Morgans AM: Monday 22 February 2021

Morgans Financial Limited

US equity markets settled little changed on Friday night AEST (19 February) as investors continued to rotate out of technology stocks and into cyclical stocks seen as likely to benefit from pent up demand once the COVID-19 pandemic is subdued and the economy re-opens – Dow settled flat after touching a fresh record intra-day high (31,647.53). The broader S&P500 slipped -0.19%, turning negative in the final minutes of the session and extending its decline into a fourth straight session and marking the index’s longest losing streak in two months. Utilities (down -1.51%), Consumer Staples (-1.23%), Health Care (-1.15%) and Communication Services (-1.07%) all logged falls of over >1%, offsetting gains of over >1% for all of Materials (up +1.85%), Energy (+1.64%), Industrials (+1.60%) and Financials (+1.16%). The Nasdaq inched +0.07% higher although much of the FAANG complex weaker (Facebook Inc down -2.91%, Amazon.com Inc -2.35%, Netflix Inc -1.46% and Google parent Alphabet Inc -0.76%). Apple Inc (up +0.12%) edged higher for the first time in four sessions. Applied Materials Inc gained +5.32% after the chip-industry supplier reported better-than-expected fiscal first-quarter adjusted earnings per share and revenue of US$5.16B after the close of last Thursday’s (18 February) session, with Chief Executive Officer Gary Dickerson observing that there is “strong momentum across the company. The small capitalisation Russell 2000 index jumped +2.18%.