Monday, September 21, 2020 - DIA 277.44 -1.84%, QQQ 267.51 +.24%, SPY 326.97 -1.11%
No meaningful economic data was released. World equity markets reacted negatively to news out of Europe of a resurgence in Coronavirus cases and the possibility that London might once again go into lockdown. At the opening US, stocks gapped down and continued to trade lower, but began a significant rally mid-afternoon. There was a significant divergence in performance between the Nasdaq 100 (QQQ) which closed positive on the day versus the Dow Jones Industrial Average (DIA). Travel stocks were hardest hit Delta (DAL) 29.82 -9.2%, United (UAL) 34.03 -8.6%, Norwegian Cruise (NCLH) 15.10 -7.75%, Tech did much better, Apple (AAPL) 110.08 +3.03% which has been in a correction since September 2nd, closed well off its lows and up on the day. Microsoft (MSFT) 202.05 +1.07% also showed relative strength. Finance stocks were hit as traders focused on the diminishing prospects for an economic stimulus bill to help unemployed individuals, American Express (AXP) 98.17 -5.09%, and JPMorgan (JPM) 95.31 -3.09% (spoofing charges).
Tuesday, September 22, 2020 – DIA 272.81 + 1.05%, QQQ 272.48 +1.86%, SPY 330.30 +1.02%
Existing home sales came in as expected at an annualized rate of 6 million units. Equity markets opened higher then settled back into the previous day’s range until mid-morning when a rally took hold closing near the highs of the day for the major indexes. Twitter (TWTR) 42.73 +7.09% (in a pullback since 9/2) was the day’s standout in the S&P500. DR Horton (DHI) 75.51 +4.70% responded well to the housing number. Regional banks were some of the day’s worst performers Zions Bank (ZION), Comerica (CMA), M&T Bank (MTB), Fifth Third Bank (FITB) were all down between -3.5% to -4%.
Wednesday, September 23, 2020 – DIA 267.58 -1.92%, QQQ 264.16 -3.05%, SPY -2.32%
Mortgage Applications came in at a growth rate of 6.8%, up from the previous number. In the absence of a Coronavirus relief bill from Congress, the US dollar has been strengthening, and as a result, gold (GLD) 174.79 -2.16% and silver (SLV) 21.17 -7.11% have been on the decline. Stock markets opened flat to higher on Johnson & Johnson (JNJ) 144.44 +.23% Coronavirus vaccine news, but within half an hour- the market succumbed to persistent selling throughout the day. In the afternoon, Fed Chairman Powell called for more fiscal stimulus from Congress, such as the Coronavirus relief bill. In technology, Battery Day was a disappointment for Tesla (TSLA) 380.36 -10.345% as it announced plans to mine lithium as part of the company operations. That news sent the lithium miner Albermarle down (ALB) 80.42 -15.56%. A bright spot on the day was Nike (NKE) 127.11 +8.76%. The company projected low double-digit revenue growth for 2021.
Thursday, September 24, 2020 – DIA 268.10 +.19%, 265.39 +.47%, 323.50 +.27%
Initial jobless claims came in higher than estimated 870K versus 843K, Continuing claims came in higher as well 12.58M versus an expected 12.339M. The one bright spot was new home sales which came in higher than expected 1.011M versus .89M. Darden (DRI) 97.31 +8.12% was a top performer hitting the highest levels since April. The restaurant group reported better sales and the reinstitution of its dividend. Ilumina (ILMN) 286.31 +4.88% which had been in a major sell-off recently on a potential acquisition of Grail, moved higher after announcing an investor conference webcast . Cruise lines continued under selling pressure Norwegian (NCLH) 14.63 -3.56%, Carnival (CCL) 13.74 -2.76%. The day's big sell on good news event was Carmax (KMX) 94.28 -11%, the auto sales company beat on earnings and revenues, but the stock took a tumble.
Friday, September 25, 2020 –
Durable goods came in mixed. Ex-transportation was weak with the growth of .4% versus 1.2% expected. On the other hand, Ex-defense was stronger .7% versus .1% expected. Stocks opened lower but proceeded to grind higher throughout the session. Cruise lines reversed their recent decline with Norwegian (NCLH) 16.61 +13.67%, Carnival (CCL) 15.07 +9.68%, and Royal (RCL) 64.59 +7.7% all popping due to an upgrade by a major investment house. The oil service sector was one of the worst performers on the day, Apache (APA) 9.85 -9.63%, Occidental (OXY) 10.22 -3.95, Marathon (MRO) 4.14 -3.94%, however bucking the weakness & showing good relative strength versus the group were Hess (HES) 40.48 +2.61%, and EOG Resources (EOG) 37.45 +2.18%.
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