April 22, 2022

Markets:

Stock futures were lower in early morning trading Friday as the S&P 500 tried to avoid another losing week amid busy earnings and rising bond yields.

The early morning action followed a dramatic reversal Thursday that saw major averages wiping earlier gains and closing lower. The Dow ended the day more than 300 points lower, while the S&P 500 dropped nearly 1.5%. The tech-heavy Nasdaq Composite bore the brunt of the sell-off on surging rates, sliding 2%.

For this week, the Dow is up 1% and on pace to break a three-week losing streak. The S&P is up less than 0.1% on the week and attempting to break a two-week losing streak. The Nasdaq, however, is down 1.3% week to date, on track to post its third negative week in a row.

Weighing on sentiment Thursday was Federal Reserve Chair Jerome Powell’s comment on the possibility of a larger-than-usual rate hike for next month. Powell said during an International Monetary Fund panel moderated by CNBC’s Sara Eisen that taming inflation is “absolutely essential” and a 50-basis-point hike is on the table for May.

After reversing higher on Powell’s comments, the 10-year Treasury yield closed at 2.92% on Thursday. The 10-year yield was higher again on Friday, inching back up to 2.94%, near a three-year high.

Portfolio:

We enter the last trading session of the week holding positions in DKNG, CVE, TWTR, and holding itrm.  Excitemet is now brewing for a slate of big tech earnings that will begin to be released next week.  We will be provided with month ending trading as well as monster earning reports.  The next few weeks should provide ridiculous trading opportunities and set the tone for months to come.  Let's end the week strong and be ready for next week.  Be on alert today for a potential new trade alert as well as further updates if needed.  Let's have a great session.