Cboe's Weekly Market Recap: May 16th to May 20th

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After crossing the 20% decline threshold on May 20, the SPDR S&P 500 ETF SPY briefly entered bear market territory last week but closed above this level by end of the day.

Despite the recovery, Cboe Global Markets Inc. CBOE reported a decline in a number of U.S. funds tracking significant indices, including the Nasdaq 100 Index, the Russell 2000 Index and the S&P 500 Index, for the trading period between May 16th to May 20th. 

Global markets had mixed performances last week. Cboe reported a rise in two European market proxies — Europe’s MSCI European and the United Kingdom’s iShares FTSE 100 — but a decline in France’s Lyxcor CAC 40 and Germany’s iShares DAX 30.  

Doug McMillion’s Walmart Inc. WMT wins chart of the week following a potent reaction to an earnings report that was not aligned with analyst estimates. 

Finally, Cboe noted important upcoming earnings that may lift investors’ eyebrows in the following week.

Quick Bites

Exchange-Traded Funds 

  • The SPDR S&P 500 ETF declined 3.01% last week, the seventh consecutive week of drawdown. The SPY closed below $400 for the second week this year. 
  • The Invesco QQQ Trust Series 1 QQQ declined 4.39% last week, recording its seventh consecutive week of price depreciation. 
  • The iShares Russell 2000 ETF IWM declined 1.12% last week, recording its fifth consecutive week of price falloff.  
  • The Cboe Volatility Index® decreased 1.94% last week. The fear gauge has consolidated between 25 and 36 for the last four weeks.

World Markets

  • The MSCI Europe ETF IEUR increased 1.43% week-on-week, representing its second week of price appreciation.
  • The iShares FTSE 100 ISF increased 0.33% week-on-week, its second week of price ascension.
  • The iShares DAX 30 EXS decreased 0.46% week-on-week. 
  • The Lyxor CAC 40 ETF CAC decreased 1.15% week-on-week. 

Chart Of The Week: WMT

This photo was taken from the TradingView platform

Shares of retail giant Walmart dropped 12 points — roughly 8% — in the aftermarket hours as a result of a disappointing earnings report. The company’s earnings per share (EPS) stood at $1.3, 18 cents less than the consensus estimate of $1.48. The company reported revenue of $141 billion, 2% more than the $138 billion consensus estimate. 

The price of Walmart shares continued to tumble after its earnings release, closing at $119.20, a 19.5% depreciation from its pre-earnings price. 

Major Cryptos

At the time of writing: 

  • Bitcoin BTC/USD declined 8.05%, representing its seventh week of consecutive decline and breaching below $28,000 for the first time since January 2021. 
  • Ethereum ETH/USD declined 14.94%, representing its sixth consecutive week of decline.
  • Solana SOL/USD declined 22.07%, representing its sixth consecutive week of decline and revisiting price levels held in April 2021. 

Upcoming Earnings And Catalysts

May 23rd

Advance Auto Parts Inc. AAP and XPeng Inc. XPEV report earnings this Monday with earnings per share estimates standing at $3.57 and -$1.87, respectively.

May 24th

Retail giant Best Buy Co. Inc. BBY reports earnings Tuesday. 
Analysts, on average, are anticipating a 26.9% year-over-year (YoY) drop in earnings to $1.63 per share, according to Kiplinger. Revenue is expected to arrive at $10.4 billion (-10.3% YoY).

A slew of retail-clothing operators report earnings as well, including Abercrombie & Fitch Co. ANF, Nordstrom Inc. JWN, Ralph Lauren Corp. RL and Urban Outfitters Inc. URBN

EPS estimates stand at $0.09, -$0.05, $0.37 and $0.42, respectively.

May 25th

Popular semiconductor stock Nvidia Corp. NVDA reports earnings on Wednesday. 

According to Kiplinger, a Susquehanna Financial Group analyst is anticipating Nvidia to report earnings of $1.30 per share and revenue of $8.1 billion in its first quarter. This compares to consensus estimates for earnings per share of $1.29 (+41.6% YoY) and revenue of $8.1 billion.

Other notable earnings throughout the week include Dick’s Sporting Goods Inc. DKS, Express Inc. EXPR, Ali Baba Group Holding (HKG: 9988), Gap Inc. GPS, Dollar Tree Inc. DLTR, Toronto-Dominion Bank TD and Royal Bank of Canada RY. 

Click here for more weekly insights by Cboe. 

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Photo by George Morina on Pexels

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