Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Stock Market Today: Dow Rebounds on Late-Day Rebound, but Weekly Streak Continues

Stock Markets May 20, 2022 21:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

By Yasin Ebrahim -- The Dow eked out a gain Friday, as a wave of dip-buying activity late into the close helped stocks claw back losses, though that proved too little too late as the broader market sunk to its eighth straight weekly loss.

The Dow Jones Industrial Average gained 0.04%, or 8 points and Nasdaq fell 0.30%. The S&P 500 eked out a 1 point gain after recovering from an intraday slump that pushed losses since its recent peak above 20% into bear-market territory.

Real estate, health care and energy helped the broader market recover, with the latter underpinned by a climb in oil prices, which racked up their fourth weekly gain in a row for the first time since mid-February. 

Technology also played a role in the rebound as investors bought the dip in big tech, with Apple (NASDAQ:AAPL) cutting losses to end in the green after falling more than 2%. Meta Platforms (NASDAQ:FB) ended the day up more than 1%. 

Consumer discretionary had earlier led a sea of red on Wall Street after quarterly results from corporates continued to flag the impact of inflation just as the Federal Reserve shows little sign of slowing down rate hikes.

St. Louis Fed President James Bullard said Friday that raising rates by 50 basis points at upcoming meetings was a good plan, and stressed that higher interest rates would be needed to keep inflation under control.

Ross Stores (NASDAQ:ROST) plunged more than 22% after first-quarter results fell short of Wall Street estimates, and the off-price retailer cut its guidance amid pressure from higher transportation and labor costs.

The weaker results come as the other retailers including Walmart (NYSE:WMT) and Target (NYSE:TGT) reported results earlier this week also stoked worries about the impact of inflation.

Deere (NYSE:DE), meanwhile, reported quarterly results that missed on the top line, and highlighted the impact of inflation and supply chain issues ahead, sending its shares more than 14% lower.

Foot Locker Inc (NYSE:FL) bucked the trend, ending the day more than 4% higher after the footwear retailer reported better-than-expected profit that helped overshadow softer revenue and same-store sales.

Stocks had made a positive start to the day after China’s move to cut a key lending benchmark to support its economy, which has been impacted by recent lockdown measures in Shanghai and elsewhere, eased fears about slowing global growth.

“Investors appear more optimistic this morning after a volatile week as China takes its latest step to bolster the country’s economy,” Stifel said in a note earlier on Friday.

The eighth-straight weekly slump for stocks has some speculating whether a bottom will soon be reached. But experts suggest there is still more pain ahead as investor capitulation has reached the levels of prior market downturns.     

"We have been encouraged by the breadth and manic selling activity occurring a few days throughout the recent correction cycle, however, we are not yet seeing comparable ‘capitulation metrics’ relative to the 2018 or 2020 market downturns," Janney Montgomery Scott said in a note. 

"This suggests to us that even though we are in (or close) to a bottom range, we may have to experience more volatility before the markets are more thoroughly washed out," it added.

Stock Market Today: Dow Rebounds on Late-Day Rebound, but Weekly Streak Continues

Related Articles

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’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
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.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
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'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
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email