April 20, 2022

Markets:

U.S. stock futures headed for a mixed open on Wednesday as investors took in a host of quarterly earnings results and looked ahead to more data.

Netflix's disappointing results and guidance came in the midst of an earnings season that has so far been mixed. Earlier Tuesday, Hasbro (HAS) shares gained after the company raised its margin guidance and announced new price increases to counter rising costs. Other closely watched companies missed on major metrics or guidance, however, with Lockheed Martin (LMT) posting a year-over-year revenue decline that sent shares lower following its Tuesday report, and Johnson & Johnson (JNJ) cutting its full-year profit forecast.

Overall, investors this earnings season have been closely attuned to how companies have performed in the face of rampant inflationary pressures, as prices rise at their fastest rates in 40 years. While many companies have opted to raise their own prices to help offset increasingly expensive commodities, transportation and other inputs, questions remain over how long consumers will be willing to continue paying passed-on costs.

Tuesday’s stock market rally was broad-based with 10 out of 11 sectors ending the session in the positive, led by consumer discretionary. Some of the biggest gains came from Microsoft and Alphabet, which rose 1.7% and 1.8%, respectively, while airline stocks jumped after TSA lifted mask mandates on planes in response to a Florida court ruling.

Portfolio:

We enter the new trading day holding positions in NOV, LGVN, CVE, RF, TWTR, and holding our ITRM lotto here.  We will be looking to add today as queue is igniting once again with opportunities developing.  Earnings season is just beginning and already we are receiving monster reports – for both sides of the trade.  Please be on alert today, remember to not chase the day to day moves.  The narratives still remain.  Let's have a great session.