Dj Sempra On Pace For Largest Percent Decrease Since June 2022 - Data Talk

Sempra (SRE) is currently at $79.04, down $3.78 or 4.56%

• Would be lowest close since Aug. 14, 2024, when it closed at $78.71
• On pace for largest percent decrease since June 13, 2022, when it fell 4.85%
• Currently down five of the past six days
• Currently down four consecutive days; down 9.84% over this period
• Longest losing streak since Dec. 11, 2024, when it fell for nine straight trading days
• Worst four day stretch since the four days ending June 13, 2022, when it fell 10.1%
• Down 9.9% month-to-date
• Down 9.9% year-to-date
• Down 16.6% from its all-time closing high of $94.77 on Nov. 25, 2024
• Up 4.81% from 52 weeks ago (Jan. 12, 2024), when it closed at $75.41
• Down 16.6% from its 52-week closing high of $94.77 on Nov. 25, 2024
• Up 19.02% from its 52-week closing low of $66.41 on April 16, 2024
• Traded as low as $78.96; lowest intraday level since Aug. 15, 2024, when it hit $78.22
• Down 4.66% at today's intraday low; largest intraday percent decrease since Oct. 2, 2023, when it fell as much as 4.84%

All data as of 12:26:17 PM ET

Source: Dow Jones Market Data, FactSet

The S&P 500 Index today is down -1.58%, the Dow Jones Industrials Index is down -1.52%, and the Nasdaq 100 Index is down -1.82%. March E-mini S&P futures (ESH25) are down -1.64%, and March E-mini Nasdaq futures (NQH25) are down -1.98%.

Stocks are selling off today, with the S&P 500 and the Dow Jones Industrials dropping to 2-month lows and the Nasdaq 100 falling to a 6-week low. Rising global bond yields are hammering stock prices. The US 10-year T-note yield soared to a 14-month high, the 10-year German bund yield climbed to a 6-month high, and the Japanese 10-year JGB yield rose to a 13-year high.

Stocks are sinking today on unexpected signs of strength in the US labor market that bolsters the chances that the Fed will pause its interest rate cuts. US Dec nonfarm payrolls rose by +256,000, stronger than expectations of +165,000 and the largest increase in 9 months. Also, the Dec unemployment rate unexpectedly fell -0.1 to 4.1%, showing a stronger labor market than expectations of no change at 4.2%. On the positive side, Dec average hourly earnings unexpectedly eased to +3.9% y/y versus expectations of no change at +4.0% y/y.

Also, weakness in chip stocks is weighing on the overall market. After the close Wednesday, Bloomberg reported that the Biden administration wants to curb the sale of AI chips used in data centers on both a country and company basis.

Stock losses accelerated today after the report from the University of Michigan showed US consumer sentiment unexpectedly fell and inflation expectations rose. The University of Michigan US Jan consumer sentiment index fell -0.8 to 73.2, weaker than expectations of no change at 74.0.

The University of Michigan US Jan 1-year inflation expectations indicator unexpectedly accelerated to an 8-month high of +3.3%, stronger than expectations of no change at +2.8%. Also, the Jan 5-10 year inflation expectations indicator unexpectedly jumped to a 16-year high of +3.3%, stronger than expectations of no change at +3.0%.

Hawkish Fed comments Thursday, when equity markets were closed, were bearish for bonds and stocks. Fed Governor Bowman said, "The rate of inflation declined significantly in 2023, but this progress appears to have stalled last year with core inflation still uncomfortably above the FOMC's 2% goal. Thus, I continue to prefer a cautious and gradual approach to adjusting policy." Also, Boston Fed president Collins said she favored fewer rate cuts this year than she had anticipated just a few months ago and that a slower approach to adjusting interest rates is merited now as officials confront "considerable uncertainty" over the US economic outlook. In addition, Kansas City Fed President Schmid said, "With inflation close to target and growth showing continued momentum, I believe we are near the point where the economy needs neither restriction nor support and that policy should be neutral."

The markets are discounting the chances at 3% for a -25 bp rate cut at the January 28-29 FOMC meeting.

Overseas stock markets today are lower. The Euro Stoxx 50 is down -0.40%. China's Shanghai Composite Index fell to a 2-1/2 month low and closed down -1.33%. Japan's Nikkei Stock 225 slid to a 2-week low and closed down -1.05%.

Interest Rates

March 10-year T-notes (ZNH25) today are down -17 ticks. The 10-year T-note yield is up +5.2 bp to 4.741%. Mar T-notes today tumbled to an 8-1/2 month low, and the 10-year T-note yield climbed to a 14-month high of 4.786%. T-note prices are being undercut today by the stronger-than-expected US Dec payroll report, which dampened the outlook for Fed rate cuts. Also, hawkish comments on Thursday from Fed Governor Bowman, Boston Fed President Collins, and Kansas City Fed President Schmid undercut T-notes as they expressed their support for the Fed to pause its rate-cutting campaign. In addition, rising inflation expectations are negative for T-notes after the 10-year breakeven inflation rate today rose to a 14-month high of 2.474% and after the University of Michigan’s US Jan inflation expectations indicator unexpectedly accelerated.

European government bond yields today are moving higher. The 10-year German bund yield rose to a 6-month high of 2.624% and is up +1.6 bp to 2.582%. The 10-year UK gilt yield is up +2.7 bp to 4.838%.

Swaps are discounting the chances at 94% for a -25 bp rate cut by the ECB at its January 30 policy meeting.

US Stock Movers

Chip stocks are falling today after Bloomberg reported late Wednesday that the Biden administration wants to curb the sale of AI chips used in data centers on both a country and company basis. As a result, Nvidia is down more than -3%. Also, Applied Materials and ARM Holdings Plc are down more than -3%. In addition, Marvell Technology , GlobalFoundries , Intel , and Lam Research are down more than -2%.

Constellation Brands is down more than -13% to lead losers in the S&P 500 after reporting Q3 comparable sales of $2.46 billion, weaker than the consensus of $2.54 billion, and forecasting full-year comparable EPS of $13.40-$13.80, with the midpoint below the consensus of $13.71.

ON Semiconductor is down more than -7% to lead losers in the Nasdaq 100 after Truist Securities downgraded the stock to hold from buy.

Advanced Micro Devices is down more than -4% after Goldman Sachs downgraded the stock to neutral from buy.

Insurance stocks are falling today as the cost of damage from the California wildfires continues to rise. Allstate is down more than -4% and Travelers Cos is down more than -4% to lead losers in the Dow Jones Industrials. Also, Chubb Ltd is down more than -3%, and American Insurance Group is down more than -1%.

Californian utility stocks are selling off today due to the risk of being blamed for the Southern California wildfires. As a result, PG&E Corp is down more than -9%, Edison International is down more than -4%, and Sempra is down more than -3%.

Roku Inc is down more than -3% after MoffettNathanson downgraded the stock to sell from neutral with a price target of $55.

Hims & Hers Health is down more than -3% after Citigroup downgraded the stock to sell from neutral with a price target of $25.

Walgreens Boots Alliance is up more than +24% to lead gainers in the S&P 500 after reporting Q1 sales of $39.46 billion, well above the consensus of $37.34 billion.

Delta Air Lines is up more than +9% to lead airline stocks higher after reporting Q4 adjusted EPS of $1.85, better than the consensus of $1.76, and forecasting Q1 adjusted EPS of 70 cents-$1.00, with the midpoint above the consensus of 76 cents. Also, United Airlines Holdings is up more than +5%, and American Airlines Group and Alaska Air Group are up more than +3%. In addition, Southwest Airlines is up more than +1%.

Government-service stocks are climbing today after Elon Musk expressed doubt that his government efficiency panel in the incoming Trump administration will actually be able to achieve $2 trillion in cuts to the US federal budget. As a result, CACI International and Booz Allen Hamilton Holding are up more than +3%. Also, Science Applications International is up more than +2%, and Leidos Holdings is up more than +1%.

Burlington Stores is up more than +1% after UBS upgraded the stock to buy from neutral with a price target of $360.

Valero Energy is up more than +1% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $149.

Royalty Pharma Plc is up more than +8% after announcing a $3 billion share buyback plan.

Earnings Reports (1/10/2025)

Constellation Brands Inc (STZ), Delta Air Lines Inc (DAL), TD SYNNEX Corp (SNX), and Walgreens Boots Alliance Inc (WBA).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.

• S&P Futures Fall After Key U.S. Jobs Report Released
• S&P Futures Slip on Trump Tariff Worries, U.S. ADP Jobs Report and FOMC Minutes in Focus
• It's All About the Crude Oil Insiders Knowing Something We Don't
• Stock Index Futures Steady With Focus on U.S. JOLTs Report and Fed Speak

The S&P 500 Index today are down -1.17%, the Dow Jones Industrials Index is down -0.91%, and the Nasdaq 100 Index is down -1.49%. March E-mini S&P futures (ESH25) are down -1.19%, and March E-mini Nasdaq futures (NQH25) are down -1.51%.

Stocks are under pressure today, with the S&P 500 falling to a 1-week low, the Dow Jones Industrials dropping to a 2-month low, and the Nasdaq 100 falling to a 6-week low. Rising global bond yields are hammering stock prices. The US 10-year T-note yield soared to a 14-month high, the 10-year German bund yield climbed to a 6-month high, and the Japanese 10-year JGB yield rose to a 13-year high.

Stocks are selling off today on unexpected signs of strength in the US labor market that bolsters the chances that the Fed will pause its interest rate cuts. US Dec nonfarm payrolls rose by +256,000, stronger than expectations of +165,000 and the largest increase in 9 months. Also, the Dec unemployment rate unexpectedly fell -0.1 to 4.1%, showing a stronger labor market than expectations of no change at 4.2%. On the positive side, Dec average hourly earnings unexpectedly eased to +3.9% y/y versus expectations of no change at +4.0% y/y.

Also, weakness in chip stocks is weighing on the overall market. Bloomberg reported that after the close Wednesday that the Biden administration wants to curb the sale of AI chips used in data centers on both a country and company basis.

Hawkish Fed comments Thursday, when equity markets were closed, were bearish for bonds and stocks. Fed Governor Bowman said, "The rate of inflation declined significantly in 2023, but this progress appears to have stalled last year with core inflation still uncomfortably above the FOMC's 2% goal. Thus, I continue to prefer a cautious and gradual approach to adjusting policy." Also, Boston Fed president Collins said she favored fewer rate cuts this year than she had anticipated just a few months ago and that a slower approach to adjusting interest rates is merited now as officials confront "considerable uncertainty" over the US economic outlook. In addition, Kansas City Fed President Schmid said, "With inflation close to target and growth showing continued momentum, I believe we are near the point where the economy needs neither restriction nor support and that policy should be neutral."

The markets are discounting the chances at 3% for a -25 bp rate cut at the January 28-29 FOMC meeting.

Overseas stock markets today are lower. The Euro Stoxx 50 is down -0.02%. China’s Shanghai Composite Index fell to a 2-1/2 month low and closed down -1.33%. Japan’s Nikkei Stock 225 slid to a 2-week low and closed down -1.05%.

Interest Rates

March 10-year T-notes (ZNH25) today are down -19 ticks. The 10-year T-note yield is up +6.8 bp to 4.757%. Mar T-notes today tumbled to an 8-1/2 month low, and the 10-year T-note yield climbed to a 14-month high of 4.786%. T-note prices are being hammered today by the stronger-than-expected US Dec payroll report, which dampened the outlook for Fed rate cuts. Also, hawkish comments on Thursday from Fed Governor Bowman, Boston Fed President Collins, and Kansas City Fed President Schmid undercut T-notes as they expressed their support for the Fed to pause its rate-cutting campaign. In addition, rising inflation expectations are negative for T-notes after the 10-year breakeven inflation rate today rose to a 14-month high of 2.474%.

European government bond yields today are moving higher. The 10-year German bund yield rose to a 6-month high of 2.624% and is up +4.1 bp to 2.607%. The 10-year UK gilt yield is up +4.9 bp to 4.860%.

Swaps are discounting the chances at 94% for a -25 bp rate cut by the ECB at its January 30 policy meeting.

US Stock Movers

Chip stocks are falling today after Bloomberg reported late Wednesday that the Biden administration wants to curb the sale of AI chips used in data centers on both a country and company basis. As a result, Nvidia is down more than -3% to lead losers in the Dow Jones Industrials. Also, Applied Materials and ARM Holdings Plc are down more than -3%. In addition, Marvell Technology , GlobalFoundries , Intel , and Lam Research are down more than -2%.

Advanced Micro Devices is down more than -5% to lead losers in the Nasdaq 100 after Goldman Sachs downgraded the stock to neutral from buy.

Insurance stocks are falling today as the cost of damage from the California wildfires continues to rise. Allstate is down more than -4%. Also, Travelers Cos and Chubb Ltd are down more than -2%, and American Insurance Group is down more than -1%.

Californian utility stocks are selling off today due to the risk of being blamed for the Southern California wildfires. As a result, PG&E Corp is down more than -7%, and Sempra is down more than -1%.

Roku Inc is down more than -4% after MoffettNathanson downgraded the stock to sell from neutral with a price target of $55.

Hims & Hers Health is down more than -3% after Citigroup downgraded the stock to sell from neutral with a price target of $25.

ON Semiconductor is down more than -3% after Truist Securities downgraded the stock to hold from buy.

Walgreens Boots Alliance is up more than +24% to lead gainers in the S&P 500 after reporting Q1 sales of $39.46 billion, well above the consensus of $37.34 billion.

Delta Air Lines is up more than +10% to lead airline stocks higher after reporting Q4 adjusted EPS of $1.85, better than the consensus of $1.76 and forecasting Q1 adjusted EPS of 70 cents-$1.00, with the midpoint above the consensus of 76 cents. Also, United Airlines Holdings is up more than +4%, and American Airlines Group and Alaska Air Group are up more than +3%. In addition, Southwest Airlines is up more than +1%.

Energy stocks and energy service providers are climbing today with the price of WTI crude up more than +4% at a 3-month high. As a result, Devon Energy and Coterra Energy are up more than +3%. Also, Chevron is up more than +2% to lead gainers in the Dow Jones Industrials. In addition, Diamondback Energy , Occidental Petroleum , Hess Corp , and APA Corp are up more than +2%.

Valero Energy is up more than +2% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $149.

Royalty Pharma Plc is up more than +7% after announcing a $3 billion share buyback plan.

Snowflake is up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $190.

Earnings Reports (1/10/2025)

Constellation Brands Inc (STZ), Delta Air Lines Inc (DAL), TD SYNNEX Corp (SNX), and Walgreens Boots Alliance Inc (WBA).

On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policyhere.