Dow drops over 700 points as stocks slide on fears higher costs are eroding profits

[Free Vulcan]

Target shares tumble after wide earnings miss

Last Updated: May 18, 2022 at 11:26 a.m. ET
First Published: May 18, 2022 at 5:09 a.m. ET
By Frances Yue Barbara Kollmeyer

U.S. stock indexes were trading sharply lower Wednesday, led by retailers whose quarterly results confirmed higher costs for fuel and wages are eating into profits, while hawkish comments from Federal Reserve Chairman Jerome Powell late Tuesday suggested interest costs are likely to rise further also.

All 11 main industry groups in the S&P 500 index were lower, with consumer stocks leading the retreat.

https://www.marketwatch.com/story/u-s-stock-futures-slip-as-investors-reassess-hawkish-remarks-by-feds-powell-11652864997?mod=home-page

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They are retracing the recent lows. I think it will be an ugly day, and the market may hit new ones.

Still room for 3700 SPX.

[IsailedawayfromFR]

now minus 1153

Looks grim, but peak over to see what's happening at NASDAQ

[Cyber Liberty]

DJIA is now down 1,250 with a half hour remaining.

[Bigun]

March 30, 2022 Dow was at 35,273.  As of today at 3:33 PM EDT it's at 31,994 and dropping. Just under 11% in less than two months.  I'm glad I got out when I did.  Still lots of room on the downside IMHO.

[Free Vulcan]

This is a sad chart. The last low was from several days of constant pounding at strong volume, but the rebound was weak and shallow on far lower volume. It just collapsed under more strong selling.

We got some more to go before a bottom.

[Bigun]

Another view at link below:

https://finance.yahoo.com/quote/%5EDJI/history?period1=1637193600&period2=1652832000&interval=1wk&filter=history&frequency=1wk&includeAdjustedClose=true

[Gefn]

Dow drops 1,100 points for its biggest decline since 2020 as the sell-off this year on Wall Street intensifies

The Dow Jones Industrial Average headed for its biggest loss since 2020 on Wednesday after another major retailer warned of rising cost pressures, confirming investors’ worst fears over rising inflation and rekindling the brutal 2022 sell-off.

The Dow shed 1,164.52 points, or 3.57%, to 31,490.07, or the average’s biggest decline since June 2020. The S&P 500 traded 4.04% lower to 3,923.68, also the worst drop since 2020. The Nasdaq Composite slipped 4.73% to 11,418.15, which is the largest fall in the tech-heavy index since May 5. The selling was broad and intense on Wall Street with just eight members of the S&P 500 in the green.

Markets returned to heavy selling after two back-to-back quarterly reports from Target and Walmart stoked investor fears of rising inflation. It’s the fifth Dow decline of more than 800 points this year, which all occurred as the stock sell-off intensified within the last one month, according to FactSet data.

https://www.cnbc.com/2022/05/17/stock-market-news-open-to-close.html

[Gefn]

Rough day on Wall Street.

[Kamaji]

And down the toilet we go!

[Free Vulcan]

The problem is that the current admin's actions are simply helping to drive things lower. It all centers on them. It's not just a retail earnings thing like the business news sites are smokescreening.

Futures market still dropping after hours.

[berdie]

March 30, 2022 Dow was at 35,273.  As of today at 3:33 PM EDT it's at 31,994 and dropping. Just under 11% in less than two months.  I'm glad I got out when I did.  Still lots of room on the downside IMHO.

I am jealous @Bigun . Wish I had done the same. But...I didn't. "They" say not to sell at a time like this. But believe me I am restraining myself to try to stop the bleeding.

My SIL's financial advisor called her and told her not to look at her account. That would completely freak me out!

[Bigun]

The problem is that the current admin's actions are simply helping to drive things lower. It all centers on them. It's not just a retail earnings thing like the business news sites are smokescreening.

Futures market still dropping after hours.

Down close to 15% in six months without correcting for inflation over that period and I think there remains 15 - 20% still to come.

[Bigun]

I am jealous @Bigun . Wish I had done the same. But...I didn't. "They" say not to sell at a time like this. But believe me I am restraining myself to try to stop the bleeding.

My SIL's financial advisor called her and told her not to look at her account. That would completely freak me out!

I hear you @berdie I hve no idea about your investment horizons so I will refrain from giving advice.

I'm at an age where my horizons are shorter so I'm playing it as safe as I know how.

[andy58-in-nh]

March 30, 2022 Dow was at 35,273.  As of today at 3:33 PM EDT it's at 31,994 and dropping. Just under 11% in less than two months.  I'm glad I got out when I did.  Still lots of room on the downside IMHO.

All of this is intentional, and none of it is necessary.

Want to see the opposite happen?
 
- Freeze Federal spending at current levels, and immediately subject all Federal departments to zero-based budgeting.
- Declare a moratorium on all new Federal regulations until the current CFR is reviewed to remove duplicate, unnecessary and economically harmful statutes.
- Immediately grant permits for all available natural gas and oil leases and refinery construction.
- Peg the value of the US dollar to a fixed standard, based in gold/silver/commodity exchange prices, or in fact, anything at all.
- Announce an end to all US foreign aid and loan guarantees until further notice, with the proceeds used to finish construction on the Border Wall.

DOW 50,000 in 12 months.   

[catfish1957]

All of this is intentional, and none of it is necessary.

Want to see the opposite happen?
 
- Freeze Federal spending at current levels, and immediately subject all Federal departments to zero-based budgeting.
- Declare a moratorium on all new Federal regulations until the current CFR is reviewed to remove duplicate, unnecessary and economically harmful statutes.
- Immediately grant permits for all available natural gas and oil leases and refinery construction.
- Peg the value of the US dollar to a fixed standard, based in gold/silver/commodity exchange prices, or in fact, anything at all.
- Announce an end to all US foreign aid and loan guarantees until further notice, with the proceeds used to finish construction on the Border Wall.

DOW 50,000 in 12 months.

You and I think alike.   

[Bigun]

All of this is intentional, and none of it is necessary.

Want to see the opposite happen?
 
- Freeze Federal spending at current levels, and immediately subject all Federal departments to zero-based budgeting.
- Declare a moratorium on all new Federal regulations until the current CFR is reviewed to remove duplicate, unnecessary and economically harmful statutes.
- Immediately grant permits for all available natural gas and oil leases and refinery construction.
- Peg the value of the US dollar to a fixed standard, based in gold/silver/commodity exchange prices, or in fact, anything at all.
- Announce an end to all US foreign aid and loan guarantees until further notice, with the proceeds used to finish construction on the Border Wall.

DOW 50,000 in 12 months.

You forgot putting on an immigration moratorium for 20 years but otherwise we're good @andy58-in-nh 

BTW:  What do you think would happen if people in this country could start or expand a business without having to spend one red cent or one second of time considering the tax implications of the move?

[berdie]

I hear you @berdie I hve no idea about your investment horizons so I will refrain from giving advice.

I'm at an age where my horizons are shorter so I'm playing it as safe as I know how.

@Bigun we are more than likely in the same age group.

In my next life, I am coming back as "they".

[Bigun]

@Bigun we are more than likely in the same age group.

In my next life, I am coming back as "they".

 

[IsailedawayfromFR]

March 30, 2022 Dow was at 35,273.  As of today at 3:33 PM EDT it's at 31,994 and dropping. Just under 11% in less than two months.  I'm glad I got out when I did.  Still lots of room on the downside IMHO.

Not me.

I doubled up on oil and pipeline stocks which are doing just fine with great dividends.

[catfish1957]

Not me.

I doubled up on oil and pipeline stocks which are doing just fine with great dividends.

Retired from an oil company.  I'm up for the year too.

[IsailedawayfromFR]

Retired from an oil company.  I'm up for the year too.

Oh, and also stayed far, far away from any tech company.

I also bought some coal company stock last year while coal prices soared 300% since.

[Fishrrman]

berdie wrote:
"I am jealous @Bigun . Wish I had done the same. But...I didn't. "They" say not to sell at a time like this. But believe me I am restraining myself to try to stop the bleeding.
My SIL's financial advisor called her and told her not to look at her account. That would completely freak me out!"

Folks... this is why all that talk about 401k's and "privatizing Social Security", blah, blah, blah... was just talk, and will never be more than that.

When people who would depend upon such a system, nearing retirement, could have the lion's share of their "future benefits" substantially wiped out in a market crash, it sure makes the defined benefits of a Social Security system look like "a more sure thing".

No, with defined benefits you may not get as much.
But at least you'll get something.

[Bigun]

Not me.

I doubled up on oil and pipeline stocks which are doing just fine with great dividends.

As long as demand doesn't fall too much. But it WILL fall.

[catfish1957]

Oh, and also stayed far, far away from any tech company.

Agree 100%

That was my theme from day 1 even back in the '90's. AAPL is about my only exception. And that was because I realized they had a business model that highly infiltrated infrastructure like vehicles, and other societal uses, and products that have a sustainable customer  base.

I've made a killing with Apple.

[catfish1957]

As long as demand doesn't fall too much. But it WILL fall.

Mar 2020 wasn't that long ago.  If I wasn't retired, I would have gone all in.  Man, would I have made obscene profits.