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Afternoon Note

Tough Sledding for Tech

By Charles Payne, CEO & Principal Analyst
2/23/2021 1:33 PM

It’s been tough sledding so far today, especially for the tech heavy Nasdaq, which had been down 500 points earlier in the session, dropping below its 50-day moving average.  The losses were stemmed on comments from Fed Chair Powell that he is staying the course on rates and bond buying.  The economy, jobs and inflation still have a way to go before there is any change in direction.

Speaking of inflation, Powell doesn’t seem too concerned, stating it was “soft.” He added further,  “The economy is a long way from our employment and inflation goals, and it is likely to take some time for substantial further progress to be achieved.”

FAANG stocks and many of the high-fliers are down significantly from their highs, including:

On the flip side, the reopening trades are rocking. Pent up demand to get out there and travel is driving up shares of airlines, cruise operators, and vacation related stocks.  Consumer confidence rose to a 3- month high to 91.3 in February from 88.9, as more people plan vacations.

Energy continues to be the best performing sector despite WTI being down today. Technology is the laggard by far.  

S&P 500 Index

 

-0.79%

Communication Services XLC

 

-0.58%

Consumer Discretionary XLY

 

-2.04%

Consumer Staples XLP

+0.28%

 

Energy XLE

+0.66%

 

Financials XLF

+0.20%

 

Health Care XLV

 

-0.43%

Industrials XLI

 

-0.80%

Materials XLB

 

-0.68%

Real Estate XLRE

+0.16%

 

Technology XLK

 

-1.69%

Utilities XLU

+0.38%

 
 

Breadth is decidedly negative, especially on the Nasdaq, where decliners are leading advancers 5-1 and the down volume 6-1.  The declines are more muted on the NYSE.

Market Breadth

NYSE

NASDAQ

Advancing

886

673

Declining

2,361

3,347

52 Week High

156

168

52 Week Low

42

76

Up Volume

1.15B

696.76M

Down Volume

2.50B

4.19B

 


Comments
I appreciate and respect your opinions also watch your show...!!!

Jose A. Molet on 2/23/2021 1:52:14 PM
Charles, are Commodities still a solid choice? What should I search through on Robinhood? (I know, shame on me for being with them.) any advice thanks

Brandon on 2/23/2021 3:31:13 PM
 

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