The stock market requires a mid-week rebound to prevent Tuesday’s negative downtrend to build momentum.
UnitedHealth (UNH), Tesla (TSLA), Blackstone (BX), Microsoft (MSFT), and Apple (AAPL) are among the stocks that traded lower yesterday. Meta Platforms (META) managed to rise by 1.23%, while Alphabet (GOOG) escaped the day largely unharmed.
Without strong rallies in the magnificent seven technology stocks, markets have no leaders to lift the indexes higher. In the last few weeks, penny stocks and those with poor fundamentals topped the most actively traded stock list. That includes Nikola (NKLA) and C3IS (CISS).
Bearishness jumped unexpectedly in the apparel market when PVH Corp. (PVH) lost 22.22%. Before that, shares indicated a negative “double top” pattern at $140 last month. The owner of Tommy Hilfiger and Calvin Klein expects to earn $3.72 a share in the quarter. However, it expects Q1 earnings of $2.15 a share. Analysts expected $2.58. Revenue will fall by 11% Y/Y.
VF Corp (VFC) resumed its downtrend after the PVH news, falling by 6.67% to $14.28. For now, Abercrombie & Fitch (ANF) and Gap (GPS) are holding close to their 52-week highs. However, investors should beware of consumers curtailing their spending on brand-name clothing. Inflation remains sticky and will not fall any time soon. This cuts consumer disposable income levels. It forces them to spend on necessities and cancel “nice to have” purchases.
