$SPX In the Know - End of Day Market Wrap - 4-26-2022
The major market indices fell sharply, with the NASDAQ Composite dropping the most. VIX rose over 19% and Crude Oil prices rose more than 3.7%.
Both the NASDAQ Composite and the Russell 2000 dropped to the lowest closing levels since December 2020.
• The NYSE Advance Decline Ratio dropped to 16%, and for NASDAQ it dropped to the same level, nearing 15 year lows.
• Alphabet (GOOG/L) missed both revenue and earnings estimates for its latest quarter and the stock is trading down about 4% in the after hours trade, at the time of publication.
• Microsoft (MSFT) beat both revenue and EPS estimates, and in a volatile after hours session, is trading nearly unchanged.
• One time COVID darling Robinhood (HOOD) announced that it is cutting about 9% of full-time employees.
Headlines of the Day
Alphabet Earnings Disappoint. The Stock Is Dropping.
Google’s parent company reported net income of $16.4 billion, or $24.62 per share. Analysts polled by FactSet had forecast earnings of $25.75. Revenues of $68.01 billion were in line with expectations.
Microsoft earnings beat across the board
Here’s how the company did:
Earnings: $2.22 per share, adjusted, vs. $2.19 as expected by analysts, according to Refinitiv.
Revenue: $49.36 billion, vs. $49.05 billion as expected by analysts, according to Refinitiv."
The University of Michigan consumer sentiment for the US unexpectedly jumped
The University of Michigan consumer sentiment for the US unexpectedly jumped to 65.7 in April of 2022 from an eleven-year low of 59.4 in March, preliminary estimates showed. Figures also beat market forecasts of 59, with the expectations index surging by 18% to 64.1.
Americans are spending nearly a third of their income on mortgages — the largest share since 2007
"The average household now spends 31% of its income on mortgage payments, according to Black Knight. That's up from 24% in December and the highest share since 2007."
Shanghai installs metal barriers to seal off streets, residential buildings to contain COVID outbreak
Authorities in Shanghai have installed metal barriers around the city to seal off streets and entrances to residential buildings to try to contain an outbreak of COVID-19.
The barriers, primarily made from mesh fences or thin sheets of metal, were put up to block small streets and entrances to apartment complexes where coronavirus-positive cases were reported, according to Caixin, a Chinese business media outlet."
Economic Data Results for 4-26-2022
United States Durable Goods Orders
New orders for US manufactured durable goods increased 0.8 percent month-over-month in March of 2022, recovering from a downwardly revised 1.7 percent drop in the previous month but below market expectations of a 1 percent gain.
United States House Price Index YoY
The average prices of single-family houses with mortgages guaranteed by Fannie Mae and Freddie Mac in the United States increased a19.4 percent from a year earlier in February 2022, following a revised 18.3 percent gain in January. The 19.4% increase equals the largest number ever hit, equal to the value in July 2021.
United States New Home Sales
New home sales in the United States dropped 8.6% from a month earlier to a seasonally adjusted annual rate of 763,000 in March of 2022, following a revised 1.2% drop in the previous month and below market expectations of 765,000.
United States New Home Sales (month-over-month)
New Home Sales in the United States decreased 8.6 percent month-over-month in March of 2022, following a revised 1.2 percent drop in the previous period. It was the third consecutive monthly decline.
Economic Data Due Tomorrow on 4-27-2022
Pending Home Sales MoM MAR
Pending Home Sales YoY MAR
Retail Inventories Ex Autos MoM Adv MAR
Wholesale Inventories MoM Adv MAR
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