MARKETS TODAY Feb 22 (Vica Partners)
DOW (^DJI) 33,045 (-85), S&P 500 (^GSPC) 3,991 (-6) Nasdaq (^IXIC) 11,507 (+15), Russell 2000 (^RUT) 1,895 (+15), NYSE FANG+ (^NYFANG) 5,399 (+8), Brent Crude $80.50/barrel (-$2.55), Gold $1,825/oz (-$11), Bitcoin $23.8k (-$644)
Session Overview
- FOMC minutes late afternoon release created mixed market volatility
- Indexes mixed, Nasdaq, FANG+ and Russell 2000 led
- Yields muted following FOMC minutes
- 10 of 11 S&P sectors lower: Energy and Financials underperform/ Consumer Staples outperforms
- NVIDIA (NVDA) and Baidu (BIDU) with solid earning beats
- Oil and most metals down, Natural Gas futures recover from premarket under $2 lows
- Bitcoin pulls back
- US dollar index higher
- US. mortgage interest rates at highest level since November
- Mortgage applications weekly composite index was down, 13.3% versus 7.7%
- Fed Bullard believes the market is overpricing the risk of recession in 2023 and wants to push interest rates up quickly to raise the benchmark short-term borrowing rate a full percentage point by July. He has a reputation for being early with policy calls!
Technicals/ Sector Performance/ Yields+
Index Moving Averages
S&P 500 Index ($SPX) close 3,991-/ 50 Day 3,979+/ 100 Day 3,907+/ 200 Day 3,941+
Dow Jones In ($DOWI) close 33,045-/ 50 Day 33,606-/ 100 Day 32,858+/ 200 Day 32,342+
Nasdaq Co ($NASX) close 11,507+/ 50 Day 11,173+/ 100 Day 11,045+/ 200 Day 11,410-
10 of 11 S&P sectors lower: Energy and Financials underperform/ Consumer Staples outperforms
Energy and Financials were the largest decliners, down 0.94% and 0.68% respectively. Consumer Staples was the biggest advancers, up 0.02%.
Yields narrowly decline: US 2yr to 4.699%-, 5yr to 4.162%-, 10yr to 3.925%-, 30yr to 3.919%-
Greed Index Rating 63/ Greed
Notable Company Earnings
- Beats / NVIDIA (NVDA), Stellantis NV (STLA), Baidu (BIDU), Lloyds Banking ADR (LYG), Garmin (GRMN), eBay (EBAY), Fresh Del Monte Produce (FDP)
- Misses/ Freddie Mac (FMCC), Targa Resources (TRGP), Rio Tinto ADR (RIO), Mosaic (MOS), Fidelity Financial (FNF), DaVita (DVA), Marriot Vacations (VAC), Altice USA (ATUS)
U.S Economic News
- Mortgage apps: act -13.3%, prev -7.7% with 30yr rate act 6.6%, prev 6.4%
- FOMC minutes of Feb.1 meeting: Federal Reserve officials saw inflation easing and would slow the pace of future increases, however they agreed the risks of high inflation remained a “key factor” shaping monetary policy and warranted continued rate hikes until it was controlled. They decided to raise the federal-funds rate by a quarter-point following their most recent Feb1 meeting.
Other Asset Classes:
- CBOE Volatility Index (^VIX): -0.54 to 22.33
- USD index: +0.37 to $104.55
- Oil prices: Brent: -3.07% to $80.50, WTI: -3.20% to $73.92, Nat Gas: +3.96% to $2.155
- Gold: -0.58% to $1,825.23, Silver: -1.67% to $21.50, Copper: -1.07% to $4.17
- Bitcoin: -2.63% to $23.8k
Business News
- Airlines cancel over 1,000 U.S. flights as winter storm grips states Reuters
- McKinsey to cut 2,000 jobs in one of its biggest layoffs Bloomberg
- Amazon completes One Medical takeover after FTC nod, discounts memb Reuters
- Toyota accepts union demands for biggest wage hike in two decade Reuters
- Rio Tinto slashes dividend as profit plunges on slower China demand Reuters
International Related News and Other
- China Urges State Firms to Drop Big Four Auditors on Data Risk Bloomberg
- How shrinking teams are pushing workers to the brink BBC
Vica Momentum Stock Report
Palo Alto Networks Inc (PANW) $PANW (Momentum B) (Value B) (Growth A+), moving averages/ 50-Day +14.96%, 100-Day +10.82%, 200-Day +4.70%, Year-to-Date +32.46
Strong Growth Buy Rating
Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on a customer’s network, as well as their instances in public or private cloud environments. It sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.
Market Outlook and updates posted at vicapartners.com
