Stock Market Today Mid-Morning Updates
On Friday, the Dow Jones Industrial Average is down by 770 points today as investors digest the release of new inflation data. Across the board, major tech companies like Amazon (NASDAQ: AMZN) and Meta Platforms (NASDAQ: META) are down by over 3% and 1% respectively. Furthermore, the national average price for a gallon of gas continues to inch higher, now almost reaching $5 a gallon. In other news, the Biden Administration announced on Friday that it will be dropping coronavirus testing requirements for inbound air travelers from abroad.
Shares of Vail Resorts (NYSE: MTN) are up today after it reported better-than-expected quarterly results. Vail Resorts says that it benefited from an easing of pandemic-related restrictions and noted successful efforts to attract visitors outside of its peak skiing season. Stitch Fix (NASDAQ: SFIX) is down by over 14% today after it posted wider-than-expected losses. The company also gave a weaker-than-expected revenue guidance. CME Group (NASDAQ: CME) is in focus today after Atlantic Equities upgraded it to an Overweight rating from a Neutral rating. The firm says that CME has the strongest fundamental backdrop among U.S.-based exchanges.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 3.35% today while Microsoft (NASDAQ: MSFT) is also down by 3.72%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Friday. Among the Dow financial leaders, Visa (NYSE: V) is down by 3.04% while JPMorgan Chase (NYSE: JPM) is also down by 3.36%
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 3.47% on Friday. Rival EV companies like Rivian (NASDAQ: RIVN) are also down by 1.58%. Lucid Group (NASDAQ: LCID) is down by 2.28% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading mixed today.
Dow Jones Today: U.S. Treasury Yields Rises to 3.109%; Oil Prices Push Higher Despite Shanghai Lockdown Concerns
Following the stock market opening on Friday, the S&P 500, Dow and Nasdaq are trading lower at 2.65%, 2.39%, and 3.13% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 3.23% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also down by 2.62%.
The benchmark 10-year U.S. Treasury yield pushed higher to 3.109% today as tech companies are under pressure from these rising yields. Oil prices are also up slightly, to trade at near three-month highs. Brent crude was up to $123 per barrel. On the other hand, U.S. West Texas Intermediate crude also jumped to $121 per barrel. Both were on track for a fourth and seventh straight weekly increase respectively.
Consumer Price Index In May Rose At Its Quickest Pace Since 1981
Today, the Bureau of Labor Statistics released its May Consumer Price Index (CPI) report, offering fresh but concerning insight into the extent to which prices have increased across the U.S. economy. Its CPI was up by 8.6% year-over-year in May, the fastest advance in more than 40 years. Even on a monthly basis, headline CPI was up 1%, higher than expected. Excluding food and energy prices, it increased by 6% year-over-year. Compared to consensus estimates, it was an increase of 8.3% and 5.9% for the main index and core index respectively. This has caused quite a sell-off today, with the Dow on track for its 10th down week in the past 11.
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Netflix Stock Dips Following Rating Slash From Goldman Sachs
Netflix (NASDAQ: NFLX) is among the notable movers in the stock market today. Overall, this seems to be the result of a recent analyst update on the company’s shares. Getting into it, Goldman Sachs (NYSE: GS) analyst Eric Sheridan downgraded NFLX stock to a Sell rating. Also, the analyst cut his price target for NFLX stock from $265 to $186. According to Sheridan, the downgrade is the result of Goldman’s concerns over a possible consumer recession. At the same time, the firm also cites growing competition in the streaming space as another reason for the rating cut. As a result, NFLX stock is trading lower by over 5% at the opening bell today.
On top of that, the analyst also adds that Goldman Sachs is lowering its 2022-2023 revenue estimates for Netflix. This, Sheridan explains, is to “incorporate a greater probability of a weaker macro environment.” He elaborates in further detail, “More specifically, we modestly lower our paid streaming subs across every region but incorporate higher ARPU levels in the US in 2024 & beyond to reflect Netflix’s initiatives around its ad-supported tier and password sharing.” All in all, Netflix appears to be actively adapting to the shifting consumer landscape by working on its ad-supporting content. Safe to say, there would be no shortage of attention on NFLX stock today.
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DocuSign Stock Slips After eSignature Firm Falls Short On Wall Street Earnings Estimates
Another company turning heads in the stock market today would be DocuSign (NASDAQ: DOCU). On the whole, this eSignature Software-as-a-Service (SaaS) provider is experiencing some turbulence following its first-fiscal quarter financial update. In detail, the company posted somewhat mixed figures for the quarter. According to the financial release, DocuSign’s quarterly earnings per share is $0.38. Furthermore, the company’s total revenue for the quarter is $588.7 million. To compare, consensus figures on Wall Street are earnings of $0.46 per share on revenue of $581.8 million. Despite the beat on consensus analyst revenue forecasts, investors seem focused on DocuSign’s miss on the earnings per share front. Evidently, DOCU stock is currently trading at losses of over 26% at the opening bell today.
Adding more context to DocuSign’s performance for the quarter is CEO Dan Springer. He highlights, “We delivered solid first-quarter results, growing revenue by 25% year-over-year and adding nearly 67,000 new customers, bringing our total global customer base to 1.24 million.” While the company’s latest results may not be within Wall Street’s expectations, it seems that DocuSign’s SaaS offerings remain relevant. After all, organizations relying on eSignature software will likely continue to do so as hybrid work environments become increasingly prominent.
Overall, Springer had this to say about DocuSign’s long-term business outlook, “With over a billion users worldwide, the proven value of our products, and the significant opportunity we have ahead of us, we’re confident in our ability to successfully navigate the challenges of a dynamic global environment.” Not to mention, DocuSign also recently expanded its ongoing global partnership with Microsoft. Because of all this, DOCU stock would be in focus in the stock market today.
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