Rover's Weekly Market Brief - 04/29/2022

Indices

DJIA: 32,977.40 (-2.47%)

NASDAQ: 12,334.60 (-3.93%)

S&P 500: 4,131.93 (-3.27%)

Commodities

Gold: 1,896.90 (-1.93%)

Copper: 438.10 (-4.38%)

Crude Oil: 104.18 (+2.07%)

Is Facebook Too Cheap to Ignore?

Facebook, the stock (ticker FB) has taken a beating recently, to the point that some would consider it “stupid cheap”. Others think it’s only going to get cheaper. Howard Reisman, Stock Rover CEO, takes a look at Facebook, using the research tools of Stock Rover. You can read all about it in our latest blog post

Note the blog post has been updated to include the results of Facebook’s earning release on April 27th.

Economy

The U.S. Census Bureau reported that new orders for manufactured durable goods increased 0.8% to a seasonally adjusted $275.0 billion in March. The increase followed a 1.7% drop in February, which had been revised slightly higher from a 2.1% decline. Contributing to the increase were orders for motor vehicles and parts up 5.0% to $57.78B, appliances up 3.9% to $14.1B, and computers and electronic products up 2.6% to $26.3B. On a year-over-year basis, new orders for manufactured durable goods grew 9.9%, the slowest pace since Feb 2021. Ex-defense orders rose 1.2% month over month, while ex-transportation orders rose 1.1%. Core capital goods orders, which exclude the volatile aircraft and defense orders increased 1.0% to $80.7B, this followed a 0.3% drop in February. Core durable goods shipments increased 0.2% in March, mirroring the gain in February, and are up 12.3% year over year. Total durable-goods orders are up 12.6% from a year ago.

The Conference Board’s Consumer Confidence Index declined slightly in April to 107.3 and follows a 107.6 value for March. The Present Situation Index, which is based on consumers’ sentiment toward current business conditions and the labor market, decreased to 152.6 from 153.8 in March. “The Present Situation Index declined, but remains quite high, suggesting the economy continued to expand in early Q2. Expectations, while still weak, did not deteriorate further amid high prices, especially at the gas pump, and the war in Ukraine.” said Lynn Franco, senior director at the Conference Board. According to the index, consumers are less likely to make vacation plans and more likely to make major purchases like a car or appliance. The expectations index, based on consumers’ six-month outlook for income, business, and labor market conditions, was up slightly to 77.2 in April from 76.7 the previous month. The share of consumers that said jobs are currently plentiful decreased to 55.2% down from 56.7%. Consumers that said jobs are currently hard to get bumped up to 10.6% from 9.6%.

The first estimate of GDP for 2022 Q1 reported a 1.4%, decrease and follows a 6.9% 2021 Q4 increase. The trade deficit was a primary contributor, reducing the GDP by 3.2 percentage points. Imports climbed 17.7% while exports fell by 5.9%. Decreases in private inventory also contributed, reducing the GDP by 0.84 percentage points, the reading followed a very strong Q4 report in which inventories increased the GDP by 5.3 percentage points. Government spending across state, federal, and local governments declined 2.7% in the first quarter. An 8.5% reduction in defense spending was a primary contributor. On the positive side, consumer expenditures rose an inflation-adjusted 2.7%.  Business spending on equipment reported up a healthy 15.3%. Final sales to domestic purchasers, a measure that economists prefer as a better gauge for growth, increased a solid 2.6%. Gross private investment grew 2.3% and residential investment rose 2.1%.

Wednesday May 4 – FOMC Interest Rate Decision

Friday May 6 – Unemployment Rate (April)

Earnings Calendar:

 

Monday Tuesday Wednesday Thursday Friday
Avis
Budget Gr
(CAR)
Pfizer
(PFE)
Booking
Holdings
(BKNG)
ConocoPhillips
(COP)
Liberty
SiriusXM Gr
(LSXMB)
Medifast
(MED)
Advanced
Micro Devices
(AMD)
Moderna
(MRNA)
Alleghany
(Y)
Cigna
(CI)



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