Friday’s market action argues that investors and traders are looking to buy shares of Apple, Amazon, Microsoft–you know the usual suspects–ahead of what looks like a blowout earnings season that will start on July 13 when JPMorgan Chase (JPM) reports before the market open.
Remember way back at the beginning of last week? That is before the Federal Reserve signaled on Wednesday that more of the members of its Open Market Committee were thinking about raising interest rates sooner than previously expected. Re-opening stocks, value stocks, and cyclical stocks led the market. The small cap Russell 2000 was the best performing of the major indexes. Well, they’re back
Yesterday, growth stocks climbed in the face of signals from the Federal Reserve on Wednesday that interest rates increase were coming sooner–as soon as the end of 2022–than expected. That seemed puzzling. May be, one line of thought (mine) had it, investors and traders decided that growth stocks would outrun any increase in interest rates that might take place in 2022 or 2023. Today, we got the selling that many had expected yesterday
The Standard & Poor’s 500 was basically flat with a loss of just 0.04% as of the close today. If you want ACTION!!! you have to look elsewhere: To the NASDAQ Composite, which was up 0.87% as of the close and to the small cap Russell 2000, which was down 1.18% at the finish.
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. The twenty-second YouTube video “Don’t Panic: 3 Picks for This Rotation” went up today.
Today, April 21, as of 3 p.m. New York time, the major indexes were on track to break their three-day losing streak. At 3 p.m. the Standard & Poor’s 500 was ahead 0.65% and the Dow Jones Industrial Average had gained 0.74%. The NASDAQ Composite was higher by 0.73% and the small cap Russell 2000 had moved up 1.94%. Why the big change in tone from earlier in the week?
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%.
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.
As of 3:15 p.m. today, February 2, in New York, shares of GameStop (GME)were down 56.22% to $98.50. That a big drop from the January 27 closing high of $347.51, but it’s still significantly above the $17.25 price on January 4. Other stocks that have ridden the Reddit WallStreetBets fever for short squeeze horses are down today too. AMC (AMC) is off 39.70% to $8.02. First Majestic Silver (AG), the big silver play of the last few days, has given up 24.28% to $16.75. Bed Bath & Beyond (BBBY) is off 14.64% to $25.77. American Airlines (AAL), an early short squeeze play, slipped 1.16% to $17.65. The only potential short squeeze bet (if it was, that is) that’s still climbing is vaccine pill biotech Vaxart (VXRT), which was up 34.30% at 3:15 and looks to be riding momentum into the close. (The shares were up 54.43% as of 3:40 p.m.) Vaxart does bring this question to mind: So if the money is coming out of GameStop, etc., where is it going?
