Buy Cyclicals, Sell Tech-3/23/21
The move out of Tech into Cyclicals seems to be only accelerating this AM. With about 3.5 hours to go before the open, DOW Futures are pointing to a loss of 69.69 points; SP 500 Futures to an opening loss of 28.00 and NAS COMP Futures to another out-sized loss of 240.74 points. The DAX is leading all of the Major European Markets lower as it is down 1.72%. The Major Asian Markets are mixed with the Nikkei and HSI higher; while Shanghai and the Kospi are lower. WTI and Brent are up about 1% as US Oil output slowly comes back up. Natural Gas is down 0.54%. platinum is down 2.35%; palladium is lower by 1.17%; while gold, silver and copper are more modestly lower.
Janet Yellen and Bill Gates both made negative comments on Bitcoin and it is getting whacked as it drops 6,150.74, but still at 47,964.02. The 2 Year Treasury Note is now yielding 0.11%; the 5 Year has a yield of 0.59%; the yield on the 10 year is at 1.36% and the 30 Year Bond is now yielding 2.17%.
The IWM is down 2.39 to 221.27; the QQQs are dropping 5.24 to 317.17; the SMH is down 6.58 to 240.00; the SPY is down 2.52 to 384.55 and the VXX is adding 0.17 to 15.90.
Notable companies reporting before today's open, with earnings consensus, include Home Depot (HD), consensus $2.61... Leidos (LDOS), consensus $1.61... Macy's (M), consensus 12c... Spirit AeroSystems (SPR), consensus (85c).
Notable companies that reported after yesterday's market close, with earnings consensus, included Cadence Design Systems (CDNS), consensus 74c... Palo Alto Networks (PANW), consensus $1.43... ZoomInfo (ZI), consensus 10c... Ingersoll Rand (IR), consensus 45c... Five9 (FIVN), consensus 23c... BigCommerce (BIGC), consensus (14c)... RealReal (REAL), consensus (41c).
Lucid Motors is going public through a deal with CCIV. CCIV initially popped, as usually happens in these SPAC Deals, but is now down 21.94 to 35.42.
My Watch Lists are almost an uniform Sea of Red, with JNJ and XOM only bucking the trend. Even HD which just reported a nice top and bottom line beat is down 5.06 to 270.00.