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.
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