Mon. November 15 – DIA 361.24 -.01%, QQQ 394.61 -.02%, SPY 467.43 +.03%, IWM 238.55 -.40% CNN Fear/Greed Index 82
No high-impact data was released on the day. President Biden held talks by video conference with Chairman Xi of China. No major issues of contention were discussed. Two ex-Fed governors Dudley & Lacker were in the news calling for the current Fed to raise rates sooner rather than later. Interest rates rose as a result with the 10-Year index (TNX) 16.23 +.41 moving higher. Utilities (XLU) lead the 11 S&P 500 sectors 67.53 +1.32%, followed by Energy Services (XLE) 58.03 +.83%. Boeing (BA) 233.09 +5.49% leading the DJIA was boosted by news that China was close to recertifying the Max jet for service. Leading the NDX 100 discount retailer Dollar Tree, Inc. (DLTR) 129.23 +14.28% soared on reports that an activist hedge fund had taken a stake in the company. Dollar tree is scheduled to release earnings on Tuesday, November 23 before the market open (BMO). Dragging on the NDX100 was cloud-based software security and data analytics firm Splunk, Inc (SPLK) 137.38 -18.14% which reported that the firm’s CEO of 6 years was resigning effective immediately. The day’s bright spot was for shareholders of long-struggling mattress firm Casper Sleep, Inc (CSPR) 6.69 +88.45% which agreed to a buyout by Durational Capital Management. Another standout on the day was electric car recharging firm Blink Charging (BLNK) 46.85 +17.10% which received an upgrade by HC Wainwright from ‘Neutral’ to ‘Buy’ with a $50 target price.
Tue. November 16 – DIA 361.93 +.19%, QQQ 397.42 +.71%, SPY 469.28 +.40%, IWM 238.99 +.18% CNN Fear/Greed Index 82
Retail Sales exceeded expectations coming in at +1.7% vs. 1.4% (MoM) Ex-Auto’s Retail Sales far exceeded expectations coming in at +1.7% vs. +1% (MoM). As a result, Consumer Discretionary (XLY) 206.83 +1.58% led the S&P 500 11 sectors. Adding to the move home improvement retailer Home Depot (HD) 393.33 +5.73% beat on earnings and revenues while pointing to continued spending by homeowners. Internet craft retailer Etsy, Inc. (ETSY) 286.75 +5.14% also moved higher on the better than expected retail numbers. In what appeared to be a bounce from a deeply oversold condition and news of a $1 billion share offering, in-home exercise equipment retailer and internet exercise service firm Peloton (PTON) 54.85 +15.50% paced the NDX 100. On the news of cases of COVID-19 were increasing in various regions of the U.S. and abroad, travel & entertainment stocks were hit, Norwegian Cruise Lines (NCLH) 23.64 -7.33%, Carnival Cruise (CCL) 21.59 -3.18% and Delta Airlines (DAL) 41.04 -3.16%. Leading the Russell 3000, PLBY Group (PLBY) 40.83 +31.59% owner of the Playboy lifestyle brand beat on earnings and revenues.
Wed. November 17 – DIA 359.85 -.57%, QQQ 397.63 +.05%, SPY 468.12 -.25%, IWM 235.95 -1.27% CNN Fear/Greed Index 79
Building Permits (MoM) came in stronger than expected 1650K vs. 1638K. But Housing Starts were lower than anticipated 1520K vs. 1576K. Five Fed governors gave speeches during the day that appeared to have an impact on the bond market which gyrated. The 10-Year Index (TNX) 16.04 -.30 had hit 16.46 early in the day. On calls by the White House to investigate the price of oil and the oil industry and more media focus on COVID-19 and potential lockdowns in various countries, WTI Crude 77.64 was down -2.10 with Energy Services (XLE) 57.23 -1.53% the laggard sector in the S&P 500. Pandemic favorite Moderna (MRNA) 242.23 +3.39% caught a bid on the news. The shares of Moderna peaked on August 10th at 497.49 and have been a steep and persistent decline ever since. Financial Services (XLF) 39.65 -1.15% were under selling pressure as news that Amazon would not accept Visa (V) 205.06 -4.70% credit cards in the U.K. starting January 19th. Also weighing on credit card industry shares has been the greater acceptance of the business model of “buy now pay later”, which allows purchases to be paid for in installments over time. The payment plans have become more popular through retailers such as Amazon, Walmart, and Target which now offer them.
Thur. November 18 – DIA 359.35 -.14%, QQQ 401.75 +1.04%, SPY 469.73 +.34%, IWM 234.86 -.42% CNN Fear/Greed Index 75
The Philadelphia Fed Manufacturing Index came in stronger than expected at 39 vs. 24. Initial Jobless Claims came in at a steady 268K. Two Fed heads were speaking, Williams and Evans. Mr. Evans' speech appeared to have a calming effect on Interest rates as the 10-Year Index (TNX) 15.89 -.15 dropped down from the well-watched area of 16.0 to 16.5. Consumer Discretionary (XLY) 210.51 +1.13% was the top sector, with Bath and Body Works (BBWI) 78.37 +5.27% moving higher on an earnings release and guidance for Q4, followed by Technology (XLK) 170.07 +1.00% which was boosted by the drop in interest rates. Apple, Inc. (AAPL) 157.87 +2.85% hitting all-time highs led the DJIA as reports surfaced that the firm might debut an autonomous car by the year 2025. Weighing on the DJIA, Cisco Systems (CSCO) 53.63 -5.51% beat on earnings and revenue, but gave weak guidance going forward. Also hitting all-time highs and topping the NDX 100 on the day, Nvidia (NVDA) 316.75 +8.25% powered higher after beating earnings and revenue. The stock has been a focus of investors as the new generation of internet technology “metaverse” takes hold. In M&A news Dicerna Pharmaceuticals (DRNA) 38.03 +78.71@ rocketed on a buyout bid by Novo Nordisk for $3.3 billion. On the downside and in a continuation of a selloff for the company’s shares, oil drilling rig owner and services company Helmerich & Payne (HP) 26.10 -16.48% reported a significantly larger loss than anticipated -.74 vs. -.49 cents a share.
Fri. November 19 –DIA 355.91 -.76%, QQQ 403.99 +.56%, SPY 468.86 -.19%, IWM 232.72 -.91% CNN Fear/Greed Index 70
No high-impact data was released on the day. Two Fed officials gave speeches Waller and Clarida. Interest rates declined with the 10-Year Index (TNX) 15.36 -.53 on continued COVID-19 caseloads increasing and lockdowns around the globe. In concert with the increased pandemic concern and talk of various countries releasing oil from their respective strategic petroleum reserves, crude oil continued to work lower, as WTI closed at 75.67 down -2.74. As a result, Energy Services (XLE) 54.65 -3.94% came under selling pressure, with Devon Energy 40.60 -6.28%, Hess (HES) 76.07 -5.78%, Baker Hughes (BKR) 22.55 -5.77%, APA corporation (APA) -5.73%, and Schlumberger (SLB) 30.05 -5.68% all getting hit. With lower rates, big-cap technology moved higher with Technology Services (XLK) 171.31 leading the S&P 500 sectors. In earnings news, Intuit (INTU) 692.34 +10.08 beat on earnings and was upgraded to ‘Buy’ by Goldman Sachs with a target price raised to $840. COVID-19 vaccine producer Moderna (MRNA) 263.78 +4.92% continued its rally from the prior day.
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