Monday 4/4/2022 – DIA 349.24 +.35%, QQQ 369.30 +2.06%, SPY 456.80 +.86%, IWM 207.91 +.16% CNN Fear & Greed Index @ 52 (Neutral)
Factory Orders came in as expected at -.5%. Interest rates continued to move higher with the 10-Year Note (yield) Index at 24.12 +.34. Equity markets moved higher on the day with Communication Services (XLC) 71.20 +2.76% and Technology Services (XLY) 189.22 +2.25% stocks outperforming. Salesforce.com (CRM) 218.85 +3.11% led the DJIA, followed by Apple (AAPL) 178.44 +2.37%. Twitter (TWTR) 49.97 +27.12% rocketed on news that Elon Musk had taken a 9.2% position in the company’s shares. The much battered China internet shares dominated the S&P 500 with Pinduoduo (PDD) 49.30 +15.59%, Baidu (BIDU) 153.80 +9.1%, and JD.com (JD) 63.31 +7.14% moving higher on reports circulated that China’s Securities regulator may be willing to compromise with US Securities and Exchange Commission demand for cooperation with the U.S. Public Company Accounting Oversight board as well as ownership and risk disclosures. On the downside, Starbucks (SBUX) 88.09 -3.72% moved lower on news that the company would suspend its buyback program.
Tuesday 4/5/2022 – DIA 346.34 -.83%, QQQ 361.10 -2.22%, SPY 451.03 -1.26%, IWM 202.99 -2.37%. CNN Fear & Greed Index @ 51 (Neutral)
The ISM Services PMI for March came in a little higher than expected at 58.3 vs. 58. The ISM Employment Index reported in at 54 vs. 50.3 expected. Equity markets opened mixed but succumbed to selling pressure throughout the day on comments made by Fed Governor Lael Brainard that the Fed was committed to cutting inflation and reducing its balance sheet. In response interest rates continued to move higher with the 10-Year Note (yield) Index closing at 25.56 +1.44. Healthcare (XLV) 137.21 +.21% led S&P 500 economic sectors with United Healthcare (UNH) 517.76 +1.52% topping the DJIA. Boeing (BA) 182.65 -4.46% was the biggest underperformer in the DJIA as reports circulated the aircraft manufacturer was experiencing production problems with the new version of Airforce One. Consumer Discretionary (XLY) 184.95 -2.34% was the clear loser in the 11 S&P 500 economic sectors followed by Technology Services (XLK) 158.07 -2.11%. Semiconductor and Semiconductor equipment shares were hard hit in the session. Applied Materials (AMAT) 121.71 -5.97%, Lam Research (LRCX) 503.64 -5.96%, KLA Corporation 345.52 -5.87% and Microchip Technology (MCHP) 70.09 -5.77%. In a potential M&A deal financial data analytics firm Black Night (BKI) 66.27 +11.81% said it was exploring the sale of the company.
Wednesday 4/6/2022 – DIA 344.75 -.46%, QQQ 353.26 -2.17%, SPY 446.52 -1.00%, IWM 200.11 -1.42% CNN Fear & Greed Index @48 (Neutral)
No high impact economic data on the day. Equity markets gapped lower in anticipation of the FOMC minutes release at 2pm. Post release stocks experienced multiple buy and sell programs, while holding recent support levels. Healthcare Services (XLV) 139.30 +1.52% led the 11 S&P 500 economic sectors with United Healthcare (UNH) 531.75 +2.70% topping the 30 stock DJIA. The clear laggard sector was Consumer Discretionary (XLY) 180.23 -2.55% with Norwegian Cruise Lines (NCLH) 20.68 -6.80% leading the S&P 500 to the downside followed by Penn National Gaming (PENN) 39.02 -6.72% and Caesar’s Entertainment (CZR) 72.01 -6.67%. Utility company shares performed well in what appeared to be a risk off demand for safe assets Exelon (EXC) 49.71 +4.00% topped the S&P 500 followed by American Electric Power (AEP) 104.49 +3.14%. Xcel Energy (XEL) 74.99 +2.63% posted the 4th best stock performer. Technology Services (XLK) 180.23 -2.55% was the second worst S&P 500 performer with Datadog (DDOG) 137.27 -6.56% leading the S&P 500 to the downside, followed by Nvidia (NVDA) 244.07 -5.88% and Zscaler Inc. (ZS) 226.07 -5.26%, Zoom (ZM) 116.09 -4.86%.
Thursday, 4/7/2022 – DIA 345.97 +.35%, QQQ 354.10 +.24%, SPY 448.77 +.50%, IWM 199.46 -.32% CNN Fear & Greed Index @ 48 (Neutral)
Initial Jobless claims came in much better than expected 166K vs. 200K. Equity markets opened lower on interest rate worries but by the close were higher on the day with the exception of small caps. Interest rates continued to rise with the 10-Year Note (yield) Index rising to 26.52 +.43. Healthcare (XLV) 141.98 +1.92% once again topped the 11 S&P 500 economic sectors with Merck (MRK) 86.80 +2.15% leading the 30 stock DJIA higher, followed by Walgreens Boots Alliance (WBA) 45.11 +1.81%. Computer manufacturer HP Inc. (HPQ) 40.06 +14.75% popped higher on news that Berkshire Hathaway had taken a $4.2 billion stake in the company’s shares. China technology shares saw selling pressure after a few days of outperformance with Pinduoduo (PDD) 42.37 -6.45% the worst performer in the NDX100. JD.com (JD) 57.10 -3.34%, Baidu 135.71 -3.06%, NetEase (NTES) 92.97 -1.96% were also under pressure.
Friday, 4/8/2022 – DIA 347.45 +.43, QQQ 349.15 -1.40%, SPY 447.77 -.22%, IWM 198.00 -.73% cnnnnnn CNN Fear & Greed Index @48 (Neutral)
No high impact data released on the day. Equity Markets opened lower and traded mostly mixed in a quiet session. Energy Services (XLE) 79.53 +2.75% was the lead S&P 500 economic sector throughout the session with Occidental (OXY) 61.80 +7.14% Halliburton (HAL) 39.94 +5.80%, and EOG Resources (EOG) 126.88 +5.19% all outperforming. Financial Services (XLF) 37.89 +1.01% was the second best performing sector, while Technology Services (XLK) 152.41-1.40% was the clear laggard performer. Home Depot 311.11 +2.76% led the 30 stock DJIA, followed by Goldman Sachs (GS) 321.39 +2.30% and JPMorgan (JPM) 133.49 +1.83%. Boeing (BA) 175.01 -1.56% continued its recent sell off. Leading the NDX100 renewable energy firm Constellation Energy (CEG) 64.02 +5.11% continued its run from late February. Semiconductors and Semi-equipment stocks once again came under selling pressure with Nvidia (NVDA) 231.19 -4.5%, Marvel (MRVL) 63.15 -3.82% KLA Inc. (KLAC) 341.21 -3.36% and Microchip (MCHP) 66.32 -2.74% all down.
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