The global supply chain is in shambles. Retailers are paying record fees for shipping. China is the ‘warehouse for the globe’ but its covid policies are crippling supply chains. Consumer spending habits fluctuate at a record pace as the pandemic impacts wants and needs. The need for accuracy and speed in today’s marketplace has never…
Market valuations are cheaper. That is a prime argument for bulls on why now is a great time to buy. The S&P traded at approximately 22x earnings through much of 2021. The decline in markets year-to-date has lowered that to around 17x as we drift towards Q2 earnings. Yardeni Research P/E Chart: The problem with…
Inflation data, Sell-side Shop Conferences, and Central Banks highlight another busy week for the markets. Indices are strong out of the gate. The upbeat tone is emanating from China as Beijing removed additional COVID-related shutdowns and President Xi Jinping signaled the restrictions on Chinese tech are coming to an end. The early strength has indices…
It has been a difficult period for highly valued tech names. Dow component Salesforce, Inc (CRM) has been one of the worst-performing mega-cap growth names as its business model around M&A activity and stock-based compensation has stretched valuations. Shares of CRM were down 37% in 2022 heading into its Tuesday afternoon earnings report. This compares…
Last week, the market showed some signs of life. The Dow surged 6.2% to halt a streak of 8 weeks of declines. It was the longest weekly losing streak for the Dow in 90 years. The Dow trailed the S&P and the Nasdaq which rallied +6.6% and +6.8%, respectively. Most of the rally came on…
Nvidia (NVDA) stepped up to the earnings plate last night. There was a lot of pressure to perform. Supply issues led to poor performance and a 14% decline at Cisco last week. Snap (SNAP) delivered a negative pre-announced a few days later that led to widespread selling in the tech space. Neither company indicated any…
There has been one common theme in first-quarter earnings reports- Shipping costs are elevated. This has been detrimental to gross margins for most companies. The Dry bulk shipping industry though has thrived. We want to put a couple of shipping names on your radar. The dry bulk industry is cyclical as it is tied so…
Markets began a potential bottoming process on May 12. Support levels started to form in a sideways consolidating pattern. The fallout from the Fed’s rate hike a week earlier eased. Markets had aggressively corrected with the Nasdaq deep in bear territory and the S&P edging closer to the designation. Which direction do we go from…
The S&P is down 17.7% in its first 95 days of trading in 2022. This marks the second-worst start ever for the index (1932 we were down 33%). Technology and high growth names have been the primary drag on markets. We now see bears work their way into other elements of the market. Retail is…
Two of the World’s largest retailers, Home Depot (HD) and Wal-Mart (WMT) posted first-quarter results. The earnings and price action reflect a divergence. HD shares rallied after a nice top and bottom-line beat. WMT is under pressure after it missed bottom-line expectations. The results will raise questions about consumer habits. A closer look suggests the…
