Dow Jones futures were little changed Thursday night, along with S&P 500 futures and Nasdaq futures, as President-elect Joe Biden unveiling his $1.9 trillion stimulus plan. JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) report earnings early Friday.
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The stock market rally suffered modest losses on the major indexes Thursday, reversing from solid morning gains as giants such as Apple (AAPL), Microsoft (MSFT) and Visa stock weighed. That overshadowed another strong day for small caps, Taiwan Semiconductor (TSM) leading a big chip rally, and breakouts from the likes of Qualcomm stock and IPOs such as Airbnb (ABNB).
In recent days it’s been a K-shaped stock market rally, much like the K-shaped economic recovery. In the K-shaped market rally, some sectors are doing very well, such as cyclicals, banks, chips and IPOs, but other areas are running cool, notably tech titans such as Apple stock, Microsoft, Amazon.com (AMZN) and Facebook (FB). So while the major indexes point to a steady stock market rally, that masks big differences underneath.
On Thursday, Qualcomm (QCOM) cleared a buy point, closing below that key level but still actionable. Inspire Medical Systems (INSP) broke out, along with new IPOs Yatsen (YSG), ContextLogic (WISH) and Airbnb stock.
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Bank Stocks
JPMorgan stock edged up 0.6% to 141.17 on Thursday, closing just below a 141.20 buy point from a yearlong cup base, fueled by stimulus and vaccination hopes, along with widening Treasury yield spreads. Citigroup and Wells Fargo stock have been racing higher as well to their best levels in months.
Chip Stocks Strong
Taiwan Semiconductor triggered a big chip rally on Thursday. Taiwan Semiconductor earnings beat while sales came in light, but revenue guidance was strong. TSM stock surged 6.1%, hitting a new high.
TSM makes chips for Apple, Advanced Micro Devices (AMD), Nvidia (NVDA), Qualcomm and more. The world’s largest chip foundry also gave a strong capital spending forecast, good news for semiconductor equipment makers. ASML (ASML), Lam Research (LRCX), Applied Materials (AMAT) and KLA Corp. (KLAC) were big winners Thursday.
Tech Titans Slumber
On the downside, tech titans continue to sit out. Apple stock has held up better than most, but still isn’t leading. Microsoft, Amazon, Facebook (FB), Salesforce.com (CRM), Adobe (ADBE) and ServiceNow (NOW) are all below their 50-day lines, with FB stock dropping below its 200-day line Thursday. Many of these are software names, which have been mixed at best in recent weeks.
Card giants Visa (V) and Mastercard (MA), which have been market laggards for months, sold off below their 50-day lines on Thursday.
Biden Stimulus Plan
President-elect Joe Biden officially unveiled his $1.9 trillion stimulus plan in a primetime speech, but the broad outline was released after Thursday’s stock market close.
The Biden stimulus plan proposes $1,400 direct checks to Americans, on top of…
Read More: Dow Jones Futures: $1.9 Trillion Biden Stimulus Plan Unveiled;