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Afternoon Note

Tesla to the Rescue

By Karina Hernandez, Senior Research Analyst
7/21/2022 1:48 PM

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:

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.  

S&P 500 Index



Communication Services XLC



Consumer Discretionary XLY



Consumer Staples XLP



Energy XLE



Financials XLF



Health Care XLV



Industrials XLI



Materials XLB



Real Estate XLRE



Technology XLK



Utilities XLU




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. 




Stock Reaction






















How likely is it that (after November) the leaders of the rush to go green are placed in their life boats; while the “mother ship” proceeds at a more reasonable pace?

Fred on 7/21/2022 2:44:02 PM

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