Monday 03/21/2022 – DIA 345.44 -.50%, QQQ 350.08 -.40%, SPY 444.39 -.03%, IWM 205.44 -.88% CNN Fear & Greed Index @ 38 (Fear)
The Chicago Fed National Activity Index (Feb) was reported at .51 vs. the .18 anticipated. Fed Chairman Jerome Powell gave a speech where he stated that inflation was running much too high and that future hikes of the Fed Funds target rate might require moves of 50 basis points instead of what had been telegraphed by the Fed, 25 basis points. Interest rates increased as shown by the 10-Year Note (yield) Index 23.15 +1.67.The major indexes closed off on the day with the S&P 500 holding up the best. WTI Oil continued higher closing at 111.50 +1.53. As a result Energy Services (XLE) 76.13 +4.03% was the top S&P 500 economic sector, followed by Basic Materials. Chevron (CVX) 164.64 +1.80% led the DJIA while Dow Chemical (DOW) 63.34 +1.52% took 2nd place. Two big detractors for the DJIA were Boeing (BA) 185.90 -3.59% which had news of a plane crash in China and Home Depot (HD) 329.37 -3.34%. Oil and Gas shares were the standouts in the S&P 500, with Marathon (MRO), Occidental (OXY), Hess (HES), and Diamondback (FANG) all closing up greater than 6% on the day.
Tuesday 03/22/2022 – DIA 348.14 +.78%, QQQ 356.96 +1.97%, SPY 449.59 +1.17%, IWM 207.5 +1.00% CNN Fear & Greed Index @ 44 (Fear)
No high impact economic data released on the day. Equity markets continued their one week rally on unimpressive volume. Interest rates climbed and the yield curve flattened, with the 10-Year Note (yield) Index closing at 23.73 +.58 WTI crude oil was flat on the close. Consumer Discretionary (XLY) 184.55 +2.48% was the top S&P 500 economic sector on the day, followed by Communication Services (XLC) 68.68 +1.87%. Boeing (BA) 191.04 +2.76% led the DJIA while bouncing back from the previous day’s news in China. Athletic apparel and lifestyle fashion brand Nike (NKE) 133.09 +2.23% was that index’s second best performer. In a continuation of a recent bullish action off the lows of the previous week, China related internet stocks were top performers in the NDX 100, Pinduoduo (PDD) 47.53 +18.85%, NetEase (NTES) 94.71 +6.52%, Baidu (BIDU) 154.59 +5.39%, and JD.com (JD) 64.73 +5.35%. In another sign that risk on trading was returning to the market place former large volume meme stock highflyer GameStop (GME) 123.14 +30.72% advanced on a news report the chairman had purchased 100K shares through an investment vehicle RC Ventures. On the downside and in what appeared to be a consolidation from previous gains Energy Services (XLE) 75.57 -.74% was the worst performing S&P 500 sector, with Hess (HES) 101.59 -2.18%, Occidental (OXY) 59.64 -2.17%, and Diamondback (FANG) 137.75 -1.81% all consolidating at lower levels.
Wed. 03/23/2022 – DIA 343.41 -1.36%, QQQ 351.83 -1.44%, SPY 443.80 -1.29%, IWM 203.90 +1.73% CNN Fear & Greed Index @ 43 (Fear)
No high impact economic data released on the day. The Russo-Ukraine war continued to dominate the headlines. Equity markets were lower from the open and had a few failed rally attempts throughout the session. WTI crude oil 114.73 +5.00% advanced once again, and as a result, Energy Services (XLE) 76.87 +1.72% topped the eleven S&P 500 economic sectors. Chevron (165.86 +1/08% led the DJIA, Hess (HES) 106.22 +4.56% topped the S&P 500 followed by Diamondback (FANG) 142.64 +3.85%. For a second day in a row China internet firm Pinduoduo (PDD) 49.40 +3.93% topped the NDX100. Meme stock highflyer GameStop (GME) 141.00 +14.50% once again claimed the top spot in the Russell 1000. On the downside digital identity platform provider Okta (OKTA) 148.55 -10.74% fell on worries of a client security breach. Also to the downside, PDF and creative design platform company Adobe (ADBE) 422.90 -9.34% fell on earnings and a weak outlook for the coming quarter.
Thurs. 03/24/2022 – DIA 347.02 +1.05%, QQQ 359.65 +2.22%, SPY 450.48 +1.51%, IWM 205.90 +1.18% CNN Fear & Greed Index @ 46 (Neutral)
Durable Goods Orders for February came weaker than expected -2.2% vs. -.5%. Ex Defense was much lower than expected -2.7% vs. Flat. Ex Transportation was weaker as well coming in at -.6% vs. +.6% expected. Initial Jobless claims were better than expected coming in at 187K vs. 212K. Non-Defense Capital Goods Orders –Ex- Aircraft were a dismal -.3% vs. +.5% expected. Equity markets opened mixed with traders still looking at events in Europe and Ukraine. WTI crude oil sagged to 111.30 -3.63, which gave a boost to the equity markets. Technology Services (XLK) led the 11 economic sectors of the S&P 500, followed by Basic Materials (XLB) 88.30 +2.01%. Semiconductor manufacturer Intel (INTC) 51.62 +6.94% led the DJIA with Apple Corporation (AAPL) 174.07 +2.27% garnering second place. Semiconductor manufacturers and Semi-equipment manufacturers dominated the NDX100 with Nvidia (NVDA) 281.5 +9.82% leading the charge followed by Marvel (MRVL) 73.76 +6.99%, Advanced Micro Devices (AMD) 120.53 +5.80%, Applied Materials (AMAT) 138.59 +5.46%, Microchip (MCHP) 77.68 +5.30%, KLA Corporation 365.89 +4.92% and Lam Research (LRCX) 556.22 +4.75% . On the downside, Chinese internet shares were under pressure once again Pinduoduo (PDD) 44.94 -9.03%, JD.com (JD) 61.52 -4.31%, NetEase (NTES) 92.16 -3.47%, and Baidu (BIDU) 150.61 -2.77% were the biggest losers in the NDX100.
Friday 03/25/2022 – DIA 348.54 +.43%, QQQ 359.35 -.08%, SPY 452.69 +.49%, IWM 206.12 +.14% CNN Fear and Greed Index @ 46 (Neutral)
Michigan Consumer Sentiment Index for March was reported at 59.4 vs. 59.7 expected. Pending Home Sales disappointed coming in -4.1% vs. the +1% expected Interest rates climbed as an inversion continued in the belly of the yield curve. The 5’s-10’s portion of the curve were inverted by 8 basis points. The 10-Year Note (yield) index closed higher at 24.92 +1.51. Equity markets were mixed on the day. WTI crude oil paused closing at 112.60. Energy Services (XLE) 78.75 +2.19% led the 11 S&P500 economic sectors followed by Financial Services (XLF) 39.52 +1.28%. The insurance company Travelers Group (TRV) 187.75 +1.92% led the DJIA followed by energy firm Chevron (CVX) 169.31 +1.81%. Glucose monitoring technology firm DexCom (DXCM) 480.97 +2.69% led the NDX100 as it continued a rally from late February. Leading the S&P500 was Coterra Energy (CTRA) 28.91 +6.96%. The firm is the result of the merger of Cabot Oil & Gas and Cimarex Energy. On the downside, former pandemic favorite vaccine manufacturing firm Moderna (MRNA) 165.92 -7.66% disappointed on its investor day. Meme stocks continued their rally with GameStop (GME) 151.96 +6.71% moving higher
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