Cboe's Weekly Market Recap: June 6th To 10th

Exciting developments occurred on the Cboe Global Markets Inc. CBOE this week. 

Lending a throwback to its earliest days, Cboe celebrated the grand opening of its new trading floor in Chicago, where it was founded in 1973 as the first listed options exchange in the United States. 

Located in the historic Chicago Board of Trade (CBOT) Building, Cboe's new trading floor occupies more than 40,000 square feet on the seventh and eighth floors, with double-height floor-to-ceiling windows that overlook Chicago's historic LaSalle Street financial district. 

The exciting initiative is a mesh of past and present, combining the open outcry trading methods that defined the early 1990s with today’s cutting-edge technology. 

"Our new and enhanced trading floor offers a vibrant, technology-driven environment that seamlessly integrates both open outcry and electronic trading mechanisms to provide our customers a truly unrivaled, world-class trading experience. We believe this dynamic new space will serve our customers and investors well — now and for years to come,” said Chris Isaacson, executive vice president and chief operating officer at Cboe Global Markets.

Market Movements Overview

The beginning of last week’s market movements suggested another dull week with major exchange-traded funds (ETFs) like the SPDR S&P 500 ETF Trust SPY, Invesco QQQ Trust Series 1 ETF QQQ and iShares Russell 2000 ETF IWM stuck in consolidation zones. 

The last two trading days, however, radically shifted this view. Spurred by a consumer price index (CPI) report of above-average forecasts, the market broke out of its consolidation zone and tumbled significantly downward. The technology sector was hit particularly hard as was the European equities market.

Andrew Robins’ Cogent Biosciences Inc. COGT provides a nice break from the market’s overall pessimism, capturing Cboe’s chart of the week following a runup to a positive news catalyst. 

Finally, Cboe notes important upcoming earnings that may lift investors’ eyebrows in the coming weeks.

Quick Bites

Exchange-Traded Funds (ETFs)

• The SPDR S&P 500 ETF decreased 5.05% week-on-week, wiping out the 12-point upside move that occurred just two weeks ago. 
• The Invesco QQQ Trust Series 1 ETF decreased 5.67% last week, exhibiting a similar weakness to the SPDR S&P500 ETF.
• The iShares Russell 2000 ETF decreased 2.71% last week, following in the footsteps of the larger market proxies.
• The Cboe Volatility Index® increased 11.85% last week, its first increase in five weeks. 

World Markets

• The iShares Core MSCI Europe ETF IEUR decreased 7.98% week-on-week.
• The iShares FTSE 100 ISF decreased 2.91% week-on-week.
• The iShares Core DAX 30 EXS decreased 4.82% week-on-week. 
• The Lyxor CAC 40 ETF CAC decreased 4.48% week-on-week. 

Chart Of The Week: COGT

This photo was taken from the TradingView platform

Shares of Cogent Biosciences, a biopharmaceutical company finding solutions to genetic diseases, increased nearly 60% following news that it had reported positive clinical trials for a new drug. The stock price rose from $4.96 a share to $7.87 a share the day of the news release. It had run to a high of $10.89 — a 120% increase in one day — before settling at $7.87. 

Despite this positive catalyst, Cogent Biosciences missed estimates on every earnings release since May 2021, and its stock has toppled nearly 80% since its initial public offering.

Major Cryptos

At the time of writing: 

• Bitcoin BTC/USD decreased by 6.67%, erasing last week’s gain in its entirety. 
• Ether ETH/USD declined by 16.53%, representing its 10th consecutive week of decline.
• Solana SOL/USD declined 12.9%, representing its 10th consecutive week of decline.

Upcoming Earnings And Catalysts

June 13-17 Earnings

Oracle Corp. ORCL, John Wiley & Sons Inc. WLY and Adobe Inc. ADBE report earnings on Monday, Wednesday and Thursday, respectively. 

The earnings-per-share estimate for each is $1.36, $0.97 and $3.31 per share respectively. 

Click here for more weekly insights by Cboe. 

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Featured photo by Zdeněk Macháček on Unsplash