois Independence Day Parade shooting, which killed six and injured 30, bought his rifle legally, according to officials. (Reuters)
  3. Breaking down this retail stock's ideal entry point
  4. Here's everything you need to know about Levi Strauss stock before earnings. 
  5. Evercore ISI downgraded this tech stock over the holiday weekend. 

There are no earnings reports of note today.

UVOL July5

Gold Stumbles as U.S. Dollar Hits 20-Year High

Oil futures suffered a sharp selloff back below the $100 mark, to turn in their lowest settlement in nearly two months as investors began to worry that a potential recession could put a dent in demand. For the day, August-dated crude lost $8.93, or 8.2%, to settle at $99.50 per barrel.

Gold prices dropped to their lowest level of 2022 on Tuesday, breaching the closely watched $1,800-per-ounce level as the U.S. dollar rose to its highest mark since November 2002. August-dated gold fell $37.60, or 2.1%, to close at $1,763.90 an ounce.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners