Mon. December 6, 2021 – DIA 352.82 +1.90%, QQQ 386.20 +.80%, SPY 458.79 +1.18%, IWM 219.02 +2.01% CNN Fear/Greed Index 25 (Extreme Fear)
No high-impact data was released. Markets rebounded from a deeply oversold condition on better news concerning the COVID-19 Omicron variant. Interest rates climbed as noted by the 10-Year index (TNX) 14.34 +.91 jumping almost a full handle. All 11 sectors in the S&P 500 were positive on the day. Consumer Staples (XLP) 72.83 +1.76% led the advance with Walgreens’ Boots Alliance (WBA) 48.30 +3.8% leading the DJIA. The real action was in the reopening plays, airlines and cruise lines, with Norwegian Cruise Lines (20.03) +9.51%, United Airlines (UAL) 43.99 + 8.32%, Royal Caribbean (RCL) 72.25 +8.22%, Carnival Cruise (CCL) 18.74 +8.08%, American Airlines (AAL) 17.96 +7.88% the top of S&P 500 performers. Followed by gaming and entertainment concern Las Vegas Sands (LVS) 36.74 +7.18% and travel booking company Expedia (EXPE) 166.07 +6.74%. Energy Services (XLE) 57.27 +2.34% was the second-best sector performer with Diamondback (FANG) 115.59 +6.80% and Dev1on energy (DVN) 45.12 +6.52% outperforming. On the downside, COVID-19 vaccine developer Moderna (MRNA) 265.33 -13.49% came under profit-taking after its recent Omicron inspired run-up. In M&A news Del Taco Restaurants (TACO) 12.51 +66.14% accepted a buyout offer from Jack in the Box (Jack) 80.55 -4.1%
Tue. December 7, 2021 – DIA 357.74 +1.39%, QQQ 397.83 +3.01%, SPY 468.28 +2.07%, IWM 224.10 +2.32% CNN Fear/Greed Index 40 (Fear)
Non-Farm Productivity reported in worse than expected -5.2% vs. -4.9%. Unite Labor Costs a full percent higher +9.6% vs. the +8.4% expected. Interest rates continued higher from the previous day with the 10-Year Index (TNX) 14.80 +.46 moving up once more. Technology Services (XLK) 172.52 +3.49% led the S&P 500 sectors, followed by Energy Services (XLE) 57.27 +2.34% as the reopening trade continued to catch interest. As interest rates moved higher, financial services firm American Express (AXP) 166.95 +3.90% led the DJIA. Leading the NDX100, Chinese internet retailer Pinduoduo (PDD) 63.03 +12.53% rebounded from recent 52-week lows on a report from Goldman Sachs that mentioned the firm might be eligible to have a secondary listing in Hong Kong along with 26 other companies. Chinese ADRs have been under pressure by US regulators and may be forced to delist unless certain reporting issues were remedied. Pinduoduo had traded as high as $212 back in February. Semiconductor shares were active and generally higher, with Nvidia (NVDA) 324.27 +7.96% and Marvell Technology (MRVL) 91.51 +7.12% outperforming. On the downside, cable, entertainment, and internet provider Comcast (CMCSA) 49.58 -5.29% fell after giving disappointing guidance at a UBS investor conference. The stock had traded as high as 61.80 back in the beginning of September.
Wed. December 8, 2021 – DIA 357.99 +.07%, QQQ 399.61 +.45%, SPY 469.51 +.26%, IWM 225.63 +.68% CNN Ear/Greed Index 39 (Fear)
The JOLTS survey continued to show more job openings than the available labor pool. Equity markets moved higher on the day after periods of being negative. Healthcare Services (XLV) 133.80 +.75% led the 11 S&P 500 sectors, followed by Communication Services (XLC) 77.27 +.73%. Reopening trades were the clear favorite on the day as cruise lines dominated the performance of the S&P 500 with Norwegian Cruise (NCLH) 21.77 +8.20%, Carnival Cruise 19.52 +5.51%, and Royal Caribbean (RCL) 75.37 +5.21% in the top three spots. Pandemic favorite DocuSign (DOCU) 153.74 +10.92% which collapsed 42% in the previous week on lower 4th quarter guidance moved higher as CEO Daniel Springer was reported to have purchased $5 million dollars’ worth of the shares. In a continued sign of the broad strength in the semiconductor equipment/materials space, photomask firm Photonics (PLAB) 17.91 +25.95% beat on revenue and earnings. Also in earnings news, modular furniture firm The Lovesac Company (LOVE) 78.60 +20.76% moved higher on a revenue and earnings beat. On the downside, Radius Health (RDUS) 8.01 down -44.30% got hit hard after an update on a phase 3 trial for its new drug candidate elacestrant, which has shown promise in a certain form of breast cancer.
Thur. December 9, 2021 – DIA 358.11 +.03%, QQQ 393.73 -1.47%, SPY 466.35 -.68%, IWM 220.52 -2.26% CNN Fear/Greed Index 33 (Fear).
Initial Jobless claims came in at a 52 year low at 184K vs. the 215K expectation. Markets were down on the day after several rally attempts in between with small caps taking the brunt of the selling. The 10-Year Note Yield Index (TNX) 14.87 -.22 declined, and front-month WTI crude oil declined as well to 70.53 -1.83. Consumer Staples (XLP) 72.96 +.27% performed best in the 11 S&P 500 sectors, followed by Healthcare Services (XLV) 134.11 +.235, both low beta and defensive groups. Hormel Foods (HRL) 44.80 +4.70% led the S&P 500 as the company beat on earnings and revenue. The recent acquisition of Planters having gone well along with organic growth. Pharmacy and healthcare company CVS Healthcare (CVS) 97.31 +4.52% announced a raise of its dividend and a $10 billion dollar buyback program. Also in earnings news, communications equipment manufacturer Ciena Corporation (CIEN) 71.93 +15.93% earnings fell below expectation, but upbeat guidance and an announcement of a large stock repurchase program gave shares a significant boost. Homebuilder Hovnanian Enterprises (HOV) 122.96 +14.33% reported a rise in sales, earnings, and gross profit. The day’s disaster was biopharmaceutical firm Reata Pharmaceutical (RETA) 29.11 -46.51%. An FDA advisory committee voted 13-0 to not approve the company’s submission of bardoxolone for Alport syndrome a form of kidney disease.
Fri. December 10, 2021 – DIA 360.23 +.59%, QQQ 398.01 +1.09%, SPY 470.74 +.94%, IWM 219.91 -.28% CNN Fear/Greed Index 38 (Fear)
The Consumer Price Index (YoY) was reported as expected at +6.8%. Ex-Food & Energy (YoY) was reported as expected as well +4.9% The Michigan Consumer Sentiment Index (Dec) preliminary was better than expected at 70.4 vs. 67.1. Interest rates were stable on the day as the 10-Year Note Yield Index (TNX) 14.89 +.02 almost flat. WTI crude oil moved higher closing 71.96 +1.02. Technology (XLK) 174.88 +2.01 was the top-performing S&P 500 sector as big-cap tech dominated the DJIA, with Cisco Systems (CSCO) 59.25 +2.95%, Microsoft (MSFT) 342.54 +2.83% and Apple (AAPL) 179.45 +2.80% the top 3 stocks in the index. Notable in the NDX100 pandemic shutdown beneficiaries were under pressure as vaccine maker Moderna (MRNA 257.06 -5.57%, interactive media fitness equipment manufacturer Peloton (PTON) 38.51 -5.38%, and digital contract technology provider DocuSign (DOCU) 144.48 -3.27% the three worst performers in the NDX100. In big earnings news Oracle Corporation (ORCL) 102.63 +15.61% rocketed on a much higher IT spend by customers with a noticeable shift to the firm's cloud offerings. On the downside, critical public event management software developer everbridge (EVBG) 63.00 -45.39% announced the unexpected resignation of the company’s CEO, which brought a raft of downgrades by at least 8 analysts. The company put out a statement saying. "Mr. Meredith's resignation is not related to any matter regarding the Company's financial condition, reported financial results, internal controls or disclosure controls and procedures."
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