Break ‘em up’

Jun 25, 2021

A very good morning,

Google, Amazon runs into rough weather! An Antitrust bill that would end the monopoly of the tech giants was passed by the House Judiciary Committee on Thursday.

Meanwhile, who would have thought Starbucks fortunes would be linked to a vaccine? Higher footfall in vaccinated zones. Interesting times we live in!

And Bitcoin mining machines are selling like scrap metal in China!

US Markets:

Yes, higher than the forecast but still falling. The jobless claims data released Thursday had some sway over the markets.

The Tech stocks did the rest as S&P 500 and Nasdaq hit an all-time high.

Microsoft Corporation (MSFT, 0.53%▲), Google owner Alphabet Inc. (GOOGL, 0.31%▲) Netflix Inc (NFLX, 1.04%▲), and Tesla Inc (TSLA, 3.54%▲) shouldered the upward rally of the markets, Nasdaq in particular.

At the S&P 500, barring Real Estate (-0.45%▼) and Utilities (-1.05%▼), all other sectors were in the green zone led by Financials (1.21%▲), Industrials (0.77%▲), and Communication Services (0.81%▲).

Let's not forget the bipartisan Infrastructure Deal, by the Biden administration that infused some much-needed risk appetite into the broader financial markets.

The future looks greener!

As of 07:00 ET, the US Index futures were green with S&P Futures (0.13%▲), Dow Futures (0.32%▲), Nasdaq Futures (0.21%▲), and Russell 2000 Futures (0.18%▲).

That signals another upmarket at the opening today.

Future reminds:

Fed has decided to lift its Covid era restrictions on ‘dividend and buyback’ on the largest banks. The decision has the potential to set up big bank shareholders for a windfall of capital distributions.

The Chinese ride-hailing giant Didi Global Inc. is aiming for a $60 Billion valuation in its NYSE listing. The company is expected to raise $4 Billion from its IPOs-72 Million A-Class Common Stocks-valued between $13 and $14.

Heard of Bitcoin ATMs yet? Athena will install 1500 of them in El Salvador!

Oil is expected to advance, for the fifth week in a row-the longest winning streak since December, as stockpiles shrink along with the supplies. All eyes on OPEC+meet!

Key Movers in Small Cap:

Pieris Pharmaceuticals Inc. (PIRS, 23.45%▲), a Clinical Stage Biotechnology Company, was buoyed after it got an ‘Orphan Drug’ designation by the FDA for its drug to be used in treating low expressing Gastric Cancers. The relative volume of the stock was 9.59.

Kaleido Biosciences (KLDO, 13.45%▲), a Clinical Stage Healthcare company, has gained 18.52% over the past month. The relative volume of the stock was 35.49.

A clinical-stage biopharmaceutical company focused on improving the lives of people with genetically defined rare disease, Fulcrum Therapeutics Inc (FULC, -4.04%▼) witnessed a relative volume of 24.86 soon after it announced the result of the Phase 2b trial, ReDUX4, in people with Facioscapulohumeral Muscular Dystrophy (FSHD).

Digital Brands Group Inc (DBGI, 31.05%▲), also made some serious gains after announcing channel expansion into the Amazon marketplace. The company’s IPO was issued on May 13.

Key Movers in Large Cap:

Eli Lilly and Company (LLY, 7.31%▲), a Pharmaceutical Company, soared after the announcement of being ready to take another shot at getting an FDA approval for its ‘possible’ Alzheimer’s drug.

The Trade Desk Inc (TTD, 16.04%▲), a Technology Company, was among the winners following news that Google Chrome will delay, until 2023, the removal of third-party cookies that help advertisers track internet users. The relative volume of the stock was 9.51.

A Casino and Resort Company based in Paradise, Nevada, Las Vegas Sands Corp (LVS, -2.70%▼) underperformed the market. The relative volume of the stock was 2.86.

Earnings:

With strength in e-commerce and a pick-up in international shipping, FedEx Corporation (FDX, 2.13%▲) reported an EPS of $5.01 against the estimate of $4.99. The revenue also exceeded the expectation of $21.49 Billion by more than $1 Billion. After hours the stock fell by -4.36%.

Fuelled by record revenue from its biggest market, North America, and digital sales growth of 41%, the shoe giant Nike Inc. (NKE, 0.41%▲) reported an EPS of 93 Cents. The revenue came in at 12.34 Billion beating expectations by more than $1 Billion. The after-hours stock moved by 13.05%.

On the lookout:

Vertex Pharmaceuticals Inc. (VRTX, 2.36%▲), is a Biotech firm specializing in medicine for critical diseases. The company’s game-changing Cystic Fibrosis drugs are the only drugs in the market that can treat the underlying cause of the rare disease. The company has had an 8% increase in the net income, in the first quarter, and a 14% increase in revenue.

Unusually high shorter-term CALL options activity seen on Vipshop Holdings (VIPS, 9.73%▲), Farfetch (FTCH, 5.95%▲), and Palantir Technologies Inc (PLTR, 1.07%▲) among others.

On the other hand, unusually high shorter-term PUT options activity seen on Mosaic Co (MOS, 0.84% ▲), Daqo New Energy (DQ, -2.75%▼), and Chewy Inc (CHWY, 2.27%▲) among others.

Over social media, some of the traders are watching out for Lattice Semiconductor (LSCC, 4.55%▲), Kulicke and Soffa Inc. (KLIC, 6.56%▲), and Tuya Inc. (TUYA, 0.96%▲).

Other Asset Classes:

The Infrastructure deal has underpinned an appetite for riskier currencies, making the US Dollar (91.7, -0.08▼) dip. The losses, however, were minimum as caution continues ahead of the US Inflation data.

The deal is set to have a positive effect on the commodities as well, which have been reeling under a Chinese crackdown. Prices of Base Metals are expected to rise as this 8-year plan includes funding for roads, bridges, the power grid, transportation, and the internet.

Global Markets:

In Asia, some emerging markets are doing well today. Philippines stocks rose as investors looked at an expected increase in vaccine supply. The $ retreat has had an effect with the Thai Baht strengthened from a 13 month low.

European Markets have been kept in check by a slide in the Pharmaceutical stocks even as Energy and Mining stocks were gaining.

Meanwhile on Researchfin.ai

The Researchfin.ai identified trade-setups that hit the 20% profit target today are:

SCWX - identified on June 10, 2021 - hit the target in just 2 weeks
UPWK - identified on May 27, 2021 - hit the target in just 4 weeks
GCO - identified on May 3, 2021 - hit the target in less than 8 weeks

There are 27 new trade setups identified by the AI today. Please sign-up for our app, if you already haven’t, to learn about these setups.

That’s it for the week! Relax, unwind and have a great weekend!

See you on Monday!

Warm Regards

Team Researchfin.ai

US: