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Afternoon Note

FAANG in Charge

By Charles Payne, CEO & Principal Analyst
12/28/2020 1:01 PM

The major indices are all in the green today on the back of the $900 billion relief package and the $1.4 trillion to fund the government through the end of its fiscal year in September. Mega-cap stocks are the recipients of investors’ money while Energy has reversed and is now down on the session, as demand fears weight on oil.  WTI is current trading down to $48.11 per barrel.

FAANG is taking charge today, with Apple (AAPL) up over 3%, Amazon (AMZN) +2.3%, Facebook (FB) +1.9%, and Alphabet/Google (GOOG/GOOGL) up 1.7%. Tesla (TSLA) is also up today on reports from Electrek, that it is working with Amazon and Apple for in-car music integration.

Travel related stocks are also doing well, as more people around the globe get vaccinated.  JP Morgan (JPM)is betting that pent up demand for travel will have the consumer itching to get back out there, and it is putting its money to work.  JPM will acquire privately held cxLoyalty Group’s technology platform, travel agency, gift card and rewards points businesses, which represents approximately half of its 3,100 employees.  The amount of the deal was not disclosed. Marianne Lake, the bank’s head of consumer lending, stated, “People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future.” She added, “Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable and confident to travel.”

Retail is also performing well, with the Retail etf, XRT, up almost 1%, on the heels holiday sales from November 1 through December 24 data showing growth of 2.4% year over year, despite being weaker than expected. 

S&P 500 Index

+0.85%

 

Communication Services XLC

+1.71%

 

Consumer Discretionary XLY

+1.17%

 

Consumer Staples XLP

+0.45%

 

Energy XLE

 

-0.42%

Financials XLF

+0.60%

 

Health Care XLV

+0.18%

 

Industrials XLI

+0.01%

 

Materials XLB

 

-0.20%

Real Estate XLRE

+0.52%

 

Technology XLK

+1.04%

 

Utilities XLU

+0.42%

 

Breadth is positive and up volume is outpacing down volume.  There are a significant number of new highs today, especially on the Nasdaq.

Market Breadth

NYSE

NASDAQ

Advancing

1,821

2,140

Declining

1,333

1,565

52 Week High

270

401

52 Week Low

2

12

Up Volume

920.37M

1.95B

Down Volume

784.03M

933.22M

There is no major economic data out today, but we will get a read on housing when the Case-Shiller Home Price Index is released tomorrow at 9am ET.

 


 

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