Monday, April 5, 2021 – DIA 335.15 +1.12%, QQQ 331.05 +2.00%, SPY 406.22 +1.40%
ISM Services PMI came in at 63.7 greatly exceeding the 58.5 expected. The market gapped higher from the opening benefitting from the new quarter and monthly investment allocation flows and the blowout jobs numbers which were released on Good Friday when markets were closed. Consumer Discretionary (XLY) 173.27 +2.27% and Communications (XLC) 76.15 +2.11% were the lead sectors with Norwegian Cruise Lines (NCLH) 29.71 +7.18% and Facebook (FB) 308.91 +3.43% leading the way. Energy (XLE) 49.11 -2.39% was the clear laggard on the day as WTI crude sold off & traded down to 58.77 -4.36%. Occidental (OXY) 25.31 -7.56%, and Diamondback (FANG) 75.40 -7.17% were hit hard. Russell 3000 company Target Hospitality (TH) 2.6 +19.82% surged after management announced a contract with the US government to assist in the humanitarian crisis at the border.
Tuesday, April 6, 2021 – DIA 334.32 -.26%, QQQ 330.82 -.07%, SPY 406.12 -.06%
JOLTS Job Openings came in better than expected 7.367M v. 7.099M. Equity markets consolidated after the new quarter money allocations that generally take place in the first 3 trading days. The best sector on the day Utilities (XLU) 65.02 +.53% was followed by Consumer Discretionary (XLY) 174.02 +.43%. Nike (NKE) 137.16 +1.51% led the Dow Jones Industrials. Technology (XLK) 137.69 -.43% was the laggard on the day. The semi-equipment companies consolidated after an outsized run: Applied Materials (AMAT) 139.54 -2.45%, KLA Corporation (KLAC) 346.60 -2.39%. Target Hospitality (TH) 3.23 +24.23% continued higher from Monday’s outsized performance. Viacom (VIAC) 44.35 +3.38% continued to stabilize after the Archegos related selling.
Wednesday, April 7, 2021- DIA 334.37 flat, QQQ 331.62 +.24%, SPY 406.59 +.12%
Fed minutes were released with no big surprises. The markets continued to consolidate after Monday’s strong performance. Communications (XLC) 76.93 +.77% was the top sector followed by Technology (XLK) 138.42 +.53%. The laggard sector on the day was Basic Materials (XLB) 79.26 -1.72%. Jamie Dimon CEO of JPMorgan (JPM) 154.93 +1.57% released a 60-page letter to shareholders which was interpreted to be bullish on the U.S. economy into 2023. Facebook (FB) 313.09 +2.23% led the Nasdaq 100 higher (QQQ). Semiconductor-related technology provider Smart Global Holdings (SGH) 54.55 +12.00% announced earnings and gave positive forward-looking guidance. The day’s disaster was biotechnology company FibroGen (FGEN) 19.74 -43.01% after the company released data that disappointed for its key drug Roxadustat which deals with kidney failure related anemia. Target Hospitality (TH) 3.64 +12.69% saw a spike high print on the day of $4.2.
Thursday, April 8, 2021 –DIA 335.07 +.70 +.21%, QQQ 335.08 + 1.04%, SPY 408.48 +.46%
Initial Jobless claims came in much higher than expected 744K v. 680K. Continuing Jobless claims also came in higher than expected 3.734M v. 3.65M.
Fed Chairman Powell spoke but markets were stable. The index of 10 Year note treasury yield (TNX) 16.32 -.21 declined which benefited Technology (XLK) 140.42 +1.44% along with Consumer Discretionary (XLY) 174.32 +.47%. Energy (XLE) 48.51 -1.30% again was the clear laggard. Apple Inc. (AAPL) 130.36 +1.92% led the Dow Jones Industrials higher. Craft website Etsy (ETSY) 215.39 +5.57% led in the S&P 500. On the downside was beverage company Constellation Brands (STZ) 224.21 -4.57% which beat earnings but gave tepid forward guidance. Industrial company Apogee (APOG) 35.29 -10.57% reported earnings in line with expectations but the stock sank after they also gave disappointing future guidance.
Friday, April 9, 2021 – DIA 337.86 +.81%, QQQ 337.11 +.61%, SPY 411.49 +.73%
The Producer Price Index (Ex-Food & Energy) was a strong 3.1% v. 2.7% expected. The DJIA and S&P 500 closed the week at all-time highs while the Nasdaq composite is still in rally mode, but has yet to approach the Feb 16 all-time high. Healthcare (XLV) 117.95 +1.10% led the way higher along with Industrials (XLI) 100.51 +.97%. Once again the Energy sector (XLE) 48.19 -.66% has been the clear laggard. In a sign of strength in the Industrial sector, Honeywell (HON) 226.98 +3.24% broke out to new highs. United Healthcare (UNH) 376.30 +3.13% moved higher and is within striking distance of its March 29 high. Affimed NV (AFMD) 9.74 +23.45% broke out on high volume, as the company’s monotherapy for CD30-Positive Lymphomas showed promise in 4 patients tested.
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