Monday, September 6, 2021 – Markets Closed.
Tuesday, September 7, 2021 – DIA 351.44 -.76%, QQQ 382.11 +.14%, SPY 451.46 -.36%, IWM 226.39 - .69%
No high-impact data was released on the day. Interest rates rose, but the usual bias for weakness in high cap technology stocks was not evident as has been the case in the recent past when interest rates rose. Consumer Discretionary (XLY) was the lead sector on the day, with entertainment firm Walt Disney (DIS) 184.34 +1.85% leading the DJIA and gaming company Wynn Resorts (WYNN) 105.93 +5.61% leading the S&P 500. On the higher rates, the dollar strengthened and gold sold off -37 to 1796.30. Industrials (XLI) 102.78 -1.73% was the worst-performing sector with 3M (MMM) 185.58 -4.53% the worst performer in the DJIA. Farm equipment manufacturer Deere & Co. (DE) 371.74 -4.52% declined as well. Apparel maker VF Corp (VFC) 71.86 -5.73% broke a triple bottom on news of the resignation from the board of Veronica Wu for a personal email matter that came to light. COVID-19 vaccine manufacturer Moderna (MRNA) 436.39 +4.73% moved higher within striking distance of new highs as Morgan Stanley raised its price target to a still below the market level of $337 from $190.
Wednesday, September 8, 2021 –DIA 350.73 -.20%, QQQ 380.78 -.35%, SPY 450.91 -.12%, WM 223.92 -1.09%
No high-impact data was released on the day. Markets opened and traded lower on C-19 Delta fears and stabilized into the US Treasury 10-year note auction mid-day which was well bid through the yield the when issued note traded at auction time. (New treasuries trade on a when-issued basis once they have been announced by the Treasury prior to the auction) As a result of the well-received auction, Utilities (XLU) 69.80 +1.79% performed best as a sector. The rest of the markets traded with a defensive tone, Consumer Staples (XLP) 72.61 +.86% was the second-best sector in the S&P500, as Coca-Cola (KO) 56.42 +1.35% led the DJIA and packaged foods producer Kraft-Heinz (KHC) 37.06 +3.93% led the NASDAQ 100. The worst sector on the day, Energy (XLE) 47.71 -1.28% moved lower on the strong dollar, with oil service provider Schlumberger (SLB) 26.66 -4.20% an outlier to the downside. Economically sensitive names underperformed; new home builder Pulte Homes (PHM) 49.53 -6.05% moved lower as the firm trimmed growth guidance. China ADRs came under selling pressure once again as regulatory headlines continued: NetEase (NTES) 90.78 -5.17%. Pinduoduo (PDD) 104.72 -2.80%, Baidu (BIDU) 162.68 -2.40% all moved lower.
Thursday, September 9, 2021 – 349.31 -.40%, QQQ 379.47 -.34%, SPY 448.98 -.43%, IWM 223.81 -.05%
Jobless claims came in under expectations at 310K v. 335K. Markets opened with a firm positive tone only to turn down as the US Treasury 30-year bond auction went off at 1 pm. Financials (XLF) 37.86 +.29% led the S&P 500, while Real Estate (XLRE) 47.45 -2.12% was the clear standout laggard. WTI crude dropped to 67.93 down 1.37, but Energy (XLE) 47.81 +.21% remained stable. In earnings news, Lululemon Athletica (LULU) 420.71 +10.47% blew by earnings and revenue expectations and raised guidance for the holiday season. Furniture retailer, The Lovesac Company (LOVE) 62.62 +24.10% beat on earnings coming in with 51 cents a share (expected 11 cent loss) internet sales declined but showroom sales more than tripled. Internet athletic equipment seller Peloton (PTON) 107.08 +9.83% introduced a private label athleisure lifestyle sportswear brand. Semi-equipment and Semiconductor stocks continued their outperformance, KLA Inc, (KLAC) 347.83 +3.29% Analogue Devices (ADI) 168.81 +3.14%, and Lam Research (LRCX) 593.61 +1.73%.
Friday, September 10, 2021 – DIA 346.70 -.75%, QQQ 376.59 -.76%, SPY 445.44 -.79%, IWM 221.62 -.98%
The Producer Price Index for August (YoY) came in higher than consensus +8.3% v. 8.2%. PPI Ex-Food and Energy for August (YoY) came in higher as well 6.7% v. 6.6%. Markets were weak from the start and the major averages closed lower for a fifth straight day. Interest rates rose as shown by the 10-Year note index (TNX) 13.41 +.42. Every sector in the S&P500 closed lower on the day. Utilities (XLU) 68.45 -1.40% were the clear laggard to the downside as a result of the move higher in rates. In big-cap technology Apple (AAPL) 148.97 -3.31% was the worst performer in the DJIA. Showing relative strength Intel (INTC) 53.84 +.82% performed the best in the DJIA. Peloton (PTON) 114.39 +6.83% continued higher on the previous day’s news and was the clear leader in the NASDAQ 100. In a case of what appeared to be jitters related to the federal government requiring airline passengers to show proof of C-19 vaccinations in order to board, airline stocks which had been up in the morning came under selling pressure late in the day, American (AAL) 18.95 -6.19%, United (UAL) 44.34 -4.81% and Delta (DAL) 39.36 -4.21% all moved lower. Outliers on the day, Iveric Bio (ISEE) 14.12 +62.49% blasted off on disappointing clinical trial data by potential competitor Apellis Pharmaceutical (APLS) 34.93 down -37.19%. Iveric clinical-stage drug Zimura is the firm's lead candidate for Geographic Atrophy.
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