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Afternoon Note

Commodities Spike

By Charles Payne, CEO & Principal Analyst
2/22/2021 1:34 PM

Rotation out of Technology and some of the high-fliers continues today. Bitcoin is also losing some of its luster, down 10%.  Nasdaq is the worst performer, shedding 1.6%.

Money is moving into commodities and cyclical stocks, and the Dow is the beneficiary, up 100 points or .33%, after being down 200 points.  Oil is continuing to gush, with WTI up 3% to $60.87, as weather continues to hamper operations.  Copper prices hit highs not seen since 2011.  And agriculture also maintains its upward trajectory.

Lumber is soaring to new highs and reached $1,010 per 1000 board feet, as demand continues to rise, and supply remains constrained.  Year to date, lumber prices are up 15%. Home improvement has been on fire since the pandemic started, as more people work from home.  Low interest rates and the move to the suburbs is fueling new construction.  Tariffs on Canadian lumber is also a contributor to higher prices.  The National Association of Home Builders has asked the US government to remove these tariffs to help boost output.

The S&P 500 is down .35%, with 5 of the 11 sectors in the green.  Energy is blowing past all the sectors and is up almost 5%. On the other side of the equation, its lights out for Utilities, down 2.6%.

S&P 500 Index

 

-0.47%

Communication Services XLC

 

-0.08%

Consumer Discretionary XLY

 

-1.05%

Consumer Staples XLP

 

-0.08%

Energy XLE

+4.72%

 

Financials XLF

+1.11%

 

Health Care XLV

 

-0.52%

Industrials XLI

+0.87%

 

Materials XLB

+0.68%

 

Real Estate XLRE

+0.37%

 

Technology XLK

 

-1.82%

Utilities XLU

 

-2.61%

Breadth is mixed, with advancers leading on the NYSE, as is the up volume.  The reverse is true of the Nasdaq.

Market Breadth

NYSE

NASDAQ

Advancing

1,698

1,793

Declining

1,525

2,181

52 Week High

300

320

52 Week Low

9

11

Up Volume

1.74B

1.73B

Down Volume

1.36B

2.06B

 


 

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