Stocks close out the week with big gains, as Big Tech comes back in flavor. The earnings frenzy starts with Apple, Tesla, Facebook & Microsoft reporting. GameStop, GM & Ford spiked last week, let’s talk about this and other stock market news
~Very Long Post~
Hello everyone and Good Morning! So, let’s start with the recap of Friday as we saw most of the stock market giving up some of the big gains of the week, with the broad stock market SP500 losing .30% & the Dow Jones Industrial dropping 179 points while the Nasdaq Composite barely managed to post a small gain for the day as we also saw the VIX ticking up a little but finishing under 22 for the week, with the Nasdaq gaining 4.2% in the short week the SP500 rising 1.9% and the Dow Jones posting a .6% gain.
About 55% of the companies were advancing on below average volume as the number of companies moving above the moving averages still remains very high. We only saw 3 of the 11 SECTORS posting small gains for the day while the biggest losers were the value play in Financials, Energy and Industrials, all losing more than .50%
For the week we saw communications outperform with a big spike after Netflix reported earnings, while Energy had more than one ugly day dropping big on Monday, Thursday and Friday.
Small-caps faired better to close out the week, with all 3 groups posting gains of more than 1.5% while Large-Cap Value companies underperformed losing more than 2.5% for the week, as Growth Companies & Especially the big-caps finally outperformed this week, gaining 2.3%.
Here is the HEAT MAP from Friday, which was a pretty mixed bag, with Apple posting a big gain ahead of the earnings report while the other big tech companies also posted small-gains. For the WEEK though, we saw huge gains in most of the big tech names with all the FAANG names and Microsoft gaining more than 5% for the week, while Banks alongside Oil & Gas companies were the biggest losers
We also got some economic data on Friday as existing home sales rose again while the inventory is still at all time-lows of under 2 months of supply while the January PMI current read came in at 58, way above the 55.5 expected and 55.3 in the previous read as both the Services and Manufacturing PMI saw a spike of more than 2 points
This week we also start the EARNINGS frenzy, with AMD which might benefit from Intel’s drop last week, Microsoft & Starbucks reporting after Tuesday’s close as JNJ might also give some updates regarding their vaccine, while big value companies like Boeing, AT&T & Caterpillar report before the open on Wednesday & Friday. We also have some of the big tech names reporting on the same day, with Apple which is expected to have their first $100B quarter, Tesla & Facebook reporting after Wednesday’s close which might be a bigger volatility moment for the market depending on how the results come in.
In terms of economic data, we start off today with the Dallas FED Manufacturing survey but the most interesting ones are on Thursday & Friday, while we also wait to see what the FED announces in terms keeping the rates low & the money printer going with asset buying on Wednesday.
In some other stock market, we saw Palantir soar on Friday, rising more than 25% to break the $30 levels after they updated their Demo Day scheduled for tomorrow. It’s expected that they will reveal the latest developments in their big software platforms and also reveal new software platforms that will continue to help the company grow such as SDDI, Low-Code/No-Code and other modular strategy software.
We also saw Ford soaring again, as the company is having the best monthly performance in more than 10 years and spiked more than 6% after JP Morgan upgraded the company based on their new product line which is what I’ve been saying about the company in some months now. Tesla is going to face serious competition in the next decade with all the other car manufactures pushing harder and harder into the EV world, with some of the most popular cars out there like the F150, the Bronco and other models joining the sector that will continue to improve and might actually become a good alternative to Tesla’s models. It’s the same with others like GM which might be a good catch-up play compared to Tesla. By the way… GM is outperforming Tesla recently based on their developments in the EV & self-driving sector.
Meanwhile, GME had a wild day on Friday, gaining more than 50% despite being even higher as the battle between WSB & the shorts continues, with this move making Citron’s Left deciding to avoid further talks about the company probably in an attempt to avoid future attention at the GameStop short squeeze. Short Squeeze has seen a big rise in terms of search interest after these latest moves in the GameStop stock and might even put more pressure on the bears, as retail investors might pump up this stock even more.
So, guys, this week might bring a lot of volatility depending on many of the important events we have. Earnings seasons & especially big tech results will be important to justify these high multiples most of the tech names have received, while we also have to see how the GDP comes in, as it is expected to have seen a 4% growth for the 4th quarter while the FED is under pressure to keep the money printer on and the rates low, if not, or if there is any doubt in their commitments and also some numbers come in worse than expected we might see the long-awaited correction/pullback. But I don’t think numbers or the FED are going to disappoint really, but that doesn’t exclude the possibility of the pullback… keep investing safely & have some money available to buy the dips if they appear, use them as a buying opportunity, not a panic sell.
So, let’s hope for a good day in the markets as the US FUTURES are pointing to a very good open, with the Nasdaq leading the way up almost 1%
Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!
PS:
Hello Guys❗ Please don't forget to follow me on YouTube ❗
🔜Stay tuned for the upcoming posts in the next couple of days❗
💰My: 0 to Hero Challenge Portfolio
✔️ Both of the sheets are self-updating every minute, so the stats are very accurate ✔️
100% Free Content [No Patreon / No Courses / No Nothing]❗️
PayPal Donations: Thank You! 🙏
Bitcoin Donations: 36p4bR29u6idYhNr9sLKCbdNXD43bMdvq2 🙏
Thank you very much for the support❗ I really appreciate it & Have a great day and see you next time🙏
