Stocks spent the last day of March much as they’ve spent the past few months – trading in halfhearted territory.
Today’s decline followed an attack of fiscal reports. On the inflation front, data from the Buying Sphere showed that the private employment expenditures (PCE) index – which events the price change of goods and air force bought by patrons – rose 0.6% month-over-month and 6.4% year-over-year in February, the quickest annual boost since 1982.
Meanwhile, consumer costs ticked up 0.2% from January, though this missed economists’ consensus assess.
And ahead of tomorrow’s monthly jobs data, a Labor Sphere report showed weekly jobless claims rose 14,000 last week to 202,000, vaguely more than was probable.
Investors also eyed Head Joe Biden’s plot to tap into strategic oil capital – releasing a record 180 million barrels – to combat red-hot gas prices. This sent U.S. crude futures down 7% to $100.28 per barrel – their lowest agreement since March 16.
Still, the ” release of oil from the Strategic Oil Reserve will face two key logistical challenges,” says Peter McNally, vice head of Global Sector Lead at Third Bridge. “The first is getting the oil out of the underground storage. This will take months to perfect a release of 180 million barrels. The second challenge is converting the crude oil into fuel for patrons.”
Selling picked up into the close, with the Dow Jones Manufacturing Average ending down 1.6% at 34,678, the Nasdaq Composite off 1.5% at 14,220 and the S&P 500 Index giving back 1.6% to 4,530.
For the month, the three indexes gained 2.3%, 3.4% and 3.6%, correspondingly. As for the first quarter of 2022, the Dow (-4.6%), Nasdaq (-9.1%) and S&P 500 (-5.0%) all refined solidly in the red, marking their worst quarter since Q1 2020.
Other news in the stock market today:
- The small-cap Russell 2000 shed 1% to 2,070. For the month, the index rose 2.1%, paring its first-quarter loss to 6.9%.
- Gold futures rose 0.8% to settle at $1,954 an ounce, bringing their weekly gain to 6.9%.
- Bitcoin wasn’t immune to today’s selling, sinking 3.2% to $45,616.75. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Walgreens Boots Alliance (WBA) was the worst Dow Jones stock today, shedding 5.7% after return. In its fiscal second quarter, the drugstore chain reported adjusted return of $1.59 per share on $33.8 billion in revenue, beating analysts’ consensus estimates. And while the company reiterated its full-year forecast, it warned of slowing demand for COVID-19 testing and vaccines and said funds it made to become more healthcare-oriented, like opening hundreds of doctor’s offices, will take time to pay off.
- Well ahead Micro Devices (AMD) tumbled 8.3% after Barclays analyst Blayne Curtis downgraded the semiconductor stock to Equalweight from Hefty (the equivalents of Hold and Buy, correspondingly). Curtis cited rising struggle from Intel (INTC). The analyst also questioned AMD’s “growth curve coming out of this the makings minor change,” and said he is staying on the sidelines until there is “better clarity as to the degree of these corrections and what the competitive landscape will look like as Intel catches up and ARM takes more share.”
Energy Stocks, Oil Prices Rack Up Huge Q1 Gains
Sure, it was an hideous quarter for most stocks, but not all. The energy sector surged 37.7% in the first three months of 2022 thanks in part to a 33% gain in U.S. crude oil futures. According to Dan Wantrobski, technological strategist and normal boss of investigate at Janney Montgomery Scott, this run in oil prices could have legs.
Right, crude futures have pulled back just from the $125-per-barrel mark touched earlier this month, but Wantrobski calls out a major theme driving inflation these days: “Too much liquidity relation to void assets and investment vehicles” – or, more simply place, “too much money chasing too small of no matter what thing.”
And given that there’s plenty of excess liquidity still long drawn out in the market, Wantrobski believes the longer-term outlook on oil prices remains bullish.
Investors looking to squeeze more profits from the oil patch aren’t hurting for options – our top energy stocks for 2022 include a wide array of operators, or you can dig into point niches such as these three refiners or these high-docile halfway through energy plays.
But those who prefer to spread their risk across 20 or 30 stocks rather than two or three might thought-out these seven chat-traded funds (ETFs) amid rising oil prices. The funds featured here allow you to invest in the overall energy sector, in point industries and even in oil futures.