Cboe's Weekly Market Recap: May 9 To May 13

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Cboe Global Markets Inc. CBOE reported a decline in a number of U.S. funds tracking major indices, including the Nasdaq 100 Index, the Russell 2000 Index and the S&P 500 Index for the trading period between May 9 to May 13, 2022.

News of the Consumer Price Index (CPI)’s declining acceleration, however, served the markets with a little bit of a psychological breather. Since the announcement on May 11, the SPDR S&P 500 ETF SPY has experienced two consecutive days of price ascension, closing the week at $401.72 per share.

Global markets have also crept up this week. Cboe reported a rise in a number of European market proxies, including Germany’s DAX 30, France’s CAC 40 and Europe’s MSCI European.

Brian Armstrong’s Coinbase Global Inc. COIN 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 2.34% last week, wallowing in its longest weekly losing streak since 2011.
The Invesco QQQ Trust Series 1 QQQ declined 2.36% last week, recording its sixth consecutive week of price depreciation.
The iShares Russell 2000 ETF IWM declined 2.47% last week, recording its fourth consecutive week of price falloff.
The Cboe Volatility Index™ decreased 4.44% last week after failing to break above 35 for the second week in a row.

World Markets

The MSCI European ETF IEUR increased 0.21% week-on-week.
The iShares FTSE 100 ISF increased 0.43% week-on-week.
The iShares DAX 30 EXS increased 2.56% week-on-week.
The Lyxor CAC 40 ETF CAC increased 1.91% week-on-week.

Chart Of The Week: COIN

This photo was taken from the TradingView platform

Shares of the cryptocurrency exchange platform Coinbase dropped 18 points – nearly 25% – in the aftermarket hours as a result of a disappointing earnings report. The company’s earnings per share (EPS) stood at a loss of $1.98 per share, a major deviation from the $0.08 EPS analyst estimate. The company’s revenue totaled $1.166 billion, another shortcoming to the $1.5 billion analyst estimate.

Shares of COIN dropped to a low of $40.81 the day after earnings were released, representing a nearly 43% decline from the pre-earnings price. COIN’s statement that users could lose their crypto holdings if the company goes bankrupt likely played a role in this dramatic movement.

The company’s stock price, however, has since recovered and climbed back to pre-earnings report levels as the S&P 500 climbed 3.15% in two days.

Major Cryptos

At the time of writing:

Bitcoin (BTC) declined 13.2%, representing its seventh week of consecutive decline and breaching below $28,000 for the first time since January 2021.
Ethereum (ETH) declined 20.68%, representing its sixth week of consecutive decline.
Solana (SOL) declined 33.5%, representing its sixth week of consecutive decline and revisiting price levels held in April 2021.

Upcoming Earnings And Catalysts

May 17th

Walmart Inc. WMT, Home Depot Inc. HD and NextGen Healthcare NXGN report earnings on May 17, 2022.

According to Kiplinger, analysts, on average, are expecting Walmart to report a 12.4% drop in earnings to $1.48 per share. Revenue is expected to arrive at $138.8 billion (+0.4% year-on-year (YoY)).

EPS estimates for Home Depot and NextGen stand at $3.67 and $0.20 respectively.

May 18th

Lowe's Companies Inc. LOW, Bath & Body Works Inc. BBWI, Cisco Systems Inc. CSCO and Target Corp. TGT report earnings on May 18, 2022.

According to Kiplinger, analysts, on average, are calling for a slim 0.9% YoY rise in earnings to $3.24 per share, and revenue is projected to be flat at $23.8 billion for Lowes.

The EPS estimates for the rest stand at $0.53, $0.86 and $3.04 respectively.

Other notable earnings throughout the week include Kohl’s Corp. KSS and Foot Locker Inc. FL.

Click here for more weekly insights by Cboe.