Crappy day until Powell pushed buttons into the close. (not sarcasm) He is so obvious. Happens all the time. But when we scan, we ignore all noise.
NASDAQ was trying to hold up but overall weakness took it down. It is bouncing in after hours as dead and buried CSCO is up almost $3. AMAT is up a wee bit. ADSK up nicely on raised numbers. DIS up $4 and change on much less of a loss than expected.
A/D NYSE 961-2883
A/D NASDAQ 1083-2347
PDD gaps up on strong numbers.
Chinese electric car stuff really on the move: XPEV, LI, NIO. All lose money.
About the only thing that was green was a bounce in gold/silver. Everything else was in pullback mode.
We want to make note that RH had a beautiful clean breakout…hits $440…closes at $394 as it tucks its head in like a frightened turtle. Not a good thing. We would like to see some successful moves.
The big worry is again the virus as the numbers are spiking not just here but around the globe. Certain areas of the U.S. are putting back restrictions in place. We also heard from a Biden advisor that the country should have another lock down of up to 6 weeks. Not sure the market was thrilled with that. Because of this, all the areas that gapped up hard on Monday, came in today.
We suspect this will continue to be the most news-driven market we have ever seen. While it was a less than thrilling day, we are not taking much away from it.
We are sure you have all read about the big news. Pfizer, in conjunction with BionNTech announced that a vaccine candidate achieved 90% efficacy in Phase 3 study. There is more to do but this is the news everyone has been waiting for. It is going to change a lot of things in the market.
As we write this, DOW futures are up almost 1600 points, over 5%. But the NDX 100 futures are hardly up, a little over 1%. There is a simple reason. Most all the names that have benefited so much from the pandemic are being blasted this morning while everything that has been dead money are now gapping up strongly. As we write this:
ZOOM down 15%.
PELOTON down 15%.
NETFLIX down 5%.
AMAZON down 4%.
ETSY down 12%.
ROKU down 5%.
We also suspect any other drug and especially any other biotech company that was trying for a vaccine will be hit also. Those are just a few. You can add all the tech/software names that enable all of this to also be soft in here. As we scan, we are seeing a lot of 5%+ to the downside.
On the other end:
AIRLINES are gapping up 10-20%.
CRUISE LINES are gapping up 15-20%.
HOTELS are gapping up 10%+.
CASINOS are gapping up 10%+.
FINANCIALS are soaring.
RESTAURANTS are soaring.
ECONOMICALLY SENSITIVE names are soaring.
ENERGY is soaring.
It is early. The news will be fluid. While the vaccine news is fabulous, it is not done yet…but we are thrilled. Business should be thrilled. Life should be thrilled.