Monday, April 26, 2021 – DIA 339.87 -.16%, QQQ 341.63 +.65%, SPY 417.61 +.21%
Durable Goods were much weaker than expected +.5% v. 2.5%. Ex-transportation was flat to expectations 1.6% v. 1.6%. The market once again appeared to have one eye on the 10-year treasury yield and one eye on good earnings news generally. The best sector on the day was Energy (XLE) +.67%, followed by Basic Materials (XLB) 83.4 +.59%. The laggard sectors on the day were Consumer Staples (XLP) 68.79 -1.12% and Utilities (XLU) 66.19 -.57% as the risk on rotation continues. American Express (AXP) 150.34 +4.16% led the DJIA after posting great earnings on the 23rd. However, Consumer staple product companies Proctor & Gamble (PG) 131.26 -2.00% and Coca-Cola (KO) 53.66 -1.49% both weighed down the index. Western Digital (WDC) 71.41 +4.91% led the NASDAQ 100 higher, rallying in anticipation of the company’s earnings to be released on Thursday the 29th. Reddit WallStreetBets favorite AMC Entertainment (AMC) 11.5 +13.19% moved higher & hit a 1 month high. The stock had been trending sideways.
Tuesday, April 27, 2021 – DIA 339.84 -.01%, QQQ340.15 -.43%, SPY 417.52 -.02%
S&P/Case-Shiller Home Price Index came in slightly higher than expected +11.9% vs. 11.7%, still showing heavy demand and limited supply for housing. Energy (XLE) 48.44 +1.21% was the lead sector with Chevron (CVX) 102.70 +1.16% leading the DJIA. In a case of selling the news, 3M Company (MMM) 194.45 -2.59% dropped after beating earnings expectations. United Parcel Service (UPS) 194.13 +10.42% blew out earnings $2.77 v. $1.66 expected. Casual footwear company Crocs, (which has become an absolute darling of the street with its surging growth projections), (CROX) 97.82 +15.3% also beat earnings handily coming in at $1.49 v. an expected $.87. On the downside, Diagnostic and research firm Medpace (MEDP) 166.73 -14.19% beat on earnings ($1.37 v. $1.01 estimate), but disappointed on the management conference call.
Wednesday, April 28, 2021 – DIA 338.37 -.43%, QQQ 339.00 -.34%, SPY 417.40 -.12%
Stock markets failed to do the usual “Fed Drift” upward bias (Historically, 24-36 hours before the Fed rate decision, markets have had an upward bias 80% of the time). The OPEC meeting influenced WTI crude 63.70 +1.21%. The Energy Sector (XLE) 50.11 +3.45% was the clear leader on the day as Chevron (CVX) 105.22 +2.45% led the DJIA. Oil services company NOV Inc. (NOV) 14.88 +9.57% reported disappointing earnings but gave an upbeat assessment for the industry boosting the outlook for the sector. Clear leadership names on the day were Oil services provider TechnipFMC (FTI) 7.91 +9.10% and energy developer Devon (DVN) 24.03 +8.54%. Galectin Therapies (GALT) 5.10 +22.6% continued its move higher from the previous week. On the downside, Amgen (AMGN) 236.71 -7.22% disappointed on earnings, revenue, and average selling prices. F5 Networks (FFIV) 186.70 -9.08% also disappointed on earnings.
Thursday, April 29, 2021 – DIA 340.57 +.65%, QQQ 340.22 +1.22 +.36% SPY 420.06 +.64%
GDP annualized came in better than expected +6.4% v. 6.1%. Pending home sales disappointed coming in at +1.90% v. 5.00% expected due to lower inventory available for sale and higher prices. In General, Earnings have been spectacular for the large-cap tech stocks. The Communications Sector (XLC) 79.13 +2.77% was particularly strong on the day. Facebook (FB) 329.51 +7.30% hit new highs after great earnings. Dish Network (DISH) 45.05 +8.32% beat on earnings and had a positive outlook on the call. On the downside, eBay Inc. (EBAY) 56.07 -10.03% beat on earnings but gave a poor outlook on their conference call. Medical instrument supplier Hologic Inc. (HOLX) 66.23 -8.52% missed on earnings.
Friday, April 30, 2021 – DIA 338.97 -.47%, QQQ 337.99 -.66%, SPY 417.34 -.65%
Chicago PMI came in much better than expected 72.1 v. 65.3. Personal income came in better +21.1%v. 20.3%. In a sign of another shift in sentiment, Utilities (XLU) 66.72 +.79% were the lead sector on the day. Energy (XLE) 49.39 -2.53% gave back a good deal of Thursday’s performance as WTI crude fell to 63.52 -2.29%. The 10-year note index (TNX) 16.31 -.09 fell, but technology failed to gain traction. The Medical device cardio technology provider CryoLife Inc. (CRY) 29.18 +24.22 came with an 8 cent loss which was way better than expected and also showed better than expected revenue growth. In a sell the news reaction Dexcom (DXCM) 386.10 -8.44% beat earnings. Semiconductor firm Skyworks Solutions (SWKS) 181.33 -8.35% also suffered a sell the news reaction to a slight beat in earnings. Twitter (TWTR) 55.22 -15.16%, sold off hard after disappointing in user subscriber growth.
DISCLAIMER
The content of this message and its attachments are intended only for the informational and educational use for the intended recipient and may contain confidential and privileged information. If you are not the intended recipient, any dissemination, distribution, or copying of this message or its attachments is prohibited. If you received this message in error, please notify the sender by replying to this email immediately and delete this message and its attachments from your computer. The information provided by TradeZero America, Inc. is solely for educational and informational purposes. None of the information should be understood, construed or inferred to be an offer or solicitation of an offer, or a recommendation, to buy, sell, or hold any security or financial product, or engage in any particular investment strategy. This message is also not an offer to provide advisory or other services by TradeZero America, Inc. All communications sent to or from TradeZero America, Inc. are subject to archive and review by TradeZero America, Inc. and by regulatory and law enforcement authorities. We explicitly disclaim all liability for any action taken based on any information contained in this writing.