Morning Commentary
A lot of cash bailed out of oil stocks into mega-cap growth, powering the S&P 500 and NASDAQ higher.
Market Breadth |
NYSE |
NASDAQ |
Advancers |
2,535 |
3,717 |
Decliners |
779 |
980 |
New Highs |
18 |
37 |
New Lows |
93 |
162 |
Up Volume |
3.67 billion |
3.79 billion |
Down Volume |
1.18 billion |
965.7 million |
The Last Shall be First
A classic rotation out of the biggest winners of the year into the biggest losers. That was a serious walloping in Energy (XLE) stocks, but I cannot find a single expert that will say the worst is over, especially for gasoline prices.
For now, watch for continued rotation into Technology (XLK) and Consumer Discretionary (XLY).
I Feel the Earth Move
‘Tapestry’ is the second studio album by singer-songwriter Carole King, released in 1971. The album was certified 13× Platinum and sold over 25 million copies worldwide. Timeless hits include:
"I Feel the Earth Move"
"So Far Away"
"It's Too Late"
"Home Again"
"Beautiful"
"You've Got a Friend"
"Will You Love Me Tomorrow?"
Tapestry (TPR) is also the parent company of several luxury goods retailers, including:
I continue to marvel at brick-and-mortar stores, which took a hit but has held up much better than conventional wisdom predicted a few years ago – especially the luxury end. Of course, with gasoline prices through the roof, it’s logical to think about Dollar Tree (DLTR) or even Costco (COST). But keep watching the luxury-end retailers; demand is a culturally based phenomenon.
You’ve Got a Friend
The Powell Fed made its last purchase yesterday, bringing the balance within an inch of $9.0 trillion – he was a heck of a friend of the market.
Will You Love Me Tomorrow?
In an effort to the move the needle, new management at Amazon (AMZN) went to an old playbook: stock split. The company will initiate a 20-for-1 stock split, coupled with a fresh $10.0 billion buyback to replace a $5.0 billion plan (only two billion purchased). Remember when Amazon was popping the splits like M&Ms:
Home Again
The German Dax Composite (DAX) rallied more than 1,000 points for the first time in history in hopes Ukrainians will be able to go home again. Meanwhile, the atrocities continue to mount and Russia’s grip gets tighter.
Today’s Session
The CPI report came in as expected which might be a psychological win considering many thought the numbers would be higher. I also thought the numbers would be higher, but the whole thing is kind of moot considering price spikes over the past couple weeks.
Headline inflation month to month
There were a few items that declined month to month most noticeable used vehicles -0.2% but still up 41.2% from a year ago.
Other month to month declines: jewelry -5.7%, men’s suits -1.7%, women’s outerwear -1.6% and many other small items like college textbooks.
Core Inflation year to year
All eyes remain on Russia where more companies are suspending operations or pulling out completely. Goldman Sachs (GS) is the first Wall Street firm to throw in the towel on its Russian business. Talks yielded nothing and Russia is increasing its campaign, which increasingly includes civilian targets.
Comments |
It is an old saying: Do you know when a politician is lying? Answer: Their lips are moving! Sad but true. Thank you, Mr. Payne, for your insight. John D on 3/11/2022 9:49:52 AM |
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