Lance Roberts, CIO of RIA Advisors, provides insight into market monetary policy and what influences investment decisions on “Making Money”.
U.S. stocks rallied as investors weighed a new report of record inflation against a basket of mixed first-quarter earnings.
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGES | 34564.59 | +344.23 | +1.01% |
| SP500 | S&P500 | 4446.59 | +49.14 | +1.12% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13643.587173 | +272.02 | +2.03% |
The Nasdaq Composite led the gains up 2% while the S&P 500 added 1% and the Dow Jones Industrial Average rose by the same amount or more than 344 points.
The rally came as investors shrugged off another inflation report. The producer price index rose 1.4% month over month, according to Bureau of Labor statistics. Year-over-year, prices paid by wholesalers jumped a record 11.2% from 10% in February.
Adjusting for volatile food and energy costs, core producer prices rose 1% per month in March, compared to 0.2% the previous month. Year-over-year, expect the core PPI to jump 9.2% in March. On Tuesday, the government announced that the consumer price index, a closely watched gauge of retail inflation, hit a 40-year high in March.
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In earnings news, shares of Delta rose after the carrier said it had returned to profitability as consumer demand rebounded. The disclosure bodes well for other carriers. Separately, Southwest pilots warned CEO Robert Jordan about fatigue through their union.
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| FROM | DELTA AIR LINES INC. | 41.04 | +2.43 | +6.29% |
| AAL | AMERICAN AIRLINES GROUP INC. | 18.95 | +1.82 | +10.62% |
| LAU | UNITED AIRLINES HOLDINGS INC. | 45.14 | +2.41 | +5.64% |
| LUV | SOUTH WEST AIRLINES CO. | 46.05 | +3.23 | +7.54% |
JPMorgan’s quarter was more subdued as revenue and profit declined from the same period a year ago. The largest U.S. lender reported first-quarter earnings of $8.28 billion, or $2.63 per share, from $14.3 billion, or $4.50 per share, a year earlier. Revenue fell to $30.7 billion from $32.2 billion a year earlier. The fall in stocks weighed on the Dow Jones.
On Thursday, Goldman Sachs, Morgan Stanley and Wells Fargo will release all of their earnings.
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 127.20 | -4.30 | -3.27% |
| GS | THE GOLDMAN SACHS GROUP INC. | 322.42 | +2.81 | +0.88% |
| MRS | MORGAN STANLEY | 84.25 | +0.34 | +0.41% |
| WFC | WELLS FARGO & CO. | 48.58 | +0.17 | +0.35% |
AMC CEO engages in more deals
In deal news, AMC Entertainment has reached an agreement to acquire seven former Bow Tie Cinemas with 66 screens, including five in Connecticut, one in upstate New York and one in Annapolis, Maryland. The new Connecticut theater locations will double AMC’s overall presence in the state.
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| CMA | AMC ENTERTAINMENT HOLDINGS INC | 18.52 | +1.10 | +6.31% |
Elsewhere, Peloton’s new CEO Barry McCarthy has come under fire from activist Blackwells Capital. The company says it has done little since taking office in February, when John Foley was moved to a separate post.
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| PTON | INTERACTIVE PELOTON INC. | 25.03 | +1.32 | +5.57% |
U.S. oil rose more than 3% to $104.25 a barrel as traders eyed tighter supply from Russia after Moscow said talks to resolve its invasion of Ukraine were in a stalemate. dead end.
Traders on the floor of the NYSE. (AP/AP Newsroom)
| Teleprinter | Security | Last | Switch | Switch % |
|---|---|---|---|---|
| UTILIZE | US OIL FUND LP | 78.42 | +2.46 | +3.24% |
| NOB | UNITED STS BRENT OIL FD LP UNIT | 31.01 | +1.19 | +3.99% |
RUSSIA INVADES UKRAINE: LIVE UPDATES
INFLATION RISE 8.5% IN MARCH, REACHING NEW HIGH IN 40 YEARS
Bitcoin traded around $41,000.
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The Associated Press contributed to this report.