I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The nineteenth YouTube video “3 more stock pics for earning season” went up today.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The eighteenth YouTube video “Best Pick for the Big Tech War” went up today.
On second thought, financial markets decide they really didn’t like yesterday’s news from the Federal Reserve
After not moving very much yesterday on the actual news from the Federal Reserve-the Standard & Poor’s 500 finished up 0.29% and the NASDSQ Composite closed higher by 0.40%, today, March 18, markets decided they really didn’t like the Fed’s stance on inflation, interest rates, and bond yields.
A day after Fed chair Jerome Powell said the Fed wasn’t much concerned about either the projects for higher inflation or the rise in Treasury yields, the yield on the 10-year Treasury spiked to 1.71% at the close. (It was at 1.74% as 1 p.m. in New York.) The closing yield amounted to a jump of 7 basis points in the yield on the benchmark Treasury issue. The yield on the 10-year Treasury is now up an astonishing 42 basis points in a month. And as has been the case in 2021 and as you might expect, stocks sold off with high multiple, high momentum technology shares taking the worst beating.
The yield on the 10-year Treasury note climbed to 1.62% today, March 12. That’s a jump of 9 basis points on the day. Following the recent pattern, the climb in yields meant a drop in the prices of technology stocks. Among BIG TECH stocks Apple (AAPL) fell 0.76%; Facebook (FB) dropped 2.00%; Amazon (AMZN) was lower by 0.77%; Alphabet (GOOG) slid 1.50%; and Microsoft (MSFT) lost 0.58%.
Stocks driving you crazy yet? In massive turnaround, NASDAQ climbs 3.69% today after 2.41% tumble yesterday
Technology stocks, so pummeled yesterday, roared back today. The NASDAQ Composite gained 3.69% on the day. The NASDSQ 100 with its huge waiting to BIG TECH closed up 4.03%. After yesterday, a day when the recent rotation into value, cyclical, and vaccine recovery stocks resulted in a sell off in technology shares, today, March 9, those shares showed only muted if any gains, and tech stocks saw huge pickups.
The rotation gets extreme–Dow hits record intraday high while NASDAQ Composite falls into a correction
Two indexes will tell you what you need to know about today’s stock market action. The Dow Jones Industrial Average, driven by cyclicals, vaccine recovery, and consumer stocks rose to an intraday record high. After a slight retreat at the end of the session, the Dow finished ahead 0.97% on the day. The NASDAQ Composite, on the other hand, weighed down by technology and growth momentum stocks dropped 2.41% on the day to fall into a full correction from the February 12 closing high.
Back on February 23, I wrote a post with the headline “Everything is down today” and added that while I wasn’t buying everything on the dip I was doing some selective nibbling. Today’s market looks almost exactly the same–if a bit more so because this drop is coming after recent weakness.
At 3:30 p.m. New York time today, March 3, the yield on the 10-year Treasury was 1.47%. That’s up from yesterday’s 1.42%. So much for any thoughts that yesterday’s rally in bonds and drop in yields might be the beginning of a larger move.
Stock market indexes finished slightly higher today, February 11–the Standard & Poor’s 500 was up 0.17% at the close–or slightly lower–the Dow Jones Industrial Average was lower by 0.02%–as investors looked to see whether technology would resume its mantle of market leadership or if the cape of leadership would pass to consumer stocks. The evidence today was inconclusive.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The ninth YouTube video “Trading Rationally in an Irrational Market” went up today.
Microsoft blows away analyst earnings projections after close today; Apple and Facebook report tomorrow
Microsoft reported its earnings for the company’s fiscal second quarter 2021 earnings today, Tuesday, January 26, after the close. Revenue of $43.1 billion easily beat Wall Street projections of $40.2 billion. Earnings per share of $2.03 crushed expectations for $1.64 a share. Microsoft’s shares were up 1.22% in the regular session and then gained another 4.30% in after-hours trading.
This week brings fourth quarter earnings reports from Microsoft (MSFT) on Tuesday, and Apple (AAPL) and Facebook (FB) on Wednesday to add fuel to the Big Tech rally. The NASDAQ 100, the home of big tech stocks, climbed 4.4% last week. Apple is expected to report record fourth quarter earnings. And that will certainly help technology stocks in general. But I’d also count the diversity of the companies reporting this week on the positive side of the ledger.