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Afternoon Note

Liking the Resolve

By Charles Payne, CEO & Principal Analyst
10/20/2021 1:46 PM

The major indices are off the previous highs, and Nasdaq is struggling to stay positive. Overall, we are really liking the market’s resolve.  Value is in play again on earnings from Abbot Labs (ABT), Anthem (ANTH), United Airlines (UAL) and Verizon (VZ) to name a few.  Anthem is up 7.5% on its results.

Homebuilders are in the green today despite the decline in Mortgage Applications, which fell 6.3% from the prior week.

"Refinance applications declined for the fourth week as rates increased, bringing the refinance index to its lowest level since July 2021. The 30-year fixed rate has increased 20 basis points over the past month and reached 3.23 percent last week - the highest since April 2021. The 15-year fixed rate increased to 2.54 percent, which is the highest since July," said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting. "Purchase activity declined and was 12 percent lower than a year ago, within the annual comparison range that it has been over the past six weeks. Insufficient housing supply and elevated home-price growth continue to limit options for would-be buyers."  

Health Care once again is leader on the S&P 500 and Technology is currently the lone sector in the red. Big tech and growth names are pulling back from the highs, and Netflix is weighing on Communication Services after it earnings report.

S&P 500 Index

+0.42%

 

Communication Services XLC

+0.10%

 

Consumer Discretionary XLY

+0.13%

 

Consumer Staples XLP

+0.81%

 

Energy XLE

+0.00%

 

Financials XLF

+0.59%

 

Health Care XLV

+1.44%

 

Industrials XLI

+0.59%

 

Materials XLB

+0.72%

 

Real Estate XLRE

+1.29%

 

Technology XLK

 

-0.28%

Utilities XLU

+1.79%

 

 

After the bell, all eyes will be  on Telsa (TSLA) when it reports its earnings.  The results have been mixed, but mostly, it stumbles after it reports. There is no putting it in cruise control (pun intended) as investors know the stock will be volatile.  

TSLA Stock Reaction

One Week

One Day

Jan 2020

+24.9%

+10.3%

April 2020

-2.1%

-2.2%

July 2020

-5.9%

-5.1%

Oct 2020

-3.7%

+1.1%

Jan 2021

-1.7%

-3.9%

April 2021

-6.8%

-4.2%

July 2021

+8.2%

-1.7%

 

 


 

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