Early Bounce Evaporates On Wall Street

Barry Adams
14 Jun, 2022
New York City

On Wall Street early stock bounce evaporated after steep loses on Monday and market indexes extended losses. 

The S&P 500 index increased 0.3% to 3,761.62 and the Nasdaq Composite index added 0.24% to 10,835.23. 

Traders are revising interest rate expectations to 75-basis-points from 50-basis-points after the Fed meeting tomorrow after the wholesale price index rose 10.8% and hovered near record level. 

The yield on 10-year Treasury notes inched slightly lower to 3.348%. 

Futures of crude oil edged up $2.50 to $123.45 a barrel and natural gas edged down $1.46 or 17% to $7.14 a unit. 

With elevated inflation measures, the Federal Reserve is lagging in its response in tackling inflation that is hovering above its target range above 2% for months. 

Investors are worried that the Fed may be forced to take drastic actions to tame inflation forces and dip the economy into a recession and shrink corporate profits. 

Market indexes are rebounding from steep losses on Monday when the S&P 500 index dropped 3.9% and the Nasdaq Composite index declined 4.7% ahead of the interest rate decision on Wednesday. 

The dramatic declines came on top of similar losses in the last two days in the previous week after the U.S. inflation accelerated in May to the fastest pace of 8.6% since December 1981. 

The S&P 500 index dipped to bear market with losses of 21.76% from the high in January and the Nasdaq index extended losses to 31.8% in the year so far.  

Oracle jumped 9.9% to $70.35 after the database maker reported higher-than-expected earnings. 

Revenues in fiscal fourth quarter ending on May 31st rose 5% to $11.8 billion and net income dropped 21% to $3.2 billion. 

diluted earnings per share declined to $1.16 from $1.37 a year ago. 

Coinbase Global declined 4.5% to $49.75 after the cryptocurrency exchange in an internal memo announced 18% staff reduction. The company has about 5,000 employees. 

Coinbase stock has plunged 85% from its peak and dropped 80% this year and bitcoin declined to $22,000, extending this year's losses to 53%. 

FedEx jumped 12.5% to $226.01 after the package delivery company lifted its quarterly dividend 50% to $1.15 a share. 

The package delivery company added two directors and expanded the board as a part of agreement with hedge fund D.E Shaw. 

European markets traded up but near the close the indexes started wavering and closed down. 

The DAX index decreased 0.5% to 13,364.60, the CAC-40 index declined 0.7% to 5,981.72, and the FTSE 100 index fell 0.05% to 7,201.67. 

German consumer prices increased 7.9% in May from 7.4% in April, the final data from Destatis showed. 

The data were revised from the flash estimate released on May 30.