The Week 18 of 2022 US Stock Market News Recap

Week 18: For the third week in a row The Stock Market Bull has the lead on Thursday, then The Stock Market Bear crushes him on Friday to get the win.

By Larry C. Paxton

The US Stock Market Week 18 Summary:

In Week 18 The Stock Market Bull, anxious to get back into the win column, had a very nice Monday, followed by an okay Tuesday. On Wednesday, after the press conference with Federal Reserve Chairman Jerome Powell, investors had a collective sigh of relief and The Stock Market Bull took a huge leap up. But Thursday it became a little bit like buyer’s remorse. The Stock Market Bear charged into the pasture and almost wiped out all of the weekly gains. Like a matador, on Friday all The Stock Market Bear had to do was put his big paw on The Stock Market Bull‘s nose and sure enough, he toppled over bloodied, exhausted, and near death. For the third week in a row The Stock Market Bear comes from behind on Friday to take the week. With his Week 18 win The Stock Market Bear also becomes a five weeks in a row outright victor. Can The Stock Market Bull be revived?

Influences/News:

• The main news item for the week was the result of the US Federal Open Market Committee’s decision on Wednesday to hike the short term federal funds interest rate by 0.50% making the rate now at 0.75% to 1.00%. It also announced plans to phase in a selloff of its $9 trillion bonds stockpile starting in June 2022. It was also announced that they do not intend to do a 0.75% increase in an effort to control inflation. Finally, they indicated that they believe they can use their tools to have a soft economic landing and avoid a dreaded recession.
• Russia continues to pound away at the eastern part of Ukraine, making slow progress.  Ukraine claims that they have retaken some of the eastern areas. The United Nations and humanitarian relief agencies were able to get an agreement to evacuate several civilian survivors  from the strategic port city of Mariupol who were holed up in the expansive Azovstal steel plant. Ukraine defenders refuse to surrender and vow to fight to the death as the over 2 months attack continues. The European Union is proposing a ban on Russian crude oil imports to be effective within 6 months. Poland raises $6.5 billion in humanitarian aid by hosting an international donor conference. US President Biden announces an additional $150 million in additional aid for a security package. The Ukrainian cabinet is putting together a postwar rebuilding plan as its president Zelenskyy appeals to Western allies to propose a post World War II type Marshall Plan.
• N Korea launches another ballistic missile test, again creating concern about its ability to deliver nuclear weapons.
• A rare leak of a US Supreme Court draft of a majority opinion that supports the overturn of the controversial Roe vs Wade abortion decision of 1972 results in rallies across the country by abortion-rights supporters. Chief Justice John Roberts orders an investigation and says the leak will not have an affect on the work of the Supreme Court. US Senate Democrats plan to force a procedural vote on a bill to codify abortion protections. A final bill is not expected to pass because it would require at least 60 votes, which is unlikely, and would also be subject to a Republican filibuster.
• US 1Q22 corporate earnings of public companies continue to be released, results are mixed.

US Economic News:

• The Dept of Commerce/Census says the Preliminary March 2022 Construction Spending-Residential is at $891.3 billion, Non-Residential $839.2 billion, for March 2022 Total Construction Spending at $1,730.5 billion, +0.1% from February 2022, +11.8% from March 2021.
• The Institute for Supply Management(ISM) Preliminary April 2022 Manufacturing PMI Index is at 55.4%, March was at 57.1%, February 58.6%, April 2021 60.7%. “Panel sentiment remained strongly optimistic regarding demand, though the three positive growth comments for every cautious comment was down from March’s ratio of 6-to-1, Panelists continue to note supply chain and pricing issues as their biggest concerns.”
• The S&P Global April 2022 US Manufacturing PMI Index is at 59.2, March was at 58.8, February 57.3, April 2021 60.5. “… while the survey data add to indications that the pace of economic growth will improve in the second quarter after a lacklustre first quarter, the less welcome news is that elevated inflationary pressures show no signs of relenting.”
• The Dept of Labor says the Preliminary March 2022 US Job Openings-Private is at 10,504,000, Government 1,044,000, making March 2022 US Job Openings Total at 11,548,000, the highest level in the history of the series which began in December 2000,
  February was at 11,344,000, January 11,283,000, March 2021 8,480,000, March 2020 5,769,000.
• The Dept of Commerce/Census says the Preliminary March 2022 Manufacturers New Orders-Durables is at $275.8 billion, Non-Durables $281.5, making March 2022 Manufacturers New Orders Total at $557.3 billion, February was at $545.5 billion, January $544.7, March 2021 $488.1 billion, March 2020 $402.7 billion.
• The PurdueU/CME Group April 2022 Ag Economy Barometer Composite Index is at 121, March was at 113, February 125, April 2021 178, April 2020 96. “… despite this month’s improvement in sentiment, the index was still 32% lower than a year earlier indicating producers remain troubled regarding the uncertainty surrounding input prices and availability… Furthermore, it appears the war in Ukraine has exacerbated concerns among producers about input price levels and made availability even more uncertain.”
• ADP says the Preliminary April 2022 Change in US Employment(Private Sector)-Small Sized Companies(1-49 employees) is at -120,000, Medium(50-499) +46,000, Large(500 or more) +321,000, for a Net Change of +247,000; the Goods Producing Sector is +46,000, Services Sector +202,000. “While hiring demand remains strong, labor supply shortages caused job gains to soften for both goods producers and services providers. As the labor market tightens, small companies, with fewer than 50 employees, struggle with competition for wages amid increased costs.”
• The Dept of Commerce/Census says the Preliminary March 2022 US Exports-Goods is at $170.7 billion, Services $71.1 billion, making March 202s US Exports Total at $241.8 billion; the Preliminary March 2022 US Imports-Goods is at $298.8 billion, Services $52.7 billion, making March 2022 US Imports Total at $351.5 billion, making the March 2022 US International Trade Deficit at $109.7 billion, making the March 2022 YTD Deficit(3 months) at $288.7 billion, March 2021 was at $204.2 billion, March 2020 $134.3 billion.
• The Institute for Supply Management April 2022 US Services PMI Index(>50% economy growing) is at 57.1%, March was at 58.3%, February 56.5%, April 2021 62.7%, April 2020 41.8%. “… Growth continues for the services sector, which has expanded for all but two of the last 147 months. There was a pullback in the composite index, mostly due to the restricted labor pool (impacting the Employment Index) and the slowing of new orders growth…”
• The S&P Global April 2022 US Composite PMI Output Index is at 56.0, March was at 57.7, February 55.9, April 2021 63.5, April 2020 27.0. “… Enjoying strong demand, firms were increasingly able to pass on higher energy, materials and staff costs to customers, indicating an economy that continues to run hot.”
• The Federal Open Market Committee releases a statement and has a press conference following its meeting of 05/03-04/22, increases the federal funds short term interest rates by 0.50% to 0.75% to 1.00%, plans to phase in a selloff of its $9 trillion bonds stockpile starting in June 2022.
• The Dept of Labor says the Preliminary 1Q22 US Business Sector Labor Productivity Output/Hr Annual Rate(Table 1) is at -7.7%, 4Q21 was at +6.3%, 3Q21 -3.7%, 2Q21 +3.4%, 1Q21 +2.1%, 1Q20 -1.8%.
• The Dept of Labor says the April 2022 US Available Labor Force is at 164,046,000, Employed is at 158,105,000, Unemployed 5,941,000, for an April 2022 Unemployment Rate of 3.6%, March was at 3.6%, February 3.8%, April 2021 6.1%, April 2020 14.7%, April 2019 3.6%.
• The Federal Reserve says Preliminary 1Q22 Consumer Credit Outstanding-Revolving is at $1.098 trillion, Non-Revolving $3.442 trillion, making 1Q22 Consumer Credit Outstanding Total at $4.539 trillion, 4Q21 was at $4.432 trillion, 3Q21 $4.356 trillion, 1Q21 $4.229 trillion, 1Q20 $4.204 trillion, 1Q19 $4.044 trillion.

More Resources:

Check out the BLOG page for the previous RECAPS and SNAPSHOTS posts.

Click here to follow The PBR1000 on Twitter!

PBRMarketTools Info:

If you are not a current The PBR1000 or The PBR25 Subscriber go to the Subscribe page for more information and to get our latest research and monthly snapshots.

Please use the Contact Us page if you are not on our email list or have questions about The PBR1000, The PBR25 Top Buy Stocks, The PBRMarketTools US Economic Indices or the Customization Services we provide. We appreciate your comments and suggestions!

The PBR1000:

PBRMarketTools.com provides The PBR1000, a compilation of 1,000 of the largest publicly held companies with primary operations in the US. These companies generate $15 trillion in annual revenues, more than all other US companies combined. The PBR1000 Monthly Snapshots provides these 1,000 companies in Excel format, includes 15 worksheets with 28 rankings, over 200 data/information points, hotlinks to key data, and important news items per company.

Disclaimers: The research PBRMarketTools.com provides is compiled from a variety of publicly available resources. As such, PBRMarketTools.com is not responsible for the data itself. Any liability for the representations or decisions based on the data is solely the responsibility of the authorized user, not PBRMarketTools.com, its employees or affiliates. PBRMarketTools.com is an independent business intelligence service providing news, data, and analysis. We provide information only and it should not be regarded as recommendations or advice. PBRMarketTools.com is not a financial advisory or stock brokerage firm and has no affiliation with such organizations.

This business intelligence report is provided by: 

(Article image is courtesy of FreeDigitalPhotos.net, ddpavumba.)

Empowering Astute Business Leaders and Shrewd Investors
Through The PBR1000 Analytics!

Copyright © 2022 by Pax Business Resources, LLC, All Rights Reserved.