Three Things to Know & Watch – 5 May 2022

May 16, 2022

By Bill Hornbarger, Chief Investment Officer

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Three Things to Watch

  • Plenty of opportunities this week to hear what the Fed is thinking. There are multiple Fed speakers on the docket highlighted by Fed Chairman Jerome Powell’s appearance on Tuesday (May 17) at a Wall Street Journal conference. The Fed comments come against the backdrop of inflation near a 40-year high and the market anticipating a half-point increase at each of the June and July FOMC meetings.
  • The earnings calendar is heavy with companies from the retail sector. Macy’s, Target, Walmart, Kohl’s, TJX, Home Depot, and Lowe’s are all scheduled to report earnings this week. On Tuesday, retail sales for the month of April will be reported. Retail sales are expected to be up 0.9% month-over-month and up 0.7% month-over-month excluding gasoline and automobile parts and dealers.
  • Investors will get data on housing and a look at the impact of higher mortgage rates on housing activity. Housing starts for April are expected to have declined 1.8% with existing home sales down 2.3% for the month of April. Those reports will be released Wednesday and Thursday respectively with mortgage applications also published on Wednesday.

Three Things to Know

  • After last week’s decline, the S&P 500 is now down six consecutive weeks. This is the first time that has happened since 2011 and the market hasn’t fallen seven consecutive weeks since 2001. (Source: Ryan Detrick)
  • The forward S&P 500 price/earnings ratio is currently at 16.6x, below both the 5-year (18.6x) and 10-year (16.9x) averages. (Source: FactSet)
  • Tax receipts collected by the United States in April 2022 were $863.6 billion, creating a monthly surplus of $308.2 billion, both numbers represent an all-time monthly record for the U.S. (Source: MFS, Treasury Department).


The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.