STOCK MARKET NEWS: Dow breaks below 30K level as recession fears rise, oil off 7% for week
The Dow, S&P and Nasdaq Composite see sharp declines as investors continue to shed equities amid rising recession fears. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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Illustration shows Truth social network app icon in IOS app store (Reuters/Dado Ruvic)
Investors are pulling out of the deal by Digital World Acquisition to combine with Trump Media & Technology Group, a regulatory filing said.
The moves come ahead of an October 10 special meeting of stockholders to approve the deal.
The special purpose acquisition company (SPAC) said it received termination notices from PIPE Investors representing approximately $138.5 million.
PIPEs are private investment in public equity. PIPE investors agreed to back the deal with by purchasing Digital World’s Series A convertible preferred stock.
TRUMP'S SOCIAL MEDIA PLATFORM TRUTH SOCIAL, BUYER NEED EXTENSION TO COMPLETE MERGER
Roger Ng arrives to court for jury selection in New York, Feb. 8, 2022. (AP Photo/Seth Wenig)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GS | $301.97 | -10.95 | -3.50 |
Goldman Sachs have received preliminary approval to settle a shareholder derivative lawsuit involving the so-called 1MDB scandal, the investment bank said.
In April, a federal jury in Brooklyn, New York convicted former Goldman Sachs managing director Roger Ng of participating in a bribery and money laundering scheme related to a Malaysian investment development fund known as 1MDB.
Between 2012 and 2013, Ng received more than $35 million in kickbacks for his role in the scheme to steal and launder billions of dollars from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions and to use that money for bribes, the Justice Department said in April.
U.S. stocks experienced another sharp selloff across the board with the Dow Jones Industrial Average touching an intraday bear market before ending slightly above that level with a 486 point loss as recession fears grow. In commodities, oil fell over 7% for the week ending at $78.74 per barrel.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SP500 | $3,689.26 | -68.73 | -1.83 |
Investors moved more than $30 billion to cash this week as anxiety grows about the performance of stocks, bonds and other asserts. Bond outflows totaled almost $7 billion.
Bank of America says investor sentiment is "unquestionably" the worst it's been since the 2008 global financial crisis as fears of a recession grow.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BUD | $46.35 | -2.21 | -4.56 |
Anheuser-Busch says its in a strong position to ride out economic turbulence because it has strong brands across different price points.
CEO Brendan Whitworth told FOX Business: “We feel pretty well positioned to handle whatever and wherever the consumer goes.
”The unit of Belgium-based AB InBev has more than 100 brands, including Budweiser, Bud Light, Busch, Michelob Ultra, Stella Artois and Shock Top.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CAMP | $4.00 | -0.87 | -17.86 |
CalAmp touched its 52-week low Friday. The provider of fleet telematics topped Wall Street second quarter estimates for revenue and profit but warned of slowing growth.
“The company does expect to achieve low to mid single digit percentage point sequential revenue growth in the third quarter,” the company said. Additionally CalAmp noted it is not providing quarterly guidance because visibility into product shipments remains difficult to accurately assess.
Revenue for the three months ended August 31 increased 13% to $72.8 million. Analysts expected $69.27 million.
The net loss widened to $7.49 million from $5.43 million.
The adjusted net loss per share was 2 cents, better than the estimate of 3 cents.
Goldman Sachs just got more negative on the outlook for the S&P 500, the broadest measure of the U.S. stock market.
U.S. stocks see heavy selling with all three of the major averages down over 2% with the Dow’s point drop hitting 700 before bouncing off the lows which confirmed a bear market.
All 30 members traded in the red with Boeing and Chevron the worst performers. Oil fell nearly 6% trading below $80 per barrel infecting energy stocks.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SP500 | $3,667.98 | -90.01 | -2.40 |
| I:COMP | $10,809.21 | -,257.60 | -2.33 |
| BA | $130.35 | -8.36 | -6.03 |
| CVX | $145.45 | -9.44 | -6.09 |
| XLE | $70.42 | -5.28 | -6.97 |
| Symbol | Price | Change | %Change |
|---|---|---|---|
| COST | $470.15 | -17.02 | -3.49 |
Costco has no plans at this time to raise membership fees. The operator of an international chain of membership warehouses said its membership renewal rate was 92.6% in the U.S. and Canada at the end of its fiscal fourth quarter ended August 28.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| GLNCY | $10.01 | -1.02 | -9.22 |
| NEM | $40.75 | -1.75 | -4.12 |
Glencore fell almost 10% in Friday morning trading. The Anglo-Swiss multinational commodity trading and mining company is buying a stake in an Argentinian copper and gold project and was reportedly penalized in an oil pricing case.
Glencore will pay $124.9 million to acquire an 18.75% interest in Newmont’s shareholding in the MARA Project (MARA). Additionally, Glencore will make up to $50 million in deferred consideration.
MARA has proven and probable mineral reserves of 5.4 million tonnes of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore with an initial mine life of 28 years.
Additionally, Bloomberg reported a federal court in Connecticut ordered Glencore to pay $486 million in fines and forfeiture for allegedly engaging in a multi-year scheme to manipulate fuel oil prices at two of the busiest commercial shipping ports in the U.S.
The company pleaded guilty in May to the commodity price manipulation scheme, the Justice Department announced.
oil refinery of the Lukoil company in Volgograd, Russia, April 22, 2022. (Reuters)
Oil prices plunged about 5% to an eight-month low on Friday as the U.S. dollar hit its strongest level in more than two decades and on fears rising interest rates will tip major economies into recession.
Brent futures were down $4.35, or 4.8%, to $86.11 a barrel by 10:09 a.m. EDT (1409 GMT), while U.S. West Texas Intermediate (WTI) crude fell $4.58, or 5.5%, to $78.91.
That puts both benchmarks into technically oversold territory and WTI on track for its lowest close since Jan. 10 and Brent on track for its lowest close since Jan. 13.
For the week, WTI was down about 7% and Brent down about 6%, the fourth straight week of declines for the benchmarks, the first time this has happened since December.
U.S. gasoline and diesel futures were also down more than 5%.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JBLU | $6.87 | -0.23 | -3.31 |
JetBlue Fleet Service workers want to unionize. The International Association of Machinists and Aerospace Workers (IAM) says there is enough interest among the discount air carrier’s ground operation workers to conduct a union representation election.
North America’s largest airline union announced it will file an election application with the National Mediation Board (NMB), the federal agency that conducts union representation elections in the airline and railroad sectors.
JetBlue workers have cited below-standard industry pay rates and benefits, poor and unsafe working conditions, unjustified discipline and terminations, among many other issues as reasons to gain IAM representation and a seat at the table, the IAM said.
The IAM is the largest airline union in North America and represents airline workers at every major U.S. airline.
Bank of America logo in the Manhattan borough of New York City, N.Y., Jan. 30, 2019. (REUTERS/Carlo Allegri)
Global government bond losses are on course for the worst year since 1949 and investor sentiment has plummeted to its lowest since the financial crisis, BofA Global Research said in a note on Friday.
This year’s dramatic bond tumble threatens credit events and a potential liquidation of the world’s most crowded trades, including bets on the dollar that have taken the greenback to multi-year highs against other currencies and bets on U.S. technology stocks, the bank said.
Bond funds recorded outflows of $6.9 billion during the week to Wednesday, while $7.8 billion was removed from equity funds and investors plowed $30.3 billion into cash, BofA said in a research note citing EPFR data.
Investor sentiment is the worst it has been since the 2008 global financial crash, the note said.
U.S. stocks fell for a fourth day, with the Dow Jones Industrial Average slipping below the key 30,000 level, as investors wind down a choppy week following the Federal Reserve’s 75 basis point rate hike. In commodities, oil fell over 4% to the $79 per barrel level.
NYSE floor traders (Reuters)
U.S. equity futures are adding to losses following three days of declines after more rate hikes by the Federal Reserve and other central banks to control persistent inflation spurred fears of a possible global recession.
The major futures indexes suggest a decline of 0.8% when Wall Street begins trading.
The yield on the 10-year Treasury, which influences mortgage rates, was at 3.68% on Friday.
Oil prices fell Friday amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns.
West Texas Intermediate (WTI) crude futures were trading around $83.00.
Brent crude futures traded around $89.00 per barrel.
For the week the contracts for TWI and Brent were down 2.3% and 1.5% respectively.
In Asia, Hong Kong's Hang Seng sank 1.2% and China's Shanghai Composite Index lost 0.7%. Japanese markets were closed for a holiday.
The S&P 500 lost 0.8% on Thursday to 3,757.99. The Dow Jones Industrial Average fell 0.4% to 30,076.68 and the Nasdaq composite slid 1.4% to 11,066.81.
Shakira and Jennifer Lopez perform during halftime of the NFL Super Bowl (AP Photo/Seth Wenig)
This season's Super Bowl halftime show will have a new sponsor.
The National Football League announced on Thursday that Apple Music is the new partner for the Super Bowl Halftime Show.
The multi-year partnership will begin with Super Bowl LVII, which will be played on Sunday, Feb. 12, 2023 in Glendale, Arizona.
Costco location (iStock)
Costco shares traded 3% lower in premarket trading as operating expenses rose due to higher labor and freight costs.
The big-box retailer beat Wall Street revenue and profit estimates.
Fiscal fourth total revenue rose 15% to $72.10 billion. The analysts' average estimate was $72.04 billion.
Comparable sales grew 13.7%, with e-commerce up 7.1%. U.S. sales were 15.8%.
Gas prices (AAA)
The average price of a gallon of gasoline gained again on Friday to $3.689, according to AAA. Thursday's price was $3.684, rising for the third day in a row after nearly 100 days of declines.
Gas hit a high of $5.016 on June 14.
Diesel's price slipped to $4.911 per gallon.
Oil rig pumping (Reuters)
Oil prices fell Friday amid recession fears and a stronger U.S. dollar, though losses were capped by supply concerns.
West Texas Intermediate (WTI) crude futures were trading around $83.00.
Brent crude futures traded around $89.00 per barrel.
For the week the contracts for TWI and Brent were down 2.3% and 1.5% respectively.
Central banks around the world raised interest rates this week, raising the risk of economic slowdowns.
Bitcoin was trading at around $19,000, after snapping a four-day losing streak.
For the week, Bitcoin was lower by more than 1%. For the month, the cryptocurrency is down more than 4%.
Bitcoin is down more than 58% year-to-date.
Ethereum was trading at $1,300, after losing 10% in the past week.
Dogecoin was trading at 6 cents, gaining just over 1% in the past week.
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