The COMP outperformed its peers as FANG stocks popped
The Dow has continued to dance around the psychologically important 20,000 mark this week, but it was the Nasdaq Composite (COMP) that stole the spotlight. Specifically, the tech-heavy benchmark carved out a series of new highs -- as did
its under-the-radar counterpart, the Nasdaq-100 Index (NDX) -- helped by a surge in so-called "FANG" stocks. Facebook Inc (FB), for instance, is on track for a 4.5% weekly advance, boosted by
a round of bullish brokerage notes. And while shares of Netflix, Inc. (NASDAQ:NFLX) failed to capitalize on rumors
it's a potential target for a Facebook takeover, the stock swung into positive week-to-date territory today on
some upbeat analyst attention. Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc (NASDAQ:GOOGL) also saw their fair shares of positive price action, up 3% and 1% week-to-date, respectively.
Meanwhile, Wednesday's Trump-related crash in biotechs -- which
had started the week strong -- briefly stalled the COMP's uptrend, with
the iShares NASDAQ Biotechnology Index ETF (IBB) sinking after the president-elect said
drug companies are "getting away with murder." The healthcare-heavy exchange-traded fund (ETF) is set to close out the week with a modest gain, however, the mid-week pullback has some of IBB's biggest holdings hovering near critical technical levels, including
Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) and
Biogen Inc (NASDAQ:BIIB).
Trump's press conference also fueled big moves for the Mexican peso,
as well as the iShares MSCI Mexico Capped ETF (EWW) -- both of which have struggled since the U.S. presidential election -- after the president-elect reiterated his support for imposing large import tariffs. In fact, Trump's Twitter feed shined the spotlight on automakers Fiat Chrysler Automobiles NV (NYSE:FCAU) and Ford Motor Company (NYSE:F) early in the week, praising both companies for
increasing domestic investment. FCAU couldn't maintain this Trump-inspired momentum, however, and came crashing back down to earth on Thursday, after
the Environmental Protection Agency (EPA) pointed an accusatory finger at the automaker.
Elsewhere on Wall Street, fourth-quarter earnings season kicked off -- although aluminum giant
Alcoa Corporation (NYSE:AA) broke a long-standing tradition of being the first firm to report, following its split last fall. As such, big banks took center stage -- and are
key events to watch, according to Schaeffer's Senior Equity Analyst Joe Bell, CMT --
a trend that will accelerate in next week's trading. This week, JPMorgan Chase & Co. (NYSE:JPM) has emerged as the one to beat, and
could have room to run, although bank stocks
Bank of America Corp (NYSE:BAC) and
Wells Fargo & Co (NYSE:WFC) are trading higher after an initial negative reaction to their respective companies' results.
Looking ahead, traders will be eager to see if the Trump rally will continue through next Friday's inauguration, when Donald Trump will be sworn in as the 45th president of the U.S. While
investor optimism continues to hover around extreme levels -- although
this indicator suggests we're not quite at
the euphoria stage of the sentiment cycle -- the Dow's repeated failure of the round 20,000 mark could
translate into near-term trouble for stocks. Nevertheless,
most major U.S. benchmarks are trading higher this afternoon, with the COMP on track for a big weekly gain. The S&P 500 Index (SPX) and Dow, meanwhile, are on pace to log weekly losses.
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