Nasdaq keeps outpacing Dow Jones as states look to pause reopenings

Mar. 22, 2021 11:46 AM ETNASDAQ Composite Index (COMP.IND), DJI, SP500, RTYXLE, XLF, XLK, XLY, XLC, SP500, COMP.IND, DJI, RTYBy: Kim Khan, SA News Editor10 Comments
  • The Nasdaq's (COMP) +1.3% outperformance continues to gain traction with Treasury yields lower and rising COVID cases dampening some of the reopening enthusiasm.
  • The Dow (DJI) +0.2% is only slightly higher with cyclicals like Boeing, Goldman and JPMorgan weighing.
  • New York City Mayor Bill de Blasio has asked Governor Cuomo to pause reopenings amid a rise in COVID cases, while New Jersey has already decided to pause reopenings.
  • Small-cap stocks are taking it on the chin, with Russell 2000 (RTY) -1.1% down sharply.
  • Citi argues "the powerful Russell 2000 rally relative to the S&P 500 or Nasdaq 100 may be nearing its end given our lead indicator model."
  • But BofA's survey of money managers finds faith in small-caps undiminished, even after the short and gamma squeezes driven by retail enthusiasm.
  • The S&P 500 (SP500) +0.7% is higher, but its sector split is a good indication of how today's trading is going.
  • Five of 11 sectors are higher and six lower, but the leaders are the big-gun megacap homes, with Info Tech (NYSEARCA:XLK) in the lead, followed by Communications Services (NYSEARCA:XLC) and Consumer Discretionary (NYSEARCA:XLY).
  • Among the decliners, Financials (NYSEARCA:XLF) and Energy (NYSEARCA:XLE) are at the bottom.
  • All the megacaps are higher, with Tesla still in the lead, although Alphabet is barely in the green.
  • The 10-year Treasury yield is still off 4 basis points at 1.69%.
  • Among active individual issues, travel-related stocks are down, including airlines and cruise liners.
  • Kansas City Southern is the biggest S&P gainer after it agreed to be bought by Canadian Pacific.

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