Stocks Are Cheap, But Is a Recession Coming?A day after the strongest gains of the year, stock prices whip-sawed from horrible in the morning morning to a jubilant afternoon today.
Opinions expressed by Entrepreneur contributors are their own.
The Dow Industrials index was down more than 600 points before clawing it all back and more to close up 260 points or 1.14 percent. The S&P 500 and Nasdaq Composite indexes were up 0.86 percent and 0.38 percent respectively. TheEntrepreneur Index™, down more than 3 percent in the morning, gained 0.37 percent.
投资者似乎torn between the fear of a looming recession and the opportunity to buy suddenly cheap stocks. In the morning, they sold out of equities and bought into the safety of U.S. Treasury bonds. The yield on the 10-year Treasury bond (which moves opposite to its price), was down more than 6 points before investors did an about face and piled back into stocks. It ended the day down one basis point at 2.79 percent. The volatility index (VIX), which measures volatility in the stock market, was above 30 for the fifth straight session.
Technology stocks had the biggest reversal, with most down sharply in the morning but ending with gains. ChipmakerNVIDIACorp. had the biggest decline, falling 1.45 percent whileAmazon.com (-0.63 percent) was the only FANG stock to close down on the day. Software makersalesforce.comhad the biggest gain in the sector and on the Entrepreneur Index™, rising 3.33 percent.
医疗设备制造商Boston Scientific Corp.had a smart gain of 2.38 percent while business services providerCintas Corp.was up 1.96 percent. After rising more than 10 percent yesterday,Hess Corp.was up another 2.69 percent today, despite the price of oil falling 1.2 percent.
Other notable gains on the Entrepreneur Index™ included restaurant chainChipotle Mexican Grill(2.18 percent), pest-control companyRollins Inc. (1.85 percent) and insurerAflac Inc.(1.9 percent).
Teslahad the biggest decline on the Entrepreneur Index™ today, falling 3.05 percent. The company is accelerating plans to build cars in China. It recently opened the tender process for contractors to build a giant $2 billion assembly plant in Shanghai. The stock is down nearly 20 percent in the last two weeks.
RetailerBed Bath & Beyondhad the third biggest decline, falling 1.38 percent. Casino operatorWynn ResortsInc. had its usual hyper-volatile day, down more than five percent this morning and ending the day with a decline of 1.12 percent.
TheEntrepreneur Index™collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time onEntrepreneur.com.
