In This Article:
After equities (^DJI, ^IXIC, ^GSPC) closed Friday's session lower — the Nasdaq Composite sinking by 1.36% — Yahoo Finance markets and data editor Jared Blikre breaks down the day's biggest trading takeaways on Asking for a Trend.
Blikre examines the year-to-date gains and losses seen across the Magnificent Seven — the group of tech stocks comprised of Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA) — as well as examining price actions for coffee (KC=F) and copper futures (HG=F). Lastly, he outlines what could end up being so-called "sleeper trades" for 2025.
To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here.
This post was written by Luke Carberry Mogan.
I want to focus on the mega caps here and specifically the MAG 7. So, my first is, my first headline here is the MAG 7 has split. I'm going to take us over to our mega caps. I got the MAG 7, and I even threw Berkshire Hathaway in there because I think it unfairly gets left out. It's a trillion dollar company, so it makes the list here. This is the year-to-date totals. And Josh, you're going to see there's more red than green here. So, Meta, on this 15-day streak. I've been talking about that incessantly. That's that's crazy. It's up 22% this year. Record highs galore. Amazon up a respectable 4%. So is Berkshire Hathaway, but Tesla coming off its worst week since, I think October, somewhere in there. Apple down 9%. So, we have this rally underway, but we haven't seen the participation from some of the big guys.
So even without MAG 7 though, my friend, major industries, the popular averages we love talking about, you're still near records.
Yes, we are. And just take a look at the sector action year-to-date. Uh, so, I like to measure since the inauguration as well, but this will do. Financials, 7%. Healthcare, not even close behind or close behind that's up 6%. Communication services, that's a meta story. That's an alphabet story. Materials, industrials, energy. There's a lot of sectors picking up the slack. I'd also add utilities and real estate. Those are also outperforming the S&P 500, which is up only 2.5% this year. So the a lot. So what did they say? They say rotation, sector rotation is a life blood of a bull market. So that's what we're seeing here.
What about point number two?
Let us go there. This is commodities because they are going wild. And I just got to show you. Not all commodities. I got to show you what's happened happening with some of some of them. And for some of them, this is a year-to-date look. Like coffee has just been on an absolute tear, 13 record highs in a row. This is just intraday price action. Let me show you a one-year chart. There you go. Palantir-esque my friend. Maybe. Uh, it has been breaking out. It's been consolidating, breaking out and that's just been the pattern here. And that's what we see in a bull market. But critically, we're not seeing this in all all commodities, but we do have the makings for something bigger here. I'd throw out the copper is up 15%. It's up five days straight. Uh gold, where is it on that list here? It's up 8%. It's been hitting a lot of record highs recently. Here. This is a one-year chart. All of these have been record highs. So the when the Fed is on pause here, that provides a backdrop potentially or cutting rates potentially for commodities to excel. We're only seeing it in pockets here, and I'm just kind of waiting for another thing to drop.
You mentioned copper. Doctor copper, the red metal, any implications for stocks?
Yes, we have some 20, 25 trades. I'm going to call these the sleeper trades, and I've talked to a number of guests. Uh, they might be macro investors. They might be technical investors, but I'm getting healthcare a lot. A lot of people are involved, are interested in healthcare. I'll get to that in a second. I want to stick with copper because that is a China play. So let me bring up our China heat map. This is year-to-date, and we can see a lot of green in here. And there's been a lot of excitement over China since September of last year when they announced their bazooka QE fiscal and monetary measures. However, they've been released in fits and starts, and there's been a lot of people saying China is uninvestable, but I think it's, if you, if you do believe it's an investable case, we're probably on the verge of a big reversal here. Uh, it's just been beaten down for so many years. Also, healthcare, we've brought that up. I want to mention that we did have a stocks in translation guest, Nicholas, and he was telling about us why he likes healthcare currently. Let's take a listen.
I think the best hedge on tech is healthcare. You know, investors tend to look at, growth investors tend to look at two sectors in depth, tech and healthcare. Tech has really stolen the ball over the past couple of years. Healthcare got crushed last year on a whole range of issues, policy, as well as fundamentals, but I think healthcare is really attractive here.
All right. So healthcare also China. Maybe Europe, maybe it's time for Europe, maybe not, but that's, uh, that's a good one.
Europe. Yeah. Yeah. Give me a maybe.
Maybe. Yeah. You got it.
Thank you, Jared.
Thank you, buddy.
