Traders Market Weekly: Eyes Up on Retail and Inflation

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    Spotlight on the electric vehicle sector:

    The rough ride for electric vehicle stocks in 2022 has not showed any signs of easing, even with a few bright Q1 earnings report turned in over the last two weeks. The spotlight could move back to the long-term potential of electrification with the FT Future of the Car Summit next week featuring Mercedes-Benz (OTCPK:DDAIF) Ola Källenius, Waymo (GOOG) Co-CEO Tekedra Mawakana, Tesla (TSLA) CEO Elon Musk, as well as appearances by the chiefs of Lucid Group (NASDAQ:LCID), Aurora Innovation (AUR), and Polestar (GGPI). TuSimple (NASDAQ:TSP) also has an Investor Day event scheduled for next week in Tucson, Arizona to talk up ita autonomous vehicle technology, as well as update on near-term milestones and the path to commercialization.

    The EV events will take place with share prices across the sector in reverse with names like Arrival (ARVL) -73% YTD, Cenntro Electric (CENN) -68%, Sono Group (SEV) -59%, Nio (NIO) -51%, Lordstown Motors (RIDE) -40%, Fisker (FSR) -37%, and Nikola (NKLA) -34% deep in the red. EV juggernaut Tesla trades about 30% below its all-time high.


    Conference schedule:

    The conference schedule is headlined by the Bank of America Global Healthcare Conference 2022including appearance by Recursion Pharmaceuticals (RXRX), Esperion Therapeutics (ESPR), Adaptive Biotechnologies Corporation (NASDAQ:ADPT), Inari Medical (NARI), and Basic Energy Services (OTC:BASX) to name just a few.

    Other conferences of note include the Goldman Sachs Industrials and Materials Conference, Oppenheimer’s 7th Annual Emerging Growth Conference, Citi’s 2022 Global Energy, Utilities, and Climate Technology Conference, the Sidoti Virtual Micro Cap Conference, and the Goldman Sachs Seventh Annual Leveraged Finance and Credit Conference.


    Western Digital Corp. (WDC) will host its 2022 Investor Day on May 9 during which execs plan to discuss the company’s long-term strategy.

    On May 10, Dish Network Corporation (NASDAQ:DISH) will hold an analyst day event and Corvus Pharmaceuticals (CRVS) is set to hold a R&D Symposium.

    WestRock Company (WRK) and Fastly (FSLY) have investor day events scheduled for May 12.


    The walk date on the Sanderson Farms (NASDAQ:SAFM) sale to Continental Grain and Cargill is on May 9.

    The go-shop period expires on May 12 for the Elliott and Brookfield deal to take Nielsen Holdings (NLSN) public.


    The 2-for-1 stock split on Canadian Imperial Bank of Commerce (CM) becomes effective on May 13.


    Barron’s mentions:

    The publication convened a transportation roundtable to explore the outlook for automakers and the technologies shaping the industry’s future.

    Tesla (TSLA), Uber Technologies (UBER), and Grab Holdings (GRAB) are the top electrification picks of New Street Research’s Pierre Ferragu, while Gamco Investors’ A. Carolina Jolly says underappreciated plays on the logistics of housing and servicing vehicles are Genuine Parts (GPC), O’Reilly Automotive (ORLY), Monro (NASDAQ:MNRO), Universal Technical Institute (UTI), Copart (CPRT), and Snap-on (SNAP). Those stocks are also considered beneficiaries of the push toward autonomous technology.

    General Motors (GM) was not totally ignored in all the focus on the automobile industry. GM is called a cheap stock that is not getting credit for the strength of its core automotive business and is seen as well positioned in electric vehicles and autonomous vehicle technology.


    The earnings calendar features

    3D Systems (NYSE:DDD), Coinbase Global (NASDAQ:COIN), and Disney (DIS) into the earnings confessional. In the electric vehicle sector, a major auto summit will include a talk by Tesla (TSLA) CEO Elon Musk and Rivian Automotive (NASDAQ:RIVN) will roll past the IPO lockup period for early investors.

    Helmholtz Watson

    Fed’s Kashkari on CNBC

    Concerns about energy prices resonate
    As energy prices stay higher longer, investors will see a good place to deploy capital
    Bad news is weighing on supply chains and inflation
    The Fed will change its approach if data comes in differently
    We have a strong job market
    Maybe there’s some evidence of inflation softening just a hair
    There’s a lot of room for home prices to slow down without falling
    We could see some softer wage growth to try to get to a more-sustainable environment
    By the measure of 30-year yields, we’ve removed accommodation faster than we added it in 2020
    I still think there are workers are on the sidelines that will be pulled back in


    ^^^^ +1s & thanks for all good posts/sharing above
    PPPPLLLLLUUUNNNGGGGEEEEEE as Dow is down -300 & everything but OIL is selling off in markets
    while near term improvements aren’t looking good … hopefully oil/inflation can stabilize
    Outside the COVID shutdown of spring 2020 where a quick bear market came/went
    Major corrections have been rare in our BULL market of 13 years

    Helmholtz Watson

    —Equity Markets—

    Japan’s Nikkei: -2.5%
    Hong Kong’s Hang Seng: CLOSED
    China’s Shanghai Composite: +0.1%
    India’s Sensex: -0.7%
    South Korea’s Kospi: -1.3%
    Australia’s ASX All Ordinaries: -1.5%

    Helmholtz Watson

    China’s April trade surplus $51.12 bln (expected surplus of $50.65 bln; last surplus of $47.38 bln). April Imports 0.0% yr/yr (expected -3.0%; last -0.1%) and Exports 3.9% yr/yr (expected 3.2%; last 14.7%). April FX Reserves $3.120 trln (expected $3.133 trln; last $3.188 trln)
    Japan’s April Services PMI 50.7 (last 50.5). March Average Cash Earnings 1.2% yr/yr (expected 0.9%; last 1.2%) and March Overtime Pay 2.5% yr/yr (last 5.8%)

    Helmholtz Watson

    -Equity Markets—

    STOXX Europe 600: -2.1%
    Germany’s DAX: -1.3%
    U.K.’s FTSE 100: -1.8%
    France’s CAC 40: -1.7%
    Italy’s FTSE MIB: -1.8%
    Spain’s IBEX 35: -1.1%

    Helmholtz Watson

    Eurozone’s May Sentix Investor Confidence -22.6 (expected -20.8; last -18.0)
    France’s March trade deficit EUR12.40 bln (last deficit of EUR10.40 bln) and March Current Account deficit EUR3.20 bln (last deficit of EUR900 mln)

    Helmholtz Watson

    ] It has been a tough start for the major indices following a tough end to last week. All 11 sectors are lower, so today’s “strength” is being measured in relative terms, which is to say the “strong sectors” are the ones that are down the least. Currently, that is the consumer staples (-0.4%) and utilities (-1.0%) sectors.

    The energy sector (-4.4%), which soared 10.2% last week when the S&P 500 declined 0.2%, is the biggest laggard today, following oil ($107.02, -2.75, -2.5%) and natural gas ($7.68, -0.43, -5.4%) prices lower. A Bloomberg report indicated that Saudi Arabia had cut prices for Asian buyers due to weakening demand related to lockdowns in China to curb the spread of COVID.

    The biggest drag of all today, however, is the mega-cap stocks. They continue to bleed on de-risking efforts from concentrated positions. Apple (AAPL 153.64, -3.64, -2.3%), Microsoft (MSFT 266.24, -8.49, -3.1%), Alphabet (GOOG 2277.48, -35.72, -1.5%), Tesla (TSLA 818.08, -47.57, -5.5%), and NVIDIA (NVDA 176.51, -10.24, -5.5%) are all taking another turn lower.

    The Vanguard Mega-Cap Growth ETF (MGK) is down 2.9% while the Invesco S&P 500 Equal Weight ETF (RSP) is down 1.9%, demonstrating that there is plenty of weakness to be found. The Advance-Decline line also denotes as much. Decliners lead advancers by a 5-to-1 margin at both the NYSE and Nasdaq.


    Dow 32,245.70 -653.67 -1.99%
    S&P 500 3,991.24 -132.10 -3.20%
    Nasdaq 11,623.25 -521.41 -4.29%
    GlobalDow 3,707.79 -102.86 -2.70%
    Gold 1,853.00 -29.80 -1.58%
    Oil 102.39 -7.38 -6.72%

    Hopefully we’ll stabilize from war & downturn in economy
    a few FAVs from a great AUSSIE group of 1990s to help us rebound in days ahead

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