See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
“The truth is, we know so little about life, we don’t really know what the good news is and what the bad news is.” – Kurt Vonnegut Jr.
The whipsaw rotation in the wake of yesterday’s vaccine news once again has cyclical stocks doing relatively well this morning while the technology stocks are getting crushed. What is good news for the broader economy, has actually been bad news for this year’s biggest winners. NFIB’s small business sentiment was unchanged but came in slightly lower than expected. The only other economic data point on the day is JOLTS data at 10 AM.
Be sure to check out today’s Morning Lineup for a rundown of the latest stock-specific news of note, discussion of vaccine news, sentiment data in Germany, trends related to the COVID-19 outbreak, and much more.
Yesterday was really an interesting day in the equity market. On the upside, 34 stocks in the S&P 500 were up over 20% in a single day, and yet despite those extraordinary gains, all but one of those stocks (EXPE) is down YTD by an average of 36%. More broadly, of the 100 best-performing stocks in the S&P 500 only six are up this year- even after taking into account yesterday’s gains. On the downside, there were 22 stocks in the S&P 500 that were down over 5%, and all but one of those stocks are up YTD by an average of 45%. Again, only ten of the 100 worst-performing stocks in the index yesterday are down YTD.
If the majority of the stocks in your portfolio were up yesterday, that’s good news. The bad news is that it also probably means that you were sitting on big losses YTD. Conversely, it’s never fun to look at a portfolio of stocks that’s down on a day when the market is up. The good news, though, is that if you’ve been hanging onto those names for a while now, you probably haven’t seen a lot of days like yesterday.