Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Stock Market Today: Dow Caps Wild Week With Loss as Winless Run Continues

Stock Markets May 06, 2022 22:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Yasin Ebrahim – The Dow posted its sixth-weekly loss Friday, as a better-than-expected monthly jobs report kept fears about an inflation-led slowdown in the economy front and center at a time when expectations of more aggressive Federal Reserve policy tightening continue to heat up.  

The Dow Jones Industrial Average slipped 0.5%, or 21 points, the S&P 500 fell 0.5%, and the Nasdaq fell 1.4%.

Nonfarm payrolls increased 428,000 in April, above consensus expectations for 391,000 new jobs, while the unemployment rate was unchanged at 3.6%.

Wage growth slowed to 0.3% for the month, but economists continue to forecast wages to resume their uptrend amid a tight labor market.  

“We still expect the unemployment rate to drop to 3% by year-end, and wage inflation to accelerate toward 6%, which in turn will put a floor under inflation around 3.5-4%,” Jefferies said in a note.

Inflation is expected to trend above the Fed’s 2% target for some time, exacerbating investor worries about the impact on the consumer, which makes up about two thirds of economic growth.

“Fed Chairman Powell was hopeful that he could derail inflation without a “significant” increase in unemployment,” Diane Swonk, chief economist at Grant Thornton, said in a note. “Hope is not the same as reality.”

Tech stocks, which suffered a rout a day earlier, continue to come under pressure from rising Treasury yields as investor bets on more aggressive Fed monetary policy tightening continue to heat up.

Google-parent Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT, Amazon (NASDAQ:AMZN), and Meta (NASDAQ:FB), were down more than 1%. Apple (NASDAQ:AAPL) bucked the trend to trade above the flatline.

Materials were also a big drag on the broader market, led by Vulcan Materials (NYSE:VMC), Corteva (NYSE:CTVA) and Ball Corporation (NYSE:BLL) with the latter down more than 6% following negative commentary on the stock from Wall Street.

“We are downgraded BLL [Ball Corporation] to sector perform rating from an outperform given inflationary cost pressures in EMEA, the suspension of its Russian operations and weakness in Brazil,” RBC said as it cut its price target on the stock to $81 from $100.

Under Armour (NYSE:UAA), meanwhile, plunged more than 23% after reported a surprise loss and guidance that fell short of estimates as supply chain woes continues to weigh on growth.

DraftKings (NASDAQ:DKNG) fell more than 8% after paring gains even as the sports betting company reported quarterly results that beat on both the top and bottom lines.

Energy stocks sidestepped the broader trend lower as oil prices climbed as supply fears persist as the European Union tweaked its Russian oil embargo plans to allow Hungary, the Czech Republic, and Slovakia more time to implement the ban. The EU is expected to reach a decision on its Russian oil embargo plan this weekend. 

In other news, Peloton Interactive (NASDAQ:PTON) slipped more than 7% following a Wall Street Journal report that the connected fitness equipment company is looking to sell a 15% to 20% stake to bolster its balance sheet.

Stock Market Today: Dow Caps Wild Week With Loss as Winless Run Continues

Related Articles

UiPath to Cut 5% of Global Workforce
UiPath to Cut 5% of Global Workforce By - Jun 27, 2022

By Sam Boughedda In a Securities and Exchange Commission filing, software company UiPath (NYSE:PATH) said they have approved restructuring actions to manage operating expenses,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email