Equities Try to Regain Footing - InvestingChannel

Equities Try to Regain Footing

The Dow Jones Industrial Average rose on Wednesday, after the major averages made a failed attempt at a bounce in the previous session, and as the market prepares to close out the worst first half of the year since 1970.

The 30-stock index gained 170.21 points to 31,117.20.

The S&P 500 added 10.79 points to 3,832.34.

The NASDAQ Composite took on 33.18 points to 11,214.72.

Investors are still searching for the bottom of a vicious market selloff as the second quarter comes to an end Thursday. Concern over a slowing economy and aggressive rate hikes consumed much of the first half of 2022, and fears of a recession fears are rising.

The S&P 500, which is down about 20% in 2022, is on pace for its worst first half of the year since 1970, when the index lost 21.01%.

Meanwhile, on a quarterly basis, both the Dow and S&P 500 are on track for their worst performance since 2020. The NASDAQ is headed toward its worst three-month period since 2008.

In early trading Wednesday, Carnival slid 9% after Morgan Stanley cut its price target on the stock in half and said it could potentially go to zero in the face of another demand shock. The call dragged other cruise stocks lower. Royal Caribbean lost 5.6%, and Norwegian Cruise Line Holdings fell 5.4%.

Bed Bath & Beyond shares plummeted more than 20% after the company posted a huge miss on quarterly earnings and revenue expectations and announced its CEO is stepping down.

Meanwhile, Pinterest shares jumped 3% on news that CEO Ben Silbermann is stepping down.

General Mills shares rose 3% after the company topped earnings and revenue forecasts for its most recent quarter.

On Wednesday Federal Reserve Bank of Cleveland President Loretta Mester said she will advocate for a 75-basis-point hike to interest rates at the central bank’s July meeting if economic conditions remain the same by then.

Investors are also looking ahead to comments from Federal Reserve Chairman Jerome Powell at a European Central Bank forum.

Treasury prices regained some strength, lowering yields to 3.15% from Tuesday’s 3.19%. Treasury prices and yields move in opposite directions.

Oil prices jumped $1.74 to $113.50 U.S. a barrel.

Gold prices retreated two dollars to $1,819.20 U.S. an ounce.

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