The stock market weakened in afternoon trading Wednesday, taking a breather from two days of gains as reports pointed to a weak global economy and the housing sector got bad news. Energy stocks continued to outperform the market, while shipping stocks lost ground.
The Nasdaq fell 1%. The S&P 500 lost 1.2% while the Dow Jones Industrial Average fell 1% also. The Russell 2000 index slid 1.8%.
Volume rose on the Nasdaq and the NYSE compared with the same time on Tuesday.
The yield on the 10-year Treasury note climbed 4 basis points to 3.02%, rising past the 3% level for the second time this week.
Housing, Recession News Weigh On Stock Market
The number of mortgage applications tumbled 6.5% last week to its lowest level in 22 years, well below the 2.3% decline that economists surveyed by Econoday had expected. Refinance applications fell 5.6% and home purchase applications fell 7.1%, according to the Mortgage Bankers’ Association.
U.S. Stock Market Today Overview
|Last Update: 1:44 PM ET 6/8/2022|
Also, the Organization for Economic Co-Operation and Development sharply cut its global GDP forecast to about 3%, with a similar pace in 2023. Inflation should remain high due to elevated food and fuel prices, the organization said.
U.S. crude oil prices jumped to nearly $123 a barrel. The Energy Select Sector SPDR ETF (XLE) rose 0.7%. It’s the only S&P sector higher this afternoon.
Roku (ROKU) and Netflix (NFLX) stocks rose on Wednesday after a news report indicated that Netflix is considering a potential acquisition of Roku. Buying the streaming video platform would give Netflix a play in advertising-supported streaming video.
Analysts were divided on the possibility of a Netflix-Roku tie-up, which Insider reported. Netflix and Roku officials declined to comment on the report. Netflix reported a loss of subscribers in the first quarter and forecast greater losses in the second quarter.
Roku shares gained 10%, while Netflix rose 2%.
Uranium Stocks Join Oil Stocks In Gains
Meanwhile, uranium stocks continued this week’s rally after a report that the U.S. is looking to increase its domestic supplies for the metal. Bloomberg reported the Biden administration is pushing lawmakers to approve a $4.3 billion plan to boost U.S. enrichment capabilities, among other steps, required to turn uranium into nuclear reactor fuel.
Cameco (CCJ) jumped another 3.3% and continued to climb up a cup base. Its buy point is 32.59. NextGen Energy (NXE), another Canadian company that mines uranium, gained more than 1% earlier but was down 1.8%.
Retail stocks showed mixed action Wednesday as discount retailer Ollie’s Bargain Outlet (OLLI) rallied 3% after reporting weak first-quarter results. Earnings came in at 20 cents a share. Wall Street analysts had expected 30 cents a share.
The Innovator IBD 50 ETF (FFTY) fell more than 2%, underperforming the stock market.
Shipping stocks sold off. Zim Integrated Shipping (ZIM), Matson (MATX) and Eagle Bulk Shipping (EGLE) sold off in heavy volume.
Novavax (NVAX) climbed more than 5% in big volume after an FDA panel recommended its Covid vaccine for emergency use.
Follow Michael Molinski on Twitter @IMmolinski
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