/ April 22
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Tuesday:
Fed Speakers
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Wednesday:
S&P Global Services PMI Flash (52.8 exp.)
New Home Sales (0.68M exp.)
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Thursday:
Durable Goods Orders MoM (2% exp.)
Initial Jobless Claims (221K exp.)
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Friday:
Michigan Consumer Sentiment Final (50.8 exp.) -
Monday:
Zions Bancorp
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Tuesday:Tesla
RTX
Capital One
SAP SE
Northrop Grumman
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Wednesday:
Boeing
General Dynamics
NextEra Energy
Chipotle Mexican Grill
Lam Research
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Thursday:
Merck
Alphabet
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Friday:
AbbVie
Phillips 66
Colgate-Palmolive
Daily Briefing
*The stock market tumbled right out of the gate to start the new week; major equity indices remained in a steady decline through most of the session; the Dow Jones Industrial Average dropped 970 points, the Nasdaq Composite closed -2.6% lower than Thursday, and the S&P 500 logged a -2.4% decline;
*The continuation of last week's selling was driven by deepening concerns about trade policy and fresh political pressure on the Federal Reserve; a warning from China urging nations to steer clear of U.S. trade deals that could disadvantage Beijing, along with talk that President Trump’s team is exploring whether he can lawfully remove Federal Reserve Chair Jerome Powell was at the heart of the market narrative yesterday;
*SPY continues to trade in a volatile manner, vacillating between the previously established support and resistance levels; $541 is the pivot to the upside (20-DMA & Trendline), while $508 should offer support near the previous lows; the good news is that the market managed to hold the $508 level during yesterday’s session; any break above $541 should send the benchmark ETF to 50-DMA resistance;
*After a short respite, the MACD signal is now starting to turn negative again;
*There was very little buying in Dark Pools among the top 20 S&P 500 stocks; most of the issues, especially tech giants (GOOG, META, MSFT) sit at the bottom of the table;
*We are again seeing bids coming in only for the safer stocks - WMT and COST; institutional investors remain risk averse;
*The Gamma Exposure profile for these same assets paints a similar picture, with the risky tech stocks (GOOG, MSFT, NVDA) near the bottom;
*This translates into an elevated volatility regime for high risk stocks;
*There is no indication yet of any sustainable “bottom” forming, for investors looking to “buy the dip”;
*The warning from China piled onto existing worries about the trade war situation and the news about the Trump administration calls into question the stability of the central bank's longstanding independence;
*The broad market retreat had a risk-off bias; big tech and other mega caps led the declines, resulting from influential moves in NVIDIA (NVDA 96.91, -4.58, -4.5%), Microsoft (MSFT 359.12, -8.66, -2.4%), Apple (AAPL 193.16, -3.82, -1.9%), and Tesla (TSLA 227.50, -13.87, -5.8%);
*All sectors finished lower; Staples (XLP) was the outperformer of the day, declining only -0.95%, while major downside occured in Consumer Discretionary (XLY), Energy (XLE) and Tech (XLK);
*Adding to the downbeat tone, the U.S. dollar weakened, and longer tenors logged gains in the bond market; the 10-year Treasury yield was up seven basis points to 4.41%, while the U.S. Dollar Index was -1.1% lower at 98.29;
*TLT declined -1.75% and closed below a key level of support ($86.5, S1); treasuries are investible from a systems perspective, so we still deem this to be a great time to add to bonds;