Morning Commentary
I know I’m beginning to sound like a broken record, and it’s starting to feel like Groundhog Day – another narrow session ahead of what consequential developments should be this week. Yesterday, it was back to traditional defensive sectors.
Heat Map
The defensive nature of the market also reflects anxiety over those monster winners this year- why hold them into earnings? We’ll handicap Microsoft (MSFT) and Google (GOOG) in the Afternoon Note.
First Republic Bank (FRC) posted results after the close and crushed it on earnings. Too bad that’s not what investors were focused on. Deposits declined $72 billion or 41% to $104.5 billion. The Street was looking for deposits to come in at $136.67 billion. Instead, management is laying off up to 25% as they consider ‘strategic options.’
Economic Data
I will continue to say this week’s economic data will set the tone by the end of the week.
Portfolio Approach
There are no sector weighting changes to our Hotline Model Portfolio.
Today’s Session
Earnings are coming in fast and furiously. A lot more beats than misses, but the misses stand out. Consumer Staples once again are proving pricing power can supersede volume declines.
Reactions to earnings for the most part up slightly on beats:
But misses are getting hammered.
UPS stands out with a miss and lowered guidance. Shares down 8.5%.
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4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
4/9/2024 1:56 PM | Fighting the Trend |
4/9/2024 9:46 AM | NEXT TIME, MAKE IT A HOLIDAY |
4/8/2024 9:45 PM | Cautious Feel |
4/8/2024 7:19 AM | IT’S ECLIPSE DAY |
4/5/2024 1:51 PM | Higher and Cheaper |
4/5/2024 9:23 AM | MARKETS REEL ON BIDEN’S ISRAEL ULTIMATUM |
4/4/2024 1:42 PM | Stocks Bounce |
4/4/2024 9:31 AM | ESCAPING GRAVITY = ESCAPING REALITY? |
4/3/2024 1:41 PM | Cuts Not Soon |
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