Following Tuesday’s comeback, Fund Strat said the rebound by equities is very constructive and strongly supports the idea the ‘worst of the selling is behind us,’ according to excerpts of the note shared on X, formerly Twitter. Tom Lee, Head Of Research at the firm, said in a separate post that it was a “rough 3 days of relentless selling but instead of breaking equity markets, VIX falling, BOJ pausing hikes, stocks finding footing.”
“Seems more ‘growth scare’ not calamity.”
George Smith, portfolio strategist at LPL Financial, said dips, pullbacks and corrections of 10% or more are a “normal and healthy part of any bull market.” Falling back on historical data, Smith noted that on average, stocks experience a pullback of over 5% over three times per year and a correction of 10% or more around once per year, even in positive years.
“We believe that how common these occurrences are should provide comfort to equity investors, allowing them to be patient, stay invested, and most importantly, to not panic,” he added.
Upcoming Economic Data:
The Energy Information Administration will release its weekly petroleum status report at 10:30 a.m. EDT.
The Federal Reserve is scheduled to release its report on June consumer credit at 3 p.m. EDT. Economists, on average, expect the outstanding consumer credit to decline from $11.3 billion in May to $9.7 billion in June.
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Stocks In Focus:
Airbnb, Inc. ABNB fell over 16% in premarket trading following its quarterly results, while Super Micro plunged over 14%, also on earnings.
The other stocks moving on earnings are Devon Energy Corporation DVN (up over 4.50%), Amgen (down over 4.50%), Cirrus Logic, Inc. CRUS (up nearly 12%), Exelixis, Inc. EXEL (up over 6.50%), Fortinet, Inc. FTNT (up over 16%), Illumina, Inc. ILMN (up over 6%), Tripadvisor, Inc. TRIP (down over 16%), Reddit, Inc. RDDT (down over 6.50%), Rivian Automotive, Inc. RIVN (down nearly 8%), Sunrun Inc. RUN (up over 12%), Trex Company, Inc. TREX (down nearly 17%), and Wynn Resorts, Limited WYNN (up over 4.50%).
CVS Health Corporation CVS, Shopify Inc. SHOP, Lyft, Inc. LYFT, Disney and Warner Music Group Corp. WMGare among the key companies due to release their earnings reports ahead of the market opening.
Those reporting after the close are AppLovin Corporation APP, Bumble Inc. BMBL, Beyond Meat, Inc. BYND, Blink Charging Co. BLNK, Fastly, Inc. FSLY, Forward Air Corporation FWRD, HubSpot, Inc. HUBS, Kulicke and Soffa Industries, Inc. KLIC, Marathon Oil Corporation MRO, Monster Beverage Corporation MNST, Occidental Petroleum Corporation OXY, Robinhood Markets, Inc. HOOD and Warner Bros. Discovery, Inc. WBD.
Commodities, Bonds And Global Equity Markets:
Crude oil futures rose sharply, extending the gains from the previous session, and gold futures rebounded, while the yield on the 10-year Treasury note rose 4.9 basis points to 3.936%. Bitcoin BTC/USD pushed up about 4%, past the $57K mark.
Asian markets climbed across the board, led by the Taiwanese, South Korean, Singaporean and Hong Kong markets. The Australian and Chinese markets underperformed with much more modest gains, with the latter stymied by weak export data that offset the rebound in imports.
European stocks also rallied hard in early trading.
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