Stocks in the U.S Plummeted in Lock step! Disappointing Earnings Results?

U.S

Stocks in the U.S plummeted in lockstep. For the fourth week in a row, the main indices fell. This was because Amazon.com, which has a lot of weight in some important indexes, announced bad earnings. The NASDAQ fell more than 13% in a month, its lowest month since October 2008. This was due to a lot of people losing money in technology stocks.

After growing at a rate of 5.7% in 2021, the US economy shrank at a rate of 1.4% in the first quarter of this year. First-quarter GDP was down, but many experts think it will be back to normal soon. It was the weakest quarterly GDP figure since the second quarter of 2020 when the pandemic led to a short recession.

GDP Data

GDP- 5-2-2022-Stocks in the U.S Plummeted in Lockstep

In March and April, the 10-year US Treasury bond yield rose from 1.83 % to 2.89%, despite a relatively flat performance in the current week. Rising interest rates have reduced Bond values, resulting in greater yields.

Europe

Shares in Europe rose more than 1% this week, which may have been because of good quarterly earnings reports that helped to offset these losses. The FTSE-100 index in London did well. However, the general mood is skewed down because people are worried about slow economic growth, rising prices, and tighter monetary policy.

People were more interested in high-quality government bonds because they were worried about rising prices and slowing economic growth.

APAC

Most APAC benchmark indexes closed higher for the week. The Honk Kong index Hang Seng-50 outperformed.  The Chinese market gained more than 4% in a week after the country’s Politburo committed to providing economic stimulus and urged for the “healthy growth” of the technology industry.

Underlying market movement

Underlying-Weekly-5-2-2022-Stocks in the U.S Plummeted in Lockstep

Oil and Natural gas prices gained following Russia’s announcement that it will suspend natural gas deliveries to Poland and Bulgaria.

Sentiment Analysis

Stocks in the U.S Plummeted in Lockstep. In general, investor sentiment toward the world’s stock markets remained mixed this week. A neutral-positive trend is seen in crucial US benchmark indices. Nasdaq-100 and S&P 500 indices display a robust uptrend in sentiment direction. The rest remains impartial.

A sentiment trend has emerged for the European region’s Dax-30 index. The rest remains for the week.

A neutral attitude dominates the mood for the key APAC indices. However, the Chinese index CSE-50 turns in the positive region.

Sentiment Trend

Sentiment Trend Chart-5-2-2022-Stocks in the U.S Plummeted in Lockstep

The following critical economic indicators and earnings reports may determine the market this week, which can alter current sentiment. The source (https://www.fxstreet.com/economic-calendar) includes hourly earnings growth and the unemployment rate. 

Sentiment Score

Sentiment Values-5-2-2022-Stocks in the U.S Plummeted in Lockstep

Note: The news sentiment data is the most useful additional overlay for your existing models to improve the performance further.

Buy & Sell Signals

The buy/sell signals generated by InfoTrie’s proprietary Investment/Trading models are shown in the table below. These models were built utilising technical, foundational, and quantitative methodologies, with the news-based sentiment score serving as a secondary overlay.

I tallied the random signals from different Trading/Investment models at InfoTrie.

Buy Sell-5-2-2022-Stocks in the U.S Plummeted in Lockstep

The news sentiment score provides a significant improvement, significant “Alpha” compared to the traditional investment/trading models.

 For more details on the analysis, accessing complete tear sheets or white paper for the models, subscription details for News Sentiment data and other consulting works, don’t hesitate to contact us with the information provided below.        

contact@infotrie.com

Home

InfoTrie Financial Solutions Pte Ltd, Singapore

Sureshkumar Ramani +65 93376035

Frederic GEORJON +33 (0)6 1304 0600


0 Comments

Leave a Reply

Avatar placeholder

Your email address will not be published.