Good Morning. At 10:30 AM, the Dollar is down 69 ticks. Bonds are stronger. Stocks are mixed after first getting crushed last night on Netflix (idiotic business decisions), then going very positive today early on.
Gold is down $5 from Comex settle. Silver is down 16 cents. Crude Oil is up 44 cents. Nat Gas continues to swoon, down 26 cents. Crypto was firmer, now weaker when stocks gaveback gains. Grains are mixed wth Wheat weaker.
Wall Street Changes its Mind about Netflix after the news- Zerohedge
JPMorgan (cuts to neutral, PT cut to $300 from $605)
- Near-term visibility on growth plans is limited
Pivotal Research Group (cuts to sell from buy, PT to $235 from $550)
- This was “what can only be called a shocking 1Q subscriber miss and weak subscriber & financial guidance”
BofA (downgrades to underperform from buy, PT to $300 from $605)
- “The Street now knows that the low guide last quarter was not an aberration
Wells Fargo Securities (downgrades to equal weight from overweight, PT to $300 from $600)
- “Negative sub growth and investments to reaccelerate revenues are the nail in the NFLX narrative coffin”
Research Brief:
Gold And Silver Comment: CTAs are way too long
GoldFix: CTA flows are typically like Retail interest. They make money alot in trending markets, but when they lose, they lose horribly and sell for the wrong reasons. Kind of like the classic story of the shoeshine guy recommending stocks to JP Morgan or someone. Right now the CTA people are way too long for this price……. Continues at bottom…
Oil Rigs Climbing Above Pace- JPM
This narrative and Biden permitting more drilling, along with the recessionary demand destruction concept is no doubt just beginning to weigh on Oil Prices. Expect more of this as summer driving season drives demand. Everybody bought used cars last year.. Lets see if they drive them this year.
US drillers add another four rigs this week; activity in every basin now higher than our April forecast
Tax Season is Over. The Buying Has Begun- Marko K.
If investors were to feel better about markets (sentiment should not be at 30-year lows, in our view) and were to increase positioning, what should one buy: Growth or Value? Due to specific macro developments and their impact on fundamentals, one can currently buy stocks that have both growth and value attributes. There are growth stocks that sold off sufficiently, and there are value stocks that are now also growth
