Monday 4/11/2022 – DIA 343.20 -1.2%, QQQ 340.89 -2.37%, SPY 439.92 -1.71%, IWM 196.54 -.67% CNN Fear & Greed Index @46 (Neutral)
No high impact economic data released. Equity markets were down on the back foot for the opening of the regular session, as accusations of war crimes by Russia in Ukraine dominated the news coverage. Later in the day the White House press secretary appeared to prepare the press corps for a bad CPI number. That triggered significant selling in the last hour; the S&P 500 broke key recent support 4450. WTI crude oil $94.78 -3.48 was under pressure during the session on continued news of lockdowns in China and the potential effect on demand. As a result, Energy Services (XLE) 77.14 -3.01% was the clear underperformer on the day, with Occidental Petroleum (OXY) 57.92 -6.28% the worst performing stock in the S&P 500. Also performing poorly were ConocoPhillips (COP) 97.98 -4.92%, Diamondback (FANG) -4.85%, APA Corporation (APA) 41.07 -4.53%, and EOG Resources (EOG) 121.34 -4.37%. Interest Rates climbed with the 10-Year Note (yield) Index closing at 27.8 +.67. As interest rates rose, Technology Services (XLK) 148.57 -2.52% came under selling pressure. Microsoft (MSFT) 285.26 -3.94% led the 30 stock DJIA to the downside. Although Consumer Discretionary (XLY) 176.15 -1.86% was weak, there were several bright spots Ross Stores (ROST) 99.71 +2.96% and Dollar Tree (DLTR) 155.49 +1.58% which hit another all-time high.
Tuesday 4/12/2022 – DIA 342.22 -.29%, QQQ 339.45 -.42%, SPY 438.29 -.37%, IWM 197.16 +.32% CNN Fear & Greed Index @46 (Neutral)
The headline Consumer Price Index (CPI) reported higher than expected at +8.5% vs. 8.4%. But Ex-Food & Energy CPI was less than expected coming in at 6.5% vs. 6.6%. In a buy the news reaction, equity markets traded positively through most the session but succumbed late in the day to selling pressure, with small caps performing best. Interest rates declined with the 10-Year Note (yield) Index closing at 27.25 -.55. WTI crude oil $100.65 +6.36 rebounded strongly. Given that trade, Energy Services (XLE) 78.42 + 1.66% did so as well, with Marathon Oli Corporation (MRO) 26.27 +4.16% and Devon Energy (DVN) 62.26 +3.71% the two best performers in the S&P 500. Consumer Discretionary (XLY) 176.54 +.22% closed positive and in second place in the S&P 500 11 economic sectors. Out performing in the sector retailer Kohl’s (KSS) 60.30 +5.35% led the Russell 1000 as traders continued to bid up the shares in the prospect of a potential 9 billion dollar M&A event by Franchise Group. Ross Stores (ROST) 102.19 +2.49% continued its rally from the previous day, while Lululemon (LULU) 376.16 +2.01% also outperformed. On the downside, used car retailing giant CarMax (KMX) 93.33 -9.54% missed on earnings sighting several factors, vehicle affordability, consumer confidence, and the end pandemic government related payments.
Wednesday 4/13/2022 – DIA 345.76 +1.03%, QQQ 346.35 +2.03%, SPY 443.31 +1.15%, IWM 200.91 +.90% CNN Fear & Greed Index @ 46 (Neutral)
The Producer Price Index Ex-Food and Energy came in much higher than anticipated at +9.2% vs. 8.4% showing that inflation had not as of yet peaked. With the inflation data news in the rear view mirror Equity markets rebounded. WTI crude oil continued to rally while closing at $104.17 +3.57. Consumer Discretionary (XLY) 180.93 +2.49% was the lead S&P 500 economic sector, with Walmart (WMT) 157.22 +2.60% the second best stock in the DJIA, behind aircraft manufacturer and defense contractor Boeing (BA) 182.87 +3.74%. Interest rates continued to decline as the 10-Year Note (yield) Index (TNX) closed at 26.87 -.38. Upon the drop in interest rates, Technology Services (XLK) 150.29 +1.61% was the second best performing sector with big moves in beaten down stocks such as Splunk (SPLK) 141.72 +8.59%, Zscaler (ZS) 241.34 +8.17% and Zoom (ZM) 114.89 +7.80% (in what appeared to be short covering and bargain hunting). Airlines caught buying interest from comments from a former airline CEO of potential consolidation activity in the industry. American Airlines 18.95% +10.62% led the S&P 500 with Southwest Airlines (LUV) 46.05 +7.54%, Delta Airlines (DAL) 41.02 +6.21% and United Airlines (UAL) 45.14 +5.64% all outperforming.
Thursday 4/14/2022 – DIA 344.37 -.37%, QQQ 338.43 -2.29%, SPY 437.83 -1.24%, IWM 198.87 -1.02% CNN Fear & Greed Index 40 (Fear)
Initial Jobless claims came in higher than expected at 185K vs. 171K. Retail sales disappointed at +.5% vs. +.6%. But Michigan Consumer Sentiment was much better at 65.7 vs. 59 expected. Consumer credit and continuing inflation expectations weighed on stocks from the start of trading. Interest rates climbed with the 10-Year Note (yield) Index closing at 28.28 +1.41. WTI crude oil $106.25 climbed $2.00. As a result Energy Services (XLE) 79.85 +.33% held up best in the weak market. As a result of significantly higher interest rates Technology Services (XLK) 146.64 -2.43% came under the most selling pressure. China internet giant Pinduoduo (PDD) 40.03 -8.84% led the NDX100 to the downside, followed by Latin American internet giant MercadoLibre (MELI) 1060.34 -6.64% and Australian software developer Atlassian (TEAM) 265.35 -5.34%. On the upside, Nike (NKE) 133.46 +4.68% led the S&P 500 moving higher on a JPMorgan update on the management’s view of trends in China. After beating on earnings & revenue estimates, asset manager and banking firm State Street (STT) 75.81 -8.5% fell on announcing regulatory delays on the acquisition of BBH Investor Services and potentially higher expenses due to the company’s restructuring of some of its operations.
Friday 4/15/2022 – Equity Markets Closed (Good Friday)
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