Today, August 12, the rotation out of tech winners and into beaten-up consumer and industrial stocks is over.
As of the close today. the Standard & Poor’s 500 was up 1.40% but the NASDAQ Composite was ahead 2.13%. The Dow Jones Industrial Average was higher by 1.05% and the Russell 2000 small cap index had gained 0.52%.
The Technology Select Sector SPDR ETF (XLK) was up 2.27%.
Individual technology stocks were up strongly. Microsoft (MSFT) had gained 2.86%. Amazon (AMZN) was up 2.65%. Apple supplier Skyworks Solutions (SWKS) had climbed 4.41%. Â Palo Alto Networks (PANW) was ahead 1.80%. And chip equipment maker ASML (ASML) had tacked on 3.74%.
On the other hand, sellers were active in the consumer stocks that had rallied for the last few days. Shares of American Airlines (AAL) were off 1.38%. Cruise operator Carnival (CCL) was down 3.98%. Fast food company Restaurant Brands (QSR) had slipped 2.04%. MGM Resorts International (MGM) was off 1.72%.
Some of this pattern is simply the profit taking I’d expect after a few days of rotation into consumer sectors. Some is due to a lack of news on talks over a new coronavirus stimulus package from Congress. Nobody is even talking at the moment and it increasingly looks like it will be September until there is any movement on a deal to add more stimulus to a coronavirus-damaged economy. (Not to mention all the people and families and businesses in pain while Congress can’t agree.)