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NASDAQ Up on Friday but Stocks Still Lower for the Week

Published 03/19/2021, 09:15 PM
Updated 07/09/2023, 06:31 AM

Stocks bounced back partially from a morning selloff on Friday, but the major indices still lost ground this week as investors can’t shake their concerns of rising yields.

The NASDAQ recovered a little of yesterday’s plunge by gaining 0.76% (or about 99 points) to 13,215.24. Of course, that’s less than a third of Thursday’s 3% shellacking. The index was off 0.8% over the five days, marking its fourth losing week in the past five.

The S&P slipped 0.06% to 3913.10 and was also off 0.8% for the week. The Dow got the worst of it on Friday with a slide of 0.71% (or around 234 points) to 32,627.97. The index had the best chance for a positive week by coming into today’s session with a slight gain, but finished lower by 0.5%.

The Dow was hurt by a more than 6% slump from Visa (NYSE:V) after news that the DOJ was opening an investigation into the company’s debit practices. The banks felt some pressure too on news that the Fed would not extend the supplementary leverage ratio (SLR), which will expire at the end of the month.

The good news about the 10-year Treasury yield is that it didn’t move very much today, but the bad news (as far as the market is concerned) is that it remains well above 1.7%.

The major event of the week was the Fed statement, which was pretty much what the market wanted to hear. The Committee sharply raised the economy’s growth forecast for 2021, but signaled no hikes through 2023. Nevertheless, investors are nervous that a hot economy will eventually force the central bank’s hand sooner rather than later.

And we’re not done hearing from the Fed. In fact, they are likely to be the major story again next week. Chair Jerome Powell will be testifying in front of Congress on Tuesday and Wednesday, while also giving a speech on Monday. And several other officials will be speaking next week as well.


Today's Portfolio Highlights:

Options Trader: With Workday (NASDAQ:WDAY) closing above $250 today, the portfolio’s three March 240/250 bull call spreads expire fully-in-the-money. In other words, these options are automatically exited, which means you don’t have to do anything but enjoy the 205% profits! Read the full write-up for more.

Blockchain Innovators: The payment processing industry is a perfect spot for blockchain utilization. Take Net 1 UEPS Tech (UEPS) as an example. This electronic payments business focuses on the “unbanked and under-banked populations of developing economies”. One of the ways it utilizes blockchain is through its affiliate Bank Frick, which has been allowing investments in cryptocurrencies since 2018. Dave appreciates that earnings estimates for this fiscal year have improved and that next fiscal year is poised to return to profitability. The editor added UEPS on Friday, while also getting out of the underperforming Intellicheck Mobilisa (IDN) after dropping down to a Zacks Rank #4 (Sell). Read the full write-up for more on all of today’s moves. By the way, this portfolio had three of the best performers among all ZU names today with Rekor Systems (NASDAQ:REKR, +11.8%), Danaos Corp. (NYSE:DAC, +8.5%) and Exp World Holdings (EXPI, +8.4%).

Surprise Trader: The portfolio added Science Applications International (NYSE:SAIC) on Friday, as this IT and professional services provider is going for a third straight positive surprise next week. The company has an Earnings ESP of 5.35% for the report coming after the bell on Thursday, March 25. It beat by 5.8% last time. Dave added SAIC today with a 12.5% allocation, and also sold Del Taco (TACO) for a small loss. Read the complete commentary for more on today’s moves.

Have a Great Weekend!
Jim Giaquinto


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