Here is a Market Recap for today Tuesday, February 9, 2021. (Sorry for late post)
**PsychoMarket Recap - Tuesday, February 9, 2021,**
Stocks struggled for direction, with major indexes staying close to even throughout the session, taking a pause after a remarkable six-day winning streak. Market participants continue to monitor developments out of Washington regarding stimulus. The S&P 500 (SPY) closed the day 0.05% down, the Nasdaq (QQQ) closed 0.02% down, and the Dow Jones (DIA) closed 0.01% down.
Both the Senate and the House of Representatives voted to move forward to move forward with a process called reconciliation, which allows Democrats, who have a majority in both houses of Congress, to vote to pass Biden’s new coronavirus stimulus package without Republican votes. Reconciliation is a way for Congress to enact legislation on taxes, spending, and the debt limit with only a majority (51 votes, or 50 if the vice president breaks a tie) in the Senate, avoiding the threat of a filibuster, which requires 60 votes to overcome. Because Democrats have 50 seats in the Senate—plus a Democratic vice president—reconciliation is a way to get a tax-and-spending bill to the president’s desk even if all 50 Republicans oppose it.
This week, committees in Congress are set to work out the details for another stimulus relief package, which is expected to include another round of $1,400 stimulus checks, money for state and local government, vaccine efforts, and an extension of federal unemployment benefits beyond their current March deadline. In a note to clients, Goldman Sachs (GS) increased their 2021 and 2022 gross domestic product (GDP) estimates for the US by 6.8% and 4.5% respectively.
After the remarkable rally in the market, analysts at Bank of America said a “buyable” market correction could be on the horizon after the major indexes reached new record highs for 6 consecutive sessions. “We expect a buyable 5-10% Q1 correction as the big ‘unknowns’ coincide with exuberant positioning, record equity supply, and ‘as good as it gets’ earnings revisions,” Jared Woodard, investment and ETF strategist at Bank of America, said in a note. We agree to a certain degree, while there are still significant headwinds the market must overcome, our bullish long-term thesis remains intact. As the pace of vaccinations increase and the economy is able to reopen, we expect corporate earnings to continue growing to meet the lofty valuations of some companies. Moreover, the Federal Reserve reaffirmed its commitment to keep interest rates low and its program of asset purchasing in place for the foreseeable future.
* According to a report by Bank of America (BAC), of the 75% of S&P 500 companies that have reported earnings, 66% of them beat estimates.
* Bitcoin (BTC) surged more than 10% to close in on $48,000, adding to a record-setting rally triggered after Tesla (TSLA) disclosed it had purchased $1.5 billion worth of the cryptocurrency and would accept it as payment earlier this week.
* General Motors Co said on Tuesday it was extending production cuts at three North American plants until at least mid-March due to the global semiconductor chip shortage, while vehicles at two other factories would only be partially built.
* Autodesk (ADSK) target raised by Stifel Nicolaus from $285 to $342 at Buy. Stock currently around $302
* After reporting positive earnings, Chegg (CHGG) with a host of target raises. Consensus target of $120 at Buy. Stock currently around $102
* Comcast (CMCSA) target raised by Benchmark from $65 to $75 at Buy. Stock currently around $52
* General Motors (GM) target raised by Barclays from $56 to $64 at Overweight. Stock currently around $56
* Global Payments (GPN) with two target raises. Stock currently around $200.
* Rosenblatt from $217 to $235 at Buy
* Susquehanna from $220 to $239
* Hasbro (HAS) target raised by DA Davidson from $105 to $115 at Buy. Stock currently around $93
* LYFT target rasied by Keycorp from $55 to $57 at Overweight. Stock currently around $53
* Magnite (MGNI) target raised by Needham & Co from $30 to $70 at Buy. This stock is a monster, currently around $58
* LiveRamp (RAMP) with a host of target raises. Consensus target is $100 with Buy rating. Stock currently around $80
* Snapchat (SNAP) target raised by Argus from $50 to $80 at Buy. Stock currently around $64
* UBER target rasied by Keycorp from $60 to $63. Stock currently around $59
“If you can dream it, you can do it.” – Walt Disney.