Volatility Reigns As Stocks Open Strong Again

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In his Daily Market Notes report to investors, while commenting on volatility, Louis Navellier wrote:

Volatility Reigns

Volatility reigns as stocks open strong again, after flipping to losses yesterday afternoon.

Stocks are up across the board this morning as they were yesterday, in the face of surprisingly negative investor sentiment surveys. The contrarian move seems to be based on continued optimism for better-than-expected earnings. So far, earnings results have been mixed.

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Johnson & Johnson (NYSE:JNJ) beat top and bottom but cut its full-year revenue and profit guidance. The stock is up less than 1%. Hasbro (NASDAQ:HAS) had a small miss on revenues and a good beat on earnings. The stock is up 2.4% today. IBM (NYSE:IBM) beat top & bottom but guided down on cash flow and said the strong dollar is having a material impact.  The stock is down 7%.

Halliburton (NYSE:HAL) beat top and bottom with y-o-y earnings up 41% and had a strong outlook for supply constraints in the energy sector. The stock is up a little over 1%.  Netflix reports after the close.

The US 10-year yield is back to 3.0%, the 2-year at 3.17%, WTI crude oil flat at $99, natural gas slightly lower at $7.31 and gasoline at the pump hits a 2-month low.

Rent Fuels Inflation

Home builder confidence falls to a two-year low but housing supply still falls short of demand. Rents continue to rise and will fuel inflation numbers in the months ahead.

The US dollar continues to drift modestly lower. Crypto continues to rebound with Ethereum up 70% off its May low.

Russia threatens gas supplies for Europe. China is seeing more Covid cases and warns Nancy Pelosi from visiting Taiwan. The UK is experiencing the hottest day on record at 104.4 degrees with temperatures in their subway of 99 degrees.

The earnings season is less than 15% done. There are still plenty of opportunities ahead.

Coffee Beans

Energy costs are hitting black and Latino communities the hardest according to the latest survey by the U.S. Energy Information Administration (EIA). Among Black respondents, 52% reported experiencing energy insecurity in 2020, and among Hispanic or Latino respondents, 47%. White respondents saw much lower rates at around 23%. Source: Statista. See the full story here.