The AP on the Street 48th week of 2022
The AP on the Street 48th week of 2022
We had a pretty positive week, primarily due to Chairman Powell’s comments on future rate hikes.
The hottest topics were Chairman Powell’s dovish-like comments and the ongoing protests in China because of the CCP’s trademark „Zero COVID Policy.“
This week, we have a few crucial data; Services PMI, Consumer Confidence, the PPI, and the Core PPI. So let’s take a look at what happened the previous week:
- Protests against China’s so-called „Zero COVID Policy“ spread to the biggest cities.
- Chinese stocks and the Yuan tumbled. Also, Oil went down to the lowest level since December 2021 because of the protests in China.
- BlockFI filed for chapter 11 bankruptcy.
- US House Price Index went up 11.0% year on year.
- Chairman Bullard said the FED needs to keep rates higher through 2023 and 2024.
- US non-farm payroll rose 263,000 —63,000 better than expected.
- JOLTS fell to 10.334 million, from 10.687 million previously —34,000 better than expected.
- Amazon CEO Andy Jassy said the economy is much more uncertain than he previously thought.
- US Chicago PMI came out 37.2 —3.2 points worse than expected.
- US Consumer Confidence came out as 100.2, 2 points lower than the previous number —0.2 points better than expected.
- FED Chairman Powell said the FED could slow the pace of the rate hikes as soon as December.
- US stocks went up after Powell’s dovish-like comments.
- Markets now are waiting for a 50 bps rate hike in December instead of 75 bps.
- US Jobless claims rose to 225,000 —10,000 less than expected.
- US ISM Manufacturing PMI became 49.0 —suggesting a contraction first time since May 2020.
- US Unemployment Rate stayed at 3.7% —the same as expected.
- Apple revved up the withdrawal from China after the factory protests.
Overall Market Indexes & Commodities Moves:
DOW = 0.4%
S&P 500 = 1.6%
NASDAQ = 2.5%
RUSSELL 2000 = 1.9%
Gold = 3.8%
Silver = 10.3%
Oil = 4.4%
Let’s look at the most undervalued stocks list on our website:
Our two most performing stocks:
Our Two Least Performing Stocks:
Not surprisingly, we have the same two companies from the last week. That was the previous week’s comment on our article series:
“PayPal stock is in this section again primarily because of the same reasons as last 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: What is FAANG?
The term „FAANG“ in finance refers to the stocks of five well-known American internet/ technology companies: Alphabet (GOOG) (formerly known as Google), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Meta (META) (formerly known as Facebook).
Jim Cramer, the anchor of CNBC’s Mad Money, popularized the phrase in 2013 by praising these businesses for being „completely dominating in their sectors.“ FANG was the first word, with Apple (the second „A“ in the alphabet) being added in 2017.
Important data/ decisions that will be published next week:
Services PMI, Consumer Confidence, the PPI, and the Core PPI
The OPEC meeting would set the initial course for this week, but it is certain that the PPI levels will determine the closing prices.
This week, as people who follow our article series, would know, we have a critical indicator; the PPI. The PPI is essential policy-determiner data for the Federal Open Markets Committee. We would see some consequences of a surprising number in this month’s FOMC meeting. A better-than-expected number would relieve the FED concerning their so-called inflation fight. However, a worse-than-expected number would create some concerns among the FOMC members.
We will see how the investors will behave after the Services PMI, Consumer Confidence, and most notably, PPI and Core PPI. Until then, stay tuned for the next week.
DISCLAIMER: THIS TEXT CONTAINS NO INVESTMENT ADVICE.