It’s been tough sledding all day, and even with major indices off the lows of the session, there is a pronounced defensive aura. Utilities and Consumer Staples are finding buyers in a period of angst, while Amazon (AMZN) is dragging Consumer Discretionary lower. Energy stocks are lower on big misses with global economic data.
S&P 500 Index | -0.30% | |
Communication Services XLC | -0.65% | |
Consumer Discretionary XLY | -1.18% | |
Consumer Staples XLP | +0.46% | |
Energy XLE | -1.96% | |
Financials XLF | -0.59% | |
Health Care XLV | +0.60% | |
Industrials XLI | +0.17% | |
Materials XLB | -0.66% | |
Real Estate XLRE | -0.11% | |
Technology XLK | -0.35% | |
Utilities XLU | +0.81% |
Tomorrow morning, we get financial results from two of the nation’s largest retailers. There are a few things to note.
First Walmart (WMT) and Home Depot (HD) got clobber over the past five quarters after posting results.
Second, after the government forced most of their smaller rivals to close, or limit business, it will be interesting to see how much market share these behemoths may have lost.
WMT Stock Reaction | One Day | One Week |
May 2020 | -2.9% | -3.4% |
Aug 2020 | -2.5% | -4.9% |
Nov 2020 | -2.7% | -1.6% |
Feb 2021 | -5.9% | -9.1% |
May 2021 | +2.2% | +2.1% |
HD stock reaction to earnings has been a disaster for over year when they release financial results – would you be a buyer/holder into the close?
HD Stock Reaction | One Day | One Week |
May 2020 | -3.0% | -1.4% |
Aug 2020 | -1.5% | -2.1% |
Nov 2020 | -2.4% | -2.8% |
Feb 2021 | -2.9% | -4.9% |
May 2021 | -1.0% | -1.6% |
Overall, I like the action in the market. There is amazing resolve, which has been the hallmark from March 2009. There is a need for leadership and the Fed guessing game is getting tiresome.
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