Monday, April 12, 2021 - DIA 337.55 -.02%, QQQ 336.67 -.13%, SPY 411.64 +.04%
Markets traded in sync with the 10-year, as all eyes were focused on the 10-year note auction which was priced to yield 1.68%. It was a quiet session, with the sparse market-moving news flow. The best sector on the day was Consumer Discretionary (XLY) 176.97 +.64% with Energy (XLE) 47.81 -.79% again the laggard. Travel & leisure stocks came under selling pressure; Carnival (CCL) 27.75 -5.29%. Norwegian (NCLH) 29.26 -4.19%, United (UAL) 56.16 -3.88%. Evelo (EVLO) 11.82 +17.73% a clinical-stage biotechnology company developing a new modality of orally delivered medicines, bolted higher after a sell-side upgrade of shares. Jefferies analyst Chris Howerton upgraded the shares from Neutral to Buy and hiked the price target from $11 to $18. The day’s big blow-up was iRhythm (IRTC) 80.36 -39.47% after the medical device company received notice of an updated reimbursement rate for the Zio XT heart monitoring device from Novitas that fell below expectations.
Tuesday, April 13, 2021 – DIA 336.79 -.23%, QQQ 340.60 +1.17%, SPY 412.86 +.30
CPI came in marginally stronger than expected +.30% v. +.26%. Before the markets opened, news hit that the government would pause the distribution of Johnson & Johnson’s (JNJ) 159.48 -2.16% COVID-19 vaccine. The market traded as if participants viewed that it would hinder the reopening of the economy. The 10-year note index (TNX) 16.23 traded down .09 an equivalent of 9 basis points in yield. Once again Consumer Discretionary stocks (XLY) 178.98 +1.06% fared best as the COVID-19 relief payments stimulated spending and appear to be having its desired effect, Internet craft retailer Etsy (ETSY) 224.03 + 2.70% continued its rally from the March 30 pullback low. Financials (XLF) 34.97 -.93% were the laggard of the day as lower yields dragged down the interest-sensitive sector.
Wednesday, April 14, 2021 – DIA 337.53 +.22, QQQ 336.51 -1.2%, SPY 411.45 -.34
Several Fed governors gave prepared speeches during the day. The Federal Reserve released the “Beige Book” which is a compilation of business conditions across all districts. It was widely viewed to have evidence of inflationary forces. As a result, the 10-Year Note Index (TNX) 16.38 +.15 moved higher (equal to 15 basis points in yield on the 10-year government bond). There was a draw of -5.889M barrels of crude oil in storage vs. -2.889M expected. That widely was viewed as bullish for the Energy Sector (XLE) 49.19 +1.33% which was the lead on the day. Diamondback Energy (FANG) 80.34 +6.05% led the sector higher, along with EOG Resources (EOG) 74.12 +5.28%. As interest rates ticked up, Technology (XLK) 140.91 -1.06% underperformed; Apple Inc (AAPL) 132.16 -1.79% and Salesforce (CRM) 228.02 -1.72%. Crowdsource favorite GameStop (GME) 166.53 +18.11% had a monster day after a 5-day pullback in price. In a much anticipated new listing, the internet cryptocurrency exchange Coinbase (COIN) IPO started trading at $381 per share at 1.25 PM, making several insiders instant billionaires.
Thursday, April 15, 2021 – DIA 340.44 +.86%, QQQ 341.61 +1.52%, SPY 415.87 +1.07%
Retail sales reported explosive unexpected growth +9.8% v. +5.9%, ex-autos +8.4% v. 5%.The Markets seem to be attributing the frenzied retail spending to the stimulus checks hitting accounts. The S&P 500 and DJIA continued to hit new all-time highs while the NASDAQ was a leader on the day, but continues to lag. Jobless claims showed a marked improvement 576K v. the 700K anticipated. Earnings season has continued to come in above expectations in most cases. The best sectors on the day were Real Estate (XLRE) 41.34 +1.9% and Technology (XLK) 143.33 +1.72%. Energy (XLE) 48.79 -.81% was the laggard giving back some of its gains from Wednesday. Chip stocks were on fire with Advanced Micro Devices (AMD) 83.01 +5.68%. & Xilinx (XLNX) 130.10 +5.25% leading the way. On the downside, Virgin Galactic (SPCE) 23.06 -13.57% broke its recent lows, the stock has cratered since hitting a high of 62.80 back on February 4th. Fuel Cell (FCEL) 9.66 -12.42% dropped along with other hydrogen fuel-related stocks. The shares had a recent high of 29.44 back on February 10.
Friday, April 16, 2020 – DIA 341.86 +.45%, QQQ 342.01 +.12%, SPY 417.30 +.34%
University of Michigan Sentiment Survey Index came in light of expectations 86.5 v. 89.6. But Housing Starts came in very strong 1.739M v. 1.613M. The lead sector on the day was Basic Materials (XLB) 82.66 +1.21%, after strong earnings, revenue, and guidance from PPG Industries (PPG) 167.41 +8.73%. The good news boosted the entire sector including Sherwin Williams (SHW) 266.92 +3.8% which saw a new 52 week high. The stock has been moving up since March 4. The day's sinker was Editas Medicine (EDIT) 34.20 -15.40% after Goldman Sachs initiated coverage of the company’s shares with a “sell” rating. The stock was as high as 99.95 in early January.
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