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The Weekend Rip: The First One of 2022

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Happy Sunday, gang! Welcome to the FIRST Weekend Rip of 2022!

By now, hopefully you’ve had some chance to acclimate back to “business as usual” … work, morning alarm clocks, and all the new COVID variants (lol). Hopefully you’ve also had a chance to see how the Stocktwits Top 25 kicked off this week. With the market as poor as it is, there were a lot of surprises in this edition. 👀

That said, every major index closed in the red. One was redder than the rest, though: the Nasdaq Composite, which posted one of its worst weeks in the last year (that’s 365 days… goes without saying this was their worst week of 2022. 😂) The Nasdaq Composite was down –5.06%. Which by comparison to every other index is pretty monumental.

This week was a hefty one: the Fed pretty much assured a rate hike is coming in March, sending stocks and crypto lower. On the bright side, the economy is looking stupid thicc right now… the labor market is strong as heck and job openings might rise to over 12 million according to work site Indeed. 

After a solid close to 2021 for crypto, the market is not doing too hot in week 1. Most major cryptos are down, with $BTC.X down –10% and $ETH.X down –16%. Other large-cap coins such as $SOL.X (-19%), $AVAX.X (-19%), and $LUNA.X (-16%) all lost double-digits. In total, there were just nine cryptos in the top 100 which traded in the green this week (and two of those were stablecoins.)

There were a few winners in the top-100 cryptos, though: $ICP.X (+29%), $LINK.X (+28%), and $DASH.X (+5%).

That said, here are the closing prices: 

S&P 500 4,677 -2.12%
Nasdaq 14,935 -5.06%
Russell 2000 2,179 -2.98%
Dow Jones 36,231 -0.25%

Bullets

Bullets from the Week

The Fed is ready to raise. The Fed is now mulling a March rate hike… at least, that’s the takeaway from the Fed’s meeting minutes on Wednesday. However, it’s not that surprising given the urgent need to arrest sky-high inflation. News of the hike, and the consequent halt to asset purchases, sent stocks and commodities lower. Read more in The New York Times.

Legacy EVs mount attack. Tesla radically transformed ideas about the auto industry, leading scores of investors to place bets on novel brands. However, with legacy automakers taking electric vehicles more seriously, high-flying new-age automakers might have their work cut out for them. Shares of $GM and $F took off this week, heading to new highs. They’re leaning into EV opportunities, sending shares of some new-age auto brands into the red this week. Read more in The Wall Street Journal.

The economy marches back on jobs growth. Job search site Indeed believes that December 2021 will be the month that job openings notch a new record: over 12 million. However, there’s a catch: quits rose in November, and they might be expected to rise once more in December. The record number of job openings has been enabled by strong economic conditions, millions of Americans retiring because of monstrous wealth growth during the pandemic, and “The Great Resignation.”

The New York Times takes out The Athletic. The New York Times acquired The Athletic in a $550 million deal on Thursday, marking a months-long effort by the unprofitable sports publication to sell itself. It marks an exclamation point on a period of consolidation and M&A activity in the media sector. Investors responded optimistically to the deal at first, before $NYT stock fell over 10.6% on Friday to close out the week. Read more in our top story of the Thursday The Daily Rip.



The Brief

Need a concise summary of what’s going on this week? Look no further. Here’s your brief for the trading week starting Jan. 10.

Economic Calendar:

1/12 Consumer Price Index (CPI) & Core CPI (8:30 AM ET)
1/12 EIA Crude Oil Inventories (10:30 AM ET)
1/13 Initial & Continuing Claims (8:30 AM ET)
1/13 Producer Price Index (PPI) & Core PPI (8:30 AM ET)
1/14 Retail Sales for December (8:30 AM ET)
1/14 University of Michigan Consumer Sentiment (10:00 AM ET)

Peep the full Economic Calendar provided by Briefing for all the reports this week.

Earnings will be starting to pick up in the next few weeks, looking back at Q4’s performance. Here’s what to expect this week: 

Check all the companies reporting earnings in the days ahead on the Stocktwits earnings calendar.