We will get another rash of speeches from Fed officials. Still well above the Fed’s 2% target as supply disruptions persist and energy prices remain elevated. In the US, CPI report is expected to show the annual inflation rate eased to 8.1% from a 41-year high of 8.5% in March while the core rate is seen falling to 6% from 6.5%. The Federal Reserve is not in control of global energy and commodities prices. With the war drums louder than ever the supply chain issues are out of control. With all the redirection of blame at the Fed about inflation one has to understand it is a global phenomenon outside the Fed’s Control.
Oops: A fun fact is April was historically the best month for stocks from a seasonality perspective, can the ongoing market volatility and headwinds fall into place again? Next up more inflation numbers:įood prices are surging, with that expect to see even higher grocery store and energy bills as elevated commodity prices send the fallout from Ukraine’s humanitarian crisis rippling across the world in the coming weeks. From an 11% decline at Morgan Stanley to a 46% drop at Citigroup. lenders Wells Fargo, Citigroup and PNC reporting double-digit drops in first quarter profit.
CLOUD BACKBLAZE FRIDAY 100M IPO CRACKED
We saw most of the major banks getting cracked after reports three weeks ago, including Goldman Sachs Morgan Stanley and four of the largest U.S. This down move has been like a slow train coming. The small cap Russell 2000 fell -2.8%, -3.1% for the week. The Nasdaq fell -2.6% and on the week Nasdaq -3.8%. The S&P 500 broke and closed under the Weekly Kijun falling -2.8% down 136 points to 4254 and down -2.8% for the week. The index is down 22.2% in 2022, its worst start to a year on record and is now down 24.2% from its high and trading at levels not seen since 2020.įor markets the big question is selling intensity, the selling continued to heat up as key levels were busted Friday. The Nasdaq fell 4.2% Friday, its losses for the month over 13%, its worst effort since October 2008. Trillions of dollars in market value have been wiped off. You can only play with fire for so long before you get scorched!Īpril saw the technology heavy Nasdaq Composite crashed to its worst monthly performance in more than a decade Friday. The rubber is meeting the road as the trifecta of rising interest rates, the Russian invasion of Ukraine and surging costs continues to weigh on the markets, this has been no surprise to us here and shouldn’t have been to the market and PTB. However, futures saw a sharp burst of profit taking Friday and the HH futures lost around $1 or 13% from the morning highs underscoring the instability of the financial markets. With the global energy crisis LNG exports continue to grow LNG feed gas volumes over 12Bcf hang near record levels despite maintenance projects. exports of liquefied natural gas expected to remain strong for some time. Europe is moving aggressively to wean itself off Russian natural gas supplies with U.S. Natural gas futures shrugged off a storage build and surged to near a 14-year high. Padd 1 diesel inventories are at 25-year lows. The EIA reported distillates stocks are at 14yr low as demand for jet fuel and diesel take off. Oil prices have continued to push higher since US continues to drain it’s SPR which have not alleviated product shortages and the headline risk around the EU phasing out Russian oil by year end. Small caps were hit worse, the Russell fell 1.7%, giving up 1.3% for the week.
The two indices lost a respective 1.5% and 0.2% for the week after Thursday destruction where the Nasdaq fell -647.15 points or -4.99% at 12317.70. Stocks continued to languish with the Nasdaq (-1.4%) leading down and the S&P 500 fell 0.6% on Friday. The fed funds futures market, according to the CME’s FedWatch Tool, has placed a 78.6% probability to a 75-basis point rate hike at the June FOMC meeting versus 82.9% yesterday. In the face of surging inflation April average hourly earnings rose 0.3% (consensus 0.4%) The change in private payrolls +406K, more than the +380K expected. April unemployment rate was 3.6% (consensus 3.5%), versus 3.6% in March. US April nonfarm payrolls rose by 428,000 (consensus 391,000) with March’s also a revised 428K new jobs. The 2s10s spread widened by 10 bps to 45 basis points. The 30-yr bond yield did the same, jumping to 3.22%. The 10-yr note yield rose to 3.12%, its highest level since late 2018. The BLS reported robust job data, which in today’s markets means higher rates and lower stocks with inflation fear in a leveraged risk cesspool. Markets were wrecked and Central Banks were busy raising rates, Australia, US, Brazil and the UK all raised rates and moved to tighten liquidity. The train wreck continued to gather steam this week. Image: Rubber Meets the Road The Week That Was – What Lies Ahead? ContentsĬlick on the links below to navigate to the relevant section.
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