MARKETS TODAY Feb 21 (Vica Partners)
DOW (^DJI) 33,130 (-697), S&P 500 (^GSPC) 3,997 (-82) Nasdaq (^IXIC) 11,492 (-295), Russell 2000 (^RUT) 1,890 (-56), NYSE FANG+ (^NYFANG) 5,396 (-141), Brent Crude $82.78/barrel (-$1.29), Gold $1,835/oz (-$7), Bitcoin $23.4k (-$423)
Session Overview
- Flash PMIs top estimates, services remain strong
- New orders best since October
- Fear over tight labor market and rising wages contributed to session rout
- Indexes fall, Nasdaq and Russell 2000 lag
- Yields continue Monthly rise
- Walmart, HSBC and Palo Alto Networks (PANW) with impressive earning beats
- Defensive sectors trending
- All 11 S&P sectors lower: Consumer Discretionary and Information Technology underperform/ Consumer Staples and Energy outperform
- Copper up >3% over past 5 days
- Oil and most metals flat to negative
- US dollar index higher
- Markets expecting the Fed will raise rates by 75bps this year with no rate cuts until 2024
Technicals/ Sector Performance/ Yields+
Index Moving Averages
S&P 500 Index ($SPX) close 3,997-/ 50 Day 3,979+/ 100 Day 3,904+/ 200 Day 3,942+
Dow Jones In ($DOWI) close 33,130-/ 50 Day 33,621-/ 100 Day 32,825+/ 200 Day 32,342+
Nasdaq Co ($NASX) close 11,492-/ 50 Day 11,165+/ 100 Day 11,041+/ 200 Day 11,414+
All 11 S&P sectors lower: Consumer Discretionary and Information Technolgy underperform/ Consumer Staples and Energy outperform
Consumer Discretionary and Information Technology were the largest decliners, down 2.89% and 2.44% respectively. Consumer Staples and Energy were the biggest advancers, down 0.42% and 0.54% respectively.
Yields rise: US 2yr to 4.731%+, 5yr to 4.178%+, 10yr to 3.956%+, 30yr to 3.976%+
Greed Index Rating 63/ Greed
Notable Company Earnings
- Beats / Walmart (WMT), HSBC ADR (HSBC), Medtronic (MDT), Public Service Ent (PEG), Ingersoll Rand (IR), Palo Alto Networks (PANW), Toll Brothers (TOL), Coinbase Global (COIN)
- Misses/ Home Depot (HD), Fluor (FLR), Teck Resources B (TECK), Expeditors Washington (EXPD), Westlake Chemical (WLK), Molson Coors Brewing B (TAP)
U.S Economic News
Composite PMIs improved in January driven by strength in services which hit its highest levels in 8 months.
- S&P flash U.S. services PMI; period Feb., act 50.5, fc 47.5, prev 46.8
- S&P flash U.S. manufacturing PMI; period Feb., act 47.8, fc 47.4, prev 46.9
- Existing home sales; period Jan., act 4.0m, fc 4.02m, prev 4.03m
Other Asset Classes:
- CBOE Volatility Index (^VIX): +1.58 to 22.81
- USD index: +0.32 to $104.18
- Oil prices: Brent: -1.53% to $82.78, WTI: -0.38% to $76.05, Nat Gas: -8.92% to $2.072
- Gold: -0.36% to $1,835.19, Silver: +0.17% to $21.84, Copper: +2.36% to $4.20
- Bitcoin: -1.71% to $24.4k
Business News
- ChatGPT launches boom in AI-written e-books on Amazon Reuters
- Tesla scales back German battery plans, won over by U.S. incentives Reuters
- Credit Suisse chairman’s comments draw scrutiny from financial watchdog Reuters
- Walmart gets cautious on economic outlook, sees lower 2023 performance Reuters
- Microsoft inks Nvidia game deal to assuage regulators over Activision merger Reuters
Vica Momentum Stock Report
Rio Tinto Plc ADR (RIO) $RIO (Momentum A-) (Value A+) (Growth A+), moving averages/ 50-Day +7.80%, 100-Day +43.76%, 200-Day +4.86%, Year-to-Date +5.76%
Strong Overall Value Buy Rating
Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and lithium. It also owns and operates open pit and underground mines, mills, refineries, smelters, power stations, and research and service facilities. Rio Tinto Group was founded in 1873 and is headquartered in London, the United Kingdom.
Market Outlook and updates posted at vicapartners.com
