Monday, March 29, 2021 – DIA 331.29 +.34%, QQQ 315.91 -.03, SPY 395.76 -.06%
No high-impact data. Equity markets opened down on trepidation concerning the 30 billion dollar fund liquidation from Friday. As the day wore on, many beaten-down names from Friday began to attract interest, as the fear of further liquidation subsided. In the S&P500 the utility sector (XLU) 64.15 +1.07% had relative strength today along with the Communications ETF, (XLC) 73.03 +1.02%., Facebook (FB) 290.82 +2.76% was also particularly strong today. The energy sector once again was the laggard (XLE) 49.83 -1.19% with Apache (APA) 17.96 -4.42%. leading the sector down.
Tuesday, March 30, 2021 – DIA 330.82 -.25%, QQQ 314.32 -.50%, SPY 394.73 -.27%
The S&P/Case-Shiller Home Price Index came in as expected at 11.1% v. the 11% estimate.
Consumer Discretionary (XLY) 166.77 +.98% was the best sector on the day Gap Stores (GPS) 30.11 +4.69% moved up sharply after the clothing retailer sold its premium Janie and Jack brand. On the downside was Staples (XLP) 68.53 -1.07% which looked more like a consolidative pullback after several days of strong performance. Baidu (BIDU) 218.23 +6.61% continued its rebound from the Archegos fund-related selling. DXC Technology (DXC) 31.14 +9.11% took off like a rocket after a Deutsche Bank upgrade and buy recommendation. The stock broke out of a base and hit new highs.
Wednesday, March 31, 2021 – DIA 330.18 -.19%, QQQ 319.13 +1.53%, SPY 396.33 +.41%
ADP employment number came in light 517K v. 550K expected. Pending home sales declined -10.6% much greater than the -2.6% anticipated which was attributed to the low supply of homes available for sale. The markets appeared to be focused on the infrastructure bill winding its way through Congress, and interest rates that have been climbing. The best sector was Technology (XLK) 132.81 +1.59%, followed by Consumer Discretionary (XLY) 168.07 +.78%. Financials (XLF) 34.05 -.76% were the day’s laggard. Walgreen’s Boots Alliance (WBA) 54.90 +3.62% rose on increased profit guidance on its earnings call. Intel (INTC) 64 +.04% l announced plans to increase spending at its factories and the news of unexpected growth and demand was cheered and sent most of the semi-equipment manufacturing companies to a major rally; names rallying included Applied Materials (AMAT) 133.60 +5.4% KLA Tencor (KLAC) 330.40 +4.20% Lam Research (LRCX) 595.24 +3.96%. On the downside was communications equipment company Ubiquiti (UI) 298.30 -14.53% which has been volatile in recent sessions but came down hard today on news of a whistleblower claim of a catastrophic data breach.
Thursday, April 1, 2021 – DIA 331.45 +.38%, QQQ 324.57 +1.70%, SPY 400.61 +1.08%
ISM Manufacturing PMI came in a strong 64.7 v. 61.3 anticipated. ISM manufacturing Employment came in a much better 59.6 v. 53, and ISM Prices Paid Index was stronger than expected at 85.6 v. 85. End of month/quarter rebalancing drove the S&P500 to a new all-time high. Energy (XLE) 50.31 +2.55% rebounded and was the best sector on the day. The oil sector was on fire led by Diamondback (FANG) 81.22 +10.52%, Marathon (MRO) 11.81 +10.39%.
The technology sector (XLK) 135.48 +2.01% was also strong again today with semi-equipment manufacturers leading the way. The semiconductor sector continues to get bullish news of expansion and outperformed again today after Taiwan Semiconductor announced new spending plans. Tech names rallying included; Lam Research (LRCX) 639.30 +7.40%, Applied Materials (AMAT) 141.52 +5.93%, KLA Tencor (KLAC) 347.29 +5.11%. On the downside today, there was wreckage in online used car retailer Carmax (KMX) 123.31 -7.05% which beat analyst earnings estimates but missed on revenue.
Friday, April 2, 2021 – Markets closed for Good Friday
Non-Farm Payrolls Greatly Exceed expectations coming in at 916K v. 647K
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