By Yasin Ebrahim
Fintech Zoom – The Dow slumped Friday, snapping its three-week win streak as a tepid rebound in tech and a sea of red across energy and financials soured investor sentiment.
The fell 1.50%, or 469 points, but closed the month higher following gains in early February. The was down 0.43%. The rose 0.56%, though had been up more than 2% on the day.
A fabulous February in which the major indexes hit record highs turned sour in the final days of the week. Cyclicals like energy and financials, the darlings of the February, despite a wobble on Friday ended the month sharply higher.
Energy was among the steepest decliners, paced by drops in Kinder Morgan (NYSE:), TechnipFMC (NYSE🙂 and EOG Resources (NYSE:), with the latter down over 8% despite better-than-expected fourth-quarter results. Profit taking was also attributed to the energy’s steep losses into the month end as the sector has racked up 22% in February.
Financials, another pace setter for cyclicals in February with gains of 11% for the month, fell 2% as banks bore the brunt of the selling. JPMorgan Chase & Co (NYSE🙂 and Goldman Sachs Group (NYSE🙂 fell more than 2%, while Wells Fargo & Company (NYSE🙂 slumped 3%.
Tech, pared some its losses from a day earlier, to end the month in positive even as big tech stumbled and semis were abandoned for a 5% loss in February.
While another round of stimulus will likely boost prices, massive inflation is not necessarily a foregone conclusion. Against the backdrop of tepid recovery and elevated joblessness, some consumers are more likely to “save than spend any additional stimulus funds received [and] could more likely lead to stagnant, or at the very least, very minimal price pressures over the next 12-24 months,” Stifel added
The rise in yields has been exacerbated by a growing inflation jitters, with the 5-year forward breakeven rate, a measure of long-term inflation expectations, “rising from a low of 0.86% at the onset of the crisis to 1.94% as of Feb. 25,” Stifel said.
Foot Locker (NYSE:), meanwhile, reported earnings that beat expectations, but revenue missed Wall Street estimates in Q4 as comparable store sales slipped 2% on the prior-year period. Its shares fell 8%.
Airbnb Inc (NASDAQ:)’s maiden quarterly report as public company drew much investor fanfare as company’s beat on the bottom line sent its share price soaring 13%.
Fintech Zoom or anyone involved with Fintech Zoom will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.