Monday, June 14, 2021 – DIA 344.30 -.24%, QQQ 344.51 +.96%, SPY 425.26 +.22%
No high-impact data released on the day. Markets were stable and in a waiting mode for the FOMC meeting statement due Wednesday afternoon. Traders were all ears for the CNBC interview with billionaire and renowned speculator Paul Tudor Jones, who professed his views on the fed and inflation. Towards the end of the day’s trading, both the S&P 500 and the NASDAQ composite edged to new closing highs. Sector-wise, Technology (XLK) 143.41 +1.01% outperformed with Salesforce.com (CRM) 246.26 +2.48% and Apple, Inc. (AAPL) 130.48 +2.46% leading the DJIA. Basic Materials (XLB) 85.06 -1.23% fared the worst as the infrastructure bill before congress looks to be stalled in its current form. Steel producer Nucor (NUE) 102.71 -3.64% was hit with continued selling pressure. The stock has had a great run from a low of 27.53 on March 18th of 2020. Broadband fiber management product company Clearfield (CLFD) 36.50 -12.78% was down big and is now challenging it's up trending 200-day moving average. Financials (XLF) 37.17 -1.04% were also under pressure with JPMorgan (JPM) 157.57 -1.70% and Goldman Sachs (GS) 372.92 -1.70% both weaker. The day’s moonshot was RAPT Therapeutics (RAPT) 40.02 +115.50%. The company more than doubled after reporting positive results in a phase 1B trial of its drug RPT193 for Atopic Dermatitis
Tuesday, June 15, 2021 – DIA 343.46 -.24%, QQQ 342.26 -.65%, SPY 424.59 -.16%
Retail sales came in weaker than expected -1.3% v. -.8%, Ex-Autos were even weaker as well -.70% v. +.2% expected growth. Producer Prices Ex-Food & Energy came in flat to expectations at +4.8%. The 10-year US treasury note index was stable at (TNX) 14.99 -.02. Crude prices were strong lifting the Energy Sector (XLE) +1.90% with Diamondback (FANG) 90.85 +5.10%, NOV Inc. (NOV) 17.51 +4.16%. The laggard sector on the day was Technology (XLK) 142.53 -.61% with electronic gaming & multimedia company Take-Two (TTWO) 178.60 -4.36% leading the Nasdaq 100 lower followed by Activision (ATVI) 95.97 -3.24%. On the downside Sage Therapeutics (SAGE) 58.80 -19.30% released disappointing data on its phase 3 trial for its depression drug, Zuranolone.
Wednesday, June 16, 2021 – DIA 340.76 -.77%, QQQ 341.01 - .37%, SPY 422.26 -.52%
Housing starts came in less than expected at 1.572M v. 1.63M. Likewise, Building Permits came in weaker as well 1.681M v. 1.73M. The market was quiet but weaker, and the usual “Fed Drift” higher did not take place. After the fed 2 pm announcement and press conference, markets came under selling pressure. Technology (XLK) 172.42 +.05% was the relative winner on the day with software infrastructure company Splunk (SPLK) 123.38 +1.61% leading the Nasdaq 100. Since November, the shares have been in a decline and appear to have formed a double bottom. (and broken out from a significant downtrend line). DocuSign (DOCU) 253.07 +1.03% continued a rally that took hold since earnings were released in early June. Reacting to the FOMC statement the 10-year Note index (TNX) 15.69 +.70 backed up in yield. That being the case Utilities (XLU) 65.45 -1.50% was the laggard sector with Excel Energy (XEL) 67.76 -2.07%. Take-Two (TTWO) 171.65 -3.89 continued under selling pressure for a second day leading the Nasdaq 100 lower, along with weakness in shares of Western Digital (WDC) 73.27 -2.20%.
Thursday, June 17, 2021 – DIA 338.65 -.62%, QQQ 354.34 +1.27%, SPY 421.97 -.03%
Initial Jobless claims came in higher than expected 412K v. 359K. Philadelphia Fed Manufacturing came in below expected 30.7 v. 31. Stocks were mixed with Technology (XLK) 143.40 +1.16% showing strength with Microsoft (MSFT) 260.90 +1.37%, Apple (AAPL) 131.79 +1.26% leading the DJIA while Advanced Micro Devices (AMD) 84.56 +5.55% and Xilinx (XLNX) 132.34 +4.88% paced the Nasdaq 100. Energy (XLE) 53.99 -3.4% fared the worst followed by Financials (XLF) 36.10 -2.96% reacting to a flatter yield curve. Occidental Petroleum (OXY) 28.22 -7.6% was the largest drop in the S&P 500. Construction & mining equipment company Caterpillar (CAT) 209.55 -3.55% continued its downtrend (the stock is down from a high of 246.69 on June 4). The big mover on the day was Anterix Inc. (ATEX) 58.65 +17.35% which broke out from a consolidation pattern. Appian surged (APPN) 129.7 +11.34% after the cloud software maker was added to a “best ideas” list at Hedgeye.
Friday, June 18, 2021 – DIA 332.96 -1.54%, QQQ 342.63 -.78%, SPY 414.92 -1.35%
No high-impact data released. The markets opened weak as analysts seem to be digesting the FOMC statement. Pundits pointed to a more hawkish interpretation of “the dot plots” which is a poll of where FOMC members see interest rates in the next few years. Also, the view that the next Fed Funds rate hike will now likely occur a year earlier and take place in 2023 instead of 2024. Energy (XLE) 52.39 -2.96% was again the weakest sector with Chevron (CVX) 103.03 -3.77% leading the DJIA lower. Financials (XLF) 35.23 -2.41% were hit as well with heavy selling in Goldman Sachs (GS) 348.83 -3.5%. Relatively speaking, Consumer Discretionary (XLY) 172.16 -.53% performed best followed by Technology (XLK) 142.09 -.91%. Construction & mining equipment company Caterpillar (CAT) 208.86 -.28% showed relative strength after a 2-week period of decline. DocuSign (DOCU) 274.43 +5.3% continued its 2-week old rally after Wedbush raised its target price to 290.00. There were two takeover announcements on this summer Friday; CAI International (CAI) 56.05 +46.88% agreed to merge in a $2.9B deal with Mitsubishi HC Capital, and Sykes Enterprises (SYKE) 53.45 +29.83% agreed to a 2.2B merger deal with Sitel Group.
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