Monday 3/7/2022 – DIA 328.47 -2.38%, QQQ 324.86 -3.69%, SPY 419.43 -2.95%, IWM 193.72 -2.49% CNN Fear/Greed Index @13 (Extreme Fear)
No high impact economic data released on the day. Equity markets opened lower and traded lower. The Ukraine/Russia war continued to dominate the headlines throughout the day with news of western n corporations closing down operations in Russia and airspace restrictions and closings to certain traffic. WTI crude oil hit 130.50 a barrel before closing at 120.32 up 4.64. As a result Energy Services (XLE) 76.34 +1.48% topped the 11 S&P 500 economic sectors. The remaining 10 sectors were all sharply negative on the day, with Consumer Discretionary (XLY) 163.19 -4.90% the clear laggard. Chevron (CVX) 162.04 +2.14% led the DJIA while Disney (DIS) 133.50 -5.13% was the worst performer. Schlumberger (SLB) 42.10 +8.12% led the S&P 500 followed by Halliburton 36.24 +6.18%. As would be expected, heavy users of fuel were down significantly, United Airlines 31.20 -15.01%, Delta Airlines (DAL) 30.11 -12.78% and American Airlines (AAL) 12.84 -11.99%. Strategic investor RC Ventures was reported to have taken a major position in the home goods retailer Bed Bath & Beyond (BBBY) 21.71 +34.18%.
Tuesday 3/8/2022 – DIA 326.53 -.59%, QQQ 323.35 -.46%, SPY 416.25 -.76%, IWM 194.79 +.55% *** CNN Fear/Greed Index @13 (Extreme Fear)
No high impact economic data released on the day. Equity markets opened lower on the day rallied into positive territory then had a late day sell off all generated by news and rumor flow surrounding positive developments in Ukraine negotiations and then the London Metals Exchange and a massive rise in the price of Nickle. WTI crude oil challenged the previous day’s highs then closing at 124.77 +5.37. Energy Services (XLE) 77.54 +1.57% topped the 11 S&P 500 economic sectors, while In a sign of potential rotation out of low beta safety stocks Consumer Staples (XLP) 72.48 -2.70% fared the worst in the S&P 500 sectors with Coca-Cola (KO) 58.66 -3.96% the worst performer in the DJIA, followed by Proctor & Gamble (PG) 146.79 -3.96%. Caterpillar (CAT) 210.00 +6.76% led the DJIA followed by Chevron (CVX) 170.53 +6.76%. In a sign of a rotation back into riskier and higher beta stocks being put on, internet accommodations booker Airbnb (ABNB) 142.13 +8.01% led the NDX 100 followed by semiconductor manufacturers Marvel Technology (MRVL) 64.51 +5.46% and Microchip Technologies (MCHP) 68.53 +5.20%. Leading the S&P 500, solar energy product manufacturer Enphase Energy (ENPH) 175.99 +10.82% popped up from a recent pullback in a 2 week rally. On the downside, computer and cloud storage firm Seagate Technology (STX) 90.57 -9.51% was the clear laggard on no news.
Wednesday 3/9/2022 – DIA 333.40 +2.10%, QQQ 334.99 +3.60%, SPY 427.41 +2.68%, IWM 200.28 +2.82% CNN Fear/Greed Index @16 (Extreme Fear)
JOLTS Job Openings for January came higher than expected at 11.263M vs, 10.925M. EIA Crude Oil Stocks Change showed a much larger draw than expected -1.863M vs. -0.657M. . Traders focus on Ukraine continued to command trader’s attention with news flow indicating that Ukraine would agree to some of the Russian demands for a ceasefire. Equity markets gapped higher from the opening and continued to rise, but later traded in a sideways range. WTI Crude oil traded down onto 109.53 -15.24 which prompted a market relief rally and profit taking in Energy Services (XLE) 75.17 -3.06%, with ExxonMobil (XOM) 82.79 -5.68%, Schlumberger (SLB) 42.56 -5.59%, Halliburton (HAL) 34.84 -5.22%, Valero (VLO) 87.14 -3.76% and EOG Resources (EOG) 113.77 -3.43% all succumbing to profit taking. Gold had a large reversal bar to the downside as safe haven assets were jettisoned. Technology (XLK) 149.25 +3.96% was the top performing S&P 500 economic sector. Customer relation solutions developer Salesforce.com (CRM) 203.16 +5.77% led the DJIA, while matchmaking service Match Group (MTCH) 98.93 +12.81% led the NDX100 followed by computer systems and cloud security infrastructure developer Datadog, (DDOG) 142.83 +12.35%.
Thursday 3/10/2022 – DIA 332.11 -.39, QQQ 331.27 -1.11%, SPY 425.48 -.45%, IWM 199.92 -.18% CNN Fear/Geed Index @15 (Extreme Fear)
The Consumer Price Index came in as expected at +7.9% (YoY) a 40 year high. Excluding Food & Energy the CPI was +6.4% as expected as well. Interest rates climbed on the news with the 10-Year Note (yield) Index (TNX) 20.11 +.63 closing above the highly watched 20 level. Energy Services (XLE) 77.47 +3.06% rebounded from the previous day’s profit taking. Integrated oil and gas company Chevron (CVX) 170.82 +2.74% led the DJIA, while oil and gas equipment services company Halliburton (HAL) 37.95 +8.93% led the S&P 500. Technology (XLK) 146.64 -1.75% was the clear laggard in the 11 S&P 500 economic sectors, with Apple (AAPL) 158.52 -2.72% the worst performer in the DJIA. Although the sector was under pressure, there were some bright spots like cybersecurity firm CrowdStrike Holdings (CRWD) 191.02 +12.50% which beat investor expectations. Cloud services and e-commerce giant Amazon (AMZN) 2936. 35 +5.41% announced a 20 for 1 stock split and a 10 billion dollar buyback program. Leading the Russell 1000, innovation and technology product lifecycle firm Clarivate (CLVT) 14.65 +12.78% beat on earnings. Continued delisting worries related to SEC reporting requirements brought selling pressure to China related shares; Pinduoduo (PDD) 35.76 -17.49%, JD.com (JD) 52.52 -15.83%, NetEase (NTES) 81.73 -7.73, and Baidu (BIDU) 135.16 -6.29% were the top detractors in the NDX100.
Friday 3/11/2022 – DIA 330.18 -.58%, QQQ 324.40 -2.07%, SPY 420.17 -1.25%, IWM 196.73 -1.60% **** CNN Fear/Greed Index @14 (Extreme Fear)
Michigan Consumer Sentiment Index for March was lower 59.7 vs. 62.68 expected. Equity markets continued under selling pressure from the Thursday’s release of the consumer price index and the continued Russo-Ukraine war. Consumer Discretionary (XLY) 166.76 -1.90% continued under pressure, as Nike (NKE) 122.63 -2.70% led the DJIA to the downside, in addition internet artisan craft retailer Etsy (ETSY) 121.23 -11.50% led the S&P 500 laggards. Also declining internet contract and document service DocuSign (DOCU) 75.01 -20.10% gave a poor outlook on its earnings call. Chinese listed shares continued to the downside on the concerns of potential delisting, Baidu (BIDU) 118.92 -12.02%, Pinduoduo (PDD) 32.13 -10.15%, and JD.com 47.99 -8.63% were some or the worst underperformers in the NDX 100. In a spectacular showing after an earnings beat, solar energy products firm Shoals Technology (SHLS) 17.92 +14.58% received an upgrade by Guggenheim which moved from Neutral to Buy with a 22 dollar price target after a well-received earnings call.
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