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3 fresh signs a treacherous stock market lurks

 

Stocks may have stabilized after the mid-May rout, but warning signs are mounting that the economy is entering a rough patch and markets could slip back into sell mode.

Here are three red flags tossed on the plates of investors this week:

 

Whales Whining

When JPMorgan (JPM) CEO Jamie Dimon speaks, it's often wise for investors to listen. And when the long-time bank CEO warns of trouble ahead, it's best to listen that much more closely.

Speaking at a conference sponsored by AllianceBernstein Holdings on Wednesday, Dimon said the U.S. economy is facing a "hurricane" as the Federal Reserve continues its process of normalizing interest rates.

"Right now, it's kind of sunny, things are doing fine," Dimon told the conference. "Everyone thinks the Fed can handle this. That hurricane is right out there down the road, coming our way. We just don't know if it's a minor one or Superstorm Sandy... or Andrew or something like that. And you got to brace yourself."

To that end, here's what top CEOs are telling Yahoo Finance about a potential recession.

 
 

Big Tech Warnings

While Salesforce (CRM) offered up a bullish outlook this week, most of the earnings news from big tech has been dour to say the very least.

Microsoft (MSFT) slashed its full year sales and earnings guidance on Thursday, blaming volatile foreign currency markets.

Fellow computing giant Hewlett Packard Enterprises (HPE) dropped its full year profit outlook Wednesday evening. The company said its pullback from Russia and volatile foreign currency markets are weighing on its outlook.

HPE's CFO Tarek Robbiati told Yahoo Finance Live the company is still also dealing with ongoing supply chain challenges (see video above).

Meanwhile, software player C3.ai (AI) also reported a lackluster quarter Wednesday evening. Veteran tech exec and CEO of C3.ai Thomas Siebel told analysts on a conference call customers were delaying orders due to economic uncertainty.

 

 

A key bond market player warns

Ratings outfit S&P Global (SPGI) warned on Wednesday of an "extraordinarily" weak bond market and suspended its full year forecast.

"Macroeconomic conditions have deteriorated since S&P Global last provided financial guidance on May 3, 2022, negatively impacting the Company's expectations for GDP growth and debt issuance volumes," the company said.

"Given the volatility and uncertainty in the issuance environment, the Company cannot affirm its previously issued guidance and expects to reintroduce formal financial guidance in conjunction with its second quarter 2022 earnings results," S&P Global went on to say.

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