Preview of week starting 25Apr2022

News summary from last week

Facebook & Google will need to better manage their content and data to protect users. A new "Digital Services Act" has been raised in Europe to protect users from dark patterns, and illegal materials.  We can expect other parts of the world to follow.

War dragged on in Ukraine though peace talks continued.  Sri Lanka has defaulted and entered into a domestic and economic crisis.

The SEC's updated list on Thursday shows that 17 companies, including Li Auto, BEST, CBAK Energy Technology, Luckin Coffee, and Zhihu, were added to the provisional list of issuers identified under HFCAA.

news about Shanghai port congestion

China promotes talks over sanctions in dealing with Russa, seeing Asia's role in promoting peace.  President Xi proposes a global security initiative.  IMF has warned of the global fallout from Shanghai's lockdown. Covid cases rise in China as the world anticipates supplies and supply chain challenges in the week ahead. Asian ports and shipping lines prepare for potential Shanghai fallout as the Ukraine crisis continues to strain the market. The number of cargo ships waiting outside the port of Shanghai has 4x due to challenges arising from the city’s lockdown. The global impact will be felt in weeks following the bottleneck of one of the biggest manufacturing belts.

Earnings Calendar

Earnings for week starting 25Apr2022

Some of the notable earnings in the week will be the BIG TECH

$MSFT, $GOOG on 26 Apr 2022, $FB on 27 Apr 2022 and $AAPL & $AMZN on 28 Apr 2022

The petrochemical big boys of $XOM & $CVX will be announcing theirs on 29 Apr 2022

Legacy automakers will be sharing theirs on 26 Apr 2022 for $GM and 27 Apr 2022 for Ford

The Fintech players of $V, $MA and $PYPL will be sharing theirs during this week too.

Other notable players will include $KO, $PEP, $UPS, $BA, $TWTR, $ROKU and $ABBV.

This is probably one of the biggest earnings weeks of the season that would paint an important pulse of the market for this season.

Economic Calendar 

Economic Calendar for week starting 25Apr22

In the week ahead, we have the following notable economic announcements:

• US New home sales (Mar)
• US Crude Oil inventories
• USD GDP (QoQ , Q1/2022)
• Initial jobless claims
• China's Manufacturing PMI (Apr)

The Jobless claims will be a key consideration for the Fed to decide on their next rate hike.  The new home sales and crude oil inventories will reveal the consumption of the economy.

Stock of interest - Microsoft

1D chart of Microsoft

We can expect good news from Microsoft's earnings this coming week.  Many are hopeful about Microsoft after its market cap grew 50% in 2021. From the 1D, the stochastic indicator is hugging the oversold region and MACD looks to hit the bottom soon.  However, if the earnings and/or guidance disappoint, the stock can drop even further.  Thus, it is recommended to take a long position after the earnings announcement with a potential dip.

Market

1D chart of S&P500

From the chart above, the S&P has been hugging the 200 Moving Average till the dip on Friday. In the coming week, we can expect the decline to continue as per the stochastic and MACD indicators above. This week of earnings from Big Tech and other key businesses will weigh on the market outlook.  As mentioned, it seems too early for some in the market to start moving back to growth stocks. 

CNN's Fear & Greed Index

Till the Covid situation and Russian crisis ease further, we can expect the market to remain nervy. As per the Fear & Greed Index above, the market remains in a "fearful" stage and thus we can expect much volatility in the coming week.