The Morning Call--S&P tests critical technical level for fifth time

 

The Morning Call

 

 

4/26/22

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/us-big-tech-shrugs-beijing-bloodbath-bond-yields-bullion-black-gold-battered

           

Note: the S&P sold down to the lower boundary of its short term trading range and                     the 23.6% Fibonacci retracement level and bounced for the fifth time. That’s the good news---could it signal an end to the selloff? The bad news is that the more times the sellers hammer a support level, the fewer buyers remain.

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

March durable goods orders rose 0.8% versus estimates of +1.0%; ex transportation, they were up 1.1% versus +0.6%.

 

The April Dallas Fed manufacturing index came in at 1.1 versus expectations of 12.

                          https://www.advisorperspectives.com/dshort/updates/2022/04/25/april-dallas-fed-manufacturing-expansion-continues-weak-outlook

 

                        International

 

The March Japanese unemployment rate was 2.6% versus forecasts of 2.7%.

 

                        Other

 

            Inflation

 

              Some positive signs on the inflation front.

              https://www.abnamro.com/research/en/our-research/us-labour-market-points-to-some-easing-in-inflationary-pressure

 

              Oil prices decline as China lockdown imperils demand.

              https://www.bloomberg.com/news/articles/2022-04-24/oil-extends-losses-as-china-s-outbreak-imperils-demand-outlook?sref=loFkkPMQ

 

              Are home prices peaking?

              https://www.pragcap.com/a-cautionary-note-about-home-prices/

 

            Recession

 

              So far, there is little evidence of an impending recession.

              https://www.tker.co/p/economic-data-growing-no-recession?s=r

 

              Counterpoint.

              https://www.zerohedge.com/markets/recession-warnings-rise-limiting-feds-inflation-fight

 

            Geopolitics

 

              The Moskva riddle.

              https://www.zerohedge.com/geopolitical/escobar-moskva-riddle

 

     Bottom line.

 

            Josh Brown is starting to sound bearish.

            https://thereformedbroker.com/2022/04/22/katy-bar-the-door/

 

            Is a bear market lurking?

            https://www.advisorperspectives.com/commentaries/2022/04/25/is-a-bear-market-lurking

 

            I don’t know.

            https://compoundadvisors.com/2022/i-dont-know

 

    News on Stocks in Our Portfolios

 

Sherwin Williams press release (NYSE:SHW): Q1 Non-GAAP EPS of $1.61 beats by $0.08.

Revenue of $5B (+7.3% Y/Y) beats by $80M.

 

UPS press release (NYSE:UPS): Q1 GAAP EPS of $3.05 beats by $0.16.

Revenue of $24.4B (+6.5% Y/Y) beats by $600M.

UPS is announcing its plans to double the amount of share repurchases for 2022, taking the target to $2 billion for the year.

 

 

What I am reading today

 

           

 

 

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