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 The Arms Indexes for both the New York Stock Exchange and the Nasdaq exchange are showing that investors are behaving in a relatively calm fashion despite the steep declines in the market indexes. The Arms is a volume-weighted breadth measure that is used to depict the intensity of selling and buying in declining and advancing stocks, by comparing the ratio of advancing stocks to declining stocks to the ratio of advancing volume to declining volume. The Arms tends to rise above 1.000 when stocks fall, with many believing readings above 2.000 depict panic-like selling behavior. But while the Dow Jones Industrial Average was down 695 points, or 2.2% in morning trading, the S&P 500 was losing 2.0% and the Nasdaq Composite was falling 1.1%, the NYSE Arms was up to just 1.191 and the Nasdaq Arms was actually down to 0.698 according to FactSet. That comes as the ratio of the number of declining stocks to advancers was 4.4-to-1 on the NYSE and 1.9-to-1 on the Nasdaq, while the ratio of volume in declining stock to advancing volume was 5.2-to-1 on the Big Board and 1.3-to-1 on the Nasdaq.
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A widely followed indicator of the economic outlook briefly flashed a recession warning on Tuesday as fears of a downturn continued to grip markets. The spread between 2- and 10-year yields briefly fell below zero Tuesday morning for the first time since June 14, driven by a bigger decline in the 10-year rate than in the 2-year yield. Investors piled into the safety of government bonds amid a selloff in stocks that sent Dow industrials down by more than 600 points. An inversion of the 2s10s spread is considered to be a reliable indicator of a recession, albeit with a lag.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Stock Futures Fall in Choppy Trading - WSJ The Wall Street JournalStock futures fall after another losing week on Wall Street CNBCStocks Gain as China Tariff Talks Boost Sentiment: Markets Wrap BloombergS&P, Nasdaq, Dow Jones futures dip as yield curve inverts again Seeking Alpha5 things to know before the stock market opens Tuesday CNBCView Full Coverage on Google News
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These are the stocks posting the largest moves before the bell.
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In a note released on Wednesday, after data showed first-quarter U.S. gross domestic product contracted by more than previously estimated, JPMorgan Chase & Co.'s Bruce Kasman and Joseph Lipton said "it is reasonable to consider the risk that the US and/or global economy slips into recession this year." They said "rising concern about persistent inflation shocks has combined with news of a more aggressive Fed and sliding sentiment to materially shift our views on 2H22 growth." Just a week ago, JPMorgan released a global markets outlook that indicated the firm's economics department saw no recession materializing this year.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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