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Afternoon Note

Fear Declines

By Charles Payne, CEO & Principal Analyst
2/12/2021 1:45 PM

The major indices are relatively flat ahead of the holiday weekend. Worries of a pullback are being overshadowed by those looking for the markets to move higher.  This is evident in the decline in Volatility Index (VIX), also know as the fear index, which is down to 20.58, and has dropped 37.8% this month.  

The Nasdaq and the S&P 500 are trying to hold to record highs. Overall, the major indices are looking for a second up week.  Seven of the 11 S&P 500 sectors are in the green.  Energy continues to outperform, as WTI resumes its rally and nears $60 per barrel.  Seven oil rigs were added this week taking the total to 306.  Utilities lag.

S&P 500 Index

+0.15%

 

Communication Services XLC

+0.26%

 

Consumer Discretionary XLY

 

-0.38%

Consumer Staples XLP

 

-0.08%

Energy XLE

+1.24%

 

Financials XLF

+0.62%

 

Health Care XLV

+0.72%

 

Industrials XLI

+0.34%

 

Materials XLB

+0.80%

 

Real Estate XLRE

 

-0.47%

Technology XLK

+0.11%

 

Utilities XLU

 

-0.77%

 

Advancers are leading decliners.  Today, the up volume is the story on the NYSE.

Market Breadth

NYSE

NASDAQ

Advancing

1,662

2,188

Declining

1,505

1,704

52 Week High

196

327

52 Week Low

3

9

Up Volume

1.47B

2.18B

Down Volume

655.22M

2.32B

Despite all the excitement from investors, the University of Michigan’s consumer sentiment declined in February to 76.2, below estimates for 80.8, and below January’s 79. This was the lowest read since August.

According to the University of Michigan,  

"Consumer sentiment edged downward in early February, with the entire loss concentrated in the Expectation Index and among households with incomes below $75,000. Households with incomes in the bottom third reported significant setbacks in their current finances, with fewer of these households mentioning recent income gains than anytime since 2014. More surprising was the finding that consumers, despite the expected passage of a massive stimulus bill, viewed prospects for the national economy less favorably in early February than last month."

We hope everyone has a safe and enjoyable holiday weekend.  There will be no reports on Monday.

 


Comments
I think those with income 75,000 and lower are more aware of what lurks in future. Anyone watching all the biden/obama moves has to realize that the increase in oil is going to affect the price of everything we do and buy. Just saw a prediction for $4.00 a gallon gas in a year! 2 Plus 2 still adds up to 4. Even when the left progressives are in charge and in charge they are! There will be ways to make money from the stimulus, if they ever pass it, but over spending isn't good for the long haul. I kinda want to keep receiving our SS monthly checks, but if the deficit keeps growing and inflation increases and we can't pay the interest on the debt, well guess what folks. Do we miss Trump yet? I do already. Yes, I know, I don't really need the monthly check, because we've saved and invested. Who cares? It's our money!

Lorin K on 2/12/2021 4:00:13 PM
 

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