Monday, May 24, 2021 – DIA 343.96 +.56% QQQ 332.51 +1.68%, SPY 419.17 +1.02%
The Chicago Fed National Activity Index came in weak at .24
In the treasury market, the 10-year note index (TNX) 16.08 -.24 declined on the day. The lower interest rates led to big rallies and outperformance in Communications (XLC) 78.26 +1.82% and Technology (XLK) 138.01 +1.78%. Semiconductor and Semiconductor Equipment manufacturers were once again the standout performers with Applied Materials (AMAT) 134.58 +4.60%, Lam Research (LRCX) 634.64 +3.34%, and Microchip (MCHP) 154.10 +2.86% showing good performance. MGM Resorts International (MGM) 41.74 +5.14% moved higher as message boards focused on a potential bid for the company’s media assets. Virgin Galactic (SPCE) 26.89 +27.62% rose on a successful test flight. On the Downside NGM Biopharmaceutical (NGM) 16.81 -40.77% plummeted and lost nearly half its value on news that its key therapy for a form of hepatitis failed to meet its primary endpoint in a much-anticipated trial.
Reddit/Wallstreetbets meme favorite AMC Entertainment spiked on short-covering (AMC) 13.68 +13.25%.
Tuesday, May 25, 2021 – DIA 343.21 -.22%, QQQ 332.97 +.14%, SPY 418.13 -.20
The S&P/Case Shiller Home Price Index (YoY) came in at a 13.3% increase which was much higher than the 11.7% expected. New Home Sales came in much lighter than expected 863K v. 950K which many experts are attributing to rising prices and low inventory. Treasuries continued to rally as measured by the drop in the 10-year note index (TNX) 15.64 - .44. (As bond yields drop bond prices rise.) Markets were mostly consolidating after the push higher from the previous week. Consumer Discretionary (XLY) 170.76 +.32 was the best sector on the day, while Energy (XLE) 51.61 -2.03% fared the worst with particular weakness in Apache Corporation (APA) 19.94 -4.5%, & Occidental (OXY) 24.62 -3.22%. Homebuilders D. R. Horton (DHI) 93.20 +2.31% and Lennar (LEN) 96.74 +1.80% advanced on the housing numbers. Cruise lines showed good strength with Royal Caribbean (RCL) 89.00 +3.65%, Norwegian (NCLH) 31.12 +3.56%, and Carnival (CCL) 28.58 +2.44%.all sailed higher. All three have been in consolidation since March and are now approaching their 2021 highs. Reddit/Wallstreetbets meme favorites continued to advance; AMC Entertainment (AMC) 16.41 +19.96% GameStop (GME) 209.40 +16.45%.
Wednesday, May 26, 2021 – DIA 343.27 +.03%, QQQ 334.13 +.35%, SPY 419.07 +.20%
There was no high-impact data or macro news flow on the day. Consumer Discretionary (XLY) 172.39 +.95% was the top sector along with Energy (XLE) 52.07 +.89%. Energy producer Diamondback had a particularly strong day (FANG) 78.29% +3.72%. Healthcare (XLV) 123-39 -.58% was the weakest sector on the session with DJIA component Walgreens Boots Alliance (WBA) 52.01 -4.02% to the downside. Auto and truck producer Ford (F) 13.90 +8.51% hit fresh 52-week highs. The homebuilder Skyline Champion (SKY) 52.04 +18.87% soared on blowout earnings and revenue beat. Dick’s Sporting Goods (DKS) 98.40 +16.91% beat on earnings and revenue as well.
Reddit/Wallstreetbets meme favorites AMC Entertainment (AMC) 19.56 +19.20% (400 million shares traded!) and GameStop (GME) 242.56 +15.82% both continued higher.
Thursday, May 27, 2021 – DIA 344.60 +.39%, QQQ 332.99 -.37%, SPY 419.29 +.05%
Durable goods orders were down -1.3% vs. a positive .7% expected, while ex-transportation orders also came in slightly stronger +1% vs. +.8% expected. Gross Domestic Product (GDP) was slightly less than expected +6.4% v. 6.5%. Pending Home Sales were a surprise negative number -4.4% .vs a positive .8% expected. (Attributed to the limited supply of available housing.) Initial Jobless claims continued to fall to post-pandemic lows 406K v. 425K expected. The Industrials (XLI) 105.12 +1.37% was the best performing sector on the day followed by Financials (XLF) 37.92 +1.15%. Boeing (BA) 250.70 +3.87% led the DJIA higher followed by Honeywell (HON) 231.27 +3.12%. General Electric (GE) 14.35 +7.09% led the S&P 500 (SPY).Discount Retailer Dollar Tree (DLTR) 100.35 -7.71% beat on earnings but warned surging freight costs and shipping bottlenecks will impact them significantly and are estimating up to 80 cents per share in additional costs in 2021 due to concerns of product availability and expenses, including a current wage-related labor shortage increasing costs more.
Reddit/wallstreetbets favorite AMC Entertainment (AMC) 26.52 +35.58% continued the meme-inspired short squeeze rally and insane price action!
Friday, May 28, 2021 – DIA 345.64 +.30%, QQQ 333.93 +.32%, SPY 420.04 +.18%
The Core Personal Consumption Expenditure Price Index (YoY) was reported at 3.1% v. 2.9% expected, which is significantly above the stated Fed target of 2%. Markets opened higher in a subdued holiday session and narrow range trading. Real Estate (XLRE) 43.26 +.67% was the lead sector followed by Utilities (XLU) 65.16 +.54%. Salesforce.com (CRM) 238.10 +5.43% led the DJIA and broke out of an 8-month downtrend on an earnings and revenue beat and raised guidance. Ulta Beauty, Inc. (ULTA) 345.36 +5.18% hit a 52-week high after an earnings beat and optimistic guidance. The stock had been in a 3-month consolidation. Dollar Tree (DLTR) 97.50 -2.61% continued its post-earnings retreat in the face of mounting supply and disruption issues. HP, Inc. (Formerly Hewlett Packard) (HPQ) 29.23 -8.94% reported and beat on earnings and revenue, but warned that chip shortages will hinder production. The stock has now made a significant breakdown from an uptrend dating back to last November. Specialty industrial machinery company Welbilt, Inc. (WBT) 24.71 +24.05% rose on a $3.3 billion buyout offer from Italy’s Ali Group. Reddit/Wallstreetbets meme favorite AMC Entertainment (AMC) had a spike high of 36.72 and closed at 26.12 on 657 million shares traded. A significant reversal on the day with incredible volume. GameStop (GME) 222 –12.64% had an outside down day with an intraday high of 268.80.
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