Hi Everyone,
All of the main sectors closed the day in the green thanks to a slow but steady intraday rally in stocks, with risk-on issues outperforming defensive stocks throughout the day. Materials, consumer discretionaries, tech stocks, and the energy sector all pulled their weight, but, on a cautionary note, the most virus-sensitive issues remained suspiciously weak. The defensive utilities, healthcare stocks, and consumer staples lagged behind the broader market, with communication services also weighing on the large-cap benchmarks.
Traders said that the major U.S. indices once again defied mixed global trends, proving the strength of the underlying bullish trend. As one trader explained, “Investors could have found numerous reasons to take profits today, from the worries regarding Chinese growth to the mounting inflationary pressures, so the fact that stocks quickly resumed their rally is good news for traders and investors unless they are short the market.”
Tesla (TSLA, +12.7%), exploded higher today thanks to Hertz’s massive 100,000 electric vehicle order. The company joined the elite trillion-dollar club as well for the first time in its short history. Tesla’s market cap also surpassed Facebook’s market value for the second time, just before the release of the social media giant’s quarterly report, joining the list of the top five most valuable U.S. public companies. The Nasdaq hit its highest level in over a month thanks to Tesla’s surge, but it remains shy of its all-time high, still lagging its large-cap peers from a technical perspective.
“Say what you mean, mean what you say.”
George Patton
As always, have a great evening and stay tuned!!
