Monday, January 11, 2021 – DIA 310.17 -.28%, QQQ 314.17 -1.45%, SPY 378.69 -.67%
No meaningful market data released. The politics of the day once again ruled the short-term trading. The technology sector was the laggard with the social media companies coming under selling pressure after banning President Trump from the platforms of Twitter (TWTR) 48.18 -6.41% and Facebook (FB) 256.84 -4.01%. Biogen (BIIB) 267.52 +5.93 and Apple (AAPL) 128.98 -2.32 announced a joint development research project to detect biomarkers for Alzheimer’s and Dementia Symptoms. Eli Lilly rallied (LLY) 185.94 +11.749% after announcing positive results in a phase 2 study of Donanemab that showed significant slowing of clinical progression of Alzheimer’s disease. Dow stock Walgreen’s Boots Alliance (WBA) 47.70 +5.51% rallied sharply. BioMarin (BMRN) 81.24 -9.59% was hit hard after publishing disappointing data on a drug in development for hemophilia.
Tuesday, January 12, 2021 – DIA 310.74 +.18%, QQQ 313.92 -.16%, SPY 378.77 +.02%
JOLTS Job Openings declined to 6.527M Vs. the expected 6.916M and down from the previous 6.632M. The UST 10 Year Note auction came at 1.164% up from the previous issuance at .951%. The market traded tentatively as traders discerned the political headlines of the day on Trump and impeachment efforts. Oil stocks surged and were the best group on the day; Occidental (OXY) 22.62 +12.65%, Apache (APA) 18.53 +11.22%, Marathon Oil (MRO) 8.39 +9.82%, Diamondback (FANG) 62.87 +7.84%, Halliburton (HAL) 22.13 +7.58%. On the downside Take-Two Interactive (TTWO) 199.15 -3.58% closing under its 20-day moving average for the first time since late November. Fiserv (FISV) 111.20 -3.35% has had difficulty staying above its 20-day moving average as well and is challenging to cross under the 50-day moving average to the downside. DocuSign (DOCU) 262.65 has hit a 1 month high after consolidating since September.
Wednesday, January 13, 2021 – DIA 310.63 -.11%, QQQ 316.04 +.68%, 379.79 +.27%
CPI MoM came in +.1% as expected. YoY +1.6% as expected and flat to the last release. Intel (INTC) 56.95% +6.97% announced it was replacing the company’s CEO with the current VMWare (VMW) 133.20 -6.79% CEO after pressure last week from shareholder and activist hedge fund Third Point to improve performance. Eli Lilly (LLY) 185.50 +3.75% continued its upward ways after a brief consolidation since Monday’s positive news and sharp rally. Wayfair (W) 309.10 +10.53% broke out to the upside after a 3-month downtrend on stimulus hopes. Peloton (PTON) 167.42 +7.92% rallied back to a recent all-time high as BofA Securities raised its price target to $175 from $150.
Thursday, January 14, 2021 – DIA 310.05 -.19%, QQQ 314.35 -.53%, SPY 378.46 -.35%
Initial Jobless claims jumped to 965K vs. 795K expected. Continuing claims popped by 199K coming in 5.271M vs. 5.061M expected. Intel (INTC) 59.25 +4.04% rallied and continued to dominate the headlines. Activist hedge fund Third Point became publicly active in INTC on December 29. INTC shares are up 19.9% since that date. The shares of semiconductor equipment manufacturing company Applied Materials (AMAT) 105.80 +7.9% also saw heavy buying after Taiwan Semiconductor (TSM) 126.45 +6.06% announced plans for 28-billion-dollar capital expenditure slated for 2021. Energy firms Occidental (OXY) 24.24 +8.59% and Marathon Oil (MRO) 8.67 +7.84% continued their blistering rallies. Virgin Galactic (SPCE) 33.03 +19.85% rose sharply as Ark Investment Management filed a notice of intention to initiate a space exploration ETF.
Friday, January 15, 2021 – DIA 308.12 -.58%, QQQ 311.86 -.79%, SPY 375.70 -.73%
Retail Sales were softer coming in -.7% vs. a 0% or flat expectation. The Michigan Consumer Sentiment Survey came at 79.2 vs. an expected 80 level. Producer Prices on a YoY basis ex-food and energy came at 1.2% slightly less than the 1.3% expectation. Markets opened lower and by mid-morning were on the defense as news out of China concerning strict virus lockdowns hit the tape. SeaGen (SGEN) 185.75 +5.62% rallied on a BofA securities upgrade from neutral to Buy with a $215 target. Regulated gas utility NiSource (NI) 22.93 +4.98% rallied from a triple bottom base. Several energy names came under selling pressure as reports persist of a bottleneck for LNG shipping through the Panama Canal. Chevron (CVX) 92.09 -3.56%, ConocoPhillips (COP) 45.12 -5.74%.
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