Your Weekly Blip 2/25/21

Your Weekly Blip 2/25/21

Stocks continue to trade in mixed fashion as sector rotation between value and growth stocks ebbs and flows. At the close today the Dow was off 469 points to 30,932 while the NASDAQ gained 72 points to 13,192. Trading volume on both platforms was lower and IBD has now lowered its market rating to “rally under pressure” due to a series of high volume down days. For the week the Dow fell over 300 points or 1.2% and is off 3% from the high of a few days ago.
In its first earnings rodeo since coming public Airbnb posted better than expected revenue but worse than expected bottom line results. Gross booking revenue came in a $5.91 billion above estimates of $5.1 billion while actual revenue was down 22% at $859 million. GAAP earnings were a negative $11.24 per share which missed estimates. Revenue had been growing at a 30% clip prior to the pandemic then dipped 70% and is now on the rebound. Going forward the company expressed optimism regarding the vaccine rollout and several gurus upped their rating on the stock saying it was a top pick in the travel recovery story.
Consumer spending in the US shot up 2.4% in January and the Commerce Department reported that personal incomes jumped 10% last month boosted by cash payments from Uncle Sugar. The January spending number followed drops in November and December which had raised concerns about the economy. Inflation was also reported to have risen 0.3% in December and is up 1.5% for the year which is well below the 2% target set by the Fed. So according to the Feds, inflation is not a problem but mention that to the guy who just paid $40 for a sheet of plywood and you might get a look of disbelief.