Thursday’s big stock stories: What’s likely to move the market
Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox. Here’s what CNBC TV’s producers were watching as the Dow Industrials tumbled more than 1,100 points, and what’s on the radar for the next session. The markets on a big down day The Dow Industrials suffered its deepest drop of the year. It fell 2.19%. Still, the 30-stock index is off 3.18% from the high hit earlier this month. Jim Cramer of CNBC’s “Mad Money” blamed the big drop on inflation fears and on rising bond rates, singling out the 30-year Treasury yield above 5.2%. That’s the highest level since 2007. The S & P 500 lost 1.52%. It is down 4% from the June high. The Nasdaq Composite fell 1.74%. It is now off 10.1% from the June high. The NYSE Composite fell 1.2%. It is down just 1.28% from Tuesday’s all-time high. The Russell 2000 fell 1.6%. It is off 4.6% from the July 1 high. We’ll pick things up with futures at 5 a.m. ET sharp with Morgan Brennan and the ” Morning Call ” team. .DJI 5D mountain The Dow Industrials over the past five days Sector check The industrials were the hardest hit sector on Wednesday: down 3.24%. It is now down 4.8% from the July 6 high. Energy, consumer staples and communications services were the three sectors that closed in positive territory. Real estate and healthcare fell but did hit new highs earlier in the day. One of the biggest voices in the bond world DoubleLine’s Jeffrey Gundlach was on ” Closing Bell ” watching the Federal Reserve with CNBC TV’s Scott Wapner. He said the Fed can’t get to its 2% inflation target without hiking rates. Gundlach said “it could take years” to get back to 2%. He also believes the dollar will go lower. The 30-year Treasury bond is yielding 5.21%. The 10-year Treasury note is yielding 4.69%. The 2-year is yielding 4.26%. The 3-month Treasury bill is yielding 3.78%. The 1-month T-bill is yielding 3.65%. The dividend on the Fidelity Corporate Bond ETF (FCOR) is 4.64%. The dividend on the State Street SPDR Bloomberg High Yield Bond ETF (JNK) is 6.66%. The dividend on the iShares iBoxx High Yield Corporate Bond ETF (HYG) is 5.94%. The dividend on the iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) is 7.04%. US30Y 5D mountain U.S. 30-year Treasury yield in the past five days Jobless claims The number comes out 8:30 a.m. sharp on ” Squawk Box ” with Becky Quick, Joe Kernen and Andrew Ross Sorkin. The Dow Jones consensus estimate is 200,000. The prediction market website Kalshi shows 54% of people participating in this category believe the number will be above the 200,000 estimate. Only 19% think it’ll be above 205,000. Real GDP That number also comes out at 8:30 a.m. The Dow Jones consensus estimate is for a 1.8% rise. Personal consumption expenditures price index data This inflation reading is also out at 8:30 a.m. on “Squawk Box.” The Dow Jones consensus calls for a month-to-month decline of 0.1%. The core estimate is for an increase of 0.2%. The year-to-year Dow Jones consensus estimate is 3.7%. The core estimate is 3.3%. Hershey reports on ‘Squawk Box’ The quarterly report is expected to be out at 7 a.m. The stock is down nearly 3% in three months. Hershey is down 23% from the March high. Cocoa is up 80% since March 1. HSY 3M mountain Hershey in the past three months After the bell earnings Amazon ‘s quarterly results will be on ” Closing Bell: Overtime .” The stock is down about 14% in three months. The stock is down 8% from high. The implied volatility, a measure of how far the options market thinks a stock may move on earnings is 7%. Apple ‘s report will also be on “Closing Bell: Overtime.” The stock is up 25% in three months, and it hit a new high today. Shares are up almost 17% in July. The implied volatility is 3.5%. Coinbase ‘s results will be on “Closing Bell: Overtime.” The stock is down almost 12% in three months. Coinbase shares are down 60% from the October high. The implied volatility is 8%. Rate decisions beyond the U.S. The Bank of England makes its decision at 7 a.m. Thursday. On Thursday at 10 p.m., the Bank of Japan will announce its decision. The iShares MSCI United Kingdom ETF (EWU) is just 2% off from the February high. The iShares MSCI Japan ETF (EWJ) . It is down 8.4% from the June high. Robinhood The online brokerage scored big in its earnings report. CNBC TV’s Kate Rooney covers the company closely and spoke with CFO Shiv Verma. The company did well in part due to its move into the prediction markets space. Options trading and trading around the SpaceX IPO also helped the company beat estimates. There was also a lift due to Robinhood Ventures, a closed-end fund that went public earlier this year. Rooney is reporting Wednesday night: “Transaction-based revenue [a barometer for trading action] grew 44%, fueled by stronger-than-expected options, equity and crypto volume.” CFO Verma told Rooney, “The business is firing on all cylinders.” The stock is up about 40% since April but down 4% in the after-hours session. CEO Vlad Tenev will be on “Squawk Box” in the 8 a.m. hour Thursday. Other big reports Wednesday evening Meta Platforms is down 7% in extended trading after issuing guidance that was below expectations. CNBC TV’s Julia Boorstin covers the company closely and will report Thursday on why investors don’t seem to be following CEO Mark Zuckerberg’s optimism. Qualcomm is down almost 4% as forward guidance was also not what Wall Street was looking for. Microsoft is up 8% after hours after beating results. The Azure part of the business, which is in the cloud and AI space, also was solid. We’ll pick up all of these big stories Thursday morning on “Morning Call” with Morgan Brennan.
