Amazon Disappoints… Apple DeliversMeta (aka Facebook) helped advance tech stocks today... however the reprieve may only be temporary. Investors snapped up the social advertising leader - which showed a small increase in DAUs (Daily Active Users) and ARPU (Average Revenue Per User).
Nasdaq: On Pace for Worst Month Since 2008The Nasdaq is on track for its worst month in 14 years. Google, Amazon, Apple, Microsoft and Facebook are all well off the highs. Netflix has lost more than 60% of its value...can the sector find support? And where?
Markets Brace for a ‘Hard Landing’This week more than 35% of the total S&P 500 market cap report earnings. Of that - 25% comprise just 5 names: GOOG, MSFT, META, AAPL and AMZN. It could be "make or break" for the market... pending how these names hold up....
12 Stocks to Own on any “Panic Selling”If you are investing today - you need to remain extremely selective with stocks. Look at the decimation in names like Facebook and Netflix. This post offers my checklist when selecting a stock....
Netflix: It’s Now Worth ‘Subscribing’Netflix announced their Q1 2022 earnings after the close today. It wasn't pretty. The stock is down 26% at the time of writing... trading around $258 per share. They reported a loss of 200,000 subscribers last quarter... and it sent traders scrambling... but is it worth buying here?
Bullard: “50’s at Every Meeting”St. Louis Fed James Bullard threw more fuel on the 'interest rate fire' today - suggesting the nominal Fed funds rate needs to be at 3.50% by the end of the year. And if he had his way - that would roughly be 100 basis points higher than what's currently shown on the Fed dot plot.
There’s Only One Way to Fix InflationMore bad news on the inflation front today... this time with Producer Prices. The producer price index (PPPI) - which measures prices paid by wholesalers - was up 11.2% from a year ago - a fresh record. This is especially bad news as it's a precursor to what to expect with consumer inflation. In other words, higher prices are typically passed on.
CPI Hits 8.5% – Highest Since 1981Consumer price inflation (CPI) for March hit its highest level since 1981 - a staggering 8.5%. Core CPI — which excludes food and energy prices —was up 6.5% YoY. Troubling numbers...especially for average earning Americans who are now spending $5K per year more just on gas and food.
Things Trading Per the ScriptForecasting the direction of the stock market day-to-day / week-to-week is very hard to do. In fact, it's near impossible. That said, over the past 6 months or so I feel things have traded largely 'per the script'... so what's next?
Real Yields Suggest No Recession in 2022Over the past fifty years, the inversion of the 2-year / 10-year yield curve (aka '2-10') has predicted every recession. Given its reliable predictive power - its recent inversion consumes financial media. There's just one problem: It's lousy at timing.
What ‘Shock’ Will 2022 Deliver?Bank of America's top strategist Michael Hartnett issued this note today: "Inflation shock is worsening; rate shock is beginning; and recession shock is coming". Let's explore...
The $10+ Trillion Question The biggest thing we've learned this week (which investors should pay attention to) is what Vice Chair Lael Brainard had to say on aggressive monetary policy (specifically QT). She is largely in favour of ultra-low rates and money printing.... and was Senator Warren's pick for Powell's role. However, now Brainard has conceded we have a problem.
