Mon – Nov. 8, 2021 – DIA 364.32 +.28%, QQQ 398.06 -.14%, SPY 468.93 +.09%, IWM 242.56 +.31% CNN Fear/Greed Index 86
No high-impact data was released on the day, but there was a number of Fed members (5) that gave speeches during the day, highlighted by Fed Chair Jerome Powell. Although there were no major surprises, interest rates moved higher as measured by the 10-Year Index (TNX) 14.97 +.44 on the back of the comments made during the speeches. Basic Materials (XLB) 88.92 +1.25% was the top S&P 500 sector, followed by Energy Services (XLE) 58.79 +.91%. Utilities (XLU) 66.22 -1.49%, and Consumer Discretionary (XLY) 208.27 -1.42% were the laggards. Leading the DJIA, construction machinery builder Caterpillar (CAT) 214.25 +4.07% had a celebratory bump on the passage of the infrastructure bill. Consumer athletic wear brand Nike (NKE) 171.85 -3.19% performed worst in the DJIA, as the shares came under selling pressure from what appeared to be a reversal off an all-time high indicating a potential failed breakout. Semiconductor firm Advanced Micro Devices (AMD) 150.16 +10.14% bolted higher after receiving a big contract with Meta Platforms the renamed Facebook. The day’s outstanding upside belonged to advertising/media buying platform provider The Trade Desk (TTD) 88.75 +29.47% after the firm beat earnings. On the downside, marketplace provider to the Medicare supplemental insurance market eHealth (EHTH) 30.06 -25.59% disappointed on earnings.
Tue – Nov. 9, 2021 – DIA 363.28 -.29%, QQQ 395.32 -.69%, SPY 467.38 -.33%, IWM 241.15 -.58% CNN Fear/Greed Index 86
The Producer Price Index for Oct. (YoY) came in as expected at an elevated level of +6.8%. Fed Chair Jerome Powell was featured during the day in another speech. Interest rates declined after a soft 10-year government bond auction as measured by the 10-Year Index (TNX) 14.32 -.65. Markets were weaker on the day as a result of an overbought condition and concerns about inflation. Utilities (XLU) 66.56+.51% led the DJIA in response to a weaker market and lower interest rates. The clear loser on the day for the 11 S&P 500 sectors was Consumer Discretionary (XLY) 204.42 -1.85% as Tesla (TSLA) 1023.50 -11.99% shares reacted to the prospect of Elon Musk selling 10% of his stake in the company due to his agreement to do so based on a Twitter poll. Also on the downside, PayPal (PYPL) 205.42 -10.46% was hit hard after cutting full year sales and profit forecasts. The stock had been as high as 310 back in late July. On the upside in a spectacular rise was New Relic (NEWR) 125.97 +38.52%. The stack software debugging suite provider to developers had a huge beat on earnings coming in with a 10 cent per share profit versus an expected 13 cent loss. Revenues exceeded expectations as well.
Wed – Nov. 10, 2021 – DIA 361.07 -.61%, QQQ 389.51 -1.47%, SPY 463.62 -.80%, IWM 237.35 -1.58% CNN Fear/Greed Index 82
The Consumer Price Index (YoY) came in at a 30 year high of +6.2% vs. an expected 5.8%. Consumer Prices ex-food and energy (YoY) came in at 4.6% vs. 4.3% expected. Initial jobless claims were reported at 267K. In response to the large increase in CPI and a poor 30-Year government bond auction, interest rates reacted higher with the 10-Year Index (TNX) 15.60 +1.28 climbing to a much-watched level. The higher inflation data alarmed energy traders bringing selling pressure on WTI crude oil which fell -2.86 to 81.29. Reacting to the slide in oil prices, Energy Services (XLE) 57.47 -2.64% came under selling with Occidental (OXY) 31.82 -5.69%, Hess (HES) 81.80 -5.21%, Diamondback (FANG) 107.16 -5.16%, Halliburton 23.83 -4.98%, Baker Hughes (BKR) 24.08 -4.75%, all falling together. The second worst sector Technology (XLK) 164.53 -1.65% came under pressure with Salesforce.com (CRM) 299.67 -3.24% leading the DJIA to the downside. Electronic signature and contract management software provider DocuSign (DOCU) 255.66 -7.09% led the NDX 100 to the downside as well. Recent outperformer, Qualcomm (QCOM) 159.80 -4.1% came under profit-taking. The day’s big upside came from data analytics firm PDF Solutions (PDFS) 31.85 +26.09% which bolted higher after reporting higher revenue and earnings, not only on a year over year basis but also quarter over quarter. Another big mover on the day was pool builder and pool products provider Latham Group (SWIM) 20.02 +20.89% which reported better than anticipated revenue and earnings.
Thurs – Nov. 11, 2021 – DIA 289.46 -.45%, QQQ 390.59 +.28%, SPY 463.77 +.03%, IWM 239.26 +.80% CNN Fear/Greed Index 81
Veterans Day, no high-impact data was released. The government bond market was closed. The 10-Year Index (TNX) 15.60 flat. Markets were mixed. With the infrastructure bill having passed, Basic Materials (XLB) 89.43 +.80% was the top S&P 500 sector on the day with copper company Freeport-McMoRan (FCX) 40.90 +9.01% breaking out from a downtrend, followed by Technology (XLK) 165.30 +.47%. On the downside, Utilities (XLU) 66.69 -.61% was the laggard sector. Oversees, as “singles day” came to a close and the CCP annual plenum exalted Xi Jinping, China-related technology shares rallied with JD.com (JD) 84.20 +8.31%, Pinduoduo (PDD) 92.87 +7.35% NetEase (NTES) 110.27 +6.87% the top three stocks in the NDX 100. Semiconductor related shares rallied with Xilinx (XLNX) 208.78 +5.5%, Advanced Micro Devices (AMD) 146.01 +4.39%, NVIDIA (NVDA) 303.90 +3.16%, and Microchip (MCHP) 83.50 +3.14% all moving higher. In earnings news, theme park operator and entertainment media conglomerate The Walt Disney Company (DIS) 162.11 -7.07% disappointed on earnings and subscriber growth of Disney Plus. Also in earnings news, specialty industrial machinery firm (Energy and Environmental technologies) Babcock and Wilcox Enterprises (BW) 9.20 +24.32% missed on revenues but beat on earnings handily.
Fri – Nov. 12, 2021 – DIA 361.28 +.51%, QQQ 394.70 +1.05%, SPY 467.25 +.75%, IWM 239.49 +.10% CNN Fear/Greed 83
The University of Michigan Consumer Sentiment Index (Nov.) preliminary was released at a 10 year low of 66.8 vs. 72.4 estimate. Communications Services (XLC) 81.23 +1.46% led the 11 sectors of the S&P 500, with the old Facebook now Meta Platforms (FB) 340.89 +4.01% advancing after a 3-day pullback from a nascent advance. Technology (XLK) 167.25 +1.18% was the next best performer, with DocuSign 264.66 +3.97% advancing back to a former trendline support level that was broken on Wednesday. Craft internet retailer Etsy (ETSY) 272.15 +7.42% advanced out of a 5-day pullback from its earnings-related advance the prior week. On the downside, Hewlett-Packard Enterprise (HPE) 14.60% -8.16% fell after the shares received a downgrade by Goldman Sachs from ‘Neutral’ to ‘Sell’ sighting a poor US information technology spending environment. Also giving up ground were travel & entertainment firms susceptible to COVID-19 related news, American Airlines (AAL) 20.29 -4.88% United Airlines (UAL) 49.83 -2.94%, Delta Airlines (DAL) -2.83%, Carnival Cruise lines -2.87%, and Norwegian Cruise Lines (NCLH) 25.63 -2.55%.
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