The market opened with a gusto, and then the bottom dropped out after news that the latest leading economic indicators point to a possible recession later this year. When the news broke, the algorithms went to work, and all the major indices were off 0.50%.

The Conference Board’s Index of Leading Indicators dropped 0.8% in June to 117. We haven’t had a similar drop since 1960.

Highlights from report:

• High inflation/tight monetary policy will continue to cool down the economy for the rest of 2022
• US recession is more likely near end of 2022 or early 2023
• 2022 economic growth forecast for US down from 2.3% to 1.7%

Now, we are seeing impressive intraday strength with the S&P 500 up 1.3% in the last two hours.

Eight out of the eleven sectors are in positive territory with Consumer Discretionary leading, helped by gains from Tesla (TSLA), which is now up 10%, and back above $800, and the major indices have turned green.  

Snap 

Snap (SNAP) reports after the bell today. The report comes amid ongoing concerns about online ad spending market.  The Street wants to see if the company got its act together with its shares falling more than 47% since it posted mixed first-quarter results.

We think a better than feared Q2 result could drive a relief rally in the name.