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In the Know - End of Day Market Wrap - 4-28-2022 - GDP, Mega-caps, and more to come





Date Published:

 

Markets
Market indices were all substantially higher today, as VIX slid slightly. NASDAQ was the best performer after underperforming yesterday. Economic data (discussed below) may well be the driver.

Crude oil also rose on the day.

SPX 4287.5 +103.54 (+2.47%)
NASD 12871.53 +382.59 (+3.06%)
DJIA 33916.39 +614.46 (+1.85%)
R2K 1917.94 +33.91 (+1.80%)
VIX 29.99 -1.61 (-5.09%)
Oil 105.33 +3.31 (+3.24%)

 

• The NYSE Advance Decline Ratio saw a rather extreme positive with advancers outpacing decliners 4.74:1. The NASDAQ showed advancers outpacing decliners on a 2.1:1 ratio.

• Apple rose sharply in the after hours trade before the conference call on earnings results, while Amazon fell.

Headlines of the Day
U.S. GDP fell at a 1.4% pace to start the year as pandemic recovery takes a hit
The decline came largely from factors likely to reverse later in the year. The internals were not as bad as the headline looked. Markets paid little attention to the report.

Deflationary Pressures: Bank of America sounding the alarm on collapsing freight demand and prices
Trucking demand is “near freight recession levels,” according to Bank of America. Shippers’ outlook on rates, capacity and inventory levels are matching attitudes not seen since May and June 2020, when freight volumes saw a historic decline.

Major Shipping Firm Sees Signs of Supply-Chain Bottlenecks Easing
Port congestion that’s increased supply-chain bottlenecks because of the war in Ukraine and lockdowns in China may be showing signs of easing, according to the chairman of one of the world’s biggest shipping lines.

Apple beats sales estimates with big bumps in iPhones, services
Apple Inc (AAPL.O) on Thursday reported record fiscal second-quarter sales and profit that beat Wall Street estimates as it managed chip shortages and consumers snapped up new iPhones. Sales rose 19% in the Americas and were up by single-digits in Europe and China.

Amazon Earnings Disappoint. The Bigger Issue Is the Outlook.
Shares of Amazon AMZN +4.65% are down significantly in late trading Thursday after the company’s first-quarter results disappointed investors. Amazon also forecast weaker-than-expected sales for the second quarter.

Economic Data Results for 4-28-2022
Jobless Claims 4-week Average 23/APR
The number of Americans filing new claims for unemployment benefits decreased by 5 thousand in the week ended April 23rd, from a revised 185 thousand in the previous period and in line with market expectations.

United States GDP Growth Rate
The American economy contracted an annualized 1.4% on quarter in the first three months of 2022, well below market forecasts of a 1.1% expansion and following a 6.9% growth in Q4 2021, primarily due to a record trade deficit and a decline in inventory investment.

United States PCE Prices QoQ
The price index for personal consumption expenditures in the United States rose by an annualized 7.0 percent in the first quarter of 2022, quickening from a 6.4 percent advance in the previous quarter.

Real Consumer Spending QoQ Adv Q1
Personal consumption expenditure in the United States grew by 2.7 percent in the first quarter of 2022, according to the advance estimate. It compares with a 2.5 percent increase in the previous quarter.

Economic Data Due Tomorrow on 4-29-2022
United States PCE Price Index Annual Change

United States Personal Consumption Expenditure Price Index (QoQ)

United States Michigan Consumer Sentiment

United States Personal Spending


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