• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

Indexes Hide Wild Ride on Market

Now it's big earnings ahead, including Amazon and Meta.
By JAMES "REV SHARK" DEPORRE
Jan 28, 2022 | 04:46 PM EST

The S&P 500 closed the week with a small gain of about 33 points or less than 1%. The Dow Jones also gained while the Nasdaq lost ground and the Russell 2000 fund  (IWM)  lagged with a loss of 1%.

It sounds like pretty mild action, but it was the most volatile trading since the Covid pandemic meltdown in early 2020. There was a huge drop on Monday and a giant reversal, and then another sharp drop on Wednesday when Fed Chair Jerome Powell surprised the market by being more hawkish than anticipated. The big news this week was that the market is now expecting an additional two interest rate hikes that it didn't foresee a week ago.

The mood has been very negative, but it improved nicely on Friday following a much better-than-expected earnings report from Apple (AAPL) and also some chatter that the Fed may not hike rates as quickly as feared.

The sell algorithms that have been hitting the market so hard all week reversed course late in the day and delivered a very strong finish that took some of the sting out of a hard week. This was one of the most difficult trading weeks that many traders have had to deal with, and they breathed a little sigh of relief with the strong finish.

So now what? We have a slew of earnings reports next week, including a number of big names like Amazon (AMZN)  and Meta (FB) .

The primary issue for traders will be whether or not the market has discounted a more hawkish Fed. This is one of the most consequential shifts in monetary policy in decades, so it isn't something that is likely to be quickly overcome. There will be reverberations, but one of the positives is that Powell was extremely negative, and now there is a chance for some moderation in his views as things progress.

There are a huge number of stocks that are badly broken and at new lows. The IWM crossed the bear market threshold, and a huge percentage of stocks in the Nasdaq are down more than 50%. There is still a huge disparity between the S&P 500 and the average stock.

It is going to continue to be a rocky ride, but the correction process has advanced, and there are some fantastic opportunities developing.

Have a great weekend. I'll see you on Monday.

(Apple and Amazon are holdings in the Action Alerts PLUS member club. Want to be alerted before AAP buys or sells these names? Learn more now.)

 
 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, DePorre had no position in any security mentioned.

TAGS: Earnings | Investing | Stocks

More from Stocks

Bettin' a Buck on Devon

Mark Sebastian
May 24, 2022 1:39 PM EDT

Here's where I see Devon Energy going and how to play it.

For Those Keeping Score of Failed Bounces in May, We're Up to 4

James "Rev Shark" DePorre
May 24, 2022 10:58 AM EDT

The essence of a bear market is failed bounces, and we have an epic one here on Tuesday.

Should You Buy a Retest of Trade Desk's Low?

Bruce Kamich
May 24, 2022 10:41 AM EDT

Here's what the charts tell us.

AT&T Should Dial It Up

Ed Ponsi
May 24, 2022 10:31 AM EDT

Here's my target for AT&T, as the charts line up.

Let's Pop the Hood on AutoZone to See How Its Engine Is Running

Stephen Guilfoyle
May 24, 2022 10:20 AM EDT

The auto parts retailer's third-quarter results trounced expectations, but its large debt and inventory positions offer reasons to pause before buying its shares.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login