In his Daily Market Notes report to investors, while commenting on the volatile earnings season, Louis Navellier wrote:
Tech Suffers
Rising interest rates continue to pressure stocks.
The yield on the 10-year US Treasury broke above 2.75%, while still below the 3-, 5-, & 7-year yields, continuing to put downward pressure on stock valuations. Several bond funds have now hit 52-week lows due to rising rates.
Q4 2021 hedge fund letters, conferences and more
Stocks opened in the red this morning, following last week's loss. Once again tech names are suffering the most, outside of the now-deemed defensive mega-techs, due to their higher P/E multiples along with ongoing chip shortage problems.
Volatile Earnings Season
This is a short week with exchanges closed for Good Friday and at the same time the beginning of 1st quarter earnings starting pre-market tomorrow with Albertsons (NYSE:ACI) and CarMax (NYSE:KMX) and followed later in the week with several major banks. The guidance outlook in these calls, particularly regarding pricing power and supply shortages, will be key to forming expectations in the weeks ahead.
CPI High Water Mark?
Also, tomorrow are March CPI numbers which have a consensus of 8.4% y-o-y (1.2% for the month), the highest since 1982 that some economists hope will be the high water mark this year.
The war in Ukraine, now in its 7th week, shows no signs of easing with Putin putting a tougher general in charge and Ukraine now asking for Western countries to seize Russian assets for the reparations that it claims exceed $1 trillion.
Covid concerns continue to lurk with Shanghai still under lockdown and over 50 people testing positive after attending the April 2nd Gridiron Club dinner in Washington DC including the First Lady.
Oil is at a six-week low, crypto continues its correlation to tech stocks and is sharply lower.
In company news Twitter (NYSE:TWTR) announced that Elon Musk will not be taking a board seat after all but remains its largest shareholder and the stock has traded sideways on the news.
Put your seatbelt on as earnings season begins, it is likely to keep volatility high with both positive and negative surprises and should present many opportunities for nimble investors.
Coffee Beans
According to the Forbes Billionaires List of 2022, most of the world's richest people are at home in the United States with 867 billionaires. This is several more than the second-ranked country, China, with 607 and many more than third-placed India with 165. Source: Statista. See the full story here.
