Monday, May 10, 2021 – DIA 347.74 -.04%, QQQ 325.76 -2.53%, SPY 417.94 -.99%
No high-impact data was released on the day. The S&P 500 and the DJIA both were able to move above resistance levels but were eventually dragged down by an exceedingly weak NASDAQ composite The Iranian Navy was reported to have been harassing a US Coast Guard ship in the Straits of Hormuz in the Persian Gulf. An Op-Ed by former NY Fed president Bill Dudley pointed to the Fed possibly tapering its asset purchase program. Defensive sectors Utilities (XLU) 66.71 +1.01% and Consumer Staples (XLP) 71.18 +.76% fared best on the day. 3M (MMM) 207.33 +2.10% led the DJIA on news of a compound 3M-052 was a promising vaccine candidate. Big cap tech was weak across the board; Qualcomm (QCOM) 128.94 -6.46%, Tesla (TSLA) 629.04 -6.44%, Applied Materials (AMAT) 124.69 -6.21%.
Tuesday, May 11, 2021 – DIA 342.91 -1.39%, QQQ 325.31 -.14%, SPY 414.21 -.89%
No high-impact data was released on the day. The markets gapped down from the opening, with the NASDAQ composite seeing significant selling. The composite found support in the morning and a short-covering / bargain hunting rally ensued, before finally closing slightly down on the day. The S&P 500 and DJIA were not so lucky. Basic Materials (XLB) 87.77 +.33% was the best sector and Energy (XLE) 52.27 -2.57% the worst. 3D Systems (DDD) 24.03 +35.23% beat on earnings. The stock hit a high on Feb 10 of 56.50 and has been in a 3-month correction since. Fuel cell producer Plug Power (PLUG) 23.60 +17.59% surged. The stock has been in a decline since announcing in March it would re-state financial reports going back to 2018. On the downside, Novavax (NVAX) 138.18 -13.91% got hit on concerns of regulatory delays in its COVID-19 vaccine. Consignment retailer TheRealReal.com (REAL) 16.43 -19.10% had a mixed earnings report as revenues increased but it disappointed on earnings.
Wednesday, May 12, 2021 – DIA 3336.00 -2.02%, QQQ 316.89 -2.59%, SPY 405.41 -2.12%
The Consumer Price Index (CPI) came in at a blistering +4.2% annualized v. 3.6%, Ex-Food & Energy came in hot as well at +3% v. +2.3% expected.
Equity markets were for sale most of the day with rally attempts fleeting. At 1 pm ET the 10-year Treasury note auction went well, but that appeared not to matter. Only one sector ended up positive on the day which was Energy (XLE) 52.52 +.48% while Consumer Discretionary (XLY) 166.65 -3.39% and Technology (XLK) 166.65 -2.81% took the brunt of the selling. Retailer Home Depot (HD) 317.00 -4.13% was the worst performer in the DJIA after a 2nd straight day of heavy selling (HD reports earnings 5/18). Honeywell (HON) 220.04 -3.98% was also notably weak. The moonshot of the day was policing intelligence platform provider ShotSpotter, Inc. (SSTI) 38.67 +25.39% which beat on revenue and earnings & guided higher.
Thursday, May 13, 2021 – DIA 340.45 +1.32%, QQQ 319.34 +.77%, SPY 410.28 +1.20%
The Producer Price Index (PPI) ex Food & Energy (YoY) came in higher than expected +4.1% v. 3.7%. Initial Jobless Claims came in at a pandemic low and better than anticipated 473K v. 490K. Markets rallied from the oversold condition on Wednesday. The 10-year note index (TNX) 16.68 -.23 dropped on follow-through from Wednesday’s successful 10-year Treasury note auction. Utilities (XLU) 65.59 +1.93% and Industrials (XLI) 103.30 +1.87% were the leading sectors. Semiconductor equipment manufacturers led the Nasdaq 100 (QQQ) with Lam Research (LRCX) 584.73 +4.85%, Applied Materials (AMAT) 119.92 +4.39%, and KLA Corporation (KLAC) 296.76 +3.49%. WallStreetBets crowdsource favorite AMC Entertainment (AMC) 12.77 +23.74% soared after completing a 43 million share offering. On the downside, Fluor Corporation (FLR) 18.93 -20.40% tanked on news that the construction company would issue a new cumulative convertible preferred in a private placement.
Friday, May 14, 2021 – DIA 344.26 +1.12%, QQQ 326.39 +2.21%, SPY 416.58 +1.54%
Retail Sales showed 0% growth vs. the 1% growth expected. Retail Sales (Ex-Autos) reported a negative print of -.8% which was far less than the (positive) +.7% expected. Michigan Consumer Sentiment came in lower than expected as well 82.8 v. 90.4. The CDC eased the USA mask-wearing directives and issued new guidance that fully vaccinated individuals do not have to wear masks outdoors or indoors in most instances. The markets continued to rebound from the Wednesday selloff. Reactions in growth stocks were evident after the CDC news and oil prices headed higher. Energy (XLE) 53.49 +3.10% was the standout sector on the day led by Marathon (MRO) 11.80 +6.59%, & Devon (DVN) 26.38 +6.59%. Technology (XLK) 135.98 +2.20% was also strong, (on the news that crypto farmers were buying up hard drives) Seagate Technology (STX) 97.97 +12.44%, and Western Digital (WDC) 71.87 +8.29% bolted higher. As has been the trend, when optimistic pandemic news is announced, we see cruise lines rally in a big way; Carnival (CCL) 27.20 +8.28%, Norwegian (NCLH) 28.58 +8.09%, Royal Caribbean (RCL) +7.41%. On the downside, Plantronics (PLT) 29.44 -20.41% beat on earnings and revenues but was smacked on semi chip supply concerns.
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