May 27, 2022

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Tech-heavy Nasdaq ends higher after choppy session

U.S. stocks ended the session mixed and off the worst levels of the day in a choppy trading session as bond yields ticked higher. 

The Nasdaq Composite, which sparked the selling, ended the session with modest gains after being down over 2%. The S&P 500 closed down 0.14% and the Dow Jones Industrial Average fell 0.4% or over 163 points after trimming a 500+ point slide. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 36068.87 -162.79 -0.45%
SP500 S&P 500 4670.29 -6.74 -0.14%
I:COMP NASDAQ COMPOSITE INDEX 14942.827898 +6.93 +0.05%

The 10-Year Treasury yield also pulled back to 1.7% from a 12-month high. 

STOCKS FALL, BOND YIELDS RISE AS INVESTORS GET TASTE OF 2022

Tech names Apple, Microsoft and Google all reversed losses, while Amazon closed fractionally lower. 

Ticker Security Last Change Change %
AAPL APPLE INC. 172.19 +0.02 +0.01%
MSFT MICROSOFT CORP. 314.27 +0.23 +0.07%
AMZN AMAZON.COM INC. 3,229.72 -21.36 -0.66%
GOOGL ALPHABET INC. 2,773.39 +33.05 +1.21%

In deal news, Take-Two announced plans to buy Zynga, the maker of the popular FarmVille game, for $12.7 billion, a 64% premium to Friday’s closing price.

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 “We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry,” said Strauss Zelnick, Chairman and CEO of Take-Two in the deal announcement. 

Ticker Security Last Change Change %
TTWO TAKE-TWO INTERACTIVE SOFTWARE INC. 142.99 -21.61 -13.13%
ZNGA ZYNGA INC. 8.44 +2.44 +40.67%

In pharma news, Pfizer confirmed it may have a vaccine specifically to treat omicron by March. 

Ticker Security Last Change Change %
PFE PFIZER INC. 56.24 +0.52 +0.93%
BNTX BIONTECH SE 230.00 +18.16 +8.57%

Lululemon shares slipped after the yoga retailer said the virus impacted holiday sales. 

Ticker Security Last Change Change %
LULU LULULEMON ATHLETICA INC. 348.43 -6.78 -1.91%

“We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations. I am proud of how our teams continue to deliver for our guests, and we are excited about what the future holds for lululemon” said CEO Calvin McDonald. 

As a result, sales will now be at the low end of the $2.125 billion to $2.165 billion range. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 56.16 -0.51 -0.90%
BNO UNITED STS BRENT OIL FD LP UNIT 21.71 -0.25 -1.14%

In commodities, oil slipped 0.8% to $78.23 per barrel. 

The economic calendar is light but will pick up on Wednesday with the release of the Consumer Price Index for December and the Producer Price Index the following day.

Separately, Federal Reserve Chairman Jerome Powell will be on Capitol Hill Tuesday for his re-nomination hearing.   

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