Investing Club: The week in review, the week ahead — April 8, 2022

Published Fri, Apr 8 20224:17 PM EDTUpdated Fri, Apr 8 20224:25 PM EDT

Stocks were up slightly on Friday, but down for the week as investors reacted to a more aggressive stance from the Federal Reserve. The S & P 500 — and to an even greater extent the tech-heavy Nasdaq — pulled back for the week. The rebound in growth faded with investors taking a more cautious stance heading into the first week of earnings season Monday. Adding to that defensive posture were very hawkish comments from previously dovish Fed Governor Lael Brainard, Federal Open Market Committee minutes that point to Federal Reserve balance sheet reductions of as much as $95 billion per month starting in May, and Deutsche Bank coming out this week as the first major bank to predict a US recession in 2023. We took action in the Club by raising cash. This puts us in a position to take advantage of further weakness in our highest conviction — if currently out of favor — names. For example, we initiated a position in Procter & Gamble (PG) to take advantage of its recession-resilient earnings — something investors will pay a premium to own. As a reminder, next week will be a shorter trading week with markets closed for Good Friday. Under the hood this week, defensive sectors healthcare, energy and consumer staples were the winners. The energy sector, which isn't usually considered a defensive play, was also up thanks to the ongoing war in Ukraine. In the losing column, technology led to the downside, followed by consumer discretionary and communication services. Here's a quick look at some of the broader market measures we like to keep an eye on: The U.S. dollar index has pushed to nearly the 100 level. Gold is holding in the mid-$1,900s region. WTI crude prices pulled back to just below the $100 per barrel level and the yield on the 10-year Treasury has advanced to the 2.7% level. Before getting to next week's reports, a quick look at the actions we took this week: Earnings and the economy No portfolio companies reported this week. On the macroeconomic front: Monday Factory Orders (MoM): -0.5% vs. -0.6% estimate Wednesday ISM Services PMI : 58.3 vs. 58.3 estimate Thursday Weekly initial jobless claims : 166,000 vs. 200,000 expected; four-week moving average for claims: 170,000 (-8,000 vs. prior week) What's Ahead First-quarter earnings season is upon us. Next week, within the portfolio, we will hear from Morgan Stanley (MS) and Wells Fargo (WFC) on Thursday before the opening bell. Here are some other reports we will be watching: Tuesday Open: Albertsons (ACI), CarMax (KMX) Wednesday Open: Bed Bath & Beyond (BBBY), BlackRock (BLK), Delta Air Lines (DAL), Fastenal (FAST), First Republic (FRC), JPMorgan Chase (JPM), Shaw Comms (SJR) Close: Wash. Federal (WAFD) Thursday Open: Taiwan Semi (TSM), UnitedHealth (UNH), Ericsson (ERIC), Citigroup (C), Progressive (PGR), Goldman Sachs (GS), Rite Aid (RAD), US Bancorp (USB), PNC (PNC), State Street (STT), Ally Financial (ALLY) On the macroeconomic front, we'll be keeping an eye on the geopolitical sphere as well as for the following releases (all times EST). Tuesday 8:30 Consumer Price Index Wednesday 8:30 Producer Price Index Thursday 08:30 Initial Claims 08:30 Retail Sales Friday 09:15 Industrial Production 09:15 Capacity Utilization (Jim Cramer's Charitable Trust is long MS, WFC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Federal Reserve Board Governor Lael Brainard testifies before a Senate Banking Committee hearing on her nomination to be vice-chair of the Federal Reserve, on Capitol Hill in Washington, U.S., January 13, 2022.

Elizabeth Frantz | Reuters

Stocks were up slightly on Friday, but down for the week as investors reacted to a more aggressive stance from the Federal Reserve.

The S&P 500 — and to an even greater extent the tech-heavy Nasdaq — pulled back for the week. The rebound in growth faded with investors taking a more cautious stance heading into the first week of earnings season Monday.

Adding to that defensive posture were very hawkish comments from previously dovish Fed Governor Lael Brainard, Federal Open Market Committee minutes that point to Federal Reserve balance sheet reductions of as much as $95 billion per month starting in May, and Deutsche Bank coming out this week as the first major bank to predict a US recession in 2023.