S&P snaps win streak as banks fail a leadership test
- The broader market appears back at the mercy of tech and momentum
stocks as cyclicals failed a big test, with bank stocks falling despite
decent big-name earnings.
- The S&P (SP500) fell 0.6%, snapping a four-day winning streak. The
Nasdaq (COMP) just missed out on making it five in a row, ending off
0.1%.
The Dow (NYSEARCA:DIA) fell 0.5%.
- The market looks a little cautious about reopening names. After J&J
paused its vaccine trial, Eli Lilly is temporarily halting a COVID
antibody trial. And in stimulus discussions Majority Leader McConnell is
planning on a Senate vote on a stripped-down targeted stimulus package,
which is actually going backwards as that's been rejected by the
Democrats.
- Amid that caution more reliable pandemic and work-from-home names are
performing and recovery plays are not.
- Zoom Video rose more than 5% and Chipotle and Domino's gained more
than 3%. Cruise lines plunged, with Royal Caribbean off more than 13%,
and
casinos and department stores like Kohl's also tumbled.
- Financials (NYSEARCA:XLF) ended the worst-performing sector, down 1.9%,
as investors changed their minds on earnings from JPMorgan Chase and
Citi.
Shares rose after credit-loss provisions fell, indicating bullishness on
the economy, but reversed as the focus turned to challenging commercial
banking business and difficulty in growing profits with near-zero rates
for
a while. The SPDR Bank ETF (NYSEARCA:KBE) fell 2.7%.
- The megacaps closed mostly higher, with the exception of Apple, off
2.7%, which soared yesterday, then saw a sell-the-news reaction for its
launch
event.
- Just two sectors, Communications Services (NYSEARCA:XLC), and Consumer
Discretionary (NYSEARCA:XLY), just barely, closed higher. Streaming
enthusiasm helped XLC, with Disney and Netflix at the top.
|Yesterday, 4:03 PM|18 Comments
- The broader market appears back at the mercy of tech and momentum
stocks as cyclicals failed a big test, with bank stocks falling despite
decent big-name earnings.
- The S&P (SP500) fell 0.6%, snapping a four-day winning streak. The
Nasdaq (COMP) just missed out on making it five in a row, ending off
0.1%.
The Dow (NYSEARCA:DIA) fell 0.5%.
- The market looks a little cautious about reopening names. After J&J
paused its vaccine trial, Eli Lilly is temporarily halting a COVID
antibody trial. And in stimulus discussions Majority Leader McConnell is
planning on a Senate vote on a stripped-down targeted stimulus package,
which is actually going backwards as that's been rejected by the
Democrats.
- Amid that caution more reliable pandemic and work-from-home names are
performing and recovery plays are not.
- Zoom Video rose more than 5% and Chipotle and Domino's gained more
than 3%. Cruise lines plunged, with Royal Caribbean off more than 13%,
and
casinos and department stores like Kohl's also tumbled.
- Financials (NYSEARCA:XLF) ended the worst-performing sector, down 1.9%,
as investors changed their minds on earnings from JPMorgan Chase and
Citi.
Shares rose after credit-loss provisions fell, indicating bullishness on
the economy, but reversed as the focus turned to challenging commercial
banking business and difficulty in growing profits with near-zero rates
for
a while. The SPDR Bank ETF (NYSEARCA:KBE) fell 2.7%.
- The megacaps closed mostly higher, with the exception of Apple, off
2.7%, which soared yesterday, then saw a sell-the-news reaction for its
launch
event.
- Just two sectors, Communications Services (NYSEARCA:XLC), and Consumer
Discretionary (NYSEARCA:XLY), just barely, closed higher. Streaming
enthusiasm helped XLC, with Disney and Netflix at the top.
|Yesterday, 4:03 PM|18 Comments
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