Sunday, May 16, 2021

Global Market Square

By on April 20, 2021

The U.S. and global stock markets fell for the second day in a row, the first time since March. As we review the landscape, we note that most of the losses are derived from corporations that should benefit from a global economic recovery.

The share of the Beach stocks—which include the bookings, entertainment, cruise lines and hotels—suffered the brunt of the losses as the COVID-19 surge continues. Some of the stocks in our portfolio had losses when comparing the Friday, April 16, close as high as 10.69%; below, we highlight the most significant:

  • United Airlines (UAL) lost 10.69%, closing at $50.12.
  • American Airlines (AAL) lost 8.63% to close at $20.22.
  • Carnival Cruise Lines (CCL)lost 6.04%, closing at $25.67.
  • Marriott International (MA) fell 4.84%, closing at $141.96.
  • Hyatt Hotels (H) lost 4.45%, closing at $79.95.

Even as the corporate earnings season shows more robust than expected earnings, the negative investor sentiment continued to pull back the markets, which under these circumstances is to be expected.

In global markets, losses continue, with the Stoxx 600 closing at 433.80, down 1.9%; the FTSE 100 at 6,859.81, down 2%; and the Dax Index at  15,129.51, down 1.55%.

Most investors will continue monitoring the corporate earnings and the unemployment claims on April 22 to determine patterns.

We predict that the stock rotation will continue marching toward value stocks; even with volatility and pullbacks, that rotation will continue for some time.

Wall Street summary for April 20, 2021:

  • The Dow Jones Industrial Average closed at 33,821.30, down 256.33 points, or 0.75%.
  • The Standard & Poor’s 500 closed at 4,134.94, down 28.32 points, or 0.68%.
  • The Nasdaq Composite Index closed at 13,786.27, down 128.50 points, or 0.92%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,489.69, down 24.61 points, or 0.98%.
  • The U.S. Treasury 10-year note closed at 1.58%
  • The U.S. Treasury 2-year note closed at 0.15%.