US Stocks Eye 7-Day Winning Streak As Mortgage Rates Fall Below 7%, Yields Tumble: What's Driving Markets Thursday?
Portfolio Pulse from Piero Cingari
US stocks are on track for a 7-day winning streak, with the S&P 500 and Nasdaq 100 nearing all-time highs, and the Dow setting new records. The Russell 2000 has surged following the Fed's meeting. Treasury yields have fallen, with the 10-year yield at 3.9%, positively impacting the iShares 20+ Year Treasury Bond ETF (TLT). Mortgage rates have dropped below 7%, boosting real estate stocks. The dollar weakened against the euro, while gold (GLD) and crude oil (USO) prices rose. Bitcoin also gained. Solar stocks, including SolarEdge (SEDG), Enphase Energy (ENPH), and First Solar (FSLR), rallied after the Fed's pivot. Moderna (MRNA) surged on positive trial results, Align Technology (ALGN) soared after Health Canada's update, and Lucid Group (LCID) rallied on EV production news. Apellis Pharmaceuticals (APLS) fell after downgrades, and TPI Composites (TPIC) surged on an agreement with Oaktree Capital Management.
December 14, 2023 | 6:58 pm
News sentiment analysis
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NEGATIVE IMPACT
Apellis Pharmaceuticals Inc. (APLS) fell 25% after Wedbush and Wells Fargo downgraded the stock and the price target.
Analyst downgrades and price target reductions are negative signals that can lead to a short-term decline in stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Align Technology Inc. (ALGN) soared by 12% after Health Canada updated the company's medical device license for its Invisalign system.
Regulatory updates that expand product availability are typically positive for medical device companies like ALGN.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Enphase Energy Inc. (ENPH) increased by 12% following the Fed's pivot, which is favorable for rate-sensitive stocks.
Similar to SEDG, ENPH is benefiting from the Fed's dovish stance, suggesting a positive short-term outlook for the stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
First Solar Inc. (FSLR) saw a 9% increase as the market reacted positively to the Fed's interest rate outlook.
The positive market sentiment towards rate-sensitive stocks is likely to continue benefiting FSLR in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Gold, tracked by the SPDR Gold Trust (GLD), continues to rise, now reaching $2,045 per ounce.
Rising gold prices are directly beneficial for gold-tracking ETFs like GLD, indicating a potential increase in its value.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Lucid Group Inc. (LCID) rallied 15% after disclosing the manufacture of about 800 EVs at its Saudi Arabian facility.
Production milestones can be a positive indicator for EV companies like LCID, suggesting a favorable short-term impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Moderna Inc. (MRNA) rallied over 10% on positive trial results for an mRNA-based treatment for skin cancer.
Positive clinical trial results are a significant catalyst for biotech stocks like MRNA, suggesting a strong short-term impact.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
SolarEdge Technologies, Inc. (SEDG) rose 16% as investors favored rate-sensitive stocks following the Fed's pivot.
The Fed's pivot towards potential rate cuts has led to a rally in rate-sensitive stocks like SEDG, indicating a positive short-term impact.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) gained 2% as Treasury yields dropped to 3.9%, the lowest since late July.
The drop in Treasury yields typically leads to an increase in bond prices, which is positive for bond ETFs like TLT.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TPI Composites (TPIC) surged nearly 70% after announcing a definitive agreement with funds managed by Oaktree Capital Management.
Entering into agreements with major investment firms like Oaktree can provide significant capital and strategic benefits, driving up the stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
Crude oil, as tracked by the U.S. Oil Fund (USO), rose by 3.6% to $72 a barrel.
An increase in crude oil prices typically leads to a positive impact on oil-related ETFs like USO.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70