To the Moon & Back!

Jun 28, 2021

Hello, hope you had a fun weekend!

Not an astronaut? Well, you can still go to space! FAA license to Virgin Galactic takes us a step closer to this new reality that made the company’s stock jump 39% on Friday.

Back on earth, autopilot cars still struggle to get a foothold! 285,000 Tesla EVs to be recalled in China, a software glitch to Elon Musk’s Asia expansion!

The UK joins China and South Korea in a crackdown on Cryptocurrency. Financial watchdog FCA bans Binance, one of the world’s largest crypto exchanges.

US Markets:

Markets, on Friday, overlooked the highest year-on-year increase in 28 years, on personal consumption expenditures price index-a key inflation indicator. The core PCE was 3.4% y-o-y.

S&P 500 continued its upward run and reached another record high, gaining 2.7% for the week. The market was led by Financials (1.25%▲), as banks got an all-clear to distribute dividends and buy back shares once again.

Real Estate (0.64%▲), Energy (0.47%▲), and Healthcare (0.51%▲) also did well.

The Technology (-0.15%▼) sector saw a slump, affecting the Tech heavy Nasdaq, with a -0.06% slip.

Mixed Futures!

As of 07:00 ET, the US Index futures looked a bit flat with S&P Futures (0.01%▲) and Nasdaq Futures (0.24%▲) in the green while Dow Futures (-0.13%▼) and Russell 2000 Futures (-0.30%▼) in the red.

Key Movers in Small Cap:

Express Inc. (EXPR, 24.13% ▲), a fashion retailer, is getting a lot of attention from retail investors for its beaten-up valuation. Low priced and heavily shorted, the stock's relative volume was 13.11.

Lexicon Pharmaceuticals Inc. (LXRX, 18.67%▲) soared after the company announced a symposium highlighting Sotaglifozin, a drug for type-1 diabetes, at the American Diabetes Association’s scientific sessions. The relative volume of the stock was 14.31.

Key Movers in Large Cap:

The FAA license to Virgin Galactic Holdings Inc (SPCE, 39%▲), a post-lockdown boost to Nike Inc. (NKE, 15.5%▲) sales and FedEx Corporation (FDX, -4.0%▼), turned out to be the key price volume movers in the large-cap segment on Friday.

The relative volumes were 14.39, 5.79, and 3.79, respectively.

Earnings:

JinkoSolar Holdings Co.(JKS, 13.58%▲), one of the largest and most innovative solar module manufacturers in the world, came up with a surprise of 814% beating the estimated EPS of -$0.02 by a long shot ($0.15). Following the earnings report the share price rose from $36.9 to $43.07.

CarMax Inc. (KMX, 6.67%▲), a used car retailer, has reported an earning of $2.63 against an estimate of $1.63. The share prices have since jumped from $125.5 to $127.40.

On the Lookout:

Morgan Stanley (MS, 1.52%▲), an investment bank, has witnessed organic growth and is hitting its financial targets well. Bank of America has a $105 target for the stock.

One of the two primary shipbuilders for the US government, Huntington Ingalls Industries Inc, (HII, 1.05%▲) is one of the prime beneficiaries of Joe Biden’s Indo-pacific strategy. Besides, the company has a backlog of shipbuilding projects. The BoA target for the stock is $255.

Meanwhile, data on Non-Farm Payrolls, Unemployment Rate, and PMI is due this week.

Unusually high shorter-term CALL options activity seen on Las Vegas Sands Corp. (LVS, 1.46%▲), Fisker Inc. (FSR, 1.37%▲), and L Brands Inc. (LB, 0.18%▲) among others.

On the other hand, unusually high shorter-term PUT options activity was seen on ChemoCentryx Inc. (CCXI, 5.44% ▲) and Riot Blockchain (RIOT, -3.09%▼).

Other Asset Classes:

The US Dollar Index (91.76, -0.07%▼), against six other major currencies, is up from Friday’s low of 91.5 as investors shift their focus on the US labor market even as softer than expected Inflation data did little to soothe concerns around Fed downsizing the monetary stimulus.

Crude Oil Prices slipped a bit after touching 2018 high as all eyes are on the OPEC+ meet scheduled for July 1. The United States and Iran will argue over the revival of the “Nuclear Deal”, delaying a surge in Iranian oil exports.

The Treasury Yields rose on Friday after the Commerce department’s data release. There has been a slight drop early Monday morning but still above 1.50%.

Global Markets:

After making some substantial gains last week, the markets in Asia Pacific declined on Monday as investors are eying manufacturing indicators from China, Japan, and South Korea. Also, China’s industrial profits have slowed for May.

European Markets, after a muted response, were well below the flat line as investors are watching a spike in Covid cases around the world, keenly. The Stoxx Europe-600 was into the negative territory, Monday morning.

Meanwhile on Researchfin.ai

There are 44 new trade setups identified by the AI last Friday. Please sign-up for our app, if you already haven’t, to learn about these setups.

That’s a wrap for today! Make the most of the day!

See you tomorrow!

Warm Regards

Team Researchfin.ai