Investors Have Yet to Abandon Technology and Growth Stocks

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Commentary

  • Summary Analysis:
    • Technology stocks are exhibiting a disproportionately larger in-flow of volume dollars, which indicates that investors have not completely abandoned the sector or growth.
    • Some technology standouts were Zoom Communications (ZM); Netease (NTES); Tesla (TSLA); Nvidia (NVDA); Atlassian (TEAM); and Broadcom (AVGO).
    • Bullish economic data, with respect to Unemployment Claims and, most especially, Leading Economic Indicators support strong consumer demand and growth over the remainder of the year. The disappointing Philidelphia Manufacturing data may be partially attributed to the lack of available workers, a problem that will eventually prove to be temporary and not permanent.
    • Typically such positive data would push interest rates higher, but the 10-year treasury rate declined -2.91% and the VIX (VXX) retreated -5.57% to sustain the risk-on trade.
  • Equities:
    • US Markets: The Nasdaq-100 (QQQ) was today’s market leader and distinguished itself by regaining support at its 50-day moving average.
    • International: Leaders in Europe (VGK) and Pacific Ex Japan (EPP); and Laggards in Latin America 40 (ILF) and Brazil (EWZ).
    • ETF Sector Strength: Technology (XLK); Communications (XLC).
    • ETF Sector Weakness: Real Estate (XLRE); weakness in Energy (XLE); Industrials (XLI) and Basic Materials (XLB).
  • Large-Cap Volume Surgers:
    • Kohl’s (KSS): -10.17% on 603% volume surge
    • Virgin Galactic Hldngs (SPCE): +14.71% on 593% volume surge
    • Equitran Midstream Corp (ETRN): +4.03% on 84% volume surge
    • Fireeye Inc (FEYE): +3.67% on 115% volume surge
    • Applied Materials (AMAT): +4.42% on 70% volume surge
  • Small-Cap Volume Surgers:
    • American Eagle Outfitters (AEO): -5.61% on 107% volume surge
    • Welbilt (WBT): -2.59% on 40% volume surge
  • Market Moving Events:
    • Economy / US Labor: Weekly Unemployment Claims @ 444k vs estimates @ 450k and prior @ 478k.
    • Economy / US Manufacturing: May-2021 Philidelphia Fed Mfg Index @ 31.5 vs estimates @ 43 and prior @ 50.2; and Philly Fed Employment @ 19.3 vs prior @ 30.8m.
    • Economy / US Leading Indicators: Apr-2021 LEI Index @ 1.6% vs estimates @ 1.2% and prior @ 1.3%. The Conference Board has raised its full year GDP estimate to 9% from 8%.
    • Earnings / Positive Surprises: CSCO; CPRT; KEYS; LB; SNPS; TCOM; HRL; KSS; and ROST.
    • Earnings / Negative Surprises: n/a.

ETF Daily Market Performance Summary: 20-May-2021

etf daily market summary for stocks, bonds, currencies, cryptocurrencies, commodities, real estate, and equity sectors
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Market Diary: 20-May-2021

market diary summary for NYSE and Nasdaq exchanges: advancers, decliners, new highs and new lows, plus mega-cap market breadth
(Click table to enlarge)

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