Monday, June 21, 2021 – DIA 338.78 +1.75%, QQQ 344.36 +.50%, SPY 420.86 +1.43%
No high-impact data. The market turned around from a follow-through down move in the overnight and pre-market session. As the opening of regular trading hours approached the markets had reversed to the point where the opening was a gap up that generated follow through and that strength continued all day. Energy (XLE) 54.07 +4.26% was the top sector on the day with APA Corporation (APA) 22.16 +7.31%, Hess (HES) 90.40 +7.17%, and EOG Resources (EOG) 84.99 +7.16% leading the S&P 500. The top 10 performers were all energy companies. Although all sectors rebounded from Friday’s drubbing, the weakest relative performer on the day was Consumer Discretionary (XLY) 173.23 +.77%. The two worst performers on the day were Xilinx (XLNX) 127.53 -3.33% and Advanced Micro Devices (AMD) 82.59 -2.43% but these chip makers have recently been improving and now appear to be challenging downtrend lines established from the highs at the beginning of the year.
Tuesday, June 22, 2021 – DIA 339.45 +.20%, QQQ 347.57 +.93%, SPY 423.11 +.53%
No high-impact data released. Jerome Powell, Chairman of the Federal Reserve, gave testimony to Congress on monetary policy and the economic outlook. The 10-year note index (TNX) 14.72 -.12 was down in reaction to his testimony. Consumer Discretionary (XLY) 174.86 +.94% was the day’s best performing sector reversing the under-performance from Monday. Nike (NKE) 132.48 +1.85% led the DJIA followed by Home Depot (HD) 312.71 +1.66%. L Brands (LB) 69.09 +5.02% led the S&P 500 followed by Etsy (ETSY) 177.98 +4.21%. The big winner in the Nasdaq 100 was software infrastructure company Splunk (SPLK) 139.61 +11.25% which announced a 1 Billion dollar convertible note investment by private equity firm Silver Lake. Manufacturing firm 3D Systems (DDD) 36.87 +27.67% announced a partnership with CollPlant Biotechnologies (CLGN) 20.61 +12.6%. Through the deal, 3D Systems looks to create 3D bio-printed regenerative soft tissue for breast reconstructive implants.
Wednesday, June 23, 2021 – DIA 338.78 -.20%, QQQ 347.74 +.05%, SPY 422.60 +.05%
Markit Manufacturing PMI came in lower than expected at 62.6 vs. 61.4. Markit Services PMI came in much weaker than expected 64.8 v. 70.0. New home sales came in much weaker than expected 769K v. 870K. (As a result of low supply and higher prices leaving many unable to afford a new home.) Consumer Discretionary (XLY) 176.21 +.77% was the lead sector for the second day in a row. Disney (DIS) 175.33 +1.05% led the DJIA in a quiet session. Tesla (TSLA) 656.57 +5.27% paced the S&P 500 and broke out to a fresh one-month high. Under Armour (UAA) 21.06 +3.74% was added at Cowen as a “Best Idea”. On the downside, medical distribution firm Patterson Companies (PDCO) 30.97 -11.82% disappointed on earnings. Reasons given were COVID-19 related closures of dental practices and a slowdown in non-essential pet related services.
Thursday, June 24, 2021 – DIA 341.98 +.94%, QQQ 349.89 +.62%, SPY 425.10 +.59%
Durable Goods orders came in weaker than expected +2.3% v. +2.7%. Nondefense Capital Good’s orders came in at a negative -.1% v. expected growth of +.6%. Gross Domestic Product came met consensus expectations with a growth of 6.4%. Financials (XLF) 36.49 +1.25% was the top sector on the day and Real Estate (XLRE) 44.37 - .47% was the laggard today. News of a bipartisan group of senators and the Biden Administration reaching an agreement on an infrastructure bill sent infrastructure stocks higher including big winners like Caterpillar (CAT) 219.34 +2.60%. The stock had been in a pullback after a strong uptrend was established from the pandemic lows of March 2020. Tesla (TSLA) 679.82 +3.54% continued its advance from Wednesday. Pharmaceutical firm Eli Lilly (LLY) 232.97 + 7.31% lead the S&P 500 after announcing their drug for Alzheimer’s, (Donanemab) had received the FDA’s "Breakthrough Therapy" designation. The company said they will now submit a biologics license application for the drug. In response to the news, Biogen (BIIB) 349.16 – 6.11% fell as that company’s recently approved drug (Aduhelm) for Alzheimer’s would face new competition.
Friday, June 25, 2021 – DIA 344.45 +.72%, QQQ 349.46 -.12%, SPY 426.61 +.36%
Personal income came in better than expected with a smaller decline -2% v. -2.5% predicted. Core Personal Expenditures printed at a growth of .5% v. the .6% expected. Financials (XLF) 36.93 +1.21% was the lead sector for the second day in a row. Insurance firm Lincoln National (LNC) 65.58 +3.63% moved up. The stock has been in a correction and is rallying back to its overhead 20 & 50 day moving averages. Aerospace company Virgin Galactic (SPCE) 55.91+38.87% soared in price and into outer space after the FAA cleared the company for passenger flights. The DJIA’s big winner on the day was Nike (NKE) 154.35 +15.53% which bolted to new all-time highs on a return to profitability, while beating on revenue and earnings estimates. Chinese firms JD.com (JD) 78.23 +4.45% (internet retailer) and Baidu (BIDU) 202.64 +4.04% (internet search engine) moved higher. Both companies have been in deep corrections and now appear to be reasserting after breaking above downtrend lines from February highs. On the downside communications equipment company, CalAmp Corp. (CAMP) 12.64 -11.73% disappointed on earnings due to global component shortages.
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