The bond selloff deepens in Europe and that won’t lend much help to overall market sentiment to start the new week. This is all the ECB’s doing as mentioned last week here.

This article was written by Justin Low at www.forexlive.com.

As mentioned earlier, a retest of the year’s lows is on the cards for cable and we could get it as soon as today with the way things are going. The technicals are siding overwhelmingly with the dollar right now as the retracement bounce in cable fades. The same can be said for most other major currencies against the greenback as well.

GBP/USD is now down 120 pips today to 1.2190 but it isn’t the only dollar pair down over 1% on the day. The aussie and the kiwi are facing similar losses with AUD/USD down to 0.6965 and NZD/USD down to 0.6295 on the day.

It’s a bloodbath out there.

• USD/JPY: Up, up, and away
• Cable poised to revisit the year’s lows as UK leads the recession race
• Dollar in firm control as market jitters reverberate
• AUD/USD poised for a run at the May lows as risk jitters escalate

This article was written by Justin Low at www.forexlive.com.

EXPECTED
MARKET-MOVING EVENTS:

 

Wednesday: FOMC Rate
Decision

 

Given that
the “peak inflation” narrative has been put aside on Friday as the US CPI data
showed inflationary pressures still rampant and the higher rate in long-term
inflation expectations in the UoM Survey spooked the markets even more, I
expect the markets to maintain a risk-off sentiment into the FOMC event on
Wednesday and keep with the run on the US Dollar.

 

The UK GDP
on Monday and the UK employment numbers on Tuesday won’t matter too much as the
market will just keep on buying the USD into the FOMC. Same story for the
German ZEW survey on Tuesday. I see these data as irrelevant as the market will
just focus on positioning for the FOMC on Wednesday.

 

On Wednesday
the FOMC is expected to hike by 50 bps bringing the rate to 1.25-1.50%. After
the inflation data on Friday though the market started to price in a 75 bps
chance and we saw such calls coming from Barclays and other economists like
Summers. Further out the Fed is expected to hike by 50 bps at the July,
September and October meeting and then going back to 25 bps pace from December
onwards bringing the rate to 3.00-3.25% by year-end.

 

We will also
get the Summary of Economic Projections (SEP) which should show a lower
revision in growth rate, a higher revision in inflation rate and probably a
higher revision in unemployment rate. The “dot plot”, which shows the forecast
of year-end interest rates by the FOMC participants, will be lifted from the
old projections of 1.75-2.00% we saw in March. Most probably they will reflect
market expectations of 3.00-3.25%.

 

Last year in
June the Fed surprised with a more hawkish than expected meeting and I feel
like this one will be another. So, the pattern we saw lately, that is sell into
FOMC, buy the fact and then sell again, may be broken this time and lead to
just a sell-off into and out of the event. I really can’t see the Fed keeping
the status quo and certainly not hinting at any pause or whatsoever like the
infamous comments from Fed’s Bostic. At this point a recession is inevitable
and the only way out of this inflationary mess as the ex-Fed President Paul
Volcker taught us. In the major currencies space the clear winner will be the
USD.

 

On Thursday
we will have SNB and BoE Rate Decisions and on Friday it will be time for the
BoJ. The SNB is expected to hold interest rates unchanged and strike a hawkish
tone amid rising inflationary pressures in Switzerland. The BoE is expected to
hike by 25 bps and keep a hawkish tone signalling further hikes ahead. The BoJ,
on the other hand, is expected to keep its dovish tone as inflation in Japan is
not as high as in the other developed countries and since they’ve been trying
to get some inflation for several years, it doesn’t look like some overshoot
from their 2% target is going to force their hands.

 

As
previously noted, the Fed this week will be the major event and eclipse
everything else. So, buckle up and prepare, because painful times lie ahead…

 

This article
was written by Giuseppe Dellamotta.

 

This article was written by ForexLive at www.forexlive.com.

The market continues to cower in fear as we get into the new week, not helped whatsoever by the ECB failing to calm the selloff in European bond markets as well as the high US inflation print at the end of last week.

The deterioration in the risk mood is continuing to today with a selloff being observed across all asset classes. Stocks, bonds, commodities, and cryptos as well (since the weekend).

The aussie is set to finish down for a fourth straight day but today’s loss is a painful one to take. It will be a crack below 0.7000 again and the double-top pattern around 0.7265-70 will only exacerbate the decline when you go with the technicals.

There isn’t much standing in the way of a push back towards the May lows at 0.6829 next. The other key technical support to watch will be a trendline support seen from the August and December lows (white line) but that doesn’t kick in until below 0.6800.

As sentiment continues to keep on the defensive ahead of the Fed, the aussie is likely to stay under pressure for the time being.

This article was written by Justin Low at www.forexlive.com.

Beijing has reintroduced a few minor restrictions (all off-campus and „offline“ sports activities for teens would be cancelled starting Sunday). Earlier a spokesperson for the city’s government said a recent outbreak „The recent outbreak … is strongly explosive in nature and widespread in scope“. Which does not sound too good at all.

Even Chinese Communist Party controlled state media is sweating on the latest developments. On the Beijing outbreak referred to above:

• The Global Times reporter learned that some districts in Chaoyang have been locked down for 10 days starting Saturday for being found related to the outbreak.

—

Shanghai appears to be back-pedalling a little too. Its China’s largest city of around 25mn people and a key economic hub.

• Authorities ordered PCR testing for all residents in 15 of Shanghai’s 16 districts this weekend, and five districts barred residents from leaving home during the testing period.

Yikes, 5 of 25 districts locked down for the weekend. Its a roller-coaster (not the fun type) there.

There is no end in sight to China’s COVID zero policy. President Xi Jinping with a motivational talk said:

• “Persistence is victory, We must unswervingly adhere to the general policy of ‘dynamic clearing’, strengthen confidence, eliminate interference, overcome paralysing thoughts, pay close attention to the key tasks of epidemic prevention and control, and resolutely consolidate the hard-won results of epidemic prevention and control.”

Join us for the opening of the new FX week Monday in Asia and China markets opening a few hours afterwards.

aud

This article was written by Eamonn Sheridan at www.forexlive.com.

MON: UK GDP Estimate (Apr).
TUE: UK Jobs Data (Apr/May);
Swedish CPI (May); German ZEW Survey (Jun); US PPI (May); OPEC MOMR.
WED: FOMC Announcement; BCB
Announcement; Chinese Industrial Production and Retail Sales (May), French
CPI (May), US Retail Sales (May), New Zealand GDP (Q1); IEA OMR.
THU: BoE Announcement; SNB
Announcement; Australian Labour Market Report (May).
FRI: Quad Witching; BoJ
Announcement; EZ CPI Final (May).

NOTE: Previews are listed in
day-order

UK GDP Estimate (Mon):

Expectations are for April’s GDP
data to show an expansion of 0.2% M/M vs the 0.1% contraction observed in
March. Ahead of the release, Pantheon Macroeconomics (which looks for growth of
just 0.1%) said that the recovery in April’s retail sales appears to have come
at the expense of spending on consumer services. Furthermore, “the contribution
of Covid-related government expenditure to the level of GDP dropped by 0.4pp to
0.7pp in April” and “unlike in some prior months, this drag on healthcare
output does not appear to have been offset by a pick-up in non-Covid
activities”. The consultancy notes that “broadly unchanged GDP would put it on
course in Q2 to undershoot the MPC forecast for growth of 0.1% q/q, given that
output will fall sharply in June, due to the extra bank holiday”.

UK Jobs Report (Tue):

Expectations are for the
unemployment rate in the three months to April to hold steady at 3.7%. There is
no formal consensus at the time of writing for the earnings components,
however, Investec expects headline 3M/YY earnings to show growth of 7.5% vs
previous 7.0%, with the ex-bonus metric seen remaining at 4.2%. Ahead of the
release, Investec expects the upcoming report to follow suit with those seen in
recent months, and indicate an extremely tight labour market. Analysts also
note that “although reported employment growth, measured on the headline ILO
basis, may have accelerated, the fall in unemployment could have slowed as
participation crept up.” Looking further ahead, Investec sees “the margin
squeeze on firms, not least as a result of rate rises, to cool the demand for
labour at the same time as participation recovers. Unemployment should
therefore rise.” From a policy perspective, such an outturn would be manageable,
however, the risk of too aggressive a response to inflation and a subsequent
sharp increase in unemployment cannot be ruled out.

FOMC Announcement (Wed):

Fed officials have heavily guided
towards a +50bps rate rise at its June 15th FOMC, a move which is fully priced
by money markets; the Committee is also expected to lift rates by the same
magnitude at its July 27th confab. If the Fed next week raises rates in line
with consensus expectations, focus will fall onto its updated economic
projections. Since the Fed has pledged that it will ‘expeditiously’ be lifting
rates towards neutral, traders will take note of the updated Staff Economic
Projections for guidance on where the Fed sees the eventual terminal rate of
the cycle and the longer-run neutral interest rate. The now-stale March
forecasts envisaged rates rising to 1.75-2.00% by the end of this year (money
markets are pricing rates at 2.75-3.00% by year-end), before peaking at
2.75-3.00% in 2023 (money markets see 3.25-3.50% by mid-2023); money market
pricing, remarks from officials and analysts suggests these so-called ‘dots’
will be lifted. Meanwhile, the Fed’s assessment of the longer-run neutral rate,
which was cut in March to 2.4% from 2.5%, may see another revision lower in the
June forecasts; when taking out the extremes, the general run of Fed commentary
going into the June meeting has put the rate of neutral at around 2.25% among
the Governors, though the regional Presidents seem to have a higher assessment
than that. “If the two new Fed governors join their colleagues in their
estimate of the neutral rate, the central tendency estimate will decline again
in June,” Moody’s has explained, “at 2.25%, the Fed’s estimate would still be
higher than the most referenced model for estimating neutral fed funds, which
puts it closer to 2%.” Finally, updated economic projections, in addition to
revising up the foreseen trajectory of rates, it is likely that the profile of
inflation will be raised in the near-term, and growth expectations will be lowered,
as has been seen in the OECD’s recently updated economic projections. At Chair
Powell’s post meeting press conference, traders will be looking towards any
commentary that gives clues on what the Fed will do after it has raised rates
by 50bps increments in June and July; while some had envisaged that the central
bank would pause and assess the situation, remarks from some officials, like
the influential Governor Brainard, suggest that falling back to smaller
increments of rate rises are the base case, dependent on the progress of
inflation. Chair Powell will also likely emphasise that tackling soaring prices
remains the priority of the Committee. Additionally, many market participants
are now of the view that the Fed will need to hike rates more aggressively to
manage price pressures, and after the hot May CPI data–where the annual rate of
inflation rose to 40yr highs, while core measures of inflation continued to
rise in the month–Powell will be asked about how prepared the Fed is to raise
rates above the neutral level, which would place activity into restrictive
territory, potentially triggering a US recession. Fed officials in the passed
have suggested that they stand ready to do exactly that if the data requires.

BCB Announcement (Wed):

Brazil’s May IPCA-15 data showed
inflation rising by +0.6% M/M (exp. 0.5%), while the annual rate rose to +12.2%
Y/Y (exp. 12.0%, prev. 12.0%). Pantheon Macroeconomics noted that Brazil’s
inflation dynamics continues to deteriorate. “Upside risks persist due mostly
to worsening supply chains, high commodity prices, particularly fuel, and a
relatively resilient domestic recovery, following the Omicron wave,” but adds
“that said, upside pressures in some key components are no longer increasing.”
PM expects inflation will ease in the months ahead, to around 8.5% Y/Y by the
end of 2022 on the back of favourable base effects. “We think that the headline
rate will hover around its current level over the next few months, but that a
gradual headline inflation downtrend will emerge over Q3,” it says, “the COPOM
probably will hike by 50bps to bring expectations down, but will recognise that
further rate increases will put the economy under severe strain.”

China Activity Data (Wed): May data in China will be
impacted by the tight COVID restrictions seen in Beijing and Shanghai.
Industrial Production Y/Y is expected at 6.0% (vs prev. 6.8%) whilst Retail
Sales is expected to have contracted 7.3% in the month (vs prev. -11.1%).
Although desks are likely to overlook this data amid the ever-developing nature
of the situation, analysts at S&P global suggest “a slower deterioration of
conditions had been seen for mainland China in May’s PMI surveys which, if
supported by the official data, could see investor focus shift more positively
towards China, and also anticipate some easing of global supply constraints.”

US Retail Sales (Wed): US retail sales are seen rising
by +0.2% M/M in May (prev. +0.9%), while the measure which excludes autos is
expected to rise +0.8% M/M (prev. +0.6%). Credit Suisse, which is much more
pessimistic than the consensus, is looking for the four-month run of growth in
nominal goods spending will be snapped in May, forecasting a -1.1% print. “We
estimate the retail sales deflator at 0.7%, implying real retail sales fell
even further, by 1.8%,” CS writes, “May unit auto sales fell sharply,
suggesting autos weakness likely dragged headline retail sales down this
month,” while “gas prices rose quickly this month, raising nominal gas
spending.” For the ex-autos measure, CS says that high-frequency card tracking
data indicates a sharp decline in goods spending; “the end of a
stronger-than-normal tax season is likely contributing to this reversal in
goods spending,” the bank writes, explaining that greater spending on services
was acting as a headwind to purchases of goods, while high inflation is
weighing on consumers’ real purchasing power. “Nominal retail sales have been
relatively strong this year, but real goods spending has weakened, and we
continue to expect a continued decline through the year,” adding that “overall,
risks to the path of real goods spending are skewed to the downside for 2022.”

New Zealand GDP (Wed): The Q1 GDP data will be viewed
as very much in the rear-view mirror as the final month of Q2 gets underway and
with growth expected to slow ahead. Nonetheless, Q/Q is expected at 0.6% vs a
Q4 post-COVID rebound of 3%, whilst Y/Y is expected at 3.3% vs prev. 3.1%.
Analysts at ASB downplay the relevance of the data and say “the future is
ultimately what matters.” From a monetary policy perspective, the RBNZ remains
poised to hike despite the threat to growth as it attempts to get inflation
under control. ASB says they “still see the OCR hitting 3.50% and mortgage
rates moving a bit higher over the remainder of the year. 2023 is when the
calculus will start to get a bit tougher, particularly if the housing market
slowdown deepens more than we expect.”

BoE Announcement (Thu): Policymakers are expected to
continue with the rate hiking cycle by delivering another 25bps rate rise,
taking the Bank Rate to 1.25%. The decision to move on rates is expected to be
unanimous, however, the split of views regarding the magnitude of the move
remains to be seen, given that there were three dissenters at the May meeting.
The need to continue raising rates was underscored by the jump in April’s CPI
metrics, which printed 9.0% from 7.0%. With further increases in inflation
likely in the months ahead, and the MPC expects consumer prices to average a
little over 10% at its peak in Q4 2022. From a growth perspective, the recent
survey data from S&P Global highlighted the difficult economic backdrop in
the UK, and the likelihood of a stagflationary environment going forwards, with
the services metric slipping to 53.4 in May from 58.9. Accompanying commentary
from S&P Global noted “the monthly loss of momentum for business activity
expansion was a survey record outside of lockdown periods.” That said, policymakers
will have found some comfort in the latest government support measures aimed at
addressing the cost-of-living crisis, which could boost nominal GDP by around
0.7% in H2 2022. In terms of guidance from the MPC itself, Governor Bailey has
flagged concerns that pay growth will feed into inflation and is prepared to
raise rates again if needed. Furthermore, Chief Economist Pill has stated that
when it comes to lifting interest rates, “further work needs to be done.” Note,
current market pricing has continued to pick up since the prior meeting and now
looks for around another seven 25bps hikes by year-end. This continues to
remain at odds with guidance from the MPC itself which at the May meeting noted
that the implied market path would see inflation firmly below target in three
years-time at around 1.3%. Therefore, as the year progresses, desks are still
widely of the view that some of this exuberant pricing will need to be taken
out of the market.

SNB Announcement (Thu): Overall, likely to keep the
Policy Rate at -0.75% at the June gathering as, on balance, financial
conditions do not merit an unguided deviation from current policy at this point
in time. However, widening interest differentials, particularly with relation
to the EZ as the ECB are set to hike in July and September are of note and
imply further currency-driven inflationary pressures ahead. Pressure that
Switzerland is already cognisant of with CPI surpassing market expectations for
the last three readings to a YTD peak, thus far, of 2.9% YY; a measure that
already exceeds the SNB’s expected peak of 2.2% for 2022, via March forecasts.
As such, the June forecasts will receive upward revisions and attention will be
on what they expect the peak to be and when it is forecast to occur – note,
while elevated, Swiss inflation is far from the levels exhibited by global
peers. From the SNB itself, we have seen somewhat mixed commentary from
officials on the inflation situation; with Chairman Jordan acknowledging the
increase in global inflation, Board Member Maechler taking a more ‘hawkish’
line, making clear that they will not hesitate to increase rates if inflation
remains outside the target. Most recently, and perhaps pertinently, outgoing
Vice-Chairman Zurbrugg spoke on May 31st, when he would have been privy to the
embargoed May CPI print (2.9% YY), commenting that inflation is low vs other
nations and believes the drivers are temporary; remarks which perhaps serve to
dilute some of the notion around the SNB taking near-term action. Note, while
the September and December meetings may well be considered ‘live’ from a rates
perspective, and particularly September if the ECB does deliver more than 25bp
at that point; the likes of Credit Suisse expect the SNB to drop its “highly
valued” classification amid a lessening of sight deposit activity, as any
notable currency depreciation would fan inflation further. Finally, although
the SNB is unlikely to pre-empt the ECB and hike in June, its most recent rate
alterations came via unscheduled announcements, thus, a post-ECB move in July
cannot be ruled out but, as mentioned, September/December are the focal points.

Australia Jobs Report (Thu): Employment Change is expected to
show 25k additions in May vs 4k additions in April. The Unemployment Rate is seen
dipping to 3.8% from 3.9%, whilst the Participation Rate is expected to remain
steady at 66.3%. Analysts at Westpac expect only 5k job additions in the
headline metric – “We had thought that the April recovery in hours worked was a
prelude to a stronger recovery in employment in May. However, Weekly Payrolls
jobs to 14th of May were very weak. Comparing the May to April reference weeks
Payrolls are down 0.3%; it is usually a seasonally strong month with a positive
change in the ABS seasonal factors”, the desk explains. From a policy
perspective, the RBA is concentrating on controlling inflation, whilst China’s
COVID situation also poses a fluid challenge to the Aussie economy – thus the
jobs release is unlikely to have any broader/sustained ramifications.

 

BoJ Announcement (Fri): BoJ is expected to stick to its
ultra easy policy with rates to be kept at -0.1% and QQE with yield curve
control maintained to flexibly target 10yr JGB yields at around 0%. As a
reminder, the BoJ doubled down on its efforts to contain yields at the last
meeting by announcing it will conduct special operations on every working day
aside from when it is not expected, which went against the outside calls for
the BoJ to adjust its tolerance band and the global trend of central banks
pivoting towards normalisation, while it also reiterated it will ease policy
without hesitation as needed and maintained forward guidance on interest rates.
Since that meeting, the BoJ has continuously reinforced its dovish tone with
Governor Kuroda stating that Japan is absolutely not in a situation that
warrants tightening monetary policy and the biggest priority is to support
Japan’s economy by continuing powerful monetary easing. Kuroda also noted that
the BoJ will be unwavering in its stance of maintaining monetary easing to
ensure the recent rise in inflation expectations lead to a sustained price
increase, while other officials have echoed the dovish tone including Deputy
Governor Wakatabe who said they must maintain powerful monetary easing and sustain
an environment where wages can rise, as well as noted that the BoJ shouldn’t
rule out additional easing steps if risks to the economy materialise and that
widening the range around the BoJ’s 10yr JGB yield target would be tantamount
to a rate increase. Furthermore, the central bank has made it clear that policy
is unlikely to be influenced by the recent depreciation in the JPY or the rise
in inflation whereby Core CPI rose by its fastest pace since March 2015 at 2.1%
vs. Exp. 2.1% (Prev. 0.8%) as Governor Kuroda noted that the FX market is
regaining stability and doesn’t think rapid Yen weakening was caused by BoJ
easing, while he said rising inflation expectations are being driven mostly by
energy costs and are lacking sustainability.

 

This article originally appeared
on Newsquawk.

 

This article was written by Newsquawk Analysis at www.forexlive.com.

It’s all about the FOMC in the week ahead as the murmurs begin of a 75 basis point hike, or even more. The baseline and the Fed communication has all suggested a 50 bps hike but with Friday’s CPI report coming in hotter-than-expected, the conversation changed.

Monday:

Nothing notable

Tuesday:

May PPI

Wednesday:

Import/export prices

May retail sales

Business inventories

NAHB housing market index

Weekly oil inventories

FOMC decision

Thursday:

Housing starts

Weekly jobless claims

Philly Fed

Friday:

Industrial production

This article was written by Adam Button at www.forexlive.com.

Justin had the news as it hit on Friday:

• Japan financial authorities express concern about rapid yen weakening

Reuters have a follow-up piece posted with some remarks out of Tokyo on levels and potential co-ordinated intervention (not expected):

• „Tokyo could intervene if the yen slides below 135 to the dollar and starts going into a free fall. That’s when Tokyo really needs to step in,“ said Atsushi Takeda, chief economist at Itochu Economic Research Institute in Tokyo.

• „But Washington won’t join so it will be solo intervention. For the United States, there’s really no merit in joining Tokyo on intervention.“

I mentioned 135 as a level last week, but said it was my wild-ass guess. I suspect maybe this 135 is pretty much the same, but hey, maybe not. I think the key words are „if the yen … starts going into a free fall“. „Free fall“ is what we’ll have to interpret. Looking at the chart below …. what’s it gonna take???

With the US CPI data on Friday sending yields into the opposite of a free fall (ie. they are surging) ready yourselves for a push at 135 and above for USD/JPY in the week to come.

This article was written by Eamonn Sheridan at www.forexlive.com.

• US May CPI +8.6% y/y vs 8.3% expected
• US June prelim UMich consumer sentiment 50.2 vs 58.0 expected
• Canada May employment change 39.8K vs 30K estimate
• US May federal budget deficit $66 vs $120 billion expected
• ECB’s Nagel: Confident that inflation expectations can get back to levels we want to see
• ECB’s Kazaks: Gradual rate hikes does not mean slow
• Bank of Italy lowers 2022 GDP forecast to 2.6% from 3.8% in January
• US Treasury report concludes no country is manipulating its currency

Markets:

• S&P 500 down 117 points, or 2.9%, to 3900
• US 10-year yields up 11.3 bps to 3.155%
• WTI crude oil down 86-cents to $120.65′
• Gold up $23 to $1871
• USD leads, GBP lags

Jitters were running high ahead of the May US CPI report but the reality was even worse than the fears. All the numbers in the report were high and with oil prices continuing to strengthen, there’s no visible relief on the horizon.

The market reaction suggests a re-think on the pace and terminal top of rate hikes was underway today. It meant a stronger US dollar and higher Treasury yields along with a dramatic selloff in stock markets.

The moves in the dollar weren’t as large on most fronts. The commodity currencies fell 50-80 pips in the second day of declines.

The euro fell a full cent as the talk of ECB rate hikes is replaced by fears of a European recession and sovereign debt crisis. The pound was hit even harder, falling 180 pips as it played some catch up with recent risk aversion. The fall to 1.2310 is the lowest since May 15.

The crux of the problem is shown most-clearly in bonds. US 2-year yields rose a whopping 25 basis points to 3.065%. That’s the first trip above 3% — which is a crucial level — since 2008. The long end held in for a period but eventually puked as well, pushing 10-year yields up 11 basis points to 3.15%. That leaves 2s/10s at just +9 basis points, while 5s/30s inverted on Friday.

We finished near the extremes in FX for the second day in a row.

This article was written by Adam Button at www.forexlive.com.

The stronger than expected CPI reversed premarket stock gains and pushed the major indices lower. A weaker Michigan consumer sentiment didn’t help with the overall sentiment.

• The weekly percentage declines in the Dow, S&P, and NASDAQ weeks was the worst since January 21
• Major indices closed near lows for the day
• Dow Jones is down 10 of the last 11 weeks
• NASDAQ and S&P is down 9 of the last 10 weeks
• All 11 S&P sectors were lower. The worst sector was consumer discretionary which fell over -4.1%. Technology fell -3.9%, Financials fell -3.65%. Consumer staples was the best performer at -0.38%

The final numbers for the day are showing:

• Dow industrial average fell -880.02 points or -2.73% at 31392.80
• S&P index fell -116.96 points or -2.91% at 3900.85
• NASDAQ index fell -414.19 points or -3.52% at 11340.03
• Russell 2000 fell -50.57 points or -2.73% at 1800.28

For the trading week:

• Dow fell -4.58%
• S&P index fell -5.08%

• NASDAQ index fell -5.6%
• Russell 2000 fell -4.41%

Looking at the Dow 30, the worst performers were:

• Dow, -6.06% -6.06%
• Goldman Sachs -5.48%
• Boeing, -5.05%
• J.P. Morgan, -4.65%
• Salesforce, -4.6%

The only winning stock in the Dow was Walmart with a gain of +0.63%. The best of the worst showed:

• Verizon fell -0.16%
• Procter & Gamble fell -0.36%
• Walgreens boots fell -0.43%
• Coca-Cola fell -0.58%

After the close Tesla has proposed a 3 for1 stock split. The stock closed at $696.69. In after-hours trading it is trading up to $716.23.

Amazon shares went through their 20 for 1 stock split this week. For the week after a rise on Monday, the shares are ending the week down -10.38%.

This article was written by Greg Michalowski at www.forexlive.com.