The four biggest gainers on the S&P 500 Wednesday didn’t really have much in common. Rather, these stocks rallied on isolated developments, while the broader market was largely challenged.
First off, the S&P 500 rose 0.7% and without big tech, it would have been up far less. The Nasdaq rose 1.4%, lead by the NYSE FANG Index, up more than 2%. Large cap growth tech stocks like Apple (AAPL) - Get Apple Inc. (AAPL) Report have been seeing earnings revisions upward. For Apple specifically, services and the app store are seeing a stay-at-home tailwind, while 5G estimates for several years are close to pre-virus levels.
Most large cap cyclical stocks were down a tick, but not selling off hard. The big headwind: virus cases hit a new daily high of 60,000 in the U.S., according to Johns Hopkins data. The big hope: more fiscal stimulus may be on the way. Monetary stimulus has been flowing through and interest rates can’t fall much from here. Households and businesses may need fresh liquidity, directly and quickly, especially as lockdowns become a theme again.
Here were the top four movers on the S&P 500 by mid-afternoon:
Kohl’s got an upgrade from Bank of America analysts and a price target move up by 35%. The analysts said Kohl’s’ superior reopenings against those of peers is under appreciated by investors and that’s its out-of-mall model will see sales through in the near future. On the negative side, Kohl’s is strapped with debt and has not yet executed a solid e-commerce strategy, although it does have one. The company needs to see the pandemic end soon, before it is unable to raise debt. Another round of cash grants to households may support sales.
Twitter may be launching a subscription platform, although the company has not yet confirmed as much. Some news outlets say they have spotted a Twitter job post explaining that it is launching a subscription business. Details are scarce and the likelihood of this is still largely unknown.