SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

   Technology StocksSemi Equipment Analysis


Previous 10 Next 10 
To: Return to Sender who wrote (88310)4/26/2022 4:09:57 PM
From: Elroy
2 Recommendations   of 92545
 
TXN reported $4.9b for Q1.



"TI's second quarter outlook is for revenue in the range of
$4.20 billion to $4.80 billion and earnings per share between $1.84 and $2.26. This outlook comprehends an impact due to reduced demand from COVID-19 restrictions in China.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Return to Sender who wrote (88304)4/26/2022 4:13:01 PM
From: Return to Sender
2 Recommendations   of 92545
 
16 New 52 Week Lows Today on the NDX and No New 52 Week Highs:

New Lows:

Mon Tues
ADBE ADBE
ADSK ADSK
ALGN ALGN
AMAT AMAT
ANSS ANSS
CHTR CHTR
FB FB
ISRG IDXX
MTCH ILMN
NFLX ISRG
PYPL NFLX
SBUX OKTA
SWKS PYPL
WDAY SBUX

SWKS

WDAY

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Elroy who wrote (88311)4/26/2022 4:27:36 PM
From: Return to Sender
3 Recommendations   of 92545
 


Market Snapshot

briefing.com

Dow 33240.18 -809.28 (-2.38%)
Nasdaq 12490.74 -514.11 (-3.95%)
SP 500 4175.19 -120.92 (-2.81%)
10-yr Note +9/32 2.745

NYSE Adv 585 Dec 2610 Vol 997.0 mln
Nasdaq Adv 859 Dec 3380 Vol 5.0 bln


Industry Watch
Strong: Energy

Weak: Information Technology, Communication Services, Consumer Discretionary


Moving the Market
-- Mega-caps lead market sharply lower in front of earnings reports

-- Lingering growth concerns

-- Mixed reactions to better-than-expected Q1 earnings results





Trepidation sweeps market
26-Apr-22 16:15 ET

Dow -809.28 at 33240.18, Nasdaq -514.11 at 12490.74, S&P -120.92 at 4175.19
[BRIEFING.COM] The S&P 500 fell 2.8% on Tuesday in a relatively broad-based decline led by the growth stocks. The Dow Jones Industrial Average (-4.0%) and Russell 2000 (-3.2%) both underperformed while the Dow Jones Industrial Average fell 2.4%.

The mega-caps were some of the more influential laggards amid trepidation surrounding their earnings reports this week, starting with Microsoft (MSFT 270.22, -10.50, -3.7%) and Alphabet (GOOG 2390.12, -74.88, -3.0%) after the close. The Vanguard Mega-Cap Growth ETF (MGK 205.66, -8.65, -4.0%) fell 4.0%.

Losses broadened out as the day progressed, though, leaving ten of the 11 S&P 500 sectors in negative territory and the taking the S&P 500 below yesterday's intraday low (4200.82) by the close. Investors braced for further downside, evident in the 24% pop in the CBOE Volatility Index (33.52, +6.50, +24.1%).

The consumer discretionary (-5.0%), information technology (-3.7%), and communication services (-3.2%) sectors posted the steepest declines. The former included a 12% drop in Tesla (TSLA 876.42, -121.60, -12.2%) attributed in part to concerns surrounding Elon Musk's ownership of Twitter (TWTR 49.68, -2.02, -3.9%).

The energy sector (+0.04%) was the only sector in the S&P 500 that closed higher, although it couldn't keep pace with the increase in oil prices ($101.42, +2.79, +2.8%), which reclaimed $100 per barrel.

The latest earnings reports continued to have little effect on the market despite the results being mostly better than expected, including those from 3M (MMM 144.22, -4.38, -3.0%), General Electric (GE 80.59, -9.29, -10.3%), UPS (UPS 183.05, -6.59, -3.5%), PepsiCo (PEP 173.30, -0.44, -0.3%), and Sherwin-Williams (SHW 271.37, +23.35, +9.4%).

The mixed reactions added to the uncertainty facing the mega-cap earnings. Growth concerns, meanwhile, persisted and were manifested by another sharp decline in Treasury yields. The 2-yr yield fell eight basis points to 2.55%, and the 10-yr field fell five basis points to 2.77%. The U.S. Dollar Index rose 0.6% to 102.34.

Growth concerns were exacerbated by the threat of lockdowns in Beijing and a warning from Russia's Foreign Minister Lavrov that there is a "considerable" chance of nuclear war if western nations continue to deliver weapons to Ukraine, according to Bloomberg.

Separately, the Senate officially confirmed Fed Governor Brainard as Vice Chair of the Fed.

Reviewing Tuesday's economic data:

  • Total durable goods orders increased 0.8% month-over-month in March (Briefing.com consensus +1.1%) following an upwardly revised 1.7% decline (from -2.2%) in February. Excluding transportation, durable goods orders increased 1.1% month-over-month (Briefing.com consensus +0.5%) following an upwardly revised 0.5% decline (from -0.6%) in February.
    • The key takeaway from the report is that it conveyed a nice rebound in order activity after a brief slump in February. Notably, new orders for nondefense capital goods, excluding aircraft -- a proxy for business spending -- jumped 1.0% following a 0.3% decline in February.
  • New home sales decreased 8.6% month-over-month in March to a seasonally adjusted annual rate of 763,000 units (Briefing.com consensus 770,000) from an upwardly revised 835,000 (from 772,000) in February. On a year-over-year basis, new home sales were down 12.6%.
    • The key takeaway from the report is that sales of lower-priced homes have lessened as a percentage of overall sales, likely due to less supply resulting from cost and supply chain pressures for builders, and emerging pressures from rising mortgage rates that are reducing affordability for lower-income buyers. That is leading to higher-priced homes accounting for a larger percentage of new homes sold, which is driving up both median and average selling prices.
  • The Conference Board's Consumer Confidence Index dipped to 107.3 in April (Briefing.com consensus 106.0) from an upwardly revised 107.6 (from 107.2) in March. In the same period a year ago, the index stood at 117.5.
    • The key takeaway from the report is that consumers' expectations did not worsen in spite of the inflation pressures and the war in Ukraine, although it was noted that purchasing intentions are down overall from recent levels.
  • The S&P Case-Shiller Home Price Index was up 20.2% year-over-year in February (Briefing.com consensus 18.9%) while the FHFA Housing Price Index increased 2.1% month-over-month in February.
Looking ahead, investors will receive Pending Home Sales for March, Advance Intl Trade in Goods, Retail Inventories, and Wholesale Inventories for March, and the weekly MBA Mortgage Applications Index on Wednesday.

  • Dow Jones Industrial Average -8.5% YTD
  • S&P 500 -12.4% YTD
  • Russell 2000 -15.8% YTD
  • Nasdaq Composite -20.2% YTD



Crude futures reclaim $100 per barrel
26-Apr-22 15:25 ET

Dow -688.32 at 33361.14, Nasdaq -441.17 at 12563.68, S&P -101.75 at 4194.36
[BRIEFING.COM] The S&P 500 is down 2.4% and has slipped below yesterday's intraday low (4200.82).

One last look at the sector standings shows consumer discretionary (-4.4%), information technology (-3.2%), and communication services (-2.6%) still leading the retreat, while the energy sector (+0.5%) remains the only sector trading higher.

WTI crude futures settled higher by $2.79 (+2.8%) to $101.42/barrel.

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Return to Sender who wrote (88313)4/26/2022 6:16:28 PM
From: Sam
3 Recommendations   of 92545
 
What to Expect When the S&P 500 Has a Bearish April
Not all is lost for bulls, as rising rate environments are often bullish for equities
Matthew Timpane
CMT, Senior Market Strategist

Apr 24, 2022 at 5:01 PM
schaeffersresearch.com
[note the date of this article]

So far, the S&P 500 Index (SPX – 4,271.78) is down -5.14% month-to-date, amidst the historically bullish month of April. At the start of the month, I posted a chart on Twitter highlighting the average returns for April. However, I emphasized when the S&P 500 is negative in April, it's been to the tune of -5% or more over the past 20 years.

This appears to be unfolding once again, with one week to go. Of course, the market can rally back ferociously this week if we get some good news, although that might take more than earnings beating expectations. Per Refinitiv Eikon data, 77.8% of companies have beat earnings thus far, while selling pressure has increased. Macro factors are clearly driving this market, and we likely need to see some positive notes on that front. We may be hard-pressed to get that with the U.S. Federal Reserve behind the curve, though, and the Russia-Ukraine conflict seemingly far from over.

As we head into a seasonally weaker period of the year, bulls are likely wounded as they've come to expect these April showers of bountiful gains. Going back to 1950, when analyzing only bearish months of April, the average return for the month of May is -0.11%. On the surface, that seems rather ordinary, since returns for May on average are +0.17% since 1950, with the month being positive 59.8% of the time.

However, when April is negative, May is only positive 47.62% of the time, but the dispersion of returns is slightly greater than average. When May was bullish, it was positive by +3.54%, and when bearish, it was down -3.44%. This is slightly wider than the average dispersion of returns, so we can expect the possibility of a somewhat more volatile May than usual to continue with this year's volatile nature.

But if you need more evidence, the final straw would be a notable break below the 4,300-century mark, which was support at the September and January lows. A break of 4,300 would likely result in a retest of the 2022 lows at least.”

- Monday Morning Outlook, April 18, 2022



Bear markets tend to leave bulls feeling deflated, as we often see breakout reversals and violent, short-lived rallies off support levels before rolling back into the broader trend. This is classic bear market price action we're experiencing right now. The early week rally on the back of earnings simply dissipated and broke support on the S&P 500 around 4,380, as equity markets cascaded into the weekend.

We highlighted this level last week, and now bulls need to look towards lower support levels to hold. The level on deck is roughly right where we closed at 4,271, which is not only just slightly below the -10% year-to-date level, but also near the October 2021 intraday lows that held as support after the first swoosh lower in late January.

Additionally, this level served as a pivot that allowed the markets to rally higher in mid-March, making it an essential one. If the S&P 500 fails to break back above 4,278 in early trading this week, and preferably close above the October 2021 closing lows at 4,300, we open the door below to the February and March lows around 4,150. Moreover, if that level fails, we're on a path to test 3,980, or even 3,860. In other words, there is potential for things to get ugly fast.

Two graphs stuck out to me in the past week. The first suggests heightened risk of higher volatility and lower stock prices in the near future. VIX futures options buyers are again purchasing calls relative to puts at a rate that has historically preceded trouble for equities in the past year.”

- Monday Morning Outlook, April 4, 2022

Furthermore, volatility re-emerged this week after a slight dip below the 20 level. We previously alluded to the possibility of a volatility pop, as we have been monitoring rising call/put ratios on the CBOE Volatility Index (VIX – 28.21) for the past few weeks. This week we saw the VIX 20-day call/put ratio surge to 4.76. When we've seen surges like this in VIX call activity, especially over 5.0, it's typically been smart money entering ahead of a large volatility pop. Watch how the VIX acts around the 30-level if it gets there. Stall-outs have been short-term market bottoms, but when it holds above 30, we can see powerful moves lower in equities.



Breadth also seems to support that we haven't seen a capitulatory bottom just yet. While we saw short-term sentiment and breadth indications for a bounce in March, we never saw longer-term breadth indicators give us an all-clear. They don't have to if price action would have remained bullish, but that is not what we're experiencing, despite my inner nature to be an optimist.

New Highs minus New Lows remain in a downtrend, and the Advance-Decline Line for the New York Stock Exchange (NYE) and other indexes remains in a downtrend. Finally, the percentage of stocks trading below their 200-day average in the S&P 500 never breached the extreme levels I traditionally like to see in more significant pullbacks, as it only managed a reading of 37.07% on March 7. Typically, I want to see a move below 20% for that capitulatory flush out.



Moreover, the S&P 500 components 10-day buy-to-open put/call ratio continues to move higher from an already relatively high level, which has been indicative of bear markets in the past. However, the good news is that we did see an outsized, single-day spike in the CBOE equity-only put/call ratio to 0.87. We typically start seeing these spikes happen as we near potential market lows, so while we certainly could have more downside, these spikes suggest we could be getting closer to a significant bottom for stocks.

Not all is lost for the bulls, though. Rising rate environments often are bullish for equities. Plus, initial yield curve inversions typically don't produce immediate market meltdowns or instant recessions, no matter how much the media likes to stoke those headline fears. We've seen some of the best bull rallies after inversions, as it leads toward a blow-off top. You simply can't sit out of these runs just because the yield curve inverted, so pullbacks like the one we are experiencing tend to be good buying opportunities in the intermediate term, once you see bullish price action return.

These kind of market environments can be tough for market participants, though. We remain cautious until we see some improvement in the broader trend or a capitulatory moment. However, there is still pockets of opportunity on the long side if you dig through the carnage, and we can't rule out a rally from the level we closed at on Friday.

But, if you haven't already added a hedge to your portfolio for insurance, you might want to consider broader index puts at this point, if the selling continues rather than VIX call options, since they're much more expensive than the previous weeks we mentioned them for hedging purposes.

Matthew Timpane is Schaeffer's Senior Market Strategist

Continue Reading:
The Week Ahead: Big Tech Earnings Highlight Last Week of April Indicator of the Week: What Do Crazy High Oil Prices Mean for the S&P 500?

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Sam who wrote (88314)4/27/2022 12:27:46 AM
From: Sam
3 Recommendations   of 92545
 
Another general market article. Again, note the date. From Todd Salamone of Shaeffers Research.

'Make or Break' Levels Looming for SPX
Investor optimism is near 21-year lows
Todd Salamone
Senior Vice President of Research

Apr 17, 2022 at 8:57 PM

schaeffersresearch.com

From time to time, I mention results in the weekly American Association of Individual Investors (AAII) poll. I have mixed feelings about using surveys like this as a timing indicator, as on one hand it measures the pulse of what participants are thinking and feeling. But, on the other hand, it doesn’t necessarily reflect what they are doing as with other sentiment tools at our disposal, such as option activity, fund flows, short interest figures, or allocation surveys.

Nonetheless, when an extreme reading in a survey emerges, I think it is worthwhile to further investigate, which I did when I saw that only 16% of those surveyed in last week’s AAII poll said they were bullish. It was the lowest reading since September 4, 1992 when only 14% claimed to be bullish during a historically weak month for stocks.

The chart below gives you a little context of the S&P 500 Index (SPX—4,392.59) price action before and after that 1992 reading. At the time, the SPX was trading less than 5% above its 252-day moving average, or one-year moving average, and had achieved an all-time high just one month earlier.

One month following the 14% bullish reading, the SPX pulled back slightly below its 252-day moving average, before recovering and rallying over the course of the next year. Most of that advance occurred during a period of historically strong seasonality (October through April).



Now, with only 16% of those participating in the weekly AAII bullish, the SPX is trading around its 252-day moving average and is four months removed from its last all-time high. Like early-September 1992, we are about to move into a period of well-known poor seasonality, which some of you may know as “sell in May and go away.”



If the AAII survey is representative of retail investors sitting on the sidelines for the time being, as they did for weeks in September 1992, the heart of earnings season presents another potential headwind for bulls, who might be depending on corporate buybacks to support stocks in the days ahead.

Companies are bound by insider trading rules like everyone else and, therefore, will tend to suspend buyback activity in the 10 days preceding and the two days following an earnings release. Therefore, corporations buying back stock during the current pull back is not necessarily a given in the immediate days ahead.

Finally, in assessing the action of option buyers, the unwinding of an extreme in pessimism that resulted in a strong, short-term rally is showing evidence of already running its course. Per the chart below, note that the 10-day SPX component put/call volume ratio is turning higher again.

The new upswing in this ratio is from a relatively high level compared to what we are used to seeing in this bull market. But it is turning higher from lows that are typically seen in lengthy – dare I say it - bear markets, like that of 2007 – 2009.



“…if following the historical script and applying to the present, the SPX’s 4,375 level should be your ‘uncle’ point to take action to lighten up on bullish positions you may have initiated coincident with the SPX breakout… If you want to give a little more room, or lighten up even further if the SPX declines, the round 4,300-century mark is another point to focus on, as this represents September and January support.”

- Monday Morning Outlook, March 28, 2022

From a short-term technical perspective, the SPX remains situated in the middle of what could be resistance levels overhead and strong support levels below... I cannot say with 100% certainty if the lows for the year are in place. If the SPX moves below the support area described above, shorts would likely be emboldened again. Amid low historical short interest on SPX components, a massive headwind would present itself if the shorts get bolder following a technical breakdown…If you want to hedge against a bearish scenario with index or exchange-traded fund (ETF) options, now is the time, with the CBOE Market Volatility Index trading in line with 63-day historical volatility and roughly half this year’s intraday high.”

-Monday Morning Outlook, April 11, 2022

Amid more potential short-term headwinds for bulls on the heels of last week’s decline, the SPX is edging closer to what could be “make or break’ levels from a longer-term perspective, as discussed during the past couple of weeks and as seen on the chart below.

The first important area that is important for bulls to defined is in the 4,375 zone, which is the level from which the SPX broke out above the top rail of a multi-month bearish channel in March. A move back below this level would seriously put the durability of that breakout into question and move the needle back in favor of the bears.

As I alluded to a couple of weeks ago, if indeed last month’s rally was just an impressive advance in what proves to be a prolonged period of equity market weakness, a move back below the March breakout level would be the first signal for longer-term weakness, if history is any guide.

But if you need more evidence, the final straw would be a notable break below the 4,300-century mark, which was support at the September and January lows. A break of 4,300 would likely result in a retest of the 2022 lows at least.

Last week’s advice still stands if you want to take the guess work out and use portfolio insurance to guard against a breakdown in equities. Although portfolio insurance is a little more expensive now relative to last week, it is reasonably priced with the Cboe Market Volatility Index (VIX) at 22.70 last week, slightly above 63-day SPX historical volatility of 21.50.



Todd Salamone is Schaeffer's Senior V.P. of Research


Continue Reading:

https://www.schaeffersresearch.com/content/analysis/2022/04/18/make-or-break-levels-looming-for-spx

Share RecommendKeepReplyMark as Last Read


From: JCnieuwenj4/27/2022 4:25:49 AM
2 Recommendations   of 92545
 
Hynix Warns Memory Chip Rebound Hinges on China Lockdowns

finance.yahoo.com

(Bloomberg) -- South Korean memory chipmaker SK Hynix Inc. reported profit more than doubled in the last quarter after datacenter sales offset slowing consumer demand and memory prices fell less than was feared.

For the rest of the year, Hynix expects a bounceback in PC and smartphone sales in the seasonally stronger second half, but that hinges on how long China’s Covid-19 lockdowns continue, which the company said have already affected manufacturing, supply chains and consumer demand.

“The biggest demand factor would be the lockdowns underway in China,” said Myoungsoo Park, head of DRAM marketing. “Depending on how they unfold in the future, there will be some questions that still remain with regard to the uncertainties over demand in the second half.”

Operating profit increased to 2.86 trillion won ($2.3 billion) in the three months ended March, the Apple Inc. supplier said in a statement Wednesday. Sales rose 43% to 12.16 trillion won. The company fell shy of analyst estimates of 3.2 trillion won in profit after recording a one-time expense of 380 billion won to cover the cost of compensating customers for “performance weakness” in some DRAM products it previously sold, it said in the the statement.

Shares dropped as much as 3.2% in Seoul, outpacing the broader market’s selloff.

Hynix forecast annual growth of around 30% in NAND shipments and the high teens percentages for DRAM. The company expects PC and smartphone demand to remain weak -- citing lockdowns as a limiting factor on how many PCs its customers can assemble -- in the first half before bouncing back. It anticipates strong orders for server memory as datacenter operators are expanding at a pace similar to the cloud tech boom of 2018, the company said.

Hynix credited strong demand for computing products as a driver for its sales jump, echoing global chipmakers such as Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. that have seen sales buoyed by strong orders from enterprise clients. The memory maker pointed to weak demand from China’s mobile market as a challenge, underscoring concern about consumer demand. Smartphone shipments this year suffered their worst drop since the Covid-19 outbreak and PC sales also slowed.

Chipmakers Argue Inventory Build-Up Signals Increased Demand

The broader memory chip industry has forecast a rebound in DRAM and NAND prices as early as the second quarter. Over the first three months of the year, prices of DRAM fell less than projections while NAND prices recovered quickly after a contamination issue reduced output from Japan’s Kioxia Holdings Corp. that tightened overall supply. But uncertainty remains as macroeconomic risks are rising and demand for personal gadgets wanes.

In addition to macroeconomic risks such as Russia’s invasion of Ukraine and soaring inflation, China’s Covid Zero policy is putting a strain on supply chains. Lockdowns and mass Covid-19 testing are slowing operations and logistics across major cities such as Shanghai and Zhengzhou, where iPhone assembler Foxconn Technology Group has facilities. Hynix has a DRAM manufacturing facility in Wuxi and recently acquired Intel Corp.’s NAND plant in Dalian.

“We are expecting a more complicated DRAM market situation for 2022,” said Kim Woon-ho, analyst at IBK Investment and Securities. “There is much anticipation that DRAM prices could rebound in the second quarter but we see a greater possibility that prices may go down.”

Share RecommendKeepReplyMark as Last Read


To: Return to Sender who wrote (88309)4/27/2022 4:02:26 PM
From: Return to Sender
1 Recommendation   of 92545
 
BPNDX Rose 1 to 27 PnF Buy Signals - [ATVI removed MELI NTES added]

Mon Tues Symbol
ADP ADP ADP
AEP AEP AEP
AMGN AMGN AMGN
ATVI ATVI AZN
AVGO AZN BIIB
AZN BIIB CSX
BIIB CSX DLTR
BKNG DLTR EBAY
CPRT EBAY EXC
CSX EXC FAST
DLTR FAST INTC
EBAY INTC JD
EXC JD KDP
FAST KDP KHC
INTC KHC MAR
KDP MAR MELI
KHC MNST MNST
KLAC PAYX NTES
MAR PEP PAYX
MNST ROST PEP
PAYX SIRI ROST
PEP TMUS SIRI
ROST VRSK TMUS
SIRI VRSN VRSK
TMUS VRTX VRSN
TSLA XEL VRTX
TXN
XEL
VRSK

VRSN

VRTX

XEL





Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Return to Sender who wrote (88310)4/27/2022 4:02:36 PM
From: Return to Sender
1 Recommendation   of 92545
 
BPSOX Remains 3 PnF Buy Signals - [MPWR removed SLAB added]

Mon Tues Wed
AVGO INTC INTC
INTC MPWR SLAB
KLAC TER TER
MPWR

TER

TXN

WOLF


Share RecommendKeepReplyMark as Last ReadRead Replies (1)


To: Return to Sender who wrote (88312)4/27/2022 4:02:56 PM
From: Return to Sender
1 Recommendation   of 92545
 
17 New 52 Week Lows Today on the NDX and No New 52 Week Highs:

New Lows:

Mon Tues Wed
ADBE ADBE ADBE
ADSK ADSK ADSK
ALGN ALGN AMAT
AMAT AMAT ANSS
ANSS ANSS ASML
CHTR CHTR CHTR
FB FB FB
ISRG IDXX IDXX
MTCH ILMN ILMN
NFLX ISRG ISRG
PYPL NFLX LRCX
SBUX OKTA MCHP
SWKS PYPL NFLX
WDAY SBUX OKTA

SWKS PYPL

WDAY SBUX


SWKS

Share RecommendKeepReplyMark as Last ReadRead Replies (1)


From: Return to Sender4/27/2022 8:19:37 PM
2 Recommendations   of 92545
 


Market Snapshot

briefing.com

Dow 33301.93 +61.75 (0.19%)
Nasdaq 12488.93 -1.81 (-0.01%)
SP 500 4183.95 +8.76 (0.21%)
10-yr Note -3/32 2.768

NYSE Adv 1312 Dec 1832 Vol 993.0 mln
Nasdaq Adv 1797 Dec 2657 Vol 4.6 bln


Industry Watch
Strong: Information Technology, Materials, Energy

Weak: Communication Services, Utilities, Real Estate


Moving the Market
-- Major indices close mixed in volatile session

-- Information technology sector provided key leadership

-- Weakness in the communication services sector after Alphabet (GOOG) missed EPS estimates

-- Mixed earnings picture





Volatile session ends mixed and little changed
27-Apr-22 16:20 ET

Dow +61.75 at 33301.93, Nasdaq -1.81 at 12488.93, S&P +8.76 at 4183.95
[BRIEFING.COM] The S&P 500 increased 0.2% on Wednesday in a volatile session in which the benchmark index traded between a 0.3% decline and 1.6% gain. The Nasdaq Composite (unch), Dow Jones Industrial Average (+0.2%), and Russell 2000 (-0.3%) closed mixed and little changed, also fading intraday gains.

Intraday highs were largely mechanical in the sense that the market tried to rally from an oversold condition, although some attributed good earnings news from the likes of Microsoft (MSFT 283.22, +13.00, +4.8%), Visa (V 214.11, +13.01, +6.5%), and T-Mobile US (TMUS 129.84, +4.88, +3.9%) as an influential factor.

The whole earnings picture, when considering reactions and guidance, was somewhat mixed, though. Alphabet (GOOG 2300.41, -89.71, -3.8%) and Boeing (BA 154.46, -12.58, -7.5%) both struggled following their reports while Texas Instruments (TXN 169.39, +0.95, +0.6%) issued downside Q2 guidance.

The S&P 500 communication services sector (-2.6%) was easily the worst-performing sector, as weakness in Alphabet spread over to Meta Platforms (FB 174.95, -6.00, -3.3%) ahead of its earnings report after the close, and the bleeding continued in Netflix (NFLX 188.54, -9.86, -5.0%).

Conversely, the information technology (+1.4%), materials (+1.5%), and energy (+1.5%) sectors each gained roughly 1.5%. The outperformance of the heavily-weighted technology sector overshadowed an underlying negative bias in the broader market: declining issues outpaced advancing issues at both the NYSE and Nasdaq.

Besides the mixed earnings picture, buying conviction was restrained by global growth concerns, the inability for the market to sustain a rebound rally, and weakening technical factors.

Elsewhere, the Treasury market saw modest selling pressure after two days of gains. The 2-yr yield increased two basis points to 2.57%, and the 10-yr yield increased five basis points to 2.82%. The U.S. Dollar Index rose 0.7% to 102.97. WTI crude futures rose 0.3%, or $0.33, to $101.75/bbl.

Reviewing Wednesday's economic data:

  • The Advance report for International Trade in Goods for March showed a deficit of $125.3 billion, versus a revised $106.4 billion (from $106.6 billion) in February. The Advance report for Retail Inventories for March rose 2.0%, and the Advance report for Wholesale Inventories for March rose 2.3%.
  • Pending home sales decreased 1.2% m/m in March (Briefing.com consensus -1.5%) following a revised 4.0% decline (from -4.1%) in February.
  • The weekly MBA Mortgage Applications Index fell 8.3% following a 5.0% decline in the prior week.
Looking ahead, investors will receive the advance estimate for Q1 GDP and the weekly Initial and Continuing Claims report on Thursday.

  • Dow Jones Industrial Average -8.4% YTD
  • S&P 500 -12.2% YTD
  • Russell 2000 -16.1% YTD
  • Nasdaq Composite -20.2% YTD



Crude futures settle slightly higher
27-Apr-22 15:30 ET

Dow +180.40 at 33420.58, Nasdaq +18.69 at 12509.43, S&P +18.75 at 4193.94
[BRIEFING.COM] The S&P 500 is up 0.5% in a relatively underwhelming session given the inability to hold onto prior gains.

One last look at the S&P 500 sectors shows information technology (+1.6%), energy (+1.7%), and materials (+1.7%) trading higher by more than 1.5%, while the communication services sector (-2.8%) remains a pocket of weakness.

WTI crude futures settled higher by $0.33 (+0.3%) to $101.75/barrel.

Share RecommendKeepReplyMark as Last Read
Previous 10 Next 10