The SPDR Industrial ETF (XLI) set a new all-time closing high on Friday, while the SPDR Technology ETF (XLK) slid for a third straight week. The divergence follows a new trend of investors shifting toward value stocks that can withstand higher interest rates. They’re also looking for companies that can benefit from faster gross domestic product.
Executives told investors revenue will grow more than 50 percent annually for “multiple” years, according to reports on Reuters, Bloomberg and CNBC. That’s more than 12 percentage points above the previous consensus estimate for next year.
Twitter (TWTR) is up 27 percent since Friday, February 5. That makes it the best-performing member of the S&P 500 for the period. It’s also the biggest weekly gain for Jack Dorsey’s social-media company since February 2015.
The S&P 500 plunged 3.3 percent between Friday, January 22, and Friday, January 29. It was the biggest weekly decline since October, with 85 percent of the index’s members losing value. The selloff also dragged stocks into negative territory on a year-to-date basis.
The DJ Automobile Manufacturers Index ($DJUSAU) has gained 88 percent in the last three months. That’s the biggest gain of more than 150 industry indexes on the TradeStation platform. The Auto Part Index ($DJUSAP) was the second-best performer, up 78 percent. In contrast, the broader S&P 500 has risen 12 percent in the same period.
ADP’s private-sector payrolls report on Wednesday and the Labor Department’s non-farms payrolls report on Friday both missed estimates. They were also negative — showing actual job losses — for the first time in at least six months.
Stocks begin 2021 on a strong note as investors look for the global recovery to accelerate and prepare for a busy month of news and events.