Story

Jittery Investors Troubled by Rising Yields

Daily Market Comment

May 22, 2025

A choppy session looked higher before a last-minute selloff left the different indexes mixed and little changed. Economic data was also mixed as Initial Jobless Claims eased 2k to 227k, while Continuing Claims increased and pushed above 1.9 million. April Existing Home Sales fell -0.5% vs. +2.7% estimated to its lowest figure since 2009 as higher mortgages put buyers on hold. Earnings were mostly better than expected but their stocks were mixed on guidance with Snowflake (SNOW), Advanced Auto Parts (AAP) and Urban Outfitters (URBN) gapping higher on results while Analog Devices (ADI) beat but sold off on disappointing guidance. Consumer Discretionary (XLY) and Technology (XLK) closed the day with modest gains, while Utilities (XLU) and Healthcare (XLV) were the weakest market sectors, the latter on a selloff in UnitedHealth Group (UNH), CVS Health (CVS) and others as Medicare and Medicaid announced increased auditing efforts. Crude oil prices were also lower as OPEC countries agreed to up production. The late selloff erased a triple-digit gain in the DJIA leaving the blue-chip index with a 1.35-point (-0.00) loss at 41859.09. The S&P 500 lost 2.60 points (-0.04%) and settled at 5842.01, while the NASDAQ added 53.09 points (+0.28%) finishing at 18925.73.

Breadth was mixed with declining issues beating advancing issues by 188 on the NYSE, while advancing issues held a 34 unit edge on the NASDAQ. Declining volume was 50% on the NYSE, but advancing volume was 57% of the NASDAQ. The VIX eased 0.59 (-2.83%) and closed at 20.28. Crude oil prices slipped 0.64 (-1.04%) and the July contract closed at $60.94 a barrel. Gold prices dropped 20.30 (-0.61%) and finished at $3293.000 an ounce. Bitcoin (BTC) closed the session at $111,120.

Investors continued to struggle with higher yields and not only in the US. Japan's 30-year bond increased to 3.17% on Thursday, which is a 25-year high. Why is that a factor? It could lead to investors selling off US Treasuries on debt concerns and reinvest in Japan's bonds which could send the rate on the 10-year Treasury above 5%. That would likely trigger a move out of equities as market participants are already concerned with higher rates.

Earnings releases to watch for on Friday include: Booz Allen Hamilton (BAH) and Buckle (BKE).

Friday's Market Moving Economic Calendar: New Home Sales.

By David L. Blake, CMT

Login to MarketEdge

Login
Don't have an account? Sign up now.

Get aFREE!Second Opinion®

Second Opinion Performance

Second Opinion Status

4536

Current Opinions
As of: 05/22/2025

42%

Long Accuracy
As of: 05/22/2025

60%

Avoid Accuracy
As of: 05/22/2025
Click For More Details

Market Recap - 05/22/2025

Index Close Day Change Day % Change YTD % Change
NASDAQ COMPOSITE 18925.74 53.1 0.28% -1.99%
DJ UTILITIES 1023.21 -10.48 -1.01% 4.12%
DJ TRANSPORT 14623.2 63.98 0.44% -8.01%
DJ INDUSTRIALS 41859.09 -1.35 0% -1.61%
NYSE COMPOSITE 19564.71 -43.1 -0.22% 2.45%
S & P 100 INDEX 2844.53 2.24 0.08% -1.58%
RUSSELL 2000 2045.56 -1 -0.05% -8.28%
S&P 500 5842.01 -2.6 -0.04% -0.67%
CBOE MKT VOLATILITY 20.28 -0.59 -2.83% 16.89%
AMEX COMPOSITE 5128.1 -30.25 -0.59% 9.43%
Dr MarketEdge Talks Stocks



Tuesday, May 20th 2025, 4:59 pm

Pricing

$49.95
$ 29 .95 /month
Get Started

Second Opinion on over 3400 stocks, nightly updates for stocks on your watchlist, dozens of tools to find the right stock at the right time, as well as real human support available by chat, email, and phone.

About MarketEdge

MarketEdge is a unique suite of investment tools developed by Computrade Systems, Inc. The purpose of our service is to provide quality, independent research in a manner that is both easily understandable and immediately actionable for individual investors as well as professional money managers. MarketEdge features Second Opinion®, a comprehensive computer-generated technical evaluation of more than 3,400 stocks, along with fundamental research from Standard & Poor's. MarketEdge will generate daily investment ideas for every type of trading strategy thereby enabling one to trade and invest with a consistent, disciplined approach in all market environments.

Logging in...