NOAA Updates their Outlook for May, 2022 – It is an improvement

At the end of every month, NOAA updates their Early Outlook for the following month which in this case is May. They also issue a drought outlook for the following month. We are reporting on that tonight. The updated Outlook is quite different from the Early Outlook which NOAA now calls the Mid-Month Outlook. It is overall less warm and less dry than the Mid-Month Outlook.

We provide partial-month outlooks for the first 27 days of May which allows us to validate if the Monthly Outlook is consistent with the partial month forecasts and it is.  We also provide enough information for readers to understand any changes from the Mid-Month Outlook and we try to figure out why these changes were made.  Most of the changes are explained in the NOAA discussion which is included in the article. The NOAA discussion describes the changes but does not provide a lot of insight into the reasons for the changes other than a change in the wave pattern that they describe as more troughing in the western Northern Tier. The partial-month forecasts that we have provided show how NOAA thinks this will play out as the weather pattern changes during May.

There is also a short discussion of the ENSO condition and it is looking less likely that there will be a Three-peat of the La Nina but that a near La Nina may be the more likely situation for Fall and Winter. Those forecasts can change but it looks like a marginally better situation with the focus on the words marginally better.

29Apr2022 Market Close & Major Financial Headlines: Terrible Month For The Markets Ends With Another Down Day

Summary Of the Markets Today

  • The Dow down 2.8%,
  • Nasdaq down 4.2%,
  • S&P 500 down 3.6%,
  • WTI crude oil off $1 to $104.36,
  • gold up $5.90 to $1,897,
  • Bitcoin down 3.3% to $38,510,
  • 10-year U.S. Treasury up 7 basis points to 2.93%

Today’s Economic Releases

Real personal income declined in March 2022 but real personal consumption grew. Inflation is chipping away the value of the dollar.

Other Economic News

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Demand Destruction Is Delaying An Oil Supply Crisis
  • An EU Embargo On Russian Oil Is Imminent
  • Poland Threatens To Seize Russian Pipelines
  • Diesel In Crisis Mode As Prices Break Records
  • Chinese leaders stick to Covid controls as the virus spreads and forces a Beijing luxury mall to close temporarily
  • Nasdaq Collapses To Worst Month Since Lehman As Market Starts Pricing 75bps Hike In June

28Apr2022 Market Close & Major Financial Headlines: Market’s Improve As GDP Edges Into Recession Territory

Summary Of the Markets Today

  • The Dow up 1.9%,
  • Nasdaq up 3.1%,
  • S&P 500 up 02.5%,
  • WTI crude oil up over $3 to $105.17,
  • gold up $8 to $1,897,
  • Bitcoin up 1.6% to $39,771,
  • 10-year U.S. Treasury unchanged at 2.83%

Today’s Economic Releases

A surprise contraction of First Quarter 2022 GDP (advance estimate). This was below expectations, and I suggest for the rest of the year GDP will remain subdued primarily due to inflation (real GDP is adjusted for inflation). Note that the headline GDP is calculated quarter-over-quarter annualized – if one calculates year-over-year, real GDP increased 3.6% from the same quarter one year ago. The BEA summary:

The decrease in real GDP reflected decreases in private inventory investment, exports, federal government spending, and state and local government spending, while imports, which are a subtraction in the calculation of GDP, increased. Personal consumption expenditures (PCE), nonresidential fixed investment, and residential fixed investment increased.

Initial unemployment claims continues to trend down.

unemployment graph

Other Economic News

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Moldova Fears Russia Is Looking To Expand Its War Beyond Ukraine
  • Is China Finally Distancing Itself From Russia?
  • Iran Boosts Oil Exports As Its Key Buyer China Cuts Russian Purchases
  • Elon Musk will be the most indebted CEO in America if the Twitter deal goes through
  • Climate change will drive new transmission of 4,000 viruses between mammals by 2070
  • “WTF Was That!” – Stocks Explode Higher As US Economy Heads Into Recession

27Apr2022 Market Close & Major Financial Headlines: Markets Eke Out Tiny Gains

Quick View of the markets today:

  • The Dow up 0.2%,
  • Nasdaq little changed,
  • S&P 500 up 0.2%,
  • WTI crude oil little changed at $102.15,
  • gold down $18 to $1,886,
  • Bitcoin up $1,017 to $39,144,
  • 10-year U.S. Treasury unchanged at 2.84%

Pending home sales (March 2022 data) have declined for five months straight. Lawrence Yun, NAR’s chief economist stated:

The falling contract signings are implying that multiple offers will soon dissipate and be replaced by much calmer and normalized market conditions. As it stands, the sudden large gains in mortgage rates have reduced the pool of eligible homebuyers, and that has consequently lowered buying activity.

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Russian Hackers Are Targeting Europe’s Renewable Energy Infrastructure
  • Italy May Consider Nationalizing Giant Lukoil Refinery
  • EU Pledges Coordinated Response To Russian Gas Blackmail
  • Peter Schiff: The Fed’s Ego Is The Only Thing Bigger Than This Bubble

26Apr2022 Market Close & Major Financial Headlines: Nasdaq Retreats to New 2022 Low

Quick View of the markets today:

  • The Dow declined 2.4%,
  • Nasdaq declined 4.0%,
  • S&P 500 declined 2.8%,
  • WTI crude oil modestly increased $3.50 to $102.07,
  • gold up $6 to $1,902,
  • Bitcoin down 5.4% to $38,055,
  • 10-year U.S. Treasury declined 8 basis point to 2.74%

CoreLogic Deputy Chief Economist Selma Hepp commented on the S&P CoreLogic Case-Shiller National Home Price Index for February released this morning:

The S&P CoreLogic Case-Shiller Index pushed up to a 19.8% increase in February, the second consecutive month of accelerated growth after a winter lull, and another month of the strongest annual increase since the beginning of the data series. Price growth was robust across the country with all 20 metro areas experiencing stronger annual gains than in January. The largest increases in annual gains were in the West Coast markets: Los Angeles, Seattle, San Diego and San Francisco, and also in high tier price segments. While anticipation of mortgage rate increases pulled many buyers in ahead of the spring home buying season, strength in the higher priced segments of the market also suggests that buyers are seeing additional value in homes as a hedge against inflation.

Durable goods year-over-year growth remained fairly stable for March 2022.

New home sales declined this month – no surprise because of rising interest rates and higher prices.

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Germany Could Ban Russian Oil In Days
  • Steel Demand Is Dwindling As China Grapples With New Lockdowns
  • At least 58% of U.S. population has natural antibodies from previous Covid infection, CDC says
  • Poland Confirms Russia To Halt All Gas Delivery Wednesday If Payment Not Settled In Rubles
  • Europe Buys Abu Dhabi Crude To Replace Russian Barrels

25Apr2022 Market Close & Major Financial Headlines: Elon Musk Buys Twitter for $44bn

Quick View of the markets today:

  • The Dow gained 0.7%,
  • Nasdaq up 1.3%,
  • S&P 500 up 0.7%,
  • WTI crude oil modestly declined $3 to $99.04,
  • gold declined $35 to $1,900,
  • Bitcoin rose 2.0% to $40,311,
  • 10-year U.S. Treasury declined 7 basis point to 2.83%

The NFIB reported today that inflation is now small business’s single most important problem displacing labor quality. The Chicago Fed National Activity Index (CFNAI) three month moving average improved in March 2022 – and the index continues to expand above its historical trend (average) rate of growth

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Russia Ramps Up Attacks On Ukraine Rail Lines To Thwart NATO Arms Shipments
  • SpaceX’s Starlink to provide Wi-Fi on Hawaiian Airlines flights with free service for passengers
  • Financial Markets Brace For Stagflation As Global Growth Optimism Sinks
  • The Margin: Twitter’s board accepts Elon Musk’s offer — and users are either celebrating ‘free speech’ or saying ‘RIP Twitter’
  • Europe Buys Abu Dhabi Crude To Replace Russian Barrels

Karl Marx

Karl Marx

Karl Marx is arguably the greatest economist in the 19th century, if not of all time! 1. Who is Karl Marx? Read Wikipedia – Karl Marx. For more, watch the…

22Apr2022 Market Close & Major Financial Headlines: Dow Declined 2.8% Today And Down For The Week, Month-To-Date

Quick View of the markets today:

  • The Dow closed down 2.8%,
  • Nasdaq off 2.6%,
  • S&P 500 down 2.8%,
  • crude oil modestly declined over $2 to $101.21,
  • gold declined over $13 to $1,935,
  • Bitcoin fell $1,644 to $39,508,
  • 10-year U.S. Treasury declined 1 basis point to 2.90%

Today there was no safe haven for your money except cash. So many negative forces now acting on the market lead by the expected impact of the Fed’s increases to the federal funds rate which will impact borrowing. The war in Ukraine and the covid lockdowns in China are having a negative impact to world trade.

As usual, we have included below the headlines and news summaries moving the markets today including:

  • Bearish Sentiment Drags Oil Prices Lower
  • The Netherlands Plans To End Russian Oil And Gas Purchases By The End Of The Year
  • U.S. Rig Count Inches Higher As Oil Rally Halts
  • Florida Gov. DeSantis signs bill revoking Disney’s special district status
  • Bond/Stock Bloodbath Leads To Worst Start To A Year On Record