Infrastructure Week Winners
Stocks rallied the second half of the week after President Biden’s infrastructure plan announcement.
The ‘rotation to value’ from tech appeared to reverse, with the Nasdaq (COMP) gaining 2.4% during the holiday-shortened week. The S&P 500 broached the 4,000 level for the first time ever and gained about 0.9%. Dow Industrials (DJI) booked a small gain and small caps rode tech shares higher, with the Russell 2000 up about 1.8%.
Winners & Losers
The infrastructure bill drove many winners, KLA Corp (KLAC) and Applied Materials (AMAT) rallied by 11% and 10%, respectively. Semiconductors gained on the $50 billion investment earmarked by Biden’s infrastructure bill, with Nvidia (NVDA) adding 6%. Micron (MU) beat earnings and saw its shares rise 6% as well.
Tesla (TSLA) was the best-performing stock in the S&P 500, gaining 6% week-over-week.
Green energy companies, another potential beneficiary of the infrastructure plan, were another winner. The iShares S&P Global Clean Energy Index (ICLN) gained 8.5%. Chargepoint (CHPT) was another notable gainer, with its shares up nearly 30%.
‘Traditional’ energy names were among the losers. Baker Hughes (BKR) gave up 2% for the week. Occidental Petroleum (OXY) was off 1.6%. ConocoPhillips (COP) was down 0.5%.
The Archegos blow-up took its toll on Nomura (NMR) and Credit Suisse (CS), whose shares sold off 18% and 16%, respectively.
What Caught Our Eye(s) This Week
- Kim: Companies doing heavy lifting on infrastructure, including Taiwan Semiconductor (TSM) and Apple (AAPL);
- Stephen: ISM manufacturing tops estimates;
- Brad: The fallout for bank stocks from the Archegos implosion;
- Nat: “Didn’t prepare a story, was busy moving to a new apartment.”
About This Video
Alpha TALKS Wall Street Breakfast is a weekly video covering what moved markets this week (WMMTW), featuring a panel of Seeking Alpha editors.
Hosted by Nathaniel E. Baker, Senior Editor, Strategic Contributors, and featuring:
- Bradley Olesen, VP News;
- Kim Khan, Senior News Editor;
- Stephen Alpher, Managing Editor News, co-host of Seeking Alpha's Alpha Trader podcast.
The video publishes on this account every Friday by close of trading, with the longer audio podcast released on Saturdays at 6:30 a.m. through the Wall Street Breakfast account.
The video can also be seen on the Seeking Alpha YouTube account.
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