Market update by Glenn Leest and Brent Rankin

Mid-Week Market Update


U.S stocks traded lower Thursday afternoon ahead of the scheduled commentary from Fed Char Jerome Powell. The S&P 500 has traded down to slightly higher than Mondays opening as investors are digesting earnings results, economic data, and interest rate concerns. Jerome Powell’s comments today indicate  that a 50 basis point increase is on the table for May, and he sees merit in a “front- end loading” policy to obtain their 2% inflation target sooner rather than later. Interest rate futures have fully priced in a 50 basis point 

This week has seen Netflix (NFLX) sell off over 35% after announcing a loss in new users for the first time in ten years. The drop caused Netflix to lose more than $50 billion in market cap, and earned Netflix the title of worst performing stock in the S&P 500 for 2022.

Tesla, on the other hand, announced that Q1 2022 was their best ever quarter for revenue, vehicle deliveries, and operating profit and margins. Strong forward guidance predicts a 50% YOY increase in vehicle deliveries. Shares rallied but have given back gains this afternoon. 

The energy sector continues to lead the way, outperforming the S&P 500 year to date. Prior to the war in Ukraine, post-pandemic demand for oil had already been outpacing production, which has been exacerbated in recent months.

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