Your Tuesday Blip 2/23/21

Your Tuesday Blip 2/23/21

Markets had a reversal today as both the Dow and NASDAQ opened with big losses but then recovered into the close after Chairman Powell reaffirming that the Federal Reserve was looking to maintain its current accommodative policy for the time being. Optimism for another stimulus package was also on the rise and at the close the Dow posted a 15 point gain at 31,537. Trading volume bolted higher and both IBD and BTS continue to list markets in rally mode.
Technology stocks had a wild day as Tesla slipped to $620 per share but then rallied to close just below $700. Apple also had a sharp selloff followed by a huge reversal and several other pandemic high flyers fell early before late rallies. What seems to be causing the volatility in tech is uncertainty over Fed policy and the speed of the recovery from the pandemic.
Home Depot reported earnings today beating both top and bottom line estimates as the home repair and remodel trend continues. Sales were up 25% in the quarter and net profits gained 20% as comp store sales rose 24.5% smashing estimates calling for a 19% increase. The company increased its dividend 10% and said gross margins fell to 33.6% from 33.9%. CEO Craig “Mini” Menear said investments in technology and infrastructure paid off with better flow of products to stores plus online ordering increased 86% with 60% of those orders being fulfilled through a store. The company however did not issue forward guidance and shares sold off as a result.