Investing Club: The week in review, the week ahead — April 29, 2022
It was another difficult week for the market, with all major stock benchmarks closing in the red as the mega-cap tech stocks reported earnings. While the week's reports signaled a strong demand environment, inflation is clearly taking its toll on profitability. Supply chain challenges, China's Covid lockdowns and the ongoing war in Ukraine remain key headwinds. Furthermore, the strengthening of the dollar is another drag for U.S. companies selling into foreign markets. For April, the Nasdaq fell 13.3%, its worst monthly performance since October 2008 during the financial crisis. The S & P 500 lost 8.8%, its worst month since March 2020 and the Dow fell 3.9%. Under the hood this week, all sectors closed in the red with consumer discretionary, real estate and financials leading to the downside. Meanwhile, the U.S. dollar index advanced to over the 103. Gold pulled back slightly to the $1,900 level. WTI crude prices held north of $100 per barrel. The yield on the 10-year Treasury held around the 2.9% level. Here's a quick look at our Club trades from this past week: Looking back Within the portfolio this past week, we got earnings results from Microsoft (MSFT), Alphabet (GOOGL), Boeing (BA), Humana (HUM), Meta Platforms (FB), Qualcomm (QCOM), PayPal (PYPL), Ford (F), Eli Lilly (LLY), Linde (LIN), Apple (AAPL), Amazon (AMZN), Chevron (CVX), AbbVie (ABBV), and Honeywell (HON). On the macroeconomic front: Durable goods orders for March were reported on Tuesday indicating a 0.5% increase, missing expectations for a 2.2% advance. New home sales fell 8.6% annually to a seasonally adjusted annual rate of 763,000, below the 765,000 unit rate economists were expecting. On Wednesday, we learned that the pending home sales index declined 8.2% in March versus the year ago period to 103.7 (the 100 level being equal to 2001 contract activity), slightly more than the 8.1% pullback expected. On Thursday, we received the advance estimate for first quarter 2022 Gross Domestic Product indicating a 1.4% annualized pace of contraction, well below the 1.0% expansion we were looking for. Also on Thursday, we got initial jobless claims for the week ended April 23, which came in at 180,000, matching estimates. Finally, on Friday, we got a Personal Spending update for the month of March indicating a 5.2% annual increase in the core PCE price index, below expectations of 5.3% and down from the 5.3% increase seen in February. While that reading is still high, the slight miss versus expectations and fact that the past three months have trended at 5.2%, 5.3% and 5.2% in January, February and March, respectively, could point to a peak or nearing peak in inflation. That's assuming supply chain challenges begin to improve, we avoid another Covid surge and the situation in Ukraine does not deteriorate further. What's ahead Club stocks reporting earnings next week include Devon Energy (DVN) and Coterra Energy (CTRA) on Monday after the close; and Advanced Micro Devices (AMD) on Tuesday after the close. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, May 2 Before the bell: Enterprise Products (EPD), WEC Energy (WEC), Global Payments (GPN), ON Semi (ON), InMode (INMD) After the bell: Nutrien (NTR), Mosaic (MOS), NXP Semi (NXPI), MGM Resorts (MFM), Expedia (EXPE), Avis Budget (AVIS), Clorox (CLX), Sanmina (SANM), Chemours (CC), Logitech (LOGI), Arista (ANET) 10:00 a.m. ET: ISM Manufacturing Tuesday, May 3 Before the bell: BP (BP), Marathon Petrol (MPC), Pfizer (PFE), Paramount (PARA), Cummins (CMI), Eaton (ETN), Estee Lauder (EL), Illinois Tool (ITW), Teva Pharma (TEVA), Leidos (LDOS), DuPont (DD), Biogen (BIIB), Rockwell Auto (ROK), Hilton (HLT), Restaurant Brands (QSR) After the bell: Prudential (PRU), American Int (AIG), Starbucks (SBUX), Murphy USA (MUSA), Amcor (AMCR), Edison (EIX), Caesars (CZR), AirBnB (ABNB), Skyworks (SWKS), PerkinElmer (PKI), Akamai (AKAM), Lyft (LYFT) 10:00 a.m. ET: Factory Orders Wednesday, May 4 Before the bell: CVS Health (CVS), AmerisourceBergen (ABC), Johnson Controls (JCI), CDW (CDW), Cheniere (LNG), Emerson (EMR), Moderna (MRNA), Barrick (GOLD), Regeneron (REGN), Yum! Brands (YUM), Generac (GNRC), Ferrari (RACE), IDEXX Labs (IDXX), Amarin (AMRN) After the bell: Energy Transfer (ET), MetLife (MET), Plains All American (PAA), Allstate (ALL), Flex (FLEX), Uber (UBER), Pioneer Nat (PXD), Corteva (CTVA), Booking Hold (BKNG), eBay (EBAY), Marathon Oil (MRO), Chesapeake (CHK), Qorvo (QRVO), Fortinet (FTNT) 8:15 a.m. ET: ADP Employment Survey 10:00 a.m. ET: ISM Non-Manufacturing 2:00 p.m. ET: FOMC Meeting Thursday, May 5 Before the bell: Cardinal Health (CAH), ArcelorMittal (MT), ConocoPhillips (COP), Anheuser-Busch (BUD), Arrow Electric (ARW), CBRE Group (CBRE), WestRock (WRK), Dominion Energy (D), Parker-Hannifin (PH), Aptiv (APTV), Kellogg (K), Air Products (APD), Wayfair (W), Zoetis (ZTS), Shopify (SHOP) After the bell: McKesson (MCK), EOG Resources (EOG), Opendoor Tech (OPEN), Block (SQ), Con Ed (ED), Zillow (ZG), DaVita (DVA), Vertex Pharma (VRTX), DoorDash (DASH), Post (POST), NortonLifeLock (NLOK), Corsair Gaming (CRSR), WW (WW), Cloudflare (NET), Shake Shack (SHAK), Kratos (KTOS), Progyny (PGNY), Lucid (LCID) 8:30 a.m. ET: Initial Jobless Claims Friday, May 6 Before Cigna (CO), Enbridge (ENB), NRG Energy (ENB), Telus (TU), Flour (FLR), Under Armour (UAA) 8:30 a.m. ET: Nonfarm Payrolls (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

A worker in a protective suit sits near a police line outside a store, following the coronavirus disease (COVID-19) outbreak in Shanghai, China April 21, 2022. Andrew Galbraith | Reuters