Earnings Releases Continue, Twitter Board Accepts Musk Offer & Traders Buy Deep Support – 26Apr, 2022
Market Outlook – Oversold Bounce – Resistance in ES_F at 4313, support at 4265ish. This morning we are dipping below the close of yesterday and traders are trying to flesh out support at the key zones near 4276. We have to hold this support or the selling resumes in my mind.
Coming up… economic data releases, kicking off with the preliminary
U.S. March durable goods release at 8:30 a.m.
February’s housing data from the FHFA and S&P CoreLogic Case-Shiller are due at 9 a.m., and consumer confidence, new home sales and the Richmond Fed Manufacturing Index will hit the tape at 10 a.m.
Note how the volume profile shows the clear break and the likely path of price in the recovery
Fear/Greed index did a great job telling us to watch for buyers yesterday – look for Captain Solutions here
Commodities are still watching for more motion- and energies lifted with everything else yesterday. So we either digest the move and continue north or simply keep moving north. I think it is the outside chance that we fade.
Here’s a great infographic worth studying
News –
Musk gets Twitter, there’s a “serious” risk of nuclear war Musk gets Twitter, there’s a “serious” risk of nuclear war, and a survey. Private message Billionaire entrepreneur Musk agreed to buy Twitter for $44 billion. Investors will get $54.20 for each share they own, a 38% premium to the stock’s close on April 1 — the day before Musk disclosed a large stake in the company. Musk said the social network has “tremendous potential”’ and he looks forward to unlocking it. Amazon.com’s Jeff Bezos, meanwhile, suggested the deal might make life difficult for Tesla in China. Nuclear war Russian Foreign Minister Sergei Lavrov warned there’s a “serious” risk of nuclear war over Ukraine even though Kremlin is willing to talk to the U.S. to try to resolve the confrontation. Ukrainian President Volodymyr Zelenskiy called on citizens to do everything to make the presence of Russian troops on their homeland “unbearable,” declaring that Moscow won’t win the war. MLIV Pulse Value stocks — those that look cheap relative to the firm’s financial performance — are set to outperform growth stocks for the rest of 2022, according to more than 70% of respondents to our most recent survey. This would mark a shift as value stocks have famously under-performed since the great financial crisis. But as bond yields rise, growth stocks such as tech, which are highly correlated to long-dated maturities, become less desirable. Take part in our weekly MLIV Pulse survey here. Europe stocks climb Stocks in Europe climbed as China’s pledge to boost monetary-policy support for its Covid-hit economy lifted sentiment, while traders also eyed a raft of earnings reports from some of the region’s biggest companies. The Stoxx Europe 600 advanced 0.9%, led by miners and insurance companies by 5:30 a.m. New York time. U.S. equity futures dipped following Monday’s choppy close higher before big-tech earnings. Treasury yields fell and the dollar was steady. Crude oil retreated and Bitcoin ticked higher. Several large companies are scheduled to report earnings including PepsiCo, 3m, Alphabet, Microsoft, Visa, UPS, General Motors and Texas Instruments. Finally, today’s bond auctions include $48 billion of 2-year Treasury notes at 1 p.m. What we’ve been reading Here’s what caught our eye over the past 24 hours. U.S. moves to widen use of Covid pill. China’s Covid efforts risk spreading inflation. Minecraft takes on NFTs. JPMorgan sued after millions was stolen from Ray-Ban maker. Why Elon Musk and Twitter don’t match. Wind power’s “ colossal market failure.” How to avoid a recession. |