US Stocks Advance Cautiously on Light Volume

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Commentary Analysis

  • Market Moving Event(s): Stronger than expected economic data from the US and Europe, along with stabilizing 10-Year Treasury rates, enabled equity markets to recover losses from earlier in the week to finish relatively unchanged. Meanwhile, investors continue to weigh the prospects of Biden’s proposed capital gains tax targeting high income earners vs what may be compromised during negotiations.
  • US Equities: Market consolidation continues within a very narrow weekly trading range. The Russell-2000 (IWM) was the top performer @ +1.89% today and emphatically finished the week by regaining the support of its 50-day moving average. The Nasdaq-100 (QQQ), Dow (DIA) and SP-500 (SPY) also clawed back some of the week’s earlier losses to close in positive territory today. (See results below in ETF performance table). Lastly, volume consistently remains below average, which might be interpreted as investors proceeding with caution as it becomes clearer that the Biden administration intends to make good on its campaign promises to increase corporate and capital gains tax rates.
  • Economy: The latest Housing data and PMI reports support strong growth ahead.
    • US New Home Sales (Mar-2021) @ 1021k vs estimates @ 886k and prior @ 846k; Monthly change @ 20.71% vs estimates @ 12.0% and prior @ -16.2%.
    • US PMI Reports: Manufacturing (Apr-2021) @ 60.6 vs estimates @ 60.5 and prior @ 59.1; and Markit Composite (Apr-2021) @ 62.2 vs prior @ 59.7.
  • Earnings: Apparently the market is still not over INTC’s disappointing results from its “data center” segment of business and therefore selling carried over from yesterday. Industrial and financial bellwethers, Honeywell (HON) and American Express (AXP) reported better than expected results, but both stocks gapped down. However, AXP did attract strong support as buyers snapped up shares that sent its price to the upper end of its trading range to minimize losses..
  • Large-Cap Volume Surgers:
    • Huntington Bancshares (HBAN) +3.04% on 127% volume surge
    • Mattel Inc (MAT) +).81% on 28% volume surge
    • Intel Corp (INTC) -5.32% on 147% volume surge
    • American Express Co (AXP) -1.92% on 98% volume surge
  • Small-Cap Volume Surgers:
    • Inovio Pharma (INO) -24.97% on 355% volume surge
    • Colony Capital Inc (CLNY) +2.52% on 92% volume surge

ETF Daily Market Performance Summary: 24-April-2021

etf daily market summary for stocks, bonds, currencies, cryptocurrencies, commodities, real estate, and equity sectors
Click to enlarge

Market Diary: 24-April-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)

Covid19 Global Status Update

The 7-day average of new cases in the USA is improving @ 65,265 vs last week @ 71,446. India, which is struggling, reported a 7-day average @ 297,253 vs last week @ 188,414. Global numbers are @ 897,836 vs last week @ 744,809. Needless to say, there is much room for improvement and any reversal of these trends in India or globally would be received as an extremely bullish catalyst for the global economy. As long as these numbers continue to rise, the US economy stands vulnerable to an uncontained risk.

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