Monday 4/25/22 – DIA 340.56 +.68%, QQQ 329.58 +1.28%, SPY 428.51 +.58%, IWM 193.85 +.61% CNN Fear & Greed Index @ 40 (Fear)
The Chicago Fed National Activity Index came in stronger than expected at .44 vs. the .21 expected. Equity markets opened lower after the previous Friday’s rout and successfully tested significant lows (SPX 4200) on the charts. Markets then rallied into positive territory to close the session. Technology Services (XLK) 145.23 +1.50% took the top spot in the eleven S&P 500 economic sectors. Energy Services (XLE) 73.68 -3.31% was the clear laggard moving in tandem with WTI crude oil $98.49 -3.58. China lockdowns continued to be a headline driver on the energy front. The shares of Schlumberger (SLB) 38.69 -7.11, Haliburton (HAL) 35.33 -6.26%, Conoco-Philips (COP) 91.66 -4.53% all moved lower Chevron (CVX) 157.49 -2.15% was the second-worst performer in the DJIA behind Verizon (VZ) 50.28 -3.14%. . Johnson & Johnson (JNJ) 186.01 +2.46% took top billing in the DJIA as it continued its post-earnings rally, followed by Microsoft (MSFT) 280.72 +2.44%. Moderna (MRNA) 150.41 +7.18% took the top spot on the NDX 100 in what appeared to be a short-covering rally. The NDX 100 worst performer Netflix (NFLX) 209.91 -2.60%, continued its sell-off from the huge earnings hit to the stock from the prior week. Online dating service provider Match Group (MTCH) 82.48 +6.70% rallied. The company reports earnings on May 3rd after market close (amc).
Tuesday 4/26/22 – DIA 332.45 -2.38%, QQQ 317.14 -3.77%, SPY 416.10 -2.90%, IWM 187.74 -3.15% CNN Fear & Greed Index @ 26 (Fear)
Durable Goods orders for March came in weaker than expected at +.8% vs. 1%. But in Ex-defense, the orders were more vital, coming in at +1.2% vs. flat expectations. Non-Defense Capital Goods Orders Ex-Aircraft were a strong +1% vs. +.5% expected. Home Prices posted at +20.2% vs. the +19% expected. New Home sales were pretty much on target at 763K vs. 765K. Equity markets opened lower and revisited key supports. Consumer Discretionary (XLY) 168.13 -5.06% led the S&P 500 lower, as Tesla (TSLA) 876.42 -12.18% shares reacted to the Elon Musk Twitter transaction. Electric vehicle competitor Lucid group (LCID) 17.64 -8.74% moved lower in sympathy with Tesla. Nike (NKE) 120.52 -5.8% dragged the DJIA lower, and Boeing (BA) 167.04 -5.04%, which dropped ahead of earnings. General Electric (GE) 80.59 -10.34% dropped on an earnings beat, but free cash flow missed, and the company gave a downbeat outlook. JetBlue (JBLU) 11.57 -11.41% was hit after reporting a revenue miss and a more minor earnings loss than expected. In more positive earnings news, Sherwin Williams (SHW) 271.37 +9.41% beat on revenue and earnings while improving guidance. On news that Russia was in motion to deny specific European customers natural gas, Chenier (LNG) 135.49 +3.32% moved higher as the Biden Administration announced it would approve increased exports in response.
Wednesday 4/27/22 – DIA 33.03 +.17%, QQQ 316.76 -.12%, SPY 417.27 +.28%, IWM 186.96 -.42% CNN Fear & Greed Index @29 (Fear)
Pending Home Sales for March month over month came in at -1.2%, much less than the expected decline of -1.6%. Equity markets popped on the opening while retesting lows. The NASDAQ composite hit a new low for the year but had no company doing the same by either the DJIA or S&P 500 (a potential positive divergence). Visa (V) 214.11 +6.47% and Microsoft (MSFT) 283.22 +4.81% led the 30 stock DJIA after reporting earnings. Boeing (BA) 154.46 -7.53% missed on earnings as revenues fell 8% from the prior year. The Airforce One contract showed losses. Also, the company reported 777 airliner deliveries slowed. China-related internet commerce stocks outperformed on the day as news from Beijing on infrastructure spending plans was released. In addition, the standoff between US and China regulators over auditing requirements appeared to show progress toward resolution; JD.com (JD) 57.42 +7.91%, Pinduoduo (PDD) 37.42 +7.41%, and Baidu (BIDU) 118.52 +5.89% topped the NDX 100. The clear laggard in the index was once again Netflix (NFLX) 188.54 -4.97% continued its selloff from its earnings release the prior week. In potential M&A activity, Mattel (MAT) 24.49 +10.76% bolted higher on a report that the firm was in discussions to be taken private.
Thursday 4/28/22 – DIA 339.29 +1.88%, QQQ 328.01 +3.55%, SPY 427.81 +2.53%, IWM 190.45 +1.87% CNN Fear& Greed Index 38 (Fear)
Gross Domestic Product (GDP) for Q1 was reported at -1.4% vs. the expectation of an increase of +1.1%. Initial Jobless claims were as expected at 180K, a historically low level. Personal Consumption Expenditures came significantly higher than expected at 7% vs. 5.9%. Technology Services (XLK) 147.57 +4.00% led the 11 S&P economic sectors, followed by Communication Services (XLC) 60.65 +4.00%, as Meta Platforms (FB) 205.73 +17.59% had a better earnings report than expected. Management cut expense guidance on its metaverse initiative. Judging by the sell the rumor buy the news price action, the market had already set up for a poor report. With the Meta earnings in the rearview mirror, markets rallied ahead of Amazon (AMZN) 2891.93 and Apple (AAPL) 163.64 earnings which came after the market closed. Salesforce.com (CRM) 185.74 +6.33% topped the DJIA, followed by Merck (MRK) 88.58 +4.94%. Amgen (AMGN) 238.13 -4.28% was the laggard in the index as the biotech drug firm announced an IRS tax problem on the earnings call. PayPal (PYPL) 92.09 +11.48% beat on revenue and earnings expectations. Semiconductor design firm QUALCOMM 148.19 +9.69% reported better than expected revenue and earnings, which featured rapid growth in the company’s CDMA chip business. On the downside, Align Technologies (ALGN) 304.66 -15.47% missed on earnings and revenues. The dental technology products company pointed to lower consumer confidence and china lockdowns, among other problems. The big disappointment on the day, and a big Ark Innovation Fund holding (ARKK), Teladoc Health (TDOC) 33.51 -40.15% fell on a larger loss than expected and a 6.6 billion dollar write-down.
Friday 4/29/22 – DIA 330.02 -2.73%, QQQ 313.25 -4.50%, SPY 412.51 -3.58%, IWM 185.09 -2.81% CNN Fear & Greed Index @27 (Fear)
Core Personal Expenditures for March were reported inline +.3%. Personal Income was slightly better at +.5% vs. +.4%. The Chicago Purchasing Managers Index for April was reported at 58.5, less than the expected 62. The Michigan Consumer Sentiment Index for April was slightly less than expected at 65.2 vs. 65.7. Equity markets were routed from the start of trading, giving up the previous day’s gains and then some. The Consumer Discretionary (XLY) 162.88 -5.08% sector was hit hardest, as Amazon (AMZN) 2485.63 -14.05% was hit hard after earnings. The firm’s e-commerce business (post-pandemic) continued to slow and showed a net loss of close to $3B, and free cash flow suffered. Technology Services (XLK) 141.42 -4.17% also suffered on the Amazon report. The domain and internet services provider Verisign (VRSN) 178.69 -14.26% beat on the top and bottom lines, but the stock was hammered as it failed to impress on a very negative session. On the upside and bucking a severe negative trend on the day NCR Corporation (NCR) 35.03 +9.88%, which moved up on potential M&A news, the firm had recently reported an earnings miss and suffered a significant selloff. Also, on the upside, Mohawk Industries (MHK) 141.06 +7.86%, the home interior, and furnishings manufacturer, reported a beat on the top and bottom lines.
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