Weekly Stock Market Update 4/22/22 | 50 Basis Point Hike Next Month? - YouTube

hey how's it going my name is dustin misorski and  welcome back to another weekly stock market update  

so as you can see based on my screen the market  was red for the week which i'm going to explain  

a why a little bit later but going straight  into it the nasdaq composite was down about  

three percent the dow was down about one point  two percent one point nine percent i'm sorry the  

queues was down two point six five percent the s  p was down two point five percent and the russell  

two thousand was down two point two percent so we  have bitcoin that's been trying to hold on to that  

forty thousand dollar price level as was down  point two percent on the week i think i'm doing  

the same thing before the three thousand dollar  price level down point six percent we have amc  

down eight point seven percent on the week  gamestop down five point three percent on the week  

and we have netflix down a staggering 36.6 on  the week which i want to talk about real quick so  

netflix had their q1 earnings on tuesday and  they reported a loss of 200 000 subscribers  

during that first quarter they say  the reason for this large decrease  

in subscribers is due to the large amounts of  sharing accounts and passwords and because of  

competition of course and that just brings me  to this tweet by jim cramer on january 2nd to  

buy netflix and if you listen to his advice on  january 3rd which is oddly enough three days  

after the year started if we look at the  year to date you would be down about 60 64

moving on to the biggest winners and losers with  the winners first we're starting with cmpi which  

was up 300 percent we have cyn up 134 percent and  we have v l o n up 69.4 percent for the biggest  

losers we have arq which was down 47.8 percent  dffn which was down 43.6 percent and dogz which  

was down 42.9 percent for sectors best performing  sector this week was real estate second we have  

consumer staples and the worst performing sectors  was communications and actually energy if we come  

here last week energy was the best performing  sector and if we go look at the energy stocks as  

you can see they're all pretty much down so energy  not performing that well this week the next thing  

i want to talk about is home builder sentiment  as we know in the last fomc meeting the federal  

reserve did a 25 basis rate hike which causes the  interest rates for mortgages to go up as we can  

see on the screen the average rate on the 30-year  fixed mortgage stood around 3.9 percent at the  

beginning of march and is now up 5.15 according  to mortgage news daily the housing market faces  

an inflection point as an unexpectedly quick  rise in interest rates rising home prices and  

escalating material costs have significantly  decreased housing affordability conditions  

and builder confidence in the market for new  single family homes fell two points to 77 in april  

and current sales condition fell two points to 85  buyer traffic dropped six points to 60 and sales  

expectations in the next six months increased  three points to 73 following a 10 point dip  

in march and as you can see right here any reading  above 50 is considered positive sentiment and the  

last thing i want to talk about and probably  the most important thing i want to talk about  

is the possibility of a 50 basis point  rate hike in the month of may as we as we  

know last week they released the cpi report and  inflation was up 8.5 percent over the past year  

and this has left members of the board to adopt  a more hawkish approach on what to do with the  

economy which pretty much means that they're  going to be tightening monetary policy more  

and jacking up interest rates but the  key for the fed here is to obviously  

a reduce inflation as fast as possible and b  doing so while not over tightening the economy  

just how rapid inflation is bad for the economy  so is rapid deflation if you aren't exactly sure  

what the federal reserve is what they do  or how they have an effect on the economy  

i made a whole video about that where i explained  the federal reserve in about 10 minutes i'll leave  

a link down in the description for that or i'll  leave a card in the top corner for that video  

but in that video i pretty much used to use  this example where if you imagine the economy  

as a scale the federal reserve's job is to kind  of balance that scale to where we experience  

maximum employment and low inflation and as we  see right here yesterday the fed chair jerome  

powell came out and said it is appropriate in my  view to be moving a little bit more quickly to  

raise interest rates i would say 50 basis points  will be on the table for the may meeting and as i  

was saying earlier it is very important that the  federal reserve does not over tighten the economy  

we got to keep in mind that once the covenant  shutdown happened economic activity came to a  

complete halt supply chain issues started to occur  and on top of all that the federal reserve started  

printing money like there was no tomorrow in  fact 80 of all u.s dollars that we have today  

was printed in the last two years and after  all of that we gotta expect high inflation  

to follow after that and it seems like now  that those problems are starting to fade away  

and that inflation is starting to get out of  hand it seems like the federal reserve is now  

slamming on the brakes and trying to backtrack  on the decisions that they made in the past  

and with that it can be very easy for them  to over tighten the economy so let's say  

we're here and you know inflation's starting to  get bad so they start trying to reverse their  

actions and oh now now it's not balanced so and  then next you know we're doing this stuff and  

we can never find that stable price that we're  looking for but the 50 basis rate hike is an  

aggressive rate hike and if it ends up coming to  fruition we're gonna see some fear and panic in  

the market i think the better question to ask is  when we will have a 50 basis rate hike over will  

we have a 50 basis rate hike because with where  inflation's at right now they got to be aggressive  

in order to get inflation under control and next  month in may when they have the next fomc meeting  

i'm definitely going to be making a video covering  the details of what happened within the meeting  

but if i were you i would just be expecting a 50  basis point rate hike and i would also expect some  

fear and panic in the market if that ended up  coming to fruition and that pretty much sums up  

everything that happened within the week we saw  that netflix got smacked and people just been  

pretty much fearing about what the federal reserve  is going to do next so stop by the channel when  

they do have the fomc meeting to get a video that  covers all the details that happened within that  

speech and until then i just want to thank anyone  who has stopped by and taken the time to watch the  

video i hope you all have a good weekend and i  hope to see you for next week's market update