Monday, September 14, 2020 – DIA 280.53 +1.24%, QQQ 275.16 +1.74%, SPY 338.46 +1.32%
Markets gapped higher on continued vaccine hopes and biotechnology merger news. The S&P 500 (SPY) and the Nasdaq 100 (QQQ) saw their highs for the day around 10:15 in the am then faded lower the rest of the day. Gilead (GILD) 66.34 +1.16% announced the acquisition of Immunomedics (IMMU) 83.65 +98% nearly doubling its Friday closing price! Seattle Genomics (SGEN) 171.79 +14.5% and Merck (MRK) 84.16 +.35% announced they have teamed up on a breast cancer drug. Pfizer (PFE) 37.01 + 2.64% proposed an expansion of its phase-3 COVID-19 clinical trials. In social media, Oracle (ORCL) 59.46 + 4.32% advanced on news of a potential acquisition of Tik Tok but faded off its highs of the day as it became evident a national security review would occur. On the downside 3 bull market leaders continued their corrections since late August-early September, Splunk (SPLK) 182.55-1.74%, Netflix (NFLX) 476.26 -1.2%, Dollar Tree (DLTR) 88.92 -1.25%
Tuesday, September 15, 2020 – DIA 280.58 +.02% flat, QQQ 279.06 +1.42%, SPY 340.12 +.49%
Industrial production came in light@ .4% versus 1% expected and the previous 3.5%. Definite slowing. The equity markets continued to rebound from the correction from all-time highs moved strongly in the morning but gave up some of the gains by the close. Tesla (TSLA) 449.76 +7.18% was the day’s stand out as it continued a 5-day recovery. Alexion (ALXN) 115.58 +6.3% announced phase 3 trial for Amyloidosis. On the downside, in a positive session, Western Digital (WDC) 37.785 -2.97% after hitting trendline resistance. Dow industrial company Caterpillar (CAT) 148.60 -3.2% sank on the weak IP release.
Wednesday, September 16, 2020 – DIA 281.03, QQQ 274.61 -1.59%, SPY 338.82 -.40%
Retail sales month over month came in at a weak .6% when 1% was expected. Retail sales ex-autos came in at .7% vs an expected .9%. The Federal Reserve ended its 2-day meeting stating that interest rates would remain low for the next couple of years. Markets were mostly positive going into the announcement but succumbed to selling afterward. The day’s bright spot was the red-hot IPO Snowflake (SNOW) 253.93 which debuted. IPO pricing was $120, but with the massive follow on-demand shares traded as high as $319. Another bright spot was General Electric (GE) 6.75 +10.66%, the company expects to be cashflow positive by the 4th quarter of 2020. Trading On the downside was Ilumina (ILMN) 322.47 - 8.4%, with traders reacting to news of a potential $8 billion acquisition of Grail Inc.
Thursday, September 17, 2020 – DIA 279.57 -.52%, QQQ 270.32 -1.56%, SPY 335.84 -2.98%
Equity markets gapped down on the opening. Pundits pointed to the Federal Reserve statement and commentary from Wednesday. Pundits also pointed to uncertainty in labor markets. Building permits and housing starts were light of expectations of 1.47 million and 1.416 million, respectively. Initial Jobless claims came in close to expectations at 860K down from 893K. On the plus side was BioMarin (BMRN) 78.36 +3.6%. The stock has been basing since a collapse on August 19. Another name to watch is Walgreen’s Boots Alliance (WBA) 37.21 +2.56% which has been showing better relative strength since a protracted sell-off that started way back in December. On the downside, Ilumina (ILMN) 298.02 -7.58% traded lower as pressure from a potential $8 billion acquisition continued. Tesla (TSLA) 423.43 -4.15% also traded sharply lower in a pullback from a recent rally in the stock.
Friday, September 18, 2020 – DIA 276.53, 266.87 -1.28%, 330.77 -1.12%
No meaningful economic data released. Markets opened lower and continued to trade lower. News reports of an uptick in the COVID-19 cases caught traders’ attention, and we saw typical travel & leisure names in the cruise industry stocks get hit from the opening bell. Norwegian (NCLH) 16.25 - 5.85% Carnival (CCL) 15.31 -5.73%. IPO of Unity Software (U) closed @ 68.35 after being priced at 52. News broke later in the day that the White House would be banning the download of Chinese applications Tik Tok and WeChat. The market closed down- but off the session lows.
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