Advisors in Focus- January 24, 2021

Markets finished off the week on a positive note with the Nasdaq closing at a record high. For the week, the Nasdaq was able to rally 4.2%. A key driver was Netflix (NFLX) which saw its shares rally to all-time highs after an impressive earnings report. Big Tech will remain in focus as we await earnings from giants like Apple (AAPL), Microsoft (MSFT) Tesla (TSLA) and Facebook (FB). The Aerospace & Defense, Materials, Steel and Industrial sectors will also be well represented on the earnings front. In addition to earnings, the Fed will meet Wednesday for the first time in 2021. Most market participants expect the meeting to bring few changes to the current monetary policy narrative.

  • Trivia Question- 5 of the Top 10 largest components of the S&P report this week. Can you name them?

The retail crowd is watching the big tech names ahead of earnings. According to the latest search data, AAPL, TSLA, and Amazon (AMZN) were among the most researched companies. Retail investors were also captivated by the massive squeeze in Gamestop (GME) as that came in at #2 in Top Stocks by total traffic. We thought we would take a look at some of the upcoming earnings and expectations for some of the names your clients are watching.

TrackStarIQ Data

Here are some highlights from Retail searches this week –

RankTOP STOCKS – BY Retail (Total Traffic) This Past WeekTickerTOP STOCKS- BY RETAIL (Surge Traffic) This Past WeekTickerTOP ETFs By RETAIL (Total Traffic) This Past Week Ticker
1Churchill Capital Corp IV Cl ACCIVCim Commercial TR CpCMCTSPDR S&P 500 ETFSPY
2Gamestop CorpGMEProqr TherapeuticsPRQRInvesco QQQQQQ
3Apple IncAAPLQutoutiao Inc ADRQTTARK Innovation ETFARKK
4Tesla IncTSLAAllied Security Innovations, Inc.ADSVProShares Ultra VIX Short-Term FuturesUVXY
5Gevo IncGEVOScynexis IncSCYXARK Genomic Revolution ETFARKG
6Nio IncNIO111 Inc ADRYIInvesco Solar ETFTAN
7Bionano Genomics IncBNGOAddex Therapeutics Ltd ADRADXNVanEck Vectors Semiconductor ETFSMH
8Blackberry LtdBBRealnetworks IncRNWKProShares UltraPro QQQTQQQ
9Zomedica Pharmaceuticals CorpZOMAditx Therapeutics IncADTXiShares Russell 2000 ETFIWM
10Visa IncVGreene Concepts, Inc.INKWiShares Global Clean Energy ETFICLN
11Aurinia Pharm OrdAUPHGenTech Holdings Inc.GTEHTechnology Select Sector SPDR FundXLK
12Eversource EnergyESAzurrx Biopharma IncAZRXSPDR Gold TrustGLD
13Intel CorpINTCBrazil Minerals, Inc.BMIXiShares Silver TrustSLV
14Adv Micro DevicesAMDSinglepoint, Inc.SINGEnergy Select Sector SPDR FundXLE
15Sundial Growers IncSNDLServicesrce Intl IncSREVARK Web x.0 ETFARKW
16Nano Dimension AdsNNDMNanovibronix IncNAOVARK Fintech Innovation ETFARKF
17Amc Entertainment Holdings IncAMCPaccar IncPCARConsumer Discretionary Select Sector SPDR FundXLY
18Tesoro Enterprises, Inc.TSNPClps IncorpCLPSGlobal X Lithium ETFLIT
19Alibaba Group HoldingBABAElectro Sensors INELSEDirexion Daily Semiconductor Bull 3x SharesSOXL
20Amazon.com IncAMZNAsia Pacific Wire & CableAPWCVanEck Vectors Gold Miners ETFGDX
  • Apple (AAPL) #3 on Top Stocks by total traffic- Reports Wednesday after the close. Expectations will be high for AAPL as channel checks suggest strength across the company’s entire Product and Services portfolio. Analysts are upbeat about potential results but there are some worries around supply constraints that could cause it to miss lofty whisper numbers. AAPL has not provided guidance the past three quarters. Analysts would like to see a return of this practice which would signal confidence that consumer demand has returned. Shares of AAPL are pressing to post-split all-time highs in anticipation of a NFLX-type earnings blow out. A failure to hit these expectations could send APPL shares lower but, we would remind you that the company still has a $50 bln share repurchase that can help provide support.
  • Tesla (TSLA) #4 on Top Stocks by total traffic- Reports Wednesday after the close. TSLA was the top performing S&P stock in 2020, gaining an incredible 743% as the electric vehicles segment was front and center for investors. TSLA provides its monthly delivery metrics, so the key item for investors will be how well the company controlled costs and it’s free cash flow. Another key driver for shares will be TSLA’s outlook for deliveries in 2021 which is expected to be in the range of 825K-875K. The company’s report and, perhaps more importantly, its stock reaction, will provide some insight into risk appetite.
  • Visa (V) #10 on Top Stocks by total traffic- Reports Thursday after the close. Visa is the second largest financial company by market cap and it provides valuable insight into consumer behavior. V and Mastercard (MA) have been notable underperformers this year, despite the shift toward digital payments in 2020. Over the past three months, the S&P is up 8% versus 1% for V and 3% for MA. Over the past 12 months, the S&P is up 16% versus 8% for V and 10% for MA. A good report could help drive interest back into the credit card names. One of the concerns for investors has been headwinds in the high-yielding cross-border volume due to less international travel. Color around recent trends and expectations for a recovery will be key drivers for investors. Shares of V have been trading in a sideways range the past three months. Investors will be watching to see if the earnings report breaks it out of this range.
  • Advanced Micro Devices (AMD) #14 on Top Stocks by total traffic- Reports Tuesday after the close. AMD had a big run in 2021 as it continued to take market share from Intel (INTC). Intel has had issues launching its next generation 7 nanometer chips. INTC did catch the market’s attention last week when it posted a blowout quarter on the heels of announcing a new CEO the prior week. Market participants still remain upbeat about the AMD earnings report and its prospects for 2021. The company remains well-positioned to continue to make in-roads in the client and server markets in 2021 Investors will be watching the closing of the Xilinx (XLNX) acquisition to provide a tailwind and help improve cross-selling opportunities across data centers and wireless infrastructure. Shares of AMD have been trading sideways in the $90s the past seven weeks. Similar to Visa, this earnings report can help break the stock out of its range.

Trivia Answer- #1 Apple (AAPL) 6.7%, #2 Microsoft (MSFT) 5.3%, #4 Facebook (FB) 2.1%, #5 Tesla (TSLA) 1.7%, #9 Johnson & Johnson (JNJ) 1.3% all report this week, representing 17% of the index. Alphabet )GOOG, GOOGL) and Amazon (AMZN) report next week.

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