HK Weekly Recap & Analysis June 27th, 2022
The Week Ahead (June 27th – July 1st)
Key Economic Data Releases to watch
Market Recap from Previous Week
Monday, June 20th
The stock market was closed Monday in observance of Juneteenth.
Tuesday, June 21st
Tuesday’s SPY closed +2.45% higher on the day. Stocks bounced yesterday after their worst week in two years, led by energy stocks and Big Tech companies. Kellogg announced Tuesday that it would split into focus on snacks, cereal, and plant-based foods. In a historic move, President Biden appointed Marilynn Malerba to become treasurer of the US. The lifetime chief of the Mohegan Indian Tribe, Malerba, will become the first Native American to hold the position, which oversees the US Mint and the Bureau of Engraving and Printing. On an earnings call earlier this month, DocuSign CEO Dan Springer admitted that he underestimated just how painful the drop-off in demand for the software would be in a post-Covid world. Markets closed with the DOW at 30,530.25 [+2.15%], S&P 4,764.79 [+2.45%], NASDAQ 11,069.30 [+2.51%].
Wednesday, June 22nd
The S&P 500 closed in the red, down -0.13% on Wednesday. One of the few exciting moments was Altria’s big tumble—the tobacco company owns a 35% stake in Juul. A WSJ report suggested that the FDA could immediately order Juul to yank its products off the market. Fed Chair Jerome Powell acknowledged that vanquishing inflation might tip the economy into a recession. “It’s not our intended outcome at all, but it’s certainly a possibility,” he said at a congressional hearing, emphasizing that the Fed’s No. 1 priority is stabilizing prices. President Biden asked Congress yesterday to approve a three-month suspension of federal gas taxes. The proposed tax holiday would skim 18 cents off the top of every gallon of gas and 24 cents off diesel fuel. If companies pass the full savings along to consumers (which is a big “if”), drivers save about 3.6%. According to the WSJ, Google and NBCUniversal are the leading candidates to work with Netflix on developing an ad-supported tier. Markets closed with the DOW at 30,483.13 [-0.15%], S&P 3,759.89 [-0.13%], NASDAQ 11,053.08 [-0.15%].
Thursday, June 23rd
The SPY rose +0.95% on Thursday. Utilities, consumer staples, and real estate helped push the market higher yesterday. Index provider FTSE Russell is rebalancing its stock benchmarks, sending investors scrambling to trade an estimated $112 billion just before the market closes. Among other tweaks, Russell will now label Meta, Netflix, and PayPal as “value” stocks. Billionaire hedge fund manager Ken Griffin is moving his firm, Citadel, from Chicago to Miami, citing Florida’s better business environment. It’s the latest corporate departure from Illinois after Caterpillar and Boeing also announced they were leaving. Biden cancels an additional $6 billion of student loan debt. The Biden administration has already wiped out $25 billion in student debt for 1.3 million borrowers, and a decision on broader loan forgiveness is expected to arrive this summer. Covid vaccines saved nearly 20 million lives in the first year of the rollout, according to new research. Markets closed with the DOW at 30,677.36 [+0.64%], S&P 3,795.73 [+0.95%], NASDAQ 11,232.19 [+1.62%].
Friday, June 24th
The SPY closed in the green, up +3.06% to close out the week. Surging stocks did manage to close out their first winning week this month. Lifting investors’ spirits was a relatively obscure data point that showed consumer expectations of inflation over the next year eased up. Yesterday, the conservative-majority Supreme Court overturned Roe v. Wade, a ruling that strikes down federal protections for abortion and punts abortion regulation to the states. The striking down of Roe could also influence corporate location decisions in this historically tight labor market. Companies trying to hire in a state where abortions have been banned could find it harder to recruit employees, especially startups. Cadillac’s new luxury sedan, the electric-powered Celestiq, could come with a $300,000 price tag, per the WSJ. Hackers stole $100 million in cryptocurrency from California crypto firm Harmony. Markets closed with the DOW at 31,500.68 [+2.68%], S&P 3,911.74 [+3.06%], NASDAQ 11,607.62 [+3.34%].
THE WEEK AHEAD & EARNINGS
Monday – 06/27/2022
Durable goods orders – 8:30 AM ET
Core capital goods orders – 8:30 AM ET
Pending home sales index - 10 AM ET
AM Earnings: None
PM Earnings: Nike (NKE), Trip.com Group Limited (TCOM), Concentrix Corp (CNXC), Jefferies Financial Group (JEF), Dynagas LNG (DLNG), Cinedigm (CIDM)
Tuesday – 06/28/2022
Richmond Fed President Tom Barkin speaks - 8 AM ET
Trade in goods (advance) – 8:30 AM ET
S&P Case-Shiller US home price index (year over year) - 9 AM ET
Consumer confidence index - 10 AM ET
San Francisco Fed President Mary Daly speaks - 12:30 PM ET
AM Earnings: TD SYNNEX Corp (SNX), Roivant Sciences (ROIV), Enerpac Tool Group (EPAC), Cognyte Software (CGNT)
PM Earnings: Progress Software (PRGS), AeroVironment (AVAV), Beyond Air (XAIR)
Wednesday – 06/29/2022
Gross domestic product revision (SAAR) - 8:30 AM ET
Final domestic demand revision (SAAR) – 8:30 AM ET
Gross domestic income revision (SAAR) – 8:30 AM ET
Jerome Powell and many important others speak at ECB conference - 9 AM ET
Cleveland Fed President Loretta Mester speaks at ECB conference - 11:30 AM ET
Chicago Fed President James Bullard gives opening remarks - 1:05 PM ET
AM Earnings: Paychex Inc (PAYX), General Mills (GIS), McCormick & Co (MKC), MSC Industrial (MSM), Unifirst Corp (UNF), Patterson Co (PDCO), Bed Bath Beyond (BBBY), Barnes & Noble (BNED), Schnitzer Steel (SCHN)
PM Earnings: Duck Creek (DCT), MillerKnoll (MLKN), Novagold Resources (NG), SMART Global (SGH), Avid Bioservices (CDMO), Franklin Covey (FC), AMMO, Inc (POWW)
Thursday – 06/30/2022
PCE inflation (monthly) – 8:30 AM ET
Core PCE inflation (monthly) – 8:30 AM ET
PCE inflation (year over year) – 8:30 AM ET
Core PCE inflation (year over year) – 8:30 AM ET
Real disposable income – 8:30 AM ET
Real consumer spending – 8:30 AM ET
Nominal personal income – 8:30 AM ET
Nominal consumer spending
Initial jobless claims – 8:30 AM ET
Continuing jobless claims – 8:30 AM ET
Chicago PMI - 9:45 AM ET
AM Earnings: Constellation Brands (STZ), Walgreens Boots (WBA), Acuity Brands (AYI), The Simply Good Foods (SMPL), Lindsay Corp (LNN), Tsakos Energy (TNP), Renalytix (RNLX)
PM Earnings: Micron Technology (MU), Accolade (ACCD)
Friday – 07/01/2022
S&P Global US manufacturing PMI (final) - 9:45 AM ET
ISM manufacturing index - 10 AM ET
Construction spending - 10 AM ET
AM Earnings: None
