MARKETS TODAY Feb 14 (Vica Partners)
DOW (^DJI) 34,090 (-156), S&P 500 (^GSPC) 4,136 (-1) Nasdaq (^IXIC) 11,960 (+68), Russell 2000 (^RUT) 1,945 (+4), NYSE FANG+ (^NYFANG) 5,785 (+134), Brent Crude $85.68/barrel (-$0.93), Gold $1,855/oz (+$0), Bitcoin $22.2k (+$367)
Session Overview
- CPI data mostly in line with expectations, market reaction muted
- Indexes mixed, Nasdaq and NYFANG+ lead, Dow lags
- Yields rise
- 7 of 11 S&P 500 Sectors lower: Real Estate and Consumer Staples underperformed/ Information Technology, Energy and Consumer Discretionary outperformed
- Bitcoin up, Metals mixed. Oil down
- Airbnb (ABNB), Marriott Int (MAR), Peabody Energy (BTU) impressive earning beats
- U.S. small business sentiment improved in January
- Biden names Fed’s Brainard top White House economic adviser
- >90% chance of 25bps rate hike in May
Technicals/ Sector Performance/ Yields+
Index Moving Averages
S&P 500 Index ($SPX) close 4,136-/ 50 Day 3,971+/ 100 Day 3,889+/ 200 Day 3,944+
Dow Jones In ($DOWI) close 34,089-/ 50 Day 33,636+/ 100 Day 32,657+/ 200 Day 32,334+
Nasdaq Co ($NASX) close 11,960+/ 50 Day 11,114+/ 100 Day 11,004+/ 200 Day 11,430+
7 of 11 S&P 500 Sectors lower: Real Estate and Consumer Staples underperformed/ Information Technology, Energy and Consumer Discretionary outperformed. Real Estate and Consumer Staples were largest decliners, down 0.73% and 0.45% respectively. Information Technology, Energy and Consumer Discretionary were the biggest
Yields rise: US 2yr to 4.613%+, 5yr to 4.001%+, 10yr to 3.751%+, 30yr to 3.785%-/+
Greed Index Rating 73/ Greed
Notable Company Earnings
- Beats / Coca-Cola (KO), Airbnb (ABNB), Marriott Int (MAR), Exelon (EXC), Globalfoundries (GFS), Leidos (LDOS), WESCO (WCC), Peabody Energy (BTU),
- Misses/ Ecolab (ECL), Restaurant Brands Int (QSR), PerkinElmer (PKI), TransUnion (TRU) Fannie Mae (FNMA), Garrett Motion (GTX), LCI Industries (LCII)
U.S Economic News
- NFIB small-business index; period Jan., act 90.3, fc 90.0, prev 89.8
- Consumer price index ; period Jan., act 0.5%, fc 0.4%, prev -0.1% +
- Core CPI; period Jan., act 0.4%, fc 0.3%, prev 0.3% +
- CPI (year-over-year); period Jan., act 6.4%, fc 6.2%, prev 6.5% +
- Core CPI (year-over-year); period Jan., 5.6%, fc 5.4, prev 5.7%
Summary/ CPI data mostly in line with expectations with headline up 0.5% due to rising energy prices. Annual increase came in above estimates at 6.4% (prior 6.5%) but was down for the fourth consecutive month. Within services shelter remained sticky up 0.7% and accounted for nearly half of the overall monthly gains.
- Fed speakers today; Fed’s Barkin expects inflation to have ‘a lot more persistence’ than everyone wants, Fed’s Logan says most important risk facing central bankers ‘is that we tighten too little, Fed’s Harker backs raising interest rates above 5%
Other Asset Classes:
- CBOE Volatility Index (^VIX): -1.72 to 18.62
- USD index: -0.11 to $103.24
- Oil prices: Brent: -1.07% to $85.68, WTI: -1.20% to $79.18, Nat Gas: +8.57% to $2.611
- Gold: +0.01% to $1,854.78, Silver: -0.67% to $21.87, Copper: +0.81% to $4.09
- Bitcoin: +1.69% to $22.2k
Business News
- Walmart to close three U.S. tech hubs, relocate staff Reuters
- TSMC to boost capital at Arizona factory by $3.5 bln Reuters
- Pilot Company trims energy trading unit following Buffett takeover Reuters.
- Australia’s iron ore giants face earnings, dividend plunge Reuters
Vica Momentum Stock Report
Globalfoundries Inc (GFS) $GFS (Momentum B) (Value A) (Growth B), moving averages/ 50 Day +12.14%, 100 Day +26.83%, 200 Day +32.06%, Year-to-Date +32.47%
Top Rank Value Buy Rating
GlobalFoundries Inc. is a semiconductor manufacturer and contract chipmaker that was originally the manufacturing arm of Advanced Micro Devices before it was spun out in 2009. The foundry sells chips into a range of end markets including smartphones, PCs, Internet of Things, data centers, automotive, industrial, and so on, but primarily focuses on more mature process technologies.
Market Outlook and updates posted at vicapartners.com
