Apple Warns It Is Not Immune From Supply Chain Disruptions
In his Daily Market Notes report to investors, while commenting on Apple, Louis Navellier wrote:
Healthy Consumer Spending
The Commerce Department announced that personal consumption expenditures rose 1.1% in March, while personal income rose by 0.5%. Anytime consumers spend more than their income by drawing down savings or incurring new debt is a sign of rising consumer confidence. According to the personal consumption expenditures data, consumers continue to buy durable goods, but spending on services, like restaurants and travel rose considerably. Naturally, consumer spending on food and gasoline rose in March. Overall, consumer spending remains healthy and bodes well for economic growth.
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Q1 2022 hedge fund letters, conferences and more
ValueWalk’s May 2022 Hedge Fund Update: Melvin Capital Plans Restructure
Welcome to our latest issue of issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Melvin Capital plans restructure, a jump in hedge fund launches, and Oaktree Capital branches out with partnerships. Q1 2022 hedge fund letters, Read More
This is the reason why I don’t believe the narrative that Amazon’s disappointment indicates consumers are becoming fickle and not spending where they used to. The main source of Amazon’s profits is their AWS or cloud computing business and not their online shopping business. They dominate cloud computing for the U.S. government. So, the news that their retail business doesn’t hit on all cylinders all the time is not a surprise to me.
Apple Inc (NASDAQ:AAPL), with Shanghai still in lockdown, warned that it is not immune from supply chain disruptions and could take a hit in Q2. So, despite reporting strong results, their stock is down a bit.
The Commerce Department shocked everyone on Thursday by announcing that its preliminary estimate for U.S. GDP growth was a negative annual pace of 1.4%. The Commerce Department cited inflation, trade imbalances, and supply chain disruptions as the catalysts behind negative GDP growth.
Frankly, I am shocked at the Commerce Department’s first-quarter GDP estimate and expect some upward revisions in the upcoming months.
Invest in Hotspots
The NASDAQ market as well as the Russell 3000 this week successfully retested their March 14th lows. When the market makes a low, it likes to pull back and “retest” those lows just to make sure the low was really the low. On the retests this week, trading volume was notably light, which is a good sign that much of the selling pressure has been exhausted.
I don’t think we should worry about the markets and should just invest in the hotspots of the economy: food, energy, fertilizer, shipping. I think we are poised to continue to profit from inflation.
China was the most attractive country for cross-border shoppers: 35% of respondents in a survey by International Post Corporation (IPC) across 40 countries made their last cross-border purchase from a provider based in China. The U.S. follows at quite a distance with 14%. Still – the world’s top address for cross-border online shoppers is U.S. eCommerce giant Amazon. 26% of respondents interviewed by IPC stated that they made their last cross-border purchase from Amazon. Source: ecommerceDB.
Updated on Apr 29, 2022, 3:59 pm