Home > Boards > Free Zone > User's Groups > Sector Investing

Markets gains on cyclical leadership and technical support

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
ReturntoSender Member Profile
Member Level 
Followed By 68
Posts 12,066
Boards Moderated 1
Alias Born 04/01/00
160x600 placeholder
FedEx Increasing Shipping Rates Next Year
FedEx Corp. on Monday said shipping rates will increase for its FedEx Express, FedEx Ground, and FedEx Freight Services subsidiaries, effective Jan. 3, 2022.
Air Products Raising N Amer Prices for Liquid and Bulk Industrial Gas Products
Soybeans Slide as Investors Retreat to Safe Havens -- Daily Grain Highlights
Top Company News of the Day
Correction to Dow Earnings Headline on July 22
Front Month Nymex Natural Gas Fell 2.35% to Settle at $4.9850 -- Data Talk
Front Month Nymex RBOB Gasoline Fell 2.58% to Settle at $2.1152 -- Data Talk
JPMorgan on Track for Largest Percent Decrease Since June 2020 -- Data Talk
Housing Starts, Existing Home Sales on Tap -- Data Week Ahead Update
Aveo Oncology Shares Drop 7% After Fast Track Designation for Ficlatuzumab
UBS Group Down Over 6%, on Track for Largest Percent Decrease Since June 2020 -- Data Talk
Universal Music Group's Reference Price Is Set at EUR18.5
EURO STOXX 50 Index Ends 2.11% Lower at 4043.63 -- Data Talk
STOXX Europe 50 Index Ends 1.37% Lower at 3473.55 -- Data Talk
CAC 40 Index Ends 1.74% Lower at 6455.81 -- Data Talk
DAX Ends 2.31% Lower at 15132.06 -- Data Talk
FTSE 100 Index Ends 0.86% Lower at 6903.91 -- Data Talk
STOXX Europe 600 Index Ends 1.67% Lower at 454.12 -- Data Talk
Globant Plans to Quadruple its Teams in the U.K.
FTSE 100 Closes Lower as Global Markets Hit by Wave of Sell-Offs
Goldman Sachs on Pace for Largest Percent Decrease in Over a Year -- Data Talk
Blackstone Down Over 7%, on Track for Largest Percent Decrease Since April 2020 -- Data Talk
Press Release: U.S. Scheduled Passenger Airlines Employ 2.1% More Employees in July 2021 than June, Still 10.5% Behind Pre-Pandemic July 2019 -- BTS
NatWest Group Says UK Government. Has Cut Holdings to 53.96%
Caterpillar Down Over 5%, on Pace for Largest Percent Decrease Since November 2020 -- Data Talk
U.S. Home-Builder Sentiment Increased Slightly in September -- NAHB
Advent International-Owned Payments Company Xplor Files Confidentially for IPO
DoorDash to Offer Alcohol on its Delivery Platform
ReturntoSender Member Level  Thursday, 03/25/21 04:28:47 PM
Re: ReturntoSender post# 6854
Post # of 12644 
Markets gains on cyclical leadership and technical support
25-Mar-21 16:20 ET
Dow +199.42 at 32619.48, Nasdaq +15.79 at 12977.70, S&P +20.38 at 3909.52

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 increased 0.5% on Thursday amid cyclical leadership and technical support. The benchmark index briefly slipped below its 50-day moving average (3871) with an early 0.9% decline, but investors stepped in faithfully to buy the dip. The Nasdaq Composite (+0.1%) and Dow Jones Industrial Average (+0.6%) also reclaimed early losses and some.

The Russell 2000 rose 2.3% after finding support at the 2100 level, which represented an 8% decline in just over three sessions. Presumably, this was a short-term oversold condition that was primed for a bounce.

A pro-cyclical trade emerged during the day, as the industrials (+1.6%), financials (+1.6%), and materials (+1.4%) sectors paced the rebound effort on no specific news catalysts. The energy sector (+0.3%) overcame an early 3.3% decline, even as oil prices ($58.52/bbl, -2.61, -4.3%) fell 4% despite reports that the Suez Canal could be blocked for weeks.

The communication services (-0.3%) and information technology (-0.1%) sectors stymied the broader advance with modest declines.

There was a lot of news today, but the developments didn't necessarily explain today's action given the market's fickle performance. End-of-quarter rebalancing machinations could have played an underlying role.

Highlighting a few of the stories, President Biden said he will announce an infrastructure plan next week (reportedly with a price tag of up to $4 trillion), weekly initial claims declined by 97,000 to 684,000 (Briefing.com consensus 710,000) for its lowest level since last March, and a congressional hearing on Section 230 matters was still in session by the close.

Individual movers included Nike (NKE 128.64, -4.52, -3.4%), which fell 3% amid Chinese criticism on social media in response to the company's statement on the Xinjiang region, and Boeing (BA 247.19, +7.95, +3.3%) on news the company may begin delivering 787 Dreamliners this week. GameStop (GME 183.75, +63.41, +52.7%) soared 50% following yesterday's 34% post-earnings drop.

U.S. Treasuries finished mixed and little changed. The 10-yr yield was unchanged at 1.61% after trading slightly lower amid the negative start in equities, while the 2-yr yield decreased one basis point to 0.13%. The U.S. Dollar Index increased 0.4% to 92.87.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending March 20 declined by 97,000 to 684,000 (Briefing.com consensus 710,000). Continuing claims for the week ending March 13 decreased by 264,000 to 3.870 million.
The key takeaway from this report is that initial claims are the lowest they have been since March 14, 2020. Granted initial claims are still high, yet the directional movement fits the bill of an improving economy that requires increased hiring activity and reduced layoff activity.
The third estimate for Q4 GDP was revised up to 4.3% (Briefing.com consensus 4.1%) from 4.1% while the GDP Price Deflator was revised down to 2.0% (Briefing.com consensus 2.1%) from 2.1%.
The key takeaway from this report is that it is dated (the first quarter is only days from being over) and shouldn't have any market impact.

Looking ahead, investors will receive Personal Income and Spending for February, PCE Prices for February, the final Univ. of Michigan Index of Consumer Sentiment for March, and the Advance reports for International Trade in Goods, Retail Inventories, and Wholesale Inventories on Friday.

Russell 2000 +10.6% YTD
Dow Jones Industrial Average +6.6% YTD
S&P 500 +4.1% YTD
Nasdaq Composite +0.7% YTD

WTI crude futures settle lower by 4%
25-Mar-21 15:30 ET
Dow +182.10 at 32602.16, Nasdaq +14.33 at 12976.24, S&P +18.85 at 3907.99

[BRIEFING.COM] The S&P 500 is trading near session highs with a 0.4% gain.

One last look at the S&P 500 sectors shows industrials (+1.5%), financials (+1.4%), and materials (+1.4%) leading the advance with gains over 1.0%, while the energy (-0.2%) and communication services (-0.2%) sectors trade slightly lower.

WTI crude futures settled lower by 4.3%, or $2.61, to $58.52/bbl despite reports that traffic is growing in the Suez Canal due to the ship blockage. Presumably, this would hinder supply, which would be bullish on a short-term basis if demand is unchanged. Note, crude futures rose 6% yesterday.

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences