CBOE's Weekly Market Recap: Sept. 12-16

Last week, the SPDR S&P 500 ETF SPY experienced its third-largest decline since January, ushering in a wave of selling and bearish sentiment.

A series of macroeconomic figures seem to have exacerbated the selling last week, including a worse-than-expected consumer price index (CPI) report and an increase in the federal budget debt.  

Cboe Global Markets Inc. CBOE reports that all the exchange-traded funds (ETFs) and indices recorded in this series have experienced a price decline last week. This finding perhaps indicates economic weakness extending onto a global scale. 

Price declines seen in the equities market have been mimicked in trends on the cryptocurrency scene. Both Bitcoin BTC/USD and Ethereum ETH/USD experienced a price decline greater than 9% last week, leading investors to wonder whether the bottom has finally been reached. 

BJ Wholesale Club Holdings Inc. BJ wins chart of the week, following a series of earning reports over the past few quarters that showed accelerated earnings and revenue. In 2022, the stock has risen 50% since its low in May.

Finally, Cboe notes earnings reports that may raise investors’ eyebrows in the following week.

Quick Bites

Exchange-Traded Funds 

  • The SPDR S&P 500 ETF SPY decreased by 5.17% last week, the ETF’s third-largest weekly price descent in 2022.
  • The Invesco QQQ Trust Series 1 QQQ decreased by 5.79% last week, mirroring the SPY’s overall movements.
  • The iShares Russell 2000 ETF IWM increased by 4.49% last week.
  • The Cboe Volatility Index™ VIX increased by 15.5% last week.

World Markets

  • The iShares Core MSCI Europe ETF IEUR decreased by 3.45% week-on-week.
  • The iShares FTSE 100 UCITS ETF ISF decreased by 2.67% week-on-week. 
  • The iShares Core DAX UCITS ETF EXS decreased by 2.66% week-on-week.
  • The Lyxor CAC 40 ETF CAC decreased by 2.27% week-on-week. 

Chart Of The Week: BJ

This photo was taken from the TradingView platform

Shares of BJ Wholesale Club Holdings Inc., an American membership-only warehouse club chain, have been steadily rising over the past couple of months, showing strength in a weak market.

Over its last three earnings reports, BJ has had three consecutive quarters of accelerated earnings. On March 3, May 19 and Aug. 18, BJ reported earnings per share (EPS) of 8 cents, 87 cents and $1.06 respectively. Despite a slight negative surprise in reported revenue on March 3, BJ’s revenue has largely tracked its earnings acceleration, recording $4.496 billion and $5.10 billion on May 19 and Aug 18, respectively. 

Popular growth investors Willaim O’Neil and Mark Minervini have long championed bear markets for their abilities to introduce new market leaders. According to these investors, strong candidates typically demonstrate upward trends and challenge their 52-week highs as the market continues to drop. 

BJ currently meets these two categories and is supported by three consecutive weeks of earnings acceleration.

Major Cryptocurrencies

  • At the time of writing, Bitcoin has declined by 9.74% since last week. 
  • At the time of writing, Ethereum has declined by 21.68% since last week, dropping below the $1,500 mark. 
  • At the time of writing, Solana SOL/USD has declined by 7.39% since last week, holding above that key $30 price tag. 

Upcoming Earnings Releases

A number of companies report earnings next week, including: 

  • Costco Wholesale Corp. COST EPS estimate: $4.16
  • FedEx Corp. FDX EPS estimate: $5.15
  • Manchester United PLC MANU EPS estimate: negative 18 cents
  • Lennar Corp. LEN EPS estimate: $4.91
  • Accenture Plc ACN EPS estimate: $2.58

Click here for more weekly insights by Cboe. 

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Featured photo by Thomas Lefebvre on Unsplash

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