Mon. February 7, 2022 – DIA 350.90 +.01%, QQQ 355.13 -.80%, SPY 447.26 -.32%, IWM 199.36 +.49% CNN Fear/Greed Index 36 (Fear)
No high impact economic data released. Markets were mixed on the day with small caps outperforming their big cap brethren. WTI crude oil 91.53 -$.78 eased back from a recent price advance. But Energy Services (XLE) 69.78 +1.28% continued to move higher leading the S&P 500 eleven economic sectors. Chevron (CVX) 138.55 +1.96% was the #2 stock in the DJIA, behind Boeing (BA) 211.92 +2.65%. With COVID-19 Omicron infection rates dropping 50% from recent highs, travel & entertainment shares advanced. Cruise ships were well bid throughout the session, Royal Caribbean (RCL) 81.96 +8.44%, Norwegian Cruise (NCLH) 21.95 +8.4%, and Carnival Cruise (CCL) 21.52 +7.82% took the 2nd, 3rd and 4th spots on the day in the S&P 500. Airlines outperformed as well with American (AAL) 17.28 +5.05%, United Airlines (UAL) 44.44 +3.78% and Alaska Air (ALK) 55.36 +3.50% advancing. Meta Platforms (FB) 224.91 -5.14% continued its sell off from the prior week’s earnings report. Tyson Foods (TSN) 99.09 +12.23% moved higher after beating handily on the top and bottom lines. In a significant disappointment, medical device company Zimmer Biomet Holdings (ZBH) 111.67 -9.09% missed on earnings and revenues and gave a tepid outlook sighting COVID-19 Omicron pressures on scheduled surgeries. In a significant short covering move interactive exercise equipment internet retailer Peloton (PTON) 29.75 +20.93% advanced on speculation that the firm might be acquired.
Tue. February 8, 2022 –DIA 354.54 +1.04%, QQQ 359.12 +1.12%, SPY 450.94 +.82%, IWM 202.76 +1.71% CNN Fear/Greed Index 37 (Fear)
No high impact economic data released. Equity markets continued their rally after a one day consolidation. Basic Materials (XLB) 83.99 +1.55% led the S&P 500 eleven economic sectors, followed by Consumer Discretionary (XLY) 186.61 +1.41%, Biotechnology firm Amgen (AMGN) 241.01 +7.82% was the top performer in the DJIA after releasing earnings that beat on the bottom line and giving an upbeat outlook while also setting a $6B share repurchase plan for the first quarter. Interactive fitness equipment retailer Peloton (PTON) 37.27 +25.28% announced a major cost reduction program that would entail the elimination of as many as 2800 jobs or close to a 20% workforce reduction. Chinese internet firms did well Pinduoduo (PDD) 60.16 +12.81%, Baidu (BIDU) 162.99 +4.75%, and NetEase (NTES) 103.64 +4.59%. With better pandemic news, COVID-19 vaccine producer Moderna (MRNA) 153.31 -4.34% tested recent lows and potential double bottom. The stock is well off its August 11 highs above 497. Energy services (XLE) 68.28 -2.15% performed the worst on the day of the S&P 500 economic sectors with Diamondback (FANG) 124.37 -4.46%, Occidental (OXY) 39.35 -4.02%, Apache (APA) 32.87 -3.58% and Schlumberger (SLB) 38.90 -3.10 coming under selling pressure after a period of significant outperformance. In earnings news, data management firm Teradata (TDC) 50.89 +26.34% led the Russell 3000 after a beat on earnings and showing an increase in recurring revenue as a percentage of sales.
Wed. February 9, 2022–DIA 357.54 +.85%,QQQ 366.73 +2.12%, SPY 457.33 +1.42%, IWM 206.64 +1.91% CNN Fear/Greed Index 40 (Fear)
No high impact economic data released. Equity markets gapped higher from the open and strengthened throughout the session in response to lower interest rates and tighter CDX (credit default swap) spreads in Europe. Communication Services (XLC) 71.87 +2.82% led the 11 S&P 500 economic sectors, as Meta Platforms (FB) 232.00 +5.37% rebounded from its post earnings descent. Real Estate (XLRE) 47.40 +2.42% took the 2nd spot as the heavy weight in the ETF Prologis (PLD) 155.37 +2.76% moved higher from a recent pullback. Entertainment and theme park company Disney (DIS) 147.23 +3.33% led the DJIA ahead of earnings. Semiconductor firm Intel (INTC) 49.91 +2.25% took the second spot in the DJIA. The stock has been in rally mode since the recent earnings related price drop. Latin American e-commerce and digital payments company MercadoLibre (MELI) 1133.20 +7.83% led the NDX100. The stock was above 2K in February 2021 and has been in correction since, but has recently been finding support just above/below the 1K mark. Earnings are schedules for March 1st
Thur. February 10, 2022 –DIA 352.55 -1.43%, QQQ 358.43 -2.26%, SPY 449.32 -1.80%, IWM 203.44 -1.53% CNN Fear/Greed Index 36 (Fear)
The Consumer Price Index came in at a 40 year high printing +7.5%. Ex-Food & Energy CPI came in at a similar 40 year high at 6%. Interest rates climbed. The 10-Year Note (yield) Index (TNX) 20.31 +1.02 moved above the much watched 20 level. Equity markets took substantial markdowns, leaving bearish reversals of the previous day’s action. All eleven of the S&P 500 economic sectors were down on the day. Basic Materials (XLB) 85.32 -.58% fared best, while Real Estate (XLRE) 46.05 -2.85% fared the worst. Entertainment and theme park giant Walt Disney (DIS) 152.16 +3.35% led the DJIA and S&P 500 after an earnings beat related to park performance and subscriber growth with the Disney+ streaming channel. Cybersecurity firm Datadog (DDOG) 174.60 +12.28% led the NDX 100 after beating on earnings, revenues and account growth. On the downside, voice and data enterprise solutions firm Lumen Technologies (LUMN) 10.83 -15.52% missed on earnings and revenues sighting weakness in its business and mass market segments. In a sell the news reaction, advertising agency Interpublic Group PLC (IPG) 35.98 -8.77% beat earnings expectations while announcing a reinstituted share repurchase program.
Fri. February 11, 2022 – DIA 347.29 -1.49%, QQQ 347.06 -3.17%, SPY 440.46 -1.97%, IWM 201.38 -1.01% CNN Fear/Greed 34 (Fear)
Michigan Consumer Sentiment Index (Feb) came in much worse than expected at 61.7 vs. 67.5. Markets were lower overnight but opened mixed and went positive at several points during the morning, but succumbed to significant selling later in the day as reports came from U.S. administration officials that a Russian invasion of Ukraine might come within days. WTI crude oil traded higher settling at 93.83 +$3.95 in response to the reports. As a result Energy Services (XLE) 70.41 +2.91% powered higher and far outperformed the ten other S&P 500 economic sectors. Chevron (CVX) 138.81+2.04% led the DJIA. Prominent performers in a dismal tape were Occidental (OXY) 42.98 +5.65%, Phillips 66 (PSX) 93.20 +4.18%, Hess (HES) 96.20 +4.11%, and Diamondback (FANG) 135.57 +3.95%. Leading the NDX100 was biotechnology firm Regeneron (638.41) +3.27% which released promising data on Aflibercept 8 milligram in wet age related macular degeneration. Semiconductors which had been outperformers for a recent period came under renewed selling pressure. Advanced Micro Devices (AMD) 113.18 -10.01% fell hard from a recent rally attempt. Athletic clothing manufacturer and lifestyle brand, Under Armour (UAA) 17.51 -12.49% fell after beating earnings and revenue expectations. The company indicated supply chain issues would continue to affect performance going forward. On the upside Newell Brands (NWL) 24.39 +11.07 led the S&P 500 after beating earnings and revenue estimates.
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