Stocks lose 2% on Thursday as investors fear the Fed is tipping the economy into a recession – CNBC
Markets might be ‘prone to wider swings’ in final two weeks of 2022, investor says
Stocks could be in for further volatility heading into the final stretch of 2022 with the December Fed meeting, and a raft of economic reports, in the rearview mirror, according to Brian Price, head of investment management at Commonwealth Financial Network.
“The last two weeks of the year will be interesting as the market might be prone to wider swings given the absence of important economic data releases and the fact that many traders will be on holiday,” Price wrote Thursday.
Investors are in for a “critical” upcoming earnings season that will give further insight into how companies are dealing with inflation, he said.
“If we do see an uninspiring earnings season then it’s hard to see how we don’t have a continuation of the volatile trading environment that has characterized much of 2022,” Price added.
— Sarah Min
Stocks pull off worst levels in final hour of trading
Stocks pulled away from their worst levels heading into the final hour of trading, with the Dow Jones Industrial Average off 709 points, or 2.11%. The S&P 500 dropped 2.26%, and the Nasdaq Composite tumbled 2.9%.
At session lows earlier in the day, the Dow was down as much as 950.19 points, or 2.8%. The S&P 500 was off 2.9%, and the Nasdaq Composite was 3.54% lower.
— Sarah Min
Josh Brown: Trading Disney is like trying to catch a ‘falling knife’
Trying to trade Disney is like trying to catch a falling knife, according to Josh Brown, CEO of Ritholtz Wealth Management.
Brown said long-term investors will be on good footing if the stock falls back below trading near $89 or $90 per share. But he said it isn’t a smart time to trade because it has not stabilized and the stock has not yet clearly reset off its low.
“If you’re trading,” he said on CNBC’s Halftime Report, “it’s like a falling-knife strategy.”
Other investors joining CNBC’s Scott Wapner disagreed.
While Brown said there is concern about how it will perform in a recession, Jenny Harrington, CEO of Gilman Hill Asset Management, said it’s a stock that has already priced that in. Meanwhile, she said investors will look to what she called compelling earnings growth from the entertainment giant after the current “hate fest” ends.
Bill Baruch, founder of Blue Line Capital, also said he likes …….