M&R Capital Management is an investment advisory firm and asset manager firm located in New Jersey whose clients include individuals, endowments, and businesses. In the article below, M&R Capital Management reports on the continued wild ride experienced by the markets.
Stock market volatility teaches a lot of lessons and causes even more headaches.
M&R Capital Management reports that’s what real investors have been acutely aware of over the past week. Those who invested in the market during the first years of the COVID-19 are learning the hard way that the good times do not last.
In addition, playing the stock market well today requires strategy in the face of volatility induced by high inflation, rising gas prices, and the reverberating impact of Russia invading Ukraine.
That’s the message of M&R Capital Management. The average stock market investor these days is internally experiencing the same type of turmoil that the American stock market is producing throughout the country.
The best word for the stock market right now: difficult. The worst month for the U.S. stock market was in January, and the worst stock market monthly performance since the 2008 financial crisis. Inflation was the blame.
On a more positive note, M&R Capital Management reports that defense stocks and other industrial sector investments are doing well and will likely continue to do so even during the war in Ukraine.
Futures Up on Positivity Surrounding Russia-Ukraine Talks
M&R Capital Management explains that investors are suggesting that they have hope ceasefire talks between Russia and Ukraine will be successful. The evidence: Dow futures rose about 200 points last week, as did Nasdaq futures and the S&P.
On the heels of Russian President Vladimir Putting describing the talks as producing some positive developments, the prices of oil in the U.S. held tight at $106 a barrel. Also holding: the 10-year Treasury yield at 2%.
Some Say Odds of a Recession Have Increased
Against the background of high gas prices and inflation, as well as the possibility of an interest rate increase and extremely up-and-down financial markets, many chief economists believe the chances are increasing that the United States economy will soon enter a recession.
M&R Capital Management reports that Goldman Sachs Chief Economist Jan Hatzius recently put the recession odds this year as between 20% and 35% in a note to clients. Hatzius also lowered his assessment of the United States GDP forecast for 2022 to 1.75%, down from 2%.
Others are more positive. M&R Capital Management notes that XPO Logistics CEO Brad Jacobs says that despite the erratic nature of the stock market and the world’s collective economy, the United States’ economy is too strong right now to say that we are close to anything resembling a recession.
Small Cap Oil Stocks Rise After Russian Oil Ban
The Biden Administration’s decision to ban imports of oil from Russia saw several small cap oil stocks rise in value last week. Callon Petroleum rose 6.2%, topping the 65.55 point of cup base. California Resources added 4.6%.
M&R Capital Management reports that as U.S. crude oil prices jumped 4.7%, oil stocks climbed. Shares of Exxon Mobile rose 1.6% to a 52-week high. BP shares increased 4.6% and Shell saw its stock shares climb 3.3%.
The big winner was Chevron, with stock shares rising 6.2%. At one point, the cost of U.S. crude oil hit $125, around the high seen in 2008, but it later fell to about $100 a barrel
Stocks with a Tough Week
M&R Capital Management reports that electric pickup truck manufacturer Rivian has been in a four-month slump and saw another 7% loss the week. The company is experiencing issues with production and missed its fourth-quarter estimates. It recently increased prices by as much as 20%, citing higher costs for car components.
DocuSign, which specializes in e-signature products experienced a fall of 24%. That’s a two-year low and the result of its fiscal-year guidance arriving far below what was expected. Its product sales have declined as pandemic restrictions ease.
Stocks With a Better Week
Holley, and car parts maker increased 3% with a 13.74 buy point. M&R Capital Management reports its fourth-quarter earnings beat forecasts by over 20%.
And even though database software maker Oracle missed its earnings estimate, stocks still increased 2.7% The company’s $10.5 billion revenue met predictions and saw 7% currency revenue growth in the third fiscal quarter.
That was the largest increase in revenue growth rate for the company since it transitioned to the cloud, says Oracle Chief Executive Safra Catz.
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