Marketbites: Markets Slide, Adobe Buys Figma
Updated: Sep 27, 2022
Portfolio Manager Commentary:
Thursday featured a choppy trading session, with indices eventually ending the day in the red. The S&P fell -1.13%, the Nasdaq declined -1.43%, and the Dow lost 0.56%. Shares of Adobe fell -16.79% after the company announced a $20 billion deal to buy Figma, which weighed heavily on the Nasdaq composite. Meanwhile, oil giant Chevron fell 2% hurting the Dow Jones. Financial stocks outperformed with Goldman Sachs rising 1.33% and JPMorgan gaining 1.44%.
A mixed batch of economic reports came out Thursday. The initial jobless claims came in better than expected. Retail sales beat expectations but were negative when including autos. Lastly, manufacturing data showed a slowing economy.
A tentative deal was reached between the biggest freight railroads and union leaders, allowing supply chains to stay intact. Had this deal not been reached, segments of the U.S. economy could have been crippled.
Chart of the Day:
Mortgage rates have topped 6% this week for the first time since the heart of the 2008 financial crisis. The current 6.02% rate is up from 5.89% last week and 2.86% a year ago.