The bearish sentiment that is fueling the current pullback in US equity markets could intensify in the coming week as investors continue to price recession risk into their assessments.
The recorded its 10th week of declines in the last 11, with no bottom in sight. On Thursday, all 11 sectors of the SPX closed more than 10% below their recent highs. Similarly, the fell below 30,000 for the first time since January 2021 last week.
Adding to market pressures: The U.S. Federal Reserve rose three-quarters of a percentage point on Wednesday – its biggest rise since 1994. The central bank also warned it would continue aggressive tightening until it falls within its range .
The sell-off, which comes after a long wave of pandemic-triggered buying, hit tech and cyclical stocks hard. Against this backdrop of widespread pessimism about the broader economy, here are three stocks we’ll be watching closely next week:
The world’s largest package delivery service, FedEx (NYSE:), will release its fourth quarter fiscal 2022 report after market close on Thursday, June 23. On average, analysts expect earnings of $6.87 per share on revenue of $24.49 billion.
The global freight and logistics giant is struggling to gain investor confidence in the current hostile market environment. This month, the company’s CEO, Raj Subramaniam, announced a series of improvements designed to create “long-term shareholder value.”
As part of an agreement with investment management firm DE Shaw, Memphis, Tennessee-headquartered FedEx increased its quarterly dividend by more than 50% beginning in mid-July, restructured its board of directors and promised to cut costs in order to combat the highest rate of inflation in the United States for 40 years.
These changes have sent the company’s shares skyrocketing +14% over the past week, trimming FDX’s losses this year. FedEx stock, which has lost 11% this year, closed Friday at $229.90.
Shares of Coinbase Global (NASDAQ:), the largest cryptocurrency exchange in the United States, may come under renewed selling pressure in the coming week as the ongoing strong sell-off in cryptocurrencies continues. intensified over the weekend. , the largest digital currency by market capitalization, fell below $20,000 on Saturday, for the first time since December 2020, and is currently heading even lower, $18,330 at press time, as the investors continue to exit risky assets.
Given the gloomy environment for risky assets and digital currencies in particular, Coinbase last week laid off 18% of its workforce, following in the footsteps of other cryptocurrency-related businesses that have recently cut staff.
Last month, the San Francisco-based exchange reported a lower-than-expected first quarter and warned that trading volume and monthly user transactions would be weaker in the second quarter.
A new risk disclosure in its latest quarterly filing has sparked concerns among some users about the safety of their crypto assets held by the company in the event of bankruptcy. Coinbase stock closed Friday at $51.22, and is down about 80% this year.
U.S. health advisers have approved Pfizer’s (NYSE:) COVID-19 vaccines for infants and toddlers, as well as Moderna’s (NASDAQ:) offering – a move that could help boost sales of these producers of mRNA vaccines.
The US Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices voted 12 to 0 to recommend Pfizer’s three-dose vaccine for children six months to four years old.
He also voted 12-0 to recommend Moderna’s two-dose vaccine for children aged six months to five years. CDC Director Rochelle Walensky has the final say in formalizing the vote, which will allow vaccines to finally be released, Bloomberg reports.
Global pharmaceutical giant Pfizer last month kept its annual sales outlook for its COVID-19 vaccines and treatments unchanged. In mid-April, Pfizer said it had secured contracts worth $32 billion for 2022 for the injection, Comirnaty, and $22 billion for its COVID pill, Paxlovid, the same numbers it three months ago.
PFE stock closed Friday at $46.53, having lost about 20% of its value this year.
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3 US stocks to watch closely this week: FedEx, Coinbase, Pfizer | Investing.com
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