Monday, June 28, 2021 – DIA342.80 -.48%, QQQ 353.71 +1.22%, SPY 427.48 +.20%
No high-impact data released on the day. The Nasdaq 100 (QQQ) was the lead market on the day. The best performing sector, Communications (XLC) 81.56 + 1.13% was boosted by a favorable court ruling which dismissed an antitrust lawsuit (brought by the FTC and 46 states) against Facebook (FB) 355.64 +4.18%. Technology (XLK) 146.75 +1.05% was also strong with continued strength in chip stocks. Intel (INTC) 57.48 +2.81% led the DJIA. Nvidia (NVDA) 799.40 +5.01% led the Nasdaq 100 and continued a powerful rally in the shares over the past two weeks. The (seemingly over) trade of pandemic winners and losers based on news flow regarding the pandemic appeared once more as the markets reacted to news and worries that circulated about the rapid spread of the Delta variant of the COVID-19 virus. As a result, Energy (XLE) 53.44 -3.43% was the worst-performing sector with Chevron (CVX) 103.99 -3.09%, NOV, Inc (NOV) 14.72 -6.00%, and EOG Resources (EOG) 82.97 -5.34% all hit hard. Travel & entertainment stocks such as Expedia (EXPD) 163.55 -4.35% were back out of vogue, as were the fragile cruise liners which were all hit hard; Royal Caribbean (RCL) 83.45% -6.47%, Norwegian Cruise Lines (NCLH) 29.14 -6.09%
Tuesday, June 29, 2021 – DIA 342.86 +.02%, QQQ 354.99 +.36%, SPY 427.70 +.05%
Housing Price Index came in at a growth of +1.8% (MoM) and the Case-Shiller Home Price Index reported stronger than expected with red hot growth of 14.9% v. 14.5% expected (YoY). The markets exhibited a quiet drift higher as we approach the end of the month, quarter, and the first half of the year. Technology (XLK) 147.82 +.73% was the lead sector on the day, followed by Consumer Discretionary (XLY) 178.41 +.25%. Nike (NKE) 155.95 +2.36% continued the rally from the previous week’s earnings report and led the DJIA. Semiconductor companies Skyworks Solutions (SWKS) 190.95 +4.52% paced the Nasdaq 100, while Qorvo Inc. (QRVO) 195.66 +4.45% led the S&P 500. The day's rocket ship was biotechnology company Cerevel Therapeutic holdings (CERE) 29.69 +136% which more than doubled after announcing positive topline results in a clinical trial for their Schizophrenia drug CVL-231. The big plunge on the day was biotech diagnostics company Celcuity (CELC) 24.33 -21.34% which announced a secondary offering of shares.
Wednesday, June 30, 2021 – DIA 344.95 +.61%, QQQ 354.43 -.16%, SPY 428.06 +.08%
ADP Employment Change came in stronger than expected +692K vs. +600K. Chicago PMI came in much weaker than anticipated 66.1 v. 70. Pending Home Sales came in positive at +8% much better than the negative -.8% expected. Oil traded sharply higher as the markets anticipated bullish information coming from the scheduled OPEC meeting. Energy (XLE) 53.87 +1.24% led the markets with Cabot Oil & Gas (COG) 17.46 +7.25% leading the S&P 500. The natural gas producer caught a bid as hot weather persisted across the nation. Three semiconductor manufacturers led the NASDAQ 100, Advanced Micro Devices (AMD) 93.93 +4.93%, Xilinx (XLNX) 144.64 +3.63%, and Micron (MU) 84.98 +2.47%. One big mover on the day was Aspen Aerogels (ASPN) 29.92 +24.3%, which surged after the energy infrastructure and technology firm announced a private placement with Koch Strategic Platforms. On the downside, Altimmune (ALT) 9.85 -38.05% fell hard on disappointing results of a stage one clinical trial for AdCOVID, the company’s drug for COVID-19. The firm announced it will discontinue the development of the drug.
Thursday, July 1, 2021 – DIA 346.36 +.41%, QQQ 354.57 +.41%, SPY 430.43 +.55%
Initial Jobless Claims came in better than expected 364K v. 393K. ISM manufacturing PMI came in slightly weaker than anticipated at 60.6 v. 61. Analysts were troubled by the highest number ever recorded for the ISM Prices Paid Index (Jun) 92.1 v. 87. In response, the 10-Year Note index (TNX) 14.80 +.37 moved higher in sympathy with that gauge of inflation pressure. The OPEC meeting saw no major production increases keeping a bid under Energy (XLE) 54.81 +1.74% which was the lead sector on the day. Diamondback (FANG) 99.6 +6.08%, Occidental (OXY) 32.86% +5.08% and Marathon (MRO) 14.17 +4.04% paced the S&P 500. On the downside, Walgreen’s Boots Alliance (WBA) 48.71 -7.41% reported better than expected earnings and revenue, but the stock came under selling pressure as investors react to the slowdown in USA vaccine distribution as the COVID-19 vaccination rates have stalled. The big upside move came from Pulse Bioscience (PLSE) 20.82 +26.95% as the company announced the sale of 3 million shares of stock at $16.40 to Robert Duggan, the billionaire chairman of the company. In a reversal of the previous day's spike, semiconductor company Micron (MU) 80.11 -5.73% fell on the release of earnings after the bell. The stock has been in a downtrend since April.
Friday, July 2, 2021 – DIA 347.94 +.46%, QQQ 358.64 +1.15%, SPY 433.72 +.76%
Nonfarm Payrolls (JUN) came in significantly better than expected +850K v. +700K. The labor force participation rate was steady at a weak 61.6%. The U6 Underemployment rate showed good improvement dropping to 9.8% v. the prior reading of 10.2%. The Unemployment Rate ticked up to 5.9% from 5.8% last month and was higher than the 5.7% expected. On that data point, yields dropped as measured by the 10-Year note index (TNX) 14.31 -.49. Technology (XLK) 149.89 +1.32% was the lead sector on the day. Continuing on a strong move from May 19th, Microsoft (MSFT) 277.65 +2.23% hit another all-time high. Oracle (ORCL) 81.82 +2.87% led the S&P 500 & appears to have consolidated from a gap down on a June 15th earnings report that disappointed (on guidance) and has now filled the gap. The day’s big winner was Alector (ALEC) 35.21 +57.12%. The company announced a joint partnership with GlaxoSmithKline (GSK) 40.41 +.60% to commercialize & widen the use of monoclonal antibodies for several neurodegenerative disorders. On the downside, Arrowhead Pharmaceuticals (ARWR) 63.13 -25.69% announced that it had halted a trial on a drug for cystic fibrosis as the compound caused lung inflammation in tests on lab rats.
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