The US Indexes were all heavily down on Friday and also for the weak. The Mag7 continues to lag the market. The VIX was up 2 at 18 which in surprisingly low considering the apparent volatility. The main indexes were; DJIA -1.69%, S&P 500 -1.71% and Nasdaq -2.2% (Mag7 -2.55%). On an equal weighted basis (our measure) the overall market was -2.02%. Breadth of 19% (daily range since the election is 9% to 81%). Daily volumes of 12b (the range since the election is 8b to 18b).
Daily returns on an equal weight basis: Market -2.02%, Mag7 -2.55% (AAPL -0.1%, META -1.6%, MSFT -1.9%, GOOGL -2.7%, AMZN -2.8%, NVDA -4.1%, TSLA -4.7%), large cap -1.52%, medium cap -2.25%, small cap -2.16% and micro cap -2.01%.
Weekly returns on an equal weight basis: Market -2.71%, Mag7 -3.32% (AAPL +0.4%, MSFT +0.2%, GOOGL -3%, NVDA -3.2%, TSLA -5.1%, AMZN -5.3%, META -7.2%), large cap -1.2%, medium cap -2.6%, small cap -2.7% and micro cap -3.1%.
Only a handful of sub industries were in positive territory on Friday and only one sector - Consumer non-Cyclical. Beverages +2% (non-alcoholic +2.6%), Distillers +1.9%, Personal Products +0.8%, Household Product +0.7%, Brewers +0.7%, Food Processors +0.6% and Tobacco +0.5%. Outside of consumer non-cyclical the only other positive sub sectors on Friday were Multiline Utilities +0.5% and Water & Related Utilities +0.1% helping Utilities (-0.37% on Friday) to outperform the market and Financial & Commodity Market Operators +0.4% on the day. As expected, on a heavily down day, the Bull sectors of; Technology -2.6% (Blockchain -5.8%, IT Services -3%, Communication & Networking -3%, Computers -2.7%.. Semiconductor was -3.8% but has outperformed the market by 2.1% over the last two weeks), Consumer Cyclical -2.7% (Specialty Retailers -3.3%, Hotels & Entertainment -3.2% and Homebuilding -2.8%), and Industrials -2.9% (Transportation -3% with Passenger Transport -6%, Construction -4%, Aerospace -3.7%, Machinery -2.9%) all underperformed the market on Friday however the surprise was Healthcare which was -1.8% on the day with both Pharma -1.3% and Biotech -1.7% outperforming the market albeit down on the day. Energy reversed the recent positive two week trend by underperforming the market on Friday at -2.6% with Fossil Fuels -2.5%, Renewables -3.3% and Uranium -4.5%.
The number of 52 week highs was low reflecting market weakness and included a number of Chinese stocks, US stocks on 52 week highs included: Consumer non-Cyclicals (Coca-Cola, Primo brands and Philip Morris), Financials (Lexinfintech, Bain Capital Speciality Finance, Saratoga Inv Corp), Healthcare (AbbVie, Axsome Therapeutics), Technology (Innodata, AT&T), Utilities (American Electric, DTE Energy, Evergy, Exelon, TXNM and WEC)
High volumes were seen in the following sector: Basic Materials (Mineral resources), Consumer Cyclicals (across the sector), Energy (Fossil Fuels), Financials (Banking), Healthcare (across the sector), Industrials (across the sector) and Technology saw a very high number (Software & IT Services, Technology Equipment)