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Question of the Week

Bill McGuire's tweet and photo of the largest ship suggest something is wrong with capitalism. I would admit there is conspicuous consumption and runaway materialism, but if it motivates hard work, I have no problem with it. The picture below strikes me more of an indictment that outsourcing has run amok. I see millions of jobs and wealth leaving the shores of the west.

What do you see?

Post your answer below.

Morning Commentary


By Charles Payne, CEO & Principal Analyst
6/22/2022 9:29 AM

Yesterday was a good day, but nobody was under any illusion that the coast was clear. All sectors rallied with Energy (XLE) leading the way. But the S&P 500 is significantly below its 50- and 200-day moving average.

The S&P 500 has to get above 4,200 before there would be a sense of urgency the train is leaving the station.

Heat Map

Meta (FB) stood out from other mega-cap names, as the stock was down on a multi-million-dollar court decision.

I think the economy is turning lower much faster than what the data and mavens suggest.

Today we’ll probably see the Atlanta Fed update their second quarter (2Q22) Gross Domestic Product (GDP) forecast to negative growth – that would be back-to-back negative quarters, otherwise known as a recession.

Portfolio Approach

There are no sector weighting changes this morning.

Today’s Session

There is no follow through this morning from yesterday’s rally.  All the major indices are under pressure and futures are pointing to a decidedly negative open. Recession concerns and slowing global growth is weighting on the markets.

Even the latest gimmick out of the White House to suspend the Federal gas tax for 3 months is not doing anything to ease investors’ fears.  While the tax holiday may help reduce prices at the pump in the short term, as it would shave 18.4 cents off the price of a gallon of gas, and 24.4 cents for diesel, it could also bolster demand, and some Democrats say it would only add to the coffers of big oil companies.

President Biden is also expected to ask State and Local governments to do the same.  It should be noted that several states such as Connecticut, Georgia, Florida, Maryland, New York have already done so. 

WTI crude is down over 6% currently to $104 barrel and gasoline is down 2% to $3.70 a gallon. 

Treasury yields are taking a breather with the 10-year down 11 basis to 3.25% and the two year trading down 10 basis points to 3.12% ahead of Fed Powell delivering the Semiannual Monetary Policy Report to the Senate Banking Committee at 9:30am ET.

Mortgage applications were up last week by 4.2%. 

Purchase application rose 8%, but year over year, are down 10%. Refinancing declined 3.1%, as the 30-year fixed mortgage rate rose to 5.98%, up 33 basis points and the highest read since November 2008.

crossing the bay bridge yesterday i pointed out all the barges lined up, 'Biden did that'.she replied 'look closer, dummy, those are 4th of July barges used for firework launching' smarter 1/2 of my marriage..........

Patrick J Pedley on 6/22/2022 10:02:11 AM
Where are the wind powered sails on this EVER(GREEN)? Please let us produce our stuff in America and use our nat.gas that is plentiful and clean. Amen

John Cowger on 6/22/2022 10:15:42 AM
I see the failed policies of our government. Present and past administrations for the past 50 years, all guilty to greater or lesser fault, that have encouraged and spurred great U.S. businesses to relocate and/or source product and parts to foreign influence and control.

Charles Haselberger on 6/22/2022 10:19:45 AM
I agree, Charles, yesterday was an oversold bounce. It will be interesting if the Atlanta fed revises, calling for -Q2 growth....but not entirely unexpected as they have been the most neagtive (and most correct) of the Fed districts in their forecasting. At this point in time, I'm still not looking for neg. Q2 growth. Maybe, I'm just in denial as I am sure we do not escape this without a recession. The "Hurricane" is near.

Charles Haselberger on 6/22/2022 10:31:46 AM
What does that picture have to do with Capitalism? What I see in that picture is a world reliant on things made in faraway countries. Why don't we make more products in our own country? Why don't our leaders make that as a goal? Instead they want to sell us out to Globalism. Capitalism ≠ Globalism! They have an insane war against CO2 while they make us reliant on most everything being made in China, and then shipped here using huge amounts of diesel fuel. They demonize Oil drilling in our country and then go to the despots of the world to ask them to produce it in their countries. None of that makes one bit of sense!

The bigger question is why did they want to be our leaders in the first place? So they could ruin our economy and country? So they can give our rights away to the World Health Organization? We just went through two years of a big fraud perpetrated on us, and in order to fix it, our leaders just printed 80% of all US dollars in existence (in the last 2 years)ócausing this inflation. Very sadly I now hear people saying, wow I just got Covid again for the umpteenth time. Our bodies produce antibodies which protect us from getting many infectious diseases multiple times. In general people donít get Chickenpox twice. So why are people supposedly getting Covid over and over again?
Prove to me that this isnít just the same old cold, flu, and pneumonia that we have had for many decades, which they disguised with their new definitions of what constitutes a virus and treat with something that in the past would never qualify as a vaccine. And why do so many go along with their social media apps on which the elites are banning free speech?

If there are any leaders left that believe in the ideals that our country was founded upon, then please stop the globalism, restore our rights and freedoms, and lets figure out how to make things here again in our own country. Then we wonít need those huge ships circling the globe, while consuming ever increasing amounts of oil.

GM on 6/22/2022 10:59:11 AM

Margot on 6/22/2022 12:05:31 PM
Green has always been my favorite color since I was a tween and painted my room the color of this amazing ship with green and white stripe wallpaper on one side. This brought to mind the 1970ís.
Since I was thinking of my girlhood room , the seventies, this ship and the economy, I remembered the 3 foot waves under the charter boat trip we took off the coast of Delaware that turned me puke greenÖ.

Sadly, this is my sentiment now on the state of the country. I pray it is a short chapter in my story. Thank you

Debbie Engel on 6/22/2022 1:54:22 PM
You cannot put the Genie back in the bottle so we best learn how to live with sustainable consumption and foster more innovation.
If only mankind would turn from Military/War/Conflicts the money and efforts from abandoning those stupid things would allow for a better future for all humans.

Garro on 6/22/2022 2:14:45 PM
I see financing for the Chinese military And the Chinese communist party. Gladly paid for by Americans

Terry on 6/22/2022 3:33:32 PM
To Patrick Kelly - actually we have a friend that lives just off the bay and said there have been at least 20 ships there for months. Fuel is part of this. Truckers aren't lining up at the ports because of the gas. Long shoremen have found other jobs or still sitting on unemployment, unnecessary problems that didn't have to happen.....

M. Marrie on 6/22/2022 4:20:35 PM
Wow, I could write a book about this subject.....First, what I see in the picture is human invention, innovation,and ingenuity; attributes that allow for the creation of technology that makes transportation of goods around the world even possible. Despite the insinuation about materialism, those containers could hold food, water, medicines, sanitary products,and other essential items. They don't necessarily have to carrying TVs,Jewelry,fancy Clothes, or other such "material" things!.....The ship was docked in the UK, so chances are it was delivering goods to the UK. What does that have to do with "our society"? Is every country's people,and how they live going to be lumped in with the USA because they have a capitalistic economy? If he thinks our capitalism based society is so terrible, he is welcome to leave anytime. Go check out China or Russia, see how you like living under Authoritarian Rule. I hear they are lovely this time of the year!!......Personally, I think the USA is the best place to live in the world, and would be even better if we could get rid of the chronic complainers,critics,and con artists! I am sure many of these people would much prefer to live abroad....Thank you for all you do Charles! You are the best!!!!!

James G on 6/22/2022 10:31:52 PM

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