In his podcast addressing the markets today, Louis Navellier offered the following commentary.
Strong Energy And Commodity-Related Stocks
Vladimir Putin is fuming over last Friday’s car bomb attack that killed ultra-nationalist, Darya Dugina, who is the daughter of his close advisor, Alexander Dugin. Specifically, Putin called the assignation a “vile crime” and pledged retaliation. Andrey Gurulyov, the former deputy commander of Russia‘s southern military district warned the West of impending war and said: “We’re at war with the United States and the UK… If the British soldiers end up on the territory of Ukraine, this war won’t be taking place in Ukraine.”
Q2 2022 hedge fund letters, conferences and more
This rhetoric has natural gas prices at a 14-year high and crude oil prices surging. Naturally, energy and commodity-related stocks have strong forecasted sales and earnings, despite the fact that the analyst community is trimming their earnings estimates for many stocks, especially large multi-national stocks that are being hindered by a strong U.S. dollar because approximately half of the S&P 500's revenue is outside of the U.S.
Find the Alpha
You can invest confidently despite the World War III rhetoric emanating from Russia by uncovering fundamentally superior high Alpha stocks that go up on down days. Some stocks that fill this bill include ADM, AEHR, ARLP, BP, CECE, CF, CLFD, CNQ, COP, CTRA, DVN, ENPH, EOG, MRO, MTDR, NTR, OBE, ON, PBF, PBR, RYI, SHEL, SQM, TECK, TRGP, TS, TTE, TWI, VIST, WHD and WTI.
PMI Miss Due To Aircraft
Much of the rest of the world is now in a recession as weak Purchasing Manager Indices (PMI). Here in the U.S., the housing market is definitely in a recession. The Commerce Department on Tuesday announced that new home sales declined 12.6% in July to an annual pace of 511,000, which represents a 6½-year low. This was much lower than economists expected, which forecasted new home sales would slow to a 575,000 annual pace, down from a revised 585,000 annual pace in June. There is an inventory of 464,000 new homes for sale, which represents an abnormally high 10.9-month supply. Due to high inventories, many builders may now increasingly have to discount new homes to reduce inventory.
The Commerce Department on Wednesday announced that durable goods orders in July dipped less than $0.1 billion and were essentially unchanged. This was a big disappointment since economists were expecting durable goods orders to rise 0.8% in July. Excluding defense aircraft orders that plunged nearly 50% in July, durable goods rose a more robust 1.2%.
Also, core durable goods from businesses orders rose 0.3% in July. Commercial aircraft orders rose 14.5% in July as Boeing reported 130 new orders compared to 50 in June. Overall, the July durable goods miss was almost entirely attributable to a big drop in defense aircraft orders.
