All three major indexes notched weekly, monthly, and quarterly wins
What the final trading week of March lacked in length, it more than made up for in market-moving headlines and volatile stock action. News that Hwang's Archegos Capital Management was forced to liquidate $30 billion in holdings cast a long shadow over the week, shaking up several key sectors that the fund had a sizable stake in, including media and financials. While the Dow was able to shake off the news to notch its third-straight win, the Nasdaq and S&P 500 didn't fare nearly as well on Monday. By Tuesday, bond yields were back in the spotlight, and weighing heavily on Big Tech, specifically, after the closely watched 10-year Treasury yield surged to its highest level in nearly 15 months.
The month of March (and 2021's first quarter) came to a close on Wednesday, and the tech-rich Nasdaq closed out both with a notable comeback, as several FAANG names roared back to life. This marked the index's fifth-consecutive monthly win, and its fourth-straight quarter ending in the black. The Dow and S&P 500 also logged monthly and quarterly wins. Meanwhile, Wall Street has been poring over President Joe Biden's $2 trillion infrastructure spending plan. The spending plan has received a favorable response from traders so far, with all three major indexes looking to kick off the fresh month with sizable wins, as the S&P 500 tops the 4,000 level for the first time ever.
Earnings Season Laggards Take Center Stage
While the deluge of earnings pouring in for most of February and March has definitely slowed, several big names still trickled in this week, and investors responded in turn. Cal-Maine Foods (CALM) kicked off the week with fiscal third-quarter profits that topped expectations, though the stock couldn't quite capitalize on the beat. Pet e-tailer Chewy (CHWY) had better luck following its fourth-quarter report, with no less than three analysts hiking their price targets.
BlackBerry's (BB) earnings release had the opposite effect on analysts, earning the tech name several slashed price targets, as well as a downgrade to "hold" from Canaccord Genuity. We also dug into specialty retailer Zumiez's (ZUMZ) stock performance a few weeks after it notched its third-straight earnings beat. We also parsed through fellow retail name Conn's (CONN) financials ahead of its quarterly report, which came out yesterday, March 31.
Analyst Opinions Moving Stocks This Week
The brokerage bunch had plenty to say this week, to the benefit (or detriment) of many household names. Most of the coverage looked positive. Roku (ROKU) looked ready to bounce back after Tuesday's upgrade from Truist Securities. The analyst also raised its rating on Twitter (TWTR) to "buy" from "hold," capturing the attention of call traders.
Yelp (YELP) and Applied Materials (AMAT) also enjoyed tailwinds following lofty analyst upgrades, while the latter surging to a fresh high following the bull note. Harley-Davidson (HOG) joined in on the fun, getting a boost from Baird, which turned bullish on the equity for the first time since 2016.
Fed Minutes Headline First Full Week of April
Investors will come back from a long Easter weekend to plenty of economic data during the first full week of April. The Federal Open Market Committee's (FOMC) meeting minutes will certainly garner attention. The earnings calendar will feature the likes of Conagra (CAG), Constellation Brands (STZ), JinkoSolar (JKS) and Levi Strauss (LEVI) will all make appearances in the earnings confessional. In the meantime, traders might want to keep an eye on the S&P 500's recent outperformance of the Nasdaq, and what that might mean for stocks moving forward. A focus toward small caps might be a good idea too, with Senior V.P. of Research Todd Salamone giving pointers on how investors can use these stocks to manage equity risk.