View from 5th Avenue

The View at Two – 6th April, 2021

Hit by a Semi – After the strong performance yesterday by the broader indexes, stocks today had been in a holding pattern, with the S&P 500 trying to add.  The 10-yr UST has moved lower (1.66%), and sectors that are yield sensitive performed accordingly (Homebuilders leading (+71bps), Banks lagging (-26bps).  But Applied Materials (-3%) made things interesting this afternoon after providing some long term guidance at their investor day.  Seeing FY eps of 8.50 on $26.7bn in revenue, the stock quickly traded lower, bringing the broader sector with it.  AMAT and the SOX are trying to rebound post comments, giving traders something to watch when overall market volumes are down about 13% versus the 20 day average.  Perhaps the quick cautiousness from investors should not be a surprise given overall equity positioning, but Semicaps should be able to weather some of that since TSMC’s $100bn capex announcement should provide a tail wind.

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