In his Daily Market Notes report to investors, while commenting on a relief rally, Louis Navellier wrote:
A Strong Market Reversal
The market staged from red to green yesterday on optimism about the important tech earnings this week. This morning, the indexes have given back more than yesterday’s gains as the high volatility continues. The VIX continues to rise, now at 28.3.
Q1 2022 hedge fund letters, conferences and more
The big company news yesterday was that Twitter has accepted Elon Musk's bid to take it private, albeit the stock at $50.73 is still well below the $54.20 buyout price.
Growth Concerns
The rest of the world's stock markets did not follow the US up, as concerns continue to mount about global growth due to Covid lockdowns in China and no ceasefire prospects in Ukraine.
Gold and energy are inching higher, yet interest rates continue to fall, with the 10-year now below 2.75%. Later today is a $48B auction of new 2-year US notes. Crypto is up 2% but trading volume remains low with record outflows in crypto-ETFs this month.
On the earnings front, GE is down 9% on weak guidance, UPS beat on top & bottom and reaffirmed guidance but the stock is down 2%.
Relief Rally by Weekend?
More important earnings are due today, including tech titans Alphabet Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) which should really set the tone for the rest of the week. Right now, those names have fallen more than the indexes for the day after rising yesterday.
Hopefully, we will see a relief rally by the end of the week if strong results and forecasts can be delivered.
Coffee Beans
Elon Musk’s acquisition of Twitter, worth approximately $44 billion, is one of the largest leveraged buyouts in history, only about a billion short of the Energy Future Holdings buyout in 2007 worth $45 billion. Source: Statista. See the full story here.
