April 13, 2022

Markets:

Stock futures were flat on Wednesday as traders weighed more surging inflation numbers and lackluster results from JPMorgan Chase to kick off the first quarter earnings reporting season.

First quarter earnings reporting season kicked off Wednesday and analysts have tempered their expectations amid rising commodity costs, the war in Ukraine and the lingering pandemic. Earnings for S&P 500 companies are expected to increase just 4.5% in the period, the lowest growth since the fourth quarter of the pandemic-plagued 2020, according to FactSet.

JPMorgan shares fell 3% in premarket trading after the bank reported a 42% decline in first-quarter profits stemming from increased costs for bad loans and market upheavals tied to Russia sanctions. JPMorgan did manage, however, to report $31.59 billion in revenue for the period, slightly more than expected by analysts.

On Wednesday a report showed producer prices, wholesale costs that could eventually lead to higher retail prices, jumped a record 11.2% in March on an annual basis. The monthly gain of 1.4% topped the 1.1% estimate from economists polled by Dow Jones.

The 10-year Treasury yield rose slightly to 2.74% following the producer prices report. The yield touched a three-year high of 2.82% this week before pulling back.

Portfolio:

We enter the new trading session holding positions in PBR, RF, TWTR, CLF, and ITRM. Market continues to swing around with massive turns as it continues to try and find a footing with the constant news of rates, cpi, war, and now earnings set to begin. We've done a nice job of pinpointing opportunity thus far in 2022 but truly do believe this recent price activity within the markets will provide an even greater opportunity soon, especially for those who are patient. Allow this to materialize and then be ready to take advantage of the set-ups. Be ready today for new updates and a potential new trade alert. Let's have a great session.