Market Debrief (Tuesday April 5, 2022)

 Happy Tuesday Stock Talkers!


Stocks (especially the technology sector) suffered some major losses today in the first negative trading day in quarter two of this year. Federal Reserve Governor Lael Brainard made it clear that policymakers were ready to act more aggressive to curb inflation. Brainard also noted that they will start shrinking their asset holdings in about a month, which could lead to a further effect of raising long-term interest rates. Investors also weighed the impacts of further sanctions being pressed against Russia by the EU, we could see the western allies come out with more sanctions as soon as tomorrow. Deutsche Bank also was the first too forecast a possible recession next year. Their forecasts show that the Fed hits the breaks too hard on the economy and that a more aggressive tightening of monetary policy will actually downturn the economy into recession mode. I think most of this is the fear of the 2-year Treasury yield and 10-year Treasury yield intervening last week. In individual stock news, Elon Musk was put on the board of Twitter and the shares inched a tiny bit higher today. He plans on not achieving more than a 14.9% of a stake in the company, however he has already seen unrealized gains of $1B+ in two days of ownership. This could be some changing momentum for the Twitter stock with Elon backing it, but it will be interesting to see how he serves on the board, and if he makes any impactful changes to the platform. 

Major Indices:    

  • S&P 500      4,525.12 -57.52 (-1.26%)
  • DJI              34,641.18 -280.70 (-0.80%)
  • Nasdaq        14,204.17 -328.39 (-2.26%)

Most Active Stocks (Volume):

  • Twitter, Inc. ($TWTR) (212.746M)
  • Ford Motor Company ($F) (87.065M)
  • Advanced Micro Devices, Inc. ($AMD) (78.78M)

Notable Gainers (Large Cap):

  • Spirit Airlines, Inc. ($SAVE) (+22.46%)
  • Black Knight, Inc. ($BKI) (+11.84%)

Notable Losers (Large Cap):

  • Toast, Inc. ($TOST) (-11.89%)
  • DiDi Global Inc. ($DIDI) (-11.67%)
  • GameStop Corp. ($GME) (-10.04%)

Company News:

  • Biden Administration has announced that it will continue the student debt pause until August.
  • GM and Honda have planned to create affordable EV's under $30,000.
  • Amazon stuck a deal with 3 different firms to launch satellites.
  • Elon Musk said that he won't attain more than 14.9% of Twitter and is set to join the board.
  • JetBlue has proposed a deal to buy Spirit Airlines for $33 a share cash.
Earnings I'm Watching Tomorrow:
  • RPM International Inc. ($RPM)
  • Levi Strauss & Co ($LEVI)
  • The Simply Good Foods Company ($SMPL)
  • Tilray Brands, Inc. ($TLRY)

*Information from Yahoo Finance, CNBC, Fox Business, and Nasdaq

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