Market Wrap – Lyft and Uber Crash Ahead of Fed May 3, 2022

Today’s markets were about value versus growth stocks, even more so after LYFT reported truly dreadful earnings and lost a third of its already depressed value. The S&P 500 gained 0.5% on Tuesday, the Dow Jones Industrial Average (+0.2%) and Nasdaq Composite (+0.2%) both increased 0.2% while the Russell 2000 outperformed with a 0.9% gain. Nine of the 11 S&P 500 sectors closed higher, paced by the energy (+2.9%), financials (+1.3%), real estate (+1.3%), and materials (+1.1%) sectors with gains … Continue reading “Market Wrap – Lyft and Uber Crash Ahead of Fed May 3, 2022”

Market Wrap – Markets Bounce Despite 10 Year Rates Surge May 2 2022

May Day .. The first trading day of May saw continued selling after Friday’s wash with negative sentiment and rising rates paramount. The S&P 500 bounced to +0.6% on Monday, overcoming a 1.7% decline, even as the 10-yr yield reached 3.00% for the first time since December 2018. The Nasdaq Composite gained 1.6%, the Russell 2000 gained 1.0%, and the Dow Jones Industrial Average gained 0.3%b ahead of the Fed’s policy decision this week. WTI crude futures increased 0.1%, or … Continue reading “Market Wrap – Markets Bounce Despite 10 Year Rates Surge May 2 2022”

Market Wrap – Apple and Amazon Giveth and Taketh Away April 28, 2022

Today was split into two sessions, Pre and post market. After a massive rally through the day despite Dismal US Q1 GDP Shrank 1.4% vs +1.1% expected. After hours we saw huge misses on Amazon and Apple which wiped out much of the day’s rally. Oil for its part soared back over $105. All 11 sectors in the S&P 500 closed higher with gains ranging from 1.1% (utilities) to 4.0% (information technology). Another classic bear market rally it appears after the … Continue reading “Market Wrap – Apple and Amazon Giveth and Taketh Away April 28, 2022”

Market Wrap – Tech Begging for a Facebook Boost April 27, 2022

Today was split into three sessions, Pre Facebook fake earnings drop, Post Real $FB after market when reversed the S&P and Nasdaq futures. The S&P 500 rose 0.2% Wednesday in a volatile session trading between a 0.3% decline and 1.6% gain. The Nasdaq Composite was unchanged after fading intraday gains.  After $FB rose $27 after hours Nasdaq Futures rose 200 handles and S&P almost 40 Treasuries saw mild selling pressure after two days of gains. The 2-yr yield rose two … Continue reading “Market Wrap – Tech Begging for a Facebook Boost April 27, 2022”

Market Wrap – Tech Splatter with Microsoft the X Factor April 26, 2022

Two outa three days ain’t good, major US stock indices down sharply for the second time in three trading sessions. The Dow industrial average fell nearly 1000 points two days ago and is down by another 800 points today. The NASDAQ index was wrecked over 500 points or -3.95%. However, after getting wrecked to $360 on beating, it soared to $386 pulling the Spoos back up 40 handles. Tomorrow we get to see if that was a capitulation or just … Continue reading “Market Wrap – Tech Splatter with Microsoft the X Factor April 26, 2022”

Market Wrap – Markets Rebound from The Depths Ahead of Monster Earnings April 25, 2022

Markets rebounded from the depths of despair Monday as downside momentum slowed coupled with profit taking ahead of a monster earnings week. Oil dumped hard also as did Natty gas only to recover partially. China’s zero-tolerance policy for a worsening COVID-19 situation, and Russia’s invasion of Ukraine, now a landgrab strategy in eastern Ukraine are front and center. The rebound growth concerns are there with an eight-basis-point decline in the 10-yr yield (2.83%), the 3% decline in oil prices ($98.63/bbl, … Continue reading “Market Wrap – Markets Rebound from The Depths Ahead of Monster Earnings April 25, 2022”

Market Wrap – Bear Attack Continues April 22, 2022

The selling continued to heat up as key levels were busted. The S&P 500 broke and closed under the Weekly Kijun falling -2.8% down 136 points to 4254 and down -2.8% for the week. The Nasdaq fell -2.6% and on the week Nasdaq -3.8%. The small cap Russell 2000 fell -2.8%, -3.1% for the week. Natural gas also joined in on the downside again. Natural gas prices reversed sharply after touching a high not seen since November 2008of $8.065 Monday, … Continue reading “Market Wrap – Bear Attack Continues April 22, 2022”

Market Wrap – Tech Wreck Continues as 10 Year Yields Approach 3% April 21, 2022

Tesla couldn’t save the ship, after opening up higher there were no buyers on the way down for stocks. The S&P 500 couldn’t stay above its 200-day moving average (4497) to then below its 50-day moving average (4413) on a closing basis. The 10-yr yield flirted with 2.96%, after Fed Chair Powell said he wasn’t ready to declare peak inflation, adding that the Fed could move to a tight policy after reaching a neutral rate, if necessary. Netflix continued to sell … Continue reading “Market Wrap – Tech Wreck Continues as 10 Year Yields Approach 3% April 21, 2022”

Market Wrap – Tesla Earnings Rip and Tear, the Inverse to The Netflix Wipeout April 20, 2022

Tesla had all eyes on it after Netflix lost around a third of it’s value and $TSLA delivered record units at higher prices in the quarter with 1Q revenue $18.8bn,expected $17.92bn on 1Q Adj EPS $3.22 vs. 2.26 and Tesla 1Q Automotive gross margin +32.9%,expected +28.4%. The stock soared back up to $1040 on the news. Despite the selling in tech with $NFLX, $FB and $PYPL, the broader market held up thanks value stocks. The Russell 2000 +0.6% and DJIA … Continue reading “Market Wrap – Tesla Earnings Rip and Tear, the Inverse to The Netflix Wipeout April 20, 2022”

Market Wrap – Netflix and Natural Gas Remind Longs of Dribbler Risk April 19, 2022

US stocks reversed early selling to close solidly higher with the NASDAQ leading. However, after hours Netflix got wrecked after hours losing over 20% on earnings worse than expected (with net subscribers negative at -200 K and forecasts of -2 million in the next quarter). Natural gas futures were also wrecked after falling from over $8 to under $7 in a session. We always warn dribblers be wary of what you trade, and Natural gas is one to stay away … Continue reading “Market Wrap – Netflix and Natural Gas Remind Longs of Dribbler Risk April 19, 2022”