Stocks capped a terrible week with another drop as a warning from one of the leading companies on Wall Street that it stoked concern about the US economy.
After closing on Thursday, the delivery giant FedEx (FDX, -21.4%) – whose financial results are often seen as a reading of broader economic conditions – released preliminary earnings for the first quarter of the fiscal year and revenue numbers that were well below estimates. The company cited the recent acceleration in “global volume softness” and specifically noted “macroeconomic weakness in Asia and service challenges in Europe”. FDX also withdrew its full fiscal year forecast, and said it had initiated several cost-cutting measures to offset the effects of lower demand, including deferring staff hiring, closing 90 FedEx office locations and ending Sunday operations for several FedEx Ground locations. The company is identified on earnings calendar to report its full quarterly results after next Thursday’s close.
Wall Street’s nerves were already soured ahead of FedEx’s financial warning, like this week Read inflation hot However, they confirmed another rate hike from the Federal Reserve at next week’s meeting. But an additional factor contributing to this week’s huge volatility is likely to be the expiration of today’s quadruple options, which is the time when index futures, index options, stock options and individual stock futures expire simultaneously. This happens four times a year – on the third Friday of March, June, September and December – and sometimes results in high volume and erratic movements in parts or all of the market.
in conclusion , Nasdaq Composite It fell 0.9% at 11448 S&P 500 . Index It was 0.7% at 3873, and Dow Jones Industrial Average It was 0.5% lower at 30,822. The three indices suffered significant weekly losses.
Other news in the stock market today:
- beanie hat Contact 2000 It fell 1.5% to 1798.
- US crude futures contracts It made modest gains to close at $85.11 a barrel.
- gold futures contracts It rose 0.4% to close at $1,683.50 an ounce.
- Bitcoin And it fell 0.9 percent to 19629.81 dollars. (Bitcoin is traded 24 hours a day; prices listed here are as of 4pm)
- international paper (IP-11.2%) and American Packaging Company (PKG, -11.0%) after Jefferies analyst Philip Ng downgraded the packaging stock to Underperform, the equivalent of a sell. The downgrade reflects “the massive glut of inventory in containers, as our checks indicate a sharp slowdown in orders and widespread downtime being taken by even smaller players,” Ng wrote in a note. “Our contacts believe that a price cut in the last quarter is imminent, and given that 5%-6% of new capacity scheduled to come online over the next 12 months has not yet affected MKT, conditions may deteriorate in 2023.”
- growth stocks She was among the biggest losers today, with meta pads (dead-2.2%), Twilio (TWLO-4.8%) and snowflake (snow-6.1%) saw significant declines.
Why Low Volatility Funds Can Be a Good Strategy
Don’t get discouraged. Yes, it’s a tough time for the stock market – and there will likely be more volatility to come. But investing is a marathon, not a sprint, and there are ways to weather the storm. Recently, we mentioned the use of high-quality income stocks, such as Distribution kings or Distributed Aristocratsand all have decades of continuous dividend growth under their belts.
But given the panic selling that took place this week, it seems like a good time to reconsider Low Volatility Strategies. “Minimum volatility is a defensive bet,” says Howe Roberts, head of analytics at data research firm Quant Insight. “The whole point is to keep people invested in the market, but target stocks that aren’t volatile or don’t always behave the same way a general index (like the S&P 500) does.” Huw adds that for those “worried about inflation, Fed rate hikes, etc.”, taking this path might be a good strategy. Here, we have compiled 10 low volatility funds It can give investors peace of mind in the long run. Check them out.