Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

What Happened This Week: SPY, QQQ, Costco, Royal Bank of Canada

By Investing.com (Brenda O'Farrell/Investing.com)Stock MarketsDec 02, 2022 21:50
uk.investing.com/analysis/what-happened-this-week-spy-qqq-costco-royal-bank-of-canada-200549493
What Happened This Week: SPY, QQQ, Costco, Royal Bank of Canada
By Investing.com (Brenda O'Farrell/Investing.com)   |  Dec 02, 2022 21:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
SPY
+1.31%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
QQQ
+2.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PYPL
+1.09%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+1.29%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETSY
+0.34%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CTLT
+6.84%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Last week’s stock market rally had a few anomalies that investors should cast a wary eye on. The main oddity saw investors pull billions of dollars out of two of the biggest U.S.-traded equity funds: SPDR® S&P 500 (NYSE:SPY) and Invesco QQQ Trust (NASDAQ:QQQ).

While the main stock indexes – namely the S&P 500 and the NASDAQ 100 – gained, rallying to 11-week highs, investors were stripping funds out of the main ETFs that follow these indexes.

So, let’s take a step back.

The stock market rally last week was widely believed to be based on investor optimism stemming from the message from the Federal Reserve that it would take its foot off the accelerator when it comes to interest rates. But, according to reported estimates, $5.8 billion was culled from the SPY ETF, while an estimated $2.1 billion was pulled from QQQ.

SPY Weekly Chart
SPY Weekly Chart

Source: Investing.com

QQQ Weekly Chart
QQQ Weekly Chart

Source: Investing.com

According to one report, the combined withdrawal of funds from these two major ETFs represents the biggest drawdown since the early stages of the pandemic in 2020.

If you believe SPY and QQQ, along with other key broad-based ETF products, are where investors either invest and hold or turn to in order to wait out downward swings in the market, this could signal a change in sentiment.

But keep in mind the next Fed move is just around the corner. What happens there could be the signal to really watch.

Bulk Buying Has Its Limits

Consumers love a bargain. They also love to buy in bulk if that increases the savings factor. But when bargains get smaller, the enthusiasm wanes for bulk buying. In inflationary times, it’s better to just get what you need and wait to see if a better deal pops up down the road.

That is perhaps the lesson from latest numbers released by Costco (NASDAQ:COST).

The big-box retailing giant released its latest sales figures last week. The data showed sales in November – which included the much anticipated Black Friday traffic – rose a bit, but a lot less when compared to the previous two months.

Sales in November increased by 5.7% to $19.17 billion. This was disappointing when compared with the 7.7% and 10% increases registered in October and September, respectively.

Part of the reason is what consumers are seeing: The prices of groceries at the retailer have been going up.

Costco stock took a hit in response to the news. Shares dropped just over 8% last week. But expect more reaction on that front when Costco reports its latest quarterly earnings on Dec. 8.

Canadian Banks Getting Bigger

The biggest bank deal ever in Canada was struck this past week, as the Royal Bank of Canada (NYSE:RY) (TSX:RY) – the country’s biggest bank – announced a C$13.5-billion acquisition of HSBC (LON:HSBA) Bank Canada.

The deal would give Royal Bank about 130 new branches and add to its commercial banking clientele, with many new clients in industries that trade internationally.

This is a rare move in the Canadian banking sector, which is highly regulated. In fact, it is this regulation that moved Canadian banks to focus their expansion plans in the U.S. In the past years, two of the largest deals in the banking sector saw the Bank of Montreal (TSX:BMO) (NYSE:BMO) announce the US$16.3-billion acquisition of BNP Paribas’s Bank of the West and the Toronto Dominion Bank (NYSE:TD) (TSX:TD) buy First Horizon Corp (NYSE:FHN) in a US$13.4-billion deal. Both deals expand the Canadian banks’ operation in the U.S.

Shares of Royal Bank closed Friday at C$134.21, up almost 2% from a low of C$131.77 in the middle of last week. In the last year, shares have gained 7.1%.

Top Winners And Losers Of The Week

Again, for all those out there who are keeping score, here are the top gainers of the past week:

On the S&P 500 

  • Catalent (NYSE:CTLT): +26.24%
  • Etsy (NASDAQ:ETSY): +16.77%
  • PVH (NYSE:PVH): +15.25%
  • Wynn Resorts (NASDAQ:WYNN): +13.64%
  • Fidelity National Information Services Inc (NYSE:FIS): +12.25%

On the NASDAQ Composite

  • eHealth Inc (NASDAQ:EHTH): +72.31%
  • Fanhua Inc (NASDAQ:FANH): +34.74%
  • Horizon Therapeutics (NASDAQ:HZNP): +33.94%
  • Seelos Therapeutics (NASDAQ:SEEL): +31.07%
  • Citi Trends Inc (NASDAQ:CTRN): +30.67%

And the biggest losers:

On the S&P 500

  • NetApp (NASDAQ:NTAP): -11.02%
  • Charles River Laboratories (NYSE:CRL): -8.34%
  • Valero Energy (NYSE:VLO): -8.19%
  • Costco Wholesale Corp (NASDAQ:COST): -1.85%
  • PayPal (NASDAQ:PYPL): -6.177%

On the NASDAQ Composite

  • G-III Apparel Group (NASDAQ:GIII): -40.29%
  • Yunhong CTI Ltd (NASDAQ:CTIB): -32.87%
  • Viracta Therapeutics Inc (NASDAQ:VIRX): -23.74%
  • Peraso Inc (NASDAQ:PRSO): -19.12%
  • Neptune Wellness Solutions (NASDAQ:NEPT): -18.74%
What Happened This Week: SPY, QQQ, Costco, Royal Bank of Canada
 

Related Articles

What Happened This Week: SPY, QQQ, Costco, Royal Bank of Canada

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Baruch Ellert
Baruch Ellert Dec 04, 2022 22:10
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if graphs show decline would it mean recession ? it smells recession or establishment's vision of inflation that must be controlled
Akshay Deerpaul
Akshay Deerpaul Dec 03, 2022 16:07
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Great to follow you
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email