MARKETS TODAY Feb 9 (Vica Partners)
DOW (^DJI) 33,700 (-249), S&P 500 (^GSPC) 4,082 (-36) Nasdaq (^IXIC) 11,790 (-121), Russell 2000 (^RUT) 1,919 (-24), NYSE FANG+ (^NYFANG) 5,694 (-29), Brent Crude $84.13/barrel (-$0.96), Gold $1,859/oz (-$16), Bitcoin $21.9k (-$1018)
Session Overview
- Indexes fall
- S&P 500 4100 level is key market metric
- Yields rise, curve moving > inversion
- Value outperforms today
- 10 of 11 S&P 500 Sectors lower: Communication Services and Real Estate underperformed/ Consumer Discretionary and Information Technology outperformed
- Tenet Healthcare significantly beats earnings further highlighting sector opportunities
- Credit Suisse reports earnings losses and draws regulatory concerns
- Bitcoin drops below 22k as Kraken/ SEC agreement to close crypto staking
- Economic news thin Thursday, U.S. initial/ continuing jobless claims over estimates
- >80% chance of 25bps rate hike in May, moving the terminal rate closer to 5.25%
Technicals/ Sector Performance/ Yields+
Index Moving Averages
S&P 500 Index ($SPX) close 4,082-/ 50 Day 3,966+/ 100 Day 3,880+/ 200 Day 3,945+
Dow Jones In ($DOWI) close 33,700-/ 50 Day 33,649+/ 100 Day 32,554+/ 200 Day 32,326+
Nasdaq Co ($NASX) close 11,790-/ 50 Day 11,081+/ 100 Day 10,990+/ 200 Day 11,441+
10 of 11 S&P 500 Sectors lower: Communication Services and Real Estate underperformed/
Consumer Discretionary and Information Technolgy outperformed
Communication Services and Real Estate were the biggest decliners, down 1.38% and 1.17% respectively. Consumer Discretionary and Information Technology outperformed, up 0.08% and down 0.29% respectively.
Yields rise: US 2yr to 4.486%+, 5yr to 3.857%+, 10yr to 3.66%+, 30yr to 3.733%+
Greed Index Rating 72/ Greed
Notable Company Earnings
- Beats / PepsiCo (PEP), Toyota Motor ADR (TM), Philip Morris (PM), PayPal Holdings Inc (PYPL), Nippon Steel ADR (NPSCY), Isuzu Motors (ISUZY), Tenet Healthcare (THC), BorgWarner (BWA)
- Misses/ AbbVie (ABBV), Siemens ADR (SIEGY), Expedia (EXPE), Nissan Motor ADR (NSANY), Credit Suisse ADR (CS), News Corp (NWS), Mitsubishi Estate ADR (MITEY), Warner Music (WMG)
U.S Economic News
- Initial jobless claims; period Feb. 4, actual 196,000, forecast 190,000, prev 183,000. Applications for US unemployment benefits rose for the first time in six weeks but remained historically low.
- Continuing jobless claims; period Jan. 28, actual 1.69m, forecast –, prev 1.65m million
- Tomorrow; UMich consumer sentiment index and inflation expectations, Federal budget balance, The Feds Waller and Harker speak
Other Asset Classes:
- CBOE Volatility Index (^VIX): +1.07 to 20.70
- USD index: -0.15 to $103.26
- Oil prices: Brent: -1.13% to $84.13, WTI: -1.04% to $77.65, Nat Gas: +2.05% to $2.445
- Gold: -0.86% to $1,859.21, Silver: -1.69% to $21.92, Copper: +0.78% to $4.07
- Bitcoin: -1.35% to $22.9k
Business News
- Credit Suisse warns of more losses, drawing regulatory attention Reuters
- GM inks deal with GlobalFoundries to secure U.S.-made chips Reuters
- Chinese state media, AI companies warn of risks in ChatGPT stock frenzy Reuters
- Oil prices fall as U.S. crude, fuel inventories swell Reuters
- Bitcoin Drops Below $22K as Kraken Agreement to Close Crypto Staking Operations Spooks Investors Coindesk
Vica Momentum Stock Report
Centene Corp (CNC) $CNC (Momentum B) (Value A+) (Growth A+), moving averages/ 50 Day –15.54%, 100 Day -14.89%, 200 Day -15.47%, Year-to-Date -12.54%
Top Rank Value/ Growth Buy Rating
Centene Corporation is a highly diversified, multi-national healthcare company that primarily provides a set of services to the government sponsored healthcare programs. It’s > $100b enterprise servicing more than 24 million members across 50 states. With the acquisition of WellCare Health it’s the largest Medicaid managed care organization in the country.
Market Outlook
Market Outlook and updates posted at vicapartners.com
