In his Daily Market Notes report to investors, while commenting on Peloton, Novavax and Norwegian Cruise Line, Louis Navellier wrote:
With over a trillion dollars of market losses in the megacap companies in the last 3 days, the market is due for a bounce. Year to date the Dow is down 11.2%, the S&P -16.3%, both at the lowest level since March of 2021. The tech-heavy NASDAQ, which has had all positive annual returns since 2009, is down 25.7% year to date, the lowest since November of 2020.
Q1 2022 hedge fund letters, conferences and more
CPI Bounce
The bounce today at that opening may have had something to do with the fact that tomorrow we will see CPI for April, which is currently forecast to come in at 8.1% on an annual basis, down from March's 8.5%. If investors conclude that peak inflation has already passed we may see a major relief rally in the days ahead.
Other challenging trends that were also supportive this morning: Interest rates are lower with the 10-year US Treasury yield falling below 3%, crude oil is below $103, industrial metal prices are falling, and crypto has bounced overnight. European stock indexes are up 2%, China Indexes are up 1%, and the US dollar has finally softened.
Looking for Bottom
Company news of this morning includes Peloton (NASDAQ:PTON) which dropped 25% on weak results and stated they were thinly capitalized and are seeking a $750 million 5-year term loan from Goldman. Novavax (NASDAQ:NVAX) reported its first profitable quarter but missed top & bottom and is down over 20%. Norwegian Cruise Line (NYSE:NCLH) is up 2% after reporting bookings now exceeding pre-pandemic levels.
Amazon.com, Inc. (NASDAQ:AMZN) has reported that they may put some of their excess warehouse space on the secondary market, another reflection of companies who benefited greatly from the pandemic lockdowns who have seen slower than expected followthrough in 2022.
Still looking for the bottom, but today is a welcome relief.
Coffee Beans
With the cost of living rising dramatically around the world in 2022, many households are starting to look nervously at their bank balance. A majority of 52 percent of the adults surveyed in Russia said they are worried about their financial future. Roughly a third of adults responding in the United States, India, Germany, and the United Kingdom professed to having concerns about their financial situation going forward. Source: Statista. See the full story here.
