View from 5th Avenue

The View at Two – 13th April, 2021

Stolen Spotlight… Today was supposed to be all about March CPI, especially given the recent pause in the Reflation trade and all the debate surrounding the Fed’s favorite word “transitory.” But as has happened countless times over the last year, Covid-related interference disrupted our regularly scheduled programming, as JNJ (-1.9%) announced it would be halting injections of its vaccine across the US as 6 cases of a rare blood clotting disorder have emerged from the 7 million jabs already given. The good news is US vaccine supply targets should still be met (chart below shows how much Pfizer / Moderna are currently shouldering the load anyway). Still, the resulting jitters along with the unsurprising CPI reading have led to a clear outperformance of Growth over Value today (MTUM +1.6% vs VLUE -1.0%) with the Nasdaq 100 earlier gapping to a new intraday ATH as investors reunited with some 2020 favorites. Tech and stay-at-homes names are higher (ZM +6.3%, PTON +1.6%) along with the defensive sectors that reopening rotation had left behind (Utilities, Healthcare, Real Estate). YTD darlings Banks and Cap Goods are lower as Treasury yields extend their slide following solid demand at the 30-year auction. Meanwhile, Transports are getting an extra bruising from American Air (AAL -2.9%) following United (UAL -0.5%) in delivering disappointing preliminary Q1 revs.

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