Your Tuesday Blip 3/2/21

Your Tuesday Blip 3/2/21

Today’s market action saw scattered gains in financial, travel, energy and value plays while large tech stocks like Apple, Facebook, Tesla and Microsoft struggled. During the day the Dow rode the fence but heading into the close it rolled over and finished with a loss of 143 points at 31,391. Trading volume was higher which suggests that institutions were net sellers which puts pressure on upward bias. IBD continues to list the rally as being under pressure.
Zoom Video reported earnings yesterday and the trend of strong growth continues. The company posted a 369% increase in sales and a 713% increase in net income. Both top and bottom lines beat guru estimates. Operating cash flow was up 993% and the number of customers paying more than $100k over the last 12 months rose 156%. Management at Zoom raised forward guidance and shares bounced 10% higher in early market action before reversing and finishing the day down 9%.
There is a trend in the retail buying habits of consumers where purchases are being consolidated into “favorite stores”. One of those retailers is Target which reported much better than expected earnings benefiting from stimulus checks and a general return to normal for most consumers. Target saw its Q4 sales rise 21% and net income grow by 58%. Comp store sales rose 6.9% and digital sales spiked 118%.While the bull case for Target remains…… on target, CEO Brian “Red Card” Cornell wanted to be extra cautious and thus refused to issue forward guidance causing the stock to drop 6% in value.