Buyers rotated again into the tech sector
After a quiet begin to the week, a passable shopper worth index (CPI) studying for February pushed the S&P 500 Index (SPX) to a contemporary report shut. Each the Dow Jones Industrial Common (DJI) and Nasdaq Composite (IXIC) additionally rallied, as traders rotated again into the tech sector.
Nevertheless, hesitancy returned earlier than Thursday’s producer worth index (PPI) studying, which ended up doubling analysts’ expectations, sending Treasury yields sharply larger and shutting down curiosity reduce hopes, regardless of robust retail and jobs information. The DJI was trying to shut the week close to breakeven on “triple witching” Friday, whereas the IXIC and SPX had been headed for weekly losses.
Tech Overview
There was renewed curiosity in tech shares this week. J.P. Morgan Securities initiated protection of Duolingo (DUOL) with an “obese” score, whereas chip concern Nvidia (NVDA) remained standard within the choices pits. Oracle (ORCL) inventory surged on a income beat, and Intel (INTC) pivoted decrease after the Pentagon reportedly pulled plans to spend $2.5 billion on a chip grant. Elsewhere, fintech names Sq. (SQ) and Paypal (PYPL) noticed elevated choices exercise.
Retail Highlights
Retail earnings had been nonetheless trickling in, with footwear identify On Holding (ONON) lacking fourth-quarter estimates and issuing a disappointing internet gross sales forecast. Kohl’s (KSS) additionally shared disappointing quarterly and a dismal 2024 outlook, whereas Petco (WOOF) beat top-line estimates. Rising shopper costs bolstered China e-tailer Pinduoduo (PDD), whereas a C-suite shakeup dinged Underneath Armour (UAA). Lastly, Dick’s Sporting Items (DKS) hit a report excessive after earnings.
