Mon. November 22, 2021 – DIA 356.20 -.08%, QQQ 399.30 -1.16%, SPY 467.57 -.28%, IWM 231.73 -.43% CNN Fear Greed/Index 64
No high-impact data was released. President Biden re-appointed Jerome Powell as the head of the FOMC. Interest rates climbed after the announcement as seen by the 10-Year Index (TNX) 16.25 +.89%. The lead S&P 500 sector was Energy Services (XLE) 55.64 +1.77%, followed by Financial Services (XLF) 39.57 +1.41%. The laggard on the day was Communication Services (XLC) 78.72 -1.22%, followed by Technology Services (XLK) 169.40 -1.11%. Insurance concern The Traveler’s (TRV) 156.87 +2.85% led the DJIA. Vaccine maker Moderna (MRNA) 282.69 +7.17% led the NDX 100 and S&P 500 as reports of higher virus infection rates, hospitalization, and mortality continued to be in focus both in the U.S. and globally. Specialty steel manufacturer Nucor (NUE) 119.67 +6.04% challenged the recent high of a cup with a handle pattern. Automobile producer Ford (F) 20.48 +5.62% hit a 52-week high. On the downside, athletic and leisure lifestyle brand Under Armour (UAA) 25.36 -5.93% came under profit-taking from a new high the prior session. Credit card and transaction processor MasterCard (MA) 321.01 -5.42% came under selling pressure once more as pandemic fears continued to concern investors. In a sign that sales rates were a continuing concern for investors pandemic favorite Peloton (PTON) 44.08 -6.49% once again came under pressure.
Tue. November 23, 2021 – DIA 358.02 +.51%, QQQ 397.48 -.46%, SPY 468.19 +.13%, IWM 231.33 -.17% CNN Fear/Greed Index 60
The Markit Manufacturing Index came in just slightly better than anticipated at 59.1. The Markit Services PMI was weaker than expected coming in at 57 vs. 59.1. All were preliminary numbers. After the news that the Biden administration would release 50 million barrels for sale from the Strategic Petroleum Reserve, oil prices rose in a buy-the-news reaction. WTI rose 2.02 dollars to 78.77. As a result, Energy Services (XLE) 57.35 +3.07% was the best performing sector for the second day in a row, but this time the higher beta names outperformed, Apache (APA) 28.47, Occidental (OXY) 31.92, EOG Corporation (EOG) 91.76, Devon Energy (DVN) 43.44, Marathon (MRO) 16.51, and Hess (HES) 81.58 all dominated the S&P 500 by advancing more than 5% each. The top name in the S&P 500 was discount retailer Dollar Tree (DLTR) 144.71 +9.17% which reported earnings matching consensus, but on the call gave guidance for a higher price point on most products. On the downside electronics retailer Best Buy (BBY) 121.01 -12.31% reported better than expected earnings and revenue but pointed to profit margins that were lower on what was termed to be the result of “organized retail theft”. Also on the downside, video conference leader and pandemic favorite Zoom (ZM) 206.64 -14.71% reported earnings that beat handily, but investors focused on what was seen as slow growth of the service going forward.
Wed. November 24, 2021 –DIA 358.03 +.00%, QQQ 398.76 +.32%, SPY 469.44 +.27%, IWM 231.58 +.11% CNN Fear/Greed Index 62
Durable Goods Orders (Oct) were released down -.5% vs. the +.2% expected. Nondefense Capital Goods Orders Ex-Aircraft reported at +.6% vs. +.5% expected. Gross Domestic Product Annualized showed growth of 2.1% less than the expected 2.2%. The FOMC minutes were released indicating some pressure to end QE at a quicker pace than the taper of 15B a month should inflation pressures mount. The lead sector on the day was Real Estate (XLRE) 49.13 +1.34% followed by Energy Services (XLE) 57.91 +.98%. The laggard sector Basic Materials (XLB) -.71% came under pressure from an increasingly strong dollar value. After an extended period of weakness, credit card transaction processor Visa (V) 203.25 +2.40% caught a bid to lead the DJIA 30 stocks. Semiconductor chip manufacturer Advanced Micro Devices (AMD) 157.80 +5.26% lead the NDX 100 after a 2-day pullback from all-time highs. Leading to the downside in the index, computer-aided design software maker Autodesk (ADSK) 256.90 -15.49% dropped after beating earnings and revenue estimates, but the company failed to produce a bullish outlook. Leading the S&P 500 was personal computer manufacturer Hewlett Packard (HPQ) 35.44 +10.10% as the firm's shares bolted on an earnings, margin & revenue beat while providing improved guidance. In a sign of continued supply-chain problems and a struggling retail industry, Nordstrom (JWN) 22.66 -29.03% and The Gap, Inc. (GPS) 17.84 -24.12% both disappointed on earnings revenues and outlook.
Thursday, November 25, 2021 – U.S. Thanksgiving Day – Markets Closed.
Fri. November 26, 2021–DIA 349.02 -2.25%, QQQ 391.20 -1.90%, SPY 458.97 -2.23%,IWM 222.85- 3.77% CNN Fear/Greed Index 35
No high-impact economic data was released. Markets gapped lower on increased concern related to newly discovered variants of the virus that causes COVID-19 around the globe. Many of the intra-market and sector moves could be attributed to the news of the day. In a sign of a flight to safety, interest rates plunged as seen by the 10-Year Note index (TNX) 14.82 -1.63 falling almost 10%. The price of oil as measured by WTI crude 68.18 -10.21% plummeted on demand concerns. As one might expect, topping the S&P 500 sector performance was Healthcare Services (XLV) 131.97 -.37% with vaccine producers, Moderna (MRNA) 329.63 +20.57%, and Pfizer (PFE) 54.00 +6.11% bolting on the news and increased concern. Consumer Staples (XLP) 71.96 -1.26% was the second-best performing sector with sanitation/cleaning products firm Clorox (CLX) 174.21 +3.65% the third best performing shares in the S&P 500. Energy Services (XLE) 55.58 -4.02 (potential economic lockdowns) and Financial Services (XLF) 38.77 -3.32% (flatter yield curve and lower rates) were the two worst performers. On the downside, names that were purged from portfolios in the early stages of the pandemic last year came under selling pressure. Travel & entertainment companies such as cruise ships Royal Caribbean (RCL) 67.98 -13.22%, and Norwegian Cruise Lines (NCLH) 20.06 -11.36% were hardest hit. Airlines were also sold with United (UAL) 42.26 -9.57%, and American (AAL) 17.75 -8.79% under pressure. Internet travel firm Expedia (EXPE) 159.80 -9.485% was down hard as well. Within the energy sector, APA Corporation (APA) 26.24 -8.28% took the most selling pressure.
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