Stocks struggled to maintain last week's comeback on Monday, as major benchmarks traded choppily. The Dow Jones Industrial Average dipped about 0.2%, while the S&P 500 Index and Nasdaq Composite fell over 0.3% and 0.7%, respectively.
The session's moves follow a rally on Friday that saw the S&P 500 rise 3% on the day and over 6% for the week, posting its second-best week of the year and its first positive week since May. The Dow also rose over 800 points and the Nasdaq increased over 3% on Friday, pushing the indexes to weekly gains of more than 5% and 7%, respectively.
Looking ahead, there are a few key economic reports that may impact Wall Street's positive momentum this week, including another inflation report for May due Thursday.
Here's how the market settled to start the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Pending homes sales slightly increase in May:
Pending home sales rose slightly in May as mortgage rates slightly pulled back last month. Monthly sales rose 0.7% compared to April, according to the National Association of Realtors (NAR), breaking a six-month streak of falling demand for existing homes. However, sales were down 13.6% year-over-year.
"Despite the small gain in pending sales from the prior month, the housing market is clearly undergoing a transition," said Lawrence Yun, chief economist for NAR, in a press statement. "Contract signings are down sizably from a year ago because of much higher mortgage rates.
Regionally, sales rose 15.4% in the Northeast in May and were down 11.9% year-over year, while sales rose 0.2% in May in the South, but were down 13.8% year-over-year. Elsewhere, sales fell the most in the West, down 5% for May and 19.8% year-over-year, while Midwest sales fell 1.7% for May and 8.8% annually.
Goldman Sachs downgrades Coinbase to Sell:
Goldman Sachs
"We believe current crypto asset levels and trading volumes imply further degradation in COIN's revenue bases," analyst Will Nance wrote in a note Monday. Goldman expects COIN's revenue to fall 61% this year, declining from an over 500% surge in sale in 2021.
The firm also noted that while COIN recently announced its would cut 18% of its workforce, the planned layoffs will not be enough to bring COIN's costs in line with declining sales.
"We believe further cuts are needed, as the announced cost reduction effort merely brings headcount back to end-1Q22 levels and resulted in COIN moving to the low end of its previous expense guidance," Nance added. "We believe COIN will need to make substantial reductions in its cost base in order to stem the resulting case burn as retail trading activity dries up."
In the same note, Goldman upgraded shares of Robinhood
