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  US Stock Markets Ended April 22, 2022
Posted Under: Weekly Market Commentary

 
US stocks ended lower last week after an interest rate "Tightening Tantrum" by market participants. Market implied interest rate probabilities, for year end 2022, started last week at 2.48% and ended the week 2.77%. Equity markets had trouble digesting an expected 29bps higher Fed Funds rate during 2022. Nine of the eleven GICS sectors in the S&P 500 were negative, with only Staples and Real Estate positive, a flight to safety appeared to be the only option. Despite the poor returns in equites last week, earnings season began and there were some bright pockets. Airline stocks were generally positive last week after United Airlines Holdings Inc. announced inline quarterly results and issued guidance that they expect to return to profitability during 2Q2022 after the COVID pandemic depressed flight volumes. United rallied 14.0% last week and helped to buoy American Airlines Group Inc. 6.2%, Delta Airlines Inc. 3.1%, and Southwest Airlines Co. 0.2%. International Business Machines Corp. rallied 9.2% last week after announcing quarterly results well ahead of expectations. Management credited demand for their hybrid cloud and AI drove sales growth in both their software and consulting businesses. However, not everything was rosy in the market. Netflix Inc. returned -36.8% last week after they announced streaming subscribers had fallen 200k drastically missing growth expectations of 2.5m subscribers. They also offered guidance that they expected to lose 2m subscribers in 2Q. Market participants worry that Netflix's growth story is broken. Oil and Gas servicing company Baker Hughes Co. returned -13.7% last week after announced earnings and revenue inline with expectations but warned of challenging supply chains and inflation impacting their business. Looking ahead to next week, earnings season ramps up as 179 names in the S&P 500 are expected to report quarterly results. Notable names include: Apple Inc., Microsoft Corp., Google's parent Alphabet Inc., Amazon.com Inc., Facebook's parent Meta Platforms Inc. and many more.
Posted on Monday, April 25, 2022 @ 8:49 AM • Post Link Share: 
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These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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