Three Things to Know & Watch

Apr 18, 2022

By Bill Hornbarger, Chief Investment Officer

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Three Things to Watch

  • Earnings season ramps up with seven Dow Jones Industrial Average constituents among the blue chip companies scheduled to report first-quarter earnings this week. Some of the big names that will make earnings releases include Johnson & Johnson, IBM, Verizon, Bank of America, Procter & Gamble, and Travelers. Of the 33 S&P 500 companies that have reported to date, 27 posted a positive earnings surprise per Bloomberg.
  • On the economic data front, housing will take center stage with housing starts, the home builders survey, and existing home sales all set to be released this week. All are expected to be lower as the housing market is reacting to the highest mortgage rates in more than a decade. The Bankrate 30-year U.S. Home Mortgage Average rate currently stands at 5.25% versus a low of 2.96% last summer.
  • Elon Musk’s pursuit of Twitter will be closely watched this week as the social media company instituted a poison pill last week in response to the hostile bid. Hostile takeovers have become relatively rare in recent years after peaking in the late 1980s.

Three Things to Know

  • The IRS estimates 1.5 million taxpayers did not file a 2018 tax return to claim tax refunds worth more than $1.5 billion. The three-year window of opportunity to claim a 2018 tax refund closes April 18, for most taxpayers. If they do not file a 2018 tax return by April 18, the money becomes the property of the U.S. Treasury. (Source: irs.gov)
  • Of the 2021 federal tax returns the IRS has processed to date, the average refund is more than $3,200, up approximately 11.5% versus last year. (Source: IRS, msn.com)
  • The amount of global debt (measured in U.S. dollars) with negative yields (a yield less than 0% which means the investor receives less than the original invested amount) has fallen from a high of $16.9 trillion last summer to $2.7 trillion last week. (Source: Bloomberg)

 

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.