Composer Andrew Lloyd Webber turns up all over British television during lockdown. From documentaries to competitions, Lloyd Webber claims the devastated theater business needs to recover now that COVID-19 restrictions are lifted.
It helps to know what Lloyd Webber for the call of the day. Rich Ross, a technical analyst at Evercore ISI, says megacap technology stocks are on the verge of breaking out. He calls the group FAAANTM (say it out loud – get it?), Referring to Facebook FB,
Alphabet GOOGL,
Amazon AMZN,
Apple AAPL,
Netflix NFLX,
Tesla TSLA,
and Microsoft MSFT,
“‘The Music of the Night’ is back for Big Tech and ‘all I ask of you’ is that you are overweight in large cap technology when it is unloved and angry after months of consolidation with MSFT, GOOGL and FB all of them break out for all-time highs, ”says Ross.
Seven months of consolidation and relative underperformance have left sentiment and positioning slightly behind, and we’re ready for what he says will be a spring tide. Coupled with a US dollar double bottom technical formation, trillions of dollars in liquidity, and a slow rise in interest rates and oil, he says the Nasdaq-100 QQQ,
exchange-traded fund will close the underperformance against the S&P 500 SPX,
and reach 450 by the end of the year.
However, a megatech outbreak isn’t bad news for the S&P as they make up more than 21% of the index.
In addition to the FAAN group – and he says Apple is poised to get out of its base with the 200-day moving average, and that Amazon could hit $ 5,200 – he also highlights other tech stocks, including graphics chipmaker Nvidia NVDA,
chip equipment maker Lam Research LRCX,
communications chip maker Broadcom AVGO,
and microchipmaker Advanced Micro Devices AMD,
Adobe ADBE,
he adds, can go up to $ 750 “PDF” – a reference to the software format it popularized, which he says could also stand for “pretty fast” – after it hit the $ 500 level.
Inflation and streaming in the spotlight
Producer price data at 8:30 a.m. Eastern may be interesting given the focus on whether inflation will accelerate. The Chinese producer price index rose the highest in almost three years in March.
Sony SONY,
Shares were up nearly 3% in Tokyo after Sony Pictures said it will stream its movies exclusively on Netflix’s NFLX,
platform.
FuboTV FUBO,
shares may be active as the sports steam service has acquired the rights to the South American qualifiers prior to the World Cup.
Jeansmaker Levi Strauss LEVI,
increased its earnings and sales guidelines and increased its dividend.
Household products maker WD-40 WDFC,
may come under pressure after reporting worse than expected results, with the company finding that supply chain constraints are expected to resolve in the second half of the fiscal year.
Naked brand, NAKD,
a clothing manufacturer popular with retailers can make a profit after investment group Ault Global DPW,
announced that it has bought a 6.4% stake.
Prince Philip has died at the age of 99, Kensington Palace announced. Here’s a look back at his dramatic life.
Yields can be higher
The return of the benchmark 10-year Treasury TMUBMUSD10Y,
rose to 1.67%. US Equity Futures ES00,
NQ00,
saw little movement in the early hours.
Random reads
Taiwan’s worst drought in 56 years led to a man recovering a phone he’d dropped in a lake a year earlier. The phone is still working.
A software bug caused a flight to gain about 1,200 kilograms heavier than expected, as all female passengers using the “Miss” title were classified as children. The operator of the flight, Tui TUI,
was one of the worst performing large cap stocks in Europe after the launch of a € 350 million convertible bond.
Need to Know starts early and will update until the opening bell, but sign up here to get it in your email box once. The emailed version will ship at approximately 7:30 a.m. East.
Do you want more for the day ahead? Sign up for The Barron’s Daily, a morning investor briefing that includes exclusive commentary from Barron’s and MarketWatch writers.