Monday, July 18, 2022 – DIA 310.65 -.64%, QQQ 289.40 -.85%, SPY 381.95 -.83%, IWM 172.60 -.28% CNN Fear & Greed Index @28 (Fear)
There was no high-impact economic data released on the day. Markets moved lower from Friday’s closing levels in a consolidating fashion. WTI crude oil rallied to close at $98.86, up $4.29. Energy Services (XLE) 70.16 +2.29% was the top performing S&P500 economic sector, while Healthcare Services (XLV) 127.45 -2.11% was the clear laggard. Goldman Sachs (GS) 301.26 +2.51% led the DJIA after beating on earnings. Merck & Co. (MRK) 92.34 -2.76% was the worst performer in the index, followed by Johnson & Johnson (JNJ) 174.23 -2.24%, which beat on earnings and trimmed forward guidance. Airbnb (ABNB) 97.67 +3.18% topped the NDX100 index after being featured on a prominent investment website. China internet companies advanced with JD.com (JD) 62.05 +2.97% and NetEase (NTES) 87.76 +1.54% both moving higher. On the downside, in the NDX100 index, biotechnology shares showed profit taking. Seagen, Inc. (SGEN) 168.47 -5.73%, Regeneron (REGN) 586.7 -3.69%, and Gilead Sciences (GILD) 60.90 -2.72% all came into selling pressure. In the S&P500 index, copper producer Freeport McMoRan (FCX) 27.42 +6.20% was the clear leader, followed by solar firm Enphase Energy (ENPH) 206.43 +5.91%. Also prominent were the cruise ship companies Carnival Cruise (CCL) 9.65 +5.12%, Norwegian Cruise Lines (NCLH) 12.39 +5.00%, and Royal Caribbean (RCL) 34.46 +4.88%.
Tues., July 19, 2022 – DIA 318.11 +2.40%, QQQ 298.30 +3.08%, SPY 392.27 +2.70%, IWM 178.69 +3.53% CNN Fear & Greed Index @34 (Fear)
Building Permits were reported better than expected at 1685K vs. 1650K for June. Housing Starts were weaker at 1559K vs. 1585K. Equity markets gapped higher on the opening on better than expected corporate earnings. The Industrial Sector (XLI) 89.40 +3.57% led the eleven S&P500 economic sectors. Boeing (BA) 156.13 +5.69% led the DJIA after announcing new aircraft orders another day. Goldman Sachs (GS) 318.05 +5.57% continued higher after beating earnings a day earlier. On the downside in the DJIA, International Business Machines (IBM) 130.88 -5.25% gapped lower after beating on earnings and revenue. Still, management lowered expectations for free cash flow while also sighting headwinds of a strong dollar. In the NDX100, online dating service Match Group (MTCH) 70.45 +8.17%. Responding to a computer chip subsidy bill moving through Congress, Semiconductor related shares were well bid: Marvel (MRVL) 52.08 +7.12%, Lam Research (LRCX) 446.94 +5.62%, Nvidia (NVDA) 169.92 +5.52% and Applied Materials (AMAT) 98.23 +5.46%. Travel & Entertainment related shares were also well bid, Caesars Entertainment (CZR) 41.79 +8.26%, Carnival Cruise (CCL) 10.36 +7.36%, and Expedia (EXPE) 100.32 +6.40% all moved higher.
Wed., July 20, 2022 – DIA 318.74 +.20%, QQQ 303.03 +1.59%, SPY 394.77 +.64%, IWM 181.49 +1.57% CNN Fear & Greed Index 239 (Fear)
Existing Home Sales came in lower than expected, 5120K vs. 5380K annualized, a decline of -5.4% from the previous month. Equity markets gained in the morning but gave ground mid-session, only to close near the top of the day’s range. Communication Services (XLC) 58.03 +1.65% led the eleven S&P500 economic sectors closely followed by Consumer Discretionary (XLY) 152.17 +1.64% and Technology Services (XLK) 137.21 +1.56%. Salesforce (CRM) 182.45 +4.97% led the DJIA, followed by Walt Disney (DIS) 103.35 +3.75%. Utilities (XLU) 68.31 -1.33% and Healthcare Services (XLV) 128.34 -.99% were the laggard sectors. Merck & Co. (MRK) 89.65 -2.93% fell the most in the DJIA. Australian enterprise software developer Atlassian (TEAM) 213.04 +11.20% led the NDX100, followed by Datadog (DDOG) 100.88 +8.52% and Okta, Inc. (OKTA) 103.03 +7.67%. All three stocks are approaching the top of recent deep base trading ranges. On the downside in the index, Biogen (BIIB) 207.49 -5.80% and Astra-Zeneca (AZN) 65.79 -3.48% were the worst performers. In the S&P500 Generac (GNRC), 249.20 +8.08% was the top performer; the backup generator company will report earnings before the market opens on August 3rd. The company’s shares have caught buying interest on the heatwave across the United States and other parts of the world, along with an approaching hurricane season. Also reporting earnings on August 3rd, human resource software provider Ceridian (CDAY) 55.12 +7.93% was the second best performer in the index. On the downside, energy services firm Baker Hughes (BKR) 25.89 -8.26% fell as it reported a miss on revenue and earnings and a wider loss on the company’s Russian operations.
Thurs., July 21, 2022 – DIA 320.41 +.52%, QQQ 307.38 +1.44%, SPY 398.79 +1.02%, IWM 182.42 +.51% CNN Fear & Greed Index @41 (Fear)
Initial Jobless Claims came in higher than expected, 251K vs. 240K (still a low level). The Philadelphia Fed Manufacturing Survey disappointed, coming in at a negative -12.3 (contraction). Equity markets opened unchanged to slightly lower on news that the ECB had unexpectedly raised rates. It was also announced that the President had a mild case of Covid-19. Markets found the lows of the days around 10:30 and proceeded to work higher for the remainder of the session. Consumer Discretionary (XLY) 155.65 +2.29% led the advance, followed by Healthcare Services (XLV) 130.37 +1.58%. Boeing (BA) 161.41 +1.91 led the DJIA followed by Salesforce.com (CRM) 185.35 +1.59%. The laggard in the index Verizon (VZ) 47.66 -2.87% broke down a day ahead of the company’s earnings report. In the NDX100 index, Tesla (TSLA) 815.12 +9.78% beat earnings estimates. China internet firm NetEase (NTES) 99.99 +6.16% was the next best performer. T-Mobile US (TMUS) 133.19 -3.10 was the laggard in the index, as selling pressure took hold in communication stocks. In the S%P500, behind Tesla, industrial stocks did well Nucor Steel (NUE) 128.52 +9.15% and Danaher (DHR) 279.23 +9.07% took second and third spots in performance. On the downside in the index, cruise ship companies came into selling pressure as Carnival Cruise (CCL) 9.85 -11.18% announced a secondary sale of shares ($1B) to meet capital needs. Royal Caribbean (RCL) 35.75 -8.24% and Norwegian (NCLH) 12.48 -7.28% fell on the news.
Friday, July 22, 2022 – DIA 319.06 -.42%, QQQ 301.99 -1.75%, SPY 395.09 -.93%, IWM 179.51 -1.60% CNN Fear & Greed Index @39 (Fear)
The S&P Global Composite PMI for July (Preliminary) was reported at 47.5 (below 50 = contraction) vs. 51.7 expected. The S&P Global Services PMI reported at 47 vs. 52.6 expected. Equity markets opened relatively unchanged but succumbed to selling pressure as bond yields began to fall on the poor economic data. In the eleven S&P500 economic sectors, Utilities (XLU) 69.43 +1.37% performed best on the day. While Communication Services (XLC) 55.99 -3.47% performed the worst on the earnings release of DJIA component Verizon (VZ) 44.45 -6.74% (poor subscriber growth on higher prices) and the news that Snap, Inc. (SNAP) 9.96 -39.08% released disappointing advertising revenue and earnings. American Express (AXP) 153.01 +1.88% led the DJIA, followed by Proctor & Gamble (PG) 143.02 +1.60% In the NDX100, the top three stocks were utility companies, Exelon Corp. (EXC) 44.02 +1.76%, American Electric Power (AEP) 94.35 +1.68%, and Xcel Energy (XEL) 68.67 +1.43%. The laggard in the group Lucid Group (LCID) 19.68 -8.38% fell on the news that GM’s Cadillac division unveiled a competing high-end electric vehicle. The S&P 500 was dominated by HCA Healthcare (HCA) 202.03 +11.4% as the company beat revenue and earnings expectations. SVB Financial (SIVB) 363.36 -17.15% fell on a big earnings miss.
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