Stock Market Today Mid-Morning Updates
On Friday, the Dow Jones Industrial Average is up by 35 points as it kicks off the second half of the year. The broader market in general could be looking for a rebound after one of the worst first half performances in over 50 years. This decline is driven by inflation and could persist for the months ahead. As investors look ahead of a long weekend, they are also bracing for potentially shaky earnings next week. The U.S. stock market will be closed on July 4, 2022 for Independence Day.
Shares of Micron Technology (NASDAQ: MU) are down today despite reporting a strong quarter. This is likely due to the company a lower-than-expected sales outlook, coming from weakening overall demand. Meta Platforms (NASDAQ: META) is slashing its hiring plans amidst an economic downturn. FedEx (NYSE: FDX) is down today after Berengerg downgraded the company’s stock to a ‘Hold’ rating from a ‘Buy’ rating. Analysts cite near-term earnings risks which could halt a recent rally in the logistics company.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.24% today while Microsoft (NASDAQ: MSFT) is down by 0.25%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading mixed on Friday. Among the Dow financial leaders, Visa (NYSE: V) is down by 0.27% while JPMorgan Chase (NYSE: JPM) is up by 0.58%%
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 1.15% on Friday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 1.83%. Lucid Group (NASDAQ: LCID) is up by 0.17% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today as well.
Dow Jones Today: U.S. Treasury Yields Slides to 2.88% As Investors Weigh On A Potential Recession.
Following the stock market opening on Friday, the S&P 500 and Dow are trading higher at 0.08% and 0.13%. The Nasdaq, however, is trading lower at 0.22%. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 20.30% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up by 0.15%.
The benchmark 10-year U.S. Treasury yield slides below the 3% mark and is currently around 2.88% as central banks around the world pursue a fiscal policy tightening with aggressive rate hikes. Inflation is also surging in Europe, with the European Central Bank (ECB) saying that year-over-year inflation rose by 8.6% in June. The ECB will raise rates for the first time in 11 years later this month.
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Kohl’s Stock Drops On Termination Of Strategic Review Process For Franchise Group Takeover
Among the head turners in the stock market today is Kohl’s (NYSE: KSS). On the whole, this could be thanks to the company’s latest update regarding its business sale to the Franchise Group (NASDAQ: FRG). In brief, this information is courtesy of the board of directors over at Kohl’s. According to the board, there are two key reasons behind this decision. This would be the current financing details and operating conditions in the retail environment impacting FRG’s offer. For one thing, this is not all that surprising after considering the current market conditions. After all, as stocks continue to experience turbulence and interest rates rise, financing such a major takeover would prove challenging.
Explaining Kohl’s move in further detail is the Chair of the Board, Peter Boneparth. He notes, “Throughout this process, the Board has been committed to a deep and comprehensive review of strategic alternatives with the goal of selecting the path that maximizes value for shareholders.” Boneparth continues, “Despite a concerted effort on both sides, the current financing and retail environment created significant obstacles to reaching an acceptable and fully executable agreement. Given the environment and market volatility, the Board determined that it simply was not prudent to continue pursuing a deal.” Because of this, KSS stock is now trading lower by over 11% at the opening bell today.
Even so, Boneparth does highlight that Kohl’s remains financially stable in general. This he argues is thanks to the company’s ability to “generate substantial free cash flow.” On top of that, the board chairman also notes that Kohl’s has a plan to bolster its overall competitive position and long-term performance. As a result, KSS stock would be gaining traction in the stock market now.
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Nio And Xpeng Among Other Chinese EV Stocks Are Up After Latest Monthly Figures
Shares of major Chinese EV stocks are on the rise at the opening bell today. Among the leading names today are Nio and Xpeng. Both of which are currently gaining by over 2% now. For the most part, the current movement in these stocks is likely thanks to the firms reporting their latest monthly delivery figures. To begin with, Nio’s total deliveries for June are 12,961 vehicles, a 60% year-over-year increase. Furthermore, Xpeng’s total June deliveries are 15,295 vehicles, representing a sizable 133% year-over-year jump over the same period.
Thirdly, Li Auto (NASDAQ: LI) delivered a total of 13,024 vehicles throughout June. Notably, this adds up to a 69% gain over the same month last year. In the larger scheme of things, this would be an encouraging development for auto investors keen on the space. As Chinese EV manufacturers look to move forward from Covid related operational lockdowns, it seems that business is back to usual. Also, both Nio and Xpeng are planning to begin deliveries of their latest flagship EVs, the ES7 SUV and G9 SUV respectively. As such, NIO stock, XPEV stock, and LI stock would be in focus at the opening bell today.
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