- New positions in: BAC (~1.4 mln shares), WFC (~0.71 mln), LU (~0.62 mln), JPM (~0.41 mln), C (~0.37 mln), MS (~0.29 mln), SCHW (~0.22 mln), KGC (~0.21 mln), USB (~0.21 mln shares), RF (~0.18 mln), TFC (~0.18 mln), LUV (~0.17 mln), BTG (~0.17 mln), HBAN (~0.16 mln), KEY (~0.15 mln), MSFT (~0.15 mln)
- Increased positions in: KO (to ~4.53 mln shares from ~2.03 mln shares), IEMG (to ~5.38 mln from ~3.16 mln), WMT (to ~3.08 mln from ~1.39 mln), PG (to ~2.7 mln from ~1.23 mln), JNJ (to ~1.47 mln from ~0.67 mln), MDLZ (to ~1.47 mln from ~0.69 mln), PEP (to ~1.48 mln from ~0.69 mln) GE (to ~0.95 mln from ~0.17 mln), KHC (to ~1.26 mln from ~0.58 mln), SBUX (to ~1.19 mln from ~0.55 mln)
- Maintained positions in: IAU (~15.48 mln shares)
- Closed positions in: ZTO (from ~0.93 mln shares), YUMC (from ~0.66 mln), ZNGA (from ~0.39 mln), F (from ~0.37 mln), WY (from ~0.31 mln), JCI (from ~0.19 mln), YUM (from ~0.14 mln), UAA (from ~0.12 mln), WDAY (from ~0.1 mln), M (from ~0.09 mln)
- Decreased positions in: SNAP (to ~0.43 mln shares from ~0.6 mln shares), EFA (to ~2.14 mln from ~2.3 mln), FXI (to ~3.55 mln from ~3.69 mln), BEST (to ~0.29 mln from ~0.39 mln), DHI (to ~0 mln from ~0.09 mln), VFC (to ~0.01 mln from ~0.1 mln), FAST (to ~0.15 mln from ~0.23 mln), IP (to ~0.09 mln from ~0.16 mln), LKQ (to ~0.01 mln from ~0.08 mln), NUE (to ~0.07 mln from ~0.12 mln)
- Healthcare: TRXC (6.19 +73.88%), PRTA (21.82 +50.28%), PACB (50.44 +39.26%), IMGN (10.39 +35.11%), SENS (4.09 +34.96%), SIEN (7.78 +32.99%)
- Materials: RFP (10.28 +30.13%)
- Industrials: DSX (3.6 +37.93%)
- Information Technology: CTK (5.38 +53.28%), AMKR (24.3 +36.13%), COHR (258.46 +33.79%), TDC (48.54 +30.91%)
- Financials: AMG (147.92 +31.59%), LX (13.07 +30.83%)
- Energy: GTE (1.03 +58.46%), CPE (23.12 +38.94%), MMLP (2.52 +32.57%), CLNE (17.16 +32.31%)
- Healthcare: FOLD (12.5 -37.78%), FLDM (5.59 -18.75%), GLPG (85.85 -18.5%), RTRX (26.41 -16.89%), CASI (2.9 -16.67%), CLVS (7.93 -15.33%), LGND (172.07 -15.25%), RDUS (19.76 -13.86%), SGEN (166.11 -12.86%), ESPR (29.7 -12.85%)
- Industrials: BLBD (18.45 -16.01%)
- Consumer Discretionary: GME (51.48 -19.27%)
- Information Technology: QLYS (102.43 -17.82%), SVMK (23.3 -15.7%), RAMP (70.85 -13.61%), GTT (4.15 -13.58%), BDC (45.45 -12.56%)
- Energy: LBRT (10.9 -13.74%)
- Consumer Staples: NUS (48.55 -19.33%)
Closing Stock Market SummaryThe S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and Dow Jones Industrial Average (+0.1%) closed at record highs on Friday, thanks to a strong finish ahead of a three-day weekend. The Russell 2000 increased 0.2%.
The economic reopening narrative shined throughout the session. Cyclical sectors outperformed, WTI crude futures ($59.47/bbl, +1.24, +2.1%) settled close to $60 per barrel, and the yield on the 10-yr Treasury note rose four basis points to 1.20% amid increased selling interest.
The higher oil prices and Treasury yields contributed to the relative strength in the S&P 500 energy (+1.4%) and financials (+1.0%) sectors, which were joined by the materials (+1.0%), industrials (+0.7%), and health care (+0.8%) sectors atop the standings. The latter benefited from a 12% earnings-driven gain in Illumina (ILMN 504.76, +53.54, +11.9%).
On the downside, the utilities (-0.8%) and real estate (-0.1%) sectors lagged in negative territory. Walt Disney (DIS 187.67, -3.24, -1.7%) weighed on the communication services sector (+0.1%) despite reporting positive earnings results and strong subscriber numbers.
Shares of NVIDIA (NVDA 598.45, -11.58, -1.9%) fell 2% after Bloomberg reported that Alphabet's (GOOG 2104.11, +8.22, +0.4%) Google, Microsoft (MSFT 244.99, +0.50, +0.2%), and Qualcomm (QCOM 147.98, +2.42, +1.7%) want antitrust officials to intervene in NVIDA's deal to purchase Arm Holdings. NVDA was one of the few decliners in the Philadelphia Semiconductor Index (+1.2%).
In other developments, the Senate is reportedly planning to fast-track the stimulus bill past individual committees, meaning it should reach the floor for a vote a bit sooner than previously expected. Separately, Charles Schwab (SCHW 58.19, +2.26, +4.0%) reported a 75% m/m increase in its total number of brokerage accounts.
The 2-yr yield decreased one basis point to 0.10%. The U.S. Dollar Index increased 0.1% to 90.46. The CBOE Volatility Index fell 6.0% to 19.97.
Reviewing Friday's economic data:
- The preliminary February reading of the University of Michigan Index of Consumer Sentiment fell to 76.2 (consensus 80.8) from the final reading of 79.0 in January.
- The key takeaway from the report is that the February drop was owed to lower expectations among households with incomes below $75,000.
Looking ahead, investors will receive the Empire State Manufacturing Survey for February and Net Long-Term TIC Flows for December when the market reopens on Tuesday. The market will be closed on Monday for Washington's Birthday.
- Russell 2000 +15.9% YTD
- Nasdaq Composite +9.4% YTD
- S&P 500 +4.8% YTD
- Dow Jones Industrial Average +2.8% YTD
Trian Fund (Nelson Peltz) discloses updated portfolio positions in 13F filing: Increases CMCSA position, confirms lower PG holding
Highlights from 2020 Q4 filing as compared to Q3 2020:
- Increased positions in: CMCSA (to ~19.86 mln shares from ~15.63 mln shares)
- Maintained positions in: IVZ (~36.74 mln shares), GE (~32.19 mln shares), WEN (~26.63 mln shares), MDLZ (~12.24 mln shares)
- Closed positions in: NVT (from ~5.83 mln shares)
- Decreased positions in: SYY (to ~20.6 mln shares from ~24.38 mln shares), PG (to ~9.82 mln from ~10.13 mln)
Carl Icahn discloses updated portfolio positions in 13F filing: Confirms BHC / DAN positions and lowered TEN holding
Highlights from 2020 Q4 filing as compared to Q3 2020:
- New positions in: BHC (~5.03 mln shares), DAN (~3.99 mln)
- Maintained positions in: OXY (~88.63 mln shares), CVI (~71.2 mln shares), CLDR (~52.33 mln shares), NWL (~43.7 mln shares), XRX (~27.77 mln shares), HLF (~20.51 mln shares), NAV (~16.73 mln shares), HRI (~4.49 mln shares)
- Decreased positions in: LNG (to ~16.17 mln shares from ~20.13 mln shares), TEN (to ~7.29 mln from ~9.14 mln)
Baupost Group (Seth Klarman) discloses updated portfolio positions in 13F filing: New INTC MPC positions, Exited HPQ AMAT
Highlights from 2020 Q4 filing as compared to Q3 2020:
- New positions in: INTC (~18.19 mln shares), ADV (~12.5 mln), MPC (~7.69 mln), RBAC (~4.95 mln), VSPR (~3.96 mln), FNF (~3.8 mln), RADI (~1.5 mln), DGNS (~1 mln)
- Increased positions in: CLNY (to ~24.21 mln shares from ~22.62 mln shares), QRVO (to ~4.44 mln from ~2.96 mln), EBAY (to ~31.12 mln from ~30.12 mln), LSXMK (to ~6.48 mln from ~5.82 mln), LSXMA (to ~3.5 mln from ~2.92 mln) FB (to ~0.92 mln from ~0.56 mln), SSNC (to ~3.31 mln from ~3.03 mln)
- Maintained positions in: LBTYK (~54.56 mln shares), PCG (~30.66 mln shares), TBIO (~18.04 mln shares), VSAT (~16.29 mln shares), TBPH (~8.74 mln shares), LBTYA (~7.66 mln shares), FOX (~5.68 mln shares), MU (~5.22 mln shares), PEAK (~4 mln shares)
- Closed positions in: HPQ (from ~13.3 mln shares) AMAT (from ~2.31 mln), MCK (from ~1.67 mln)
- Decreased positions in: VIAC (to ~4.7 mln shares from ~18.84 mln shares), PSTH (to ~12.71 mln from ~17.5 mln), FOXA (to ~22.19 mln from ~26.97 mln), VIST (to ~1.95 mln from ~4.42 mln), ATRA (to ~9.11 mln from ~9.92 mln), GOOG (to ~0.08 mln from ~0.15 mln)
Gapping down
In reaction to earnings/guidance:
- LLNW -22.6%, SVMK -10.5%, CARG -8.6%, ACB -7.2%, AFRM -6.4%, NET -6.4%, BL -5.6%, VECO -4.9%, AEM -4.5%, DDOG -4.2% (also to acquire Sqreen; also acquires Timber Technologies), DXCM -3.9%, GDDY -3.1%, TEX -2.6%, NWL -2.4%, ILMN -1.7%
Other news:
- CLGN -28.2% (prices offering of 2 mln ADSs at $17.50 per ADS)
- FOLD -24.4% (reports top-line results from Phase 3 PROPEL trial; plans to complete BLA submission in Q2)
- PLX -16.8% (prices offering of 7,608,695 shares of its common stock at $4.60 per share)
- CFMS -14.9% (stock offering)
- CRVS -8.1% (stock offering)
- SPCE -8.1% (Virgin Galactic tweets "Flight test update: We have been progressing through our pre-flight preparations and, during that process, we have decided to allow more time for technical checks. We are working to identify the next flight opportunity")
- PHUN -7.5% (prices offering of 11,111,111 shares of its common stock at a price to the public of $2.25/share)
- SQZ -7% (prices its underwritten public offering of 3,000,000 shares of common stock at $20.00/share)
- CDAK -6.6% (prices offering of 2.75 mln shares of common stock at $21.00 per share)
- AGFY -4.6% (stock offering)
- BBIO -3.4% (stock offering)
- SILV -3.1% (announces US$120 mln bought deal)
- FTEK -2.5% (prices $25.8 mln private placement)
- ONCR -2.3% (prices offering of 3 mln shares of common stock at $19.00 per share)
- BASI -2.2% (new COO)
- LOTZ -1.4% (stock offering)
- CREE -1.1% (filed prospectus supplement for $500 mln common stock in "at the market" offerings)
Analyst comments:
- RIDE -5.4% (initiated with an Underweight at Morgan Stanley)
- RMO -3.5% (initiated with an Underweight at Morgan Stanley)
- CTT -1.3% (downgraded to Sector Perform from Outperform at RBC Capital Mkts)