The AP on the Street 47th week of 2022

The AP on the Street

The AP on the Street 47th week of 2022

First of all, happy thanksgiving to our followers from the US. We had quite a neutral week last week (despite it was more positive compared to the last week), primarily due to the Thanksgiving holiday.

Despite FOMC Member Bullard’s latest hawkish comments on what the terminal rate is, the FOMC meeting basically relieved the investors by implying a slowing down in the pace of hikes.

This week, we have a few crucial data; House Price Index, Consumer Confidence, JOLTS (Job Openings), and Unemployment rate. So let’s take a look at what happened the previous week:

Tesla stock went down to a new 52-week-low.

  • Coinbase stock tumbled to an all-time low.
  • HP announced a lay-off for 12% of its workforce (nearly 6000 employees).
  • There were massive protests in the main FOXCONN plant in China.
  • US Jobless claims rose to 240,000 last week —15,000 worse-than-expected. The highest level since August.
  • US dollar sunk 3-month low as investors anticipate smaller hikes.
  • Central Bank of Turkey cut the interest rates by 150 basis points, despite increasing inflation.
  • FOMC members somehow expressed support for slowing down the pace of the rate hikes in the near future.
  • Amazon faced Black Friday protests and strikes in 40 countries.
  • US Manufacturing PMI declined to 47.6 —3.4 points, worse than expected, suggesting a contraction in the sector.
  • US Services PMI slipped to 46.1 —1.8 points worse than expected, suggesting a contraction in the sector.

Overall Market Indexes & Commodities Moves

DOW = 1.6%
S&P 500 = 1.3%
NASDAQ = 0.1%
RUSSELL 2000 = 0.6%
Gold = 0.6%
Silver = 1.7%
Oil = -4.8%

Weekly performance of S&P 500 Stocks

Let’s look at the most undervalued stocks listed on our website:
Our two most performing stocks:

Our two most performing stocks

Our Two Least Performing Stocks:

Our Two Least Performing Stocks

PayPal stock is in this section again primarily because of the same reasons as in the previous week, and lower profit margins compared to the last year.

ConocoPhillips went slightly down. The only indicator that would be a basis for this drop is insider shares being sold recently.

TIL: TIL: What is JOLTS?

The Job Openings and Labor Turnover Survey (JOLTS) is a report that is gathered by the BLS (Bureau of Labor Statistics) of the US and is published each month. It also contains data on the number of employees who voluntarily quit their employment. Next week’s important macroeconomic data/ policy decision to be released are:

Important data/ decisions that will be published next week:

House Price Index, Consumer Confidence, JOLTS (Job Openings), and, most notably, Unemployment rate.

We believe this week will be unpredictable at the start, but it is certain that the Unemployment rate would determine the closing prices.

This week will be essential for the investors. Especially unemployment rate would set the course for the coming weeks and the FED’s decisions. A lower-than-expected number would be an indicator of the economy’s good shape, suggesting it would sustain more rate hikes. However, a worse-than-expected number would change the expectations on “when” the FED should pause the rate hikes. FOMC members would take this as an urgent sign for pausing the rate hikes, maybe even for a policy pivot.

We will see how the investors will behave after the House Price Index, Consumer Confidence, JOLTS (Job Openings), and, most notably, Unemployment rate results.

Until then, stay tuned for the next week.