Monthly Buzz: Hot inflation data cools stock market
Hey, mooers!
Welcome back to Monthly Buzz. Earlier in February, both S&P 500 and Nasdaq soared to about five-month highs as Meta led a rally in the tech sector. However, the good times did not last long. Elevated valuations for overall US stocks, poor financial reports during earnings season, and rising interest rates left little room for future gains. Major indexes fell following the release of hotter-than-expected data on the labor market and consumer spending in mid-Feb.
All three major indexes finished the month in the red. The Dow was down 4.19%, and the S&P 500 was down 2.61% during the month. The tech-heavy Nasdaq dropped 1.11% (Data as of Feb 28, 2023).
There have been a few sectors that have outperformed the overall market. The energy, basic materials, and industrial sectors all closed higher. Most sectors ended in the red.
Let's take a look at how the stocks that created the most buzz on the moomoo app performed during the month.
Note: The number of buzz stars is based on the search and message volumes on moomoo.
1. TSLA – Buzzing Stars: ⭐⭐⭐⭐⭐
Feb 10: Tesla shares dropped 5.03%, ending an eight-day run of gains and falling back below $200 a share. The stock's pullback came as part of a selloff in the broader stock market, as the Nasdaq fell 0.6%.
Feb 14: Tesla shares rallied strongly by 7.51% after lowering the price of the base Model 3 in the US by $500 and the Model Y by up $1000. On the same day, the European Parliament approved a law to phase out combustion engine cars by 2035.
Feb 16: Tesla shares fell 5.69% after recalling 362,758 cars equipped with Full Self-Driving Beta software that "may cause a crash." The move was prompted by an investigation by the National Highway Traffic Safety Administration (NHTSA).
2. AMC – Buzzing Stars: ⭐⭐⭐⭐
Feb 06: AMC shares soared 11.84% after it announced that it would explore plans to flex pricing on its seats depending on the location of the chair. Many other "meme stocks" also shot higher.
Feb 07: AMC shares fell 9.12% amid profit-taking following the previous rally in high short-interest stocks.
Feb 15: AMC shares climbed 14.89%, with Nasdaq rising 0.92% and the Dow rising 0.11%.
3. AAPL – Buzzing Stars: ⭐⭐⭐⭐
Feb 02: Apple shares gained 3.71%, with Nasdaq rising 3.25%. The company then reported quarterly earnings that missed market expectations for the first time in nearly seven years, causing the stock to fall more than 4% at one point in after-hours trading.
Feb 06: Apple shares fell 1.79% Monday, with Nasdaq dropping 1% and the Dow falling 0.10%.
Feb 15: Apple shares gained 1.39%, with US January retail sales data increasing 3% YoY, the largest increase since March 2021.
4. BBBY – Buzzing Stars: ⭐⭐⭐⭐
Feb 02: Bed Bath & Beyond Inc. shares soared 18.09% even after missing interest payments on its bonds and entering the 30-day grace period to make its bond payments. The company is considering strategic alternatives, including potential bankruptcy.
Feb 06: Bed Bath & Beyond Inc. shares soared 92.13% amid a short squeeze. The stock was suspended due to a halt in trading, and at one point, the share price rose 120.5%. Two hundred seventy-six million shares swapped hands.
Feb 07: Bed Bath & Beyond Inc. shares dropped 48.63% after announcing the proposed issuance of $225 million of Series A Convertible Preferred Stock and Warrants.
5. NVDA – Buzzing Stars: ⭐⭐⭐
Feb 01: The shares of Nvidia increased 7.2% after AMD reported better-than-expected fourth-quarter EPS and sales results and issued soft first-quarter guidance.
Feb 07: Nvidia stock climbed 5.14% after Fed Chair Jerome Powelll's commentary around disinflation sparked a rally in stocks.
Feb 10: Nvidia shares were down 4.80%, with Nasdaq falling 0.61% and the semiconductor sector pulling back.
6. MSGM – Buzzing Stars: ⭐⭐⭐
Feb 01: Motorsport Games shares climbed 72.90%, following a 713.69% share spike on Jan 31. This comes after the company received notification from Nasdaq Stock Market LLC that it was in full compliance with the listing rules and its debt-for-equity exchange agreement with majority stockholder Motorsport Network LLC.
Feb 02: Motorsport Games plummeted 37.95% as it entered into a definitive agreement for the issuance and sale of 144,000 common shares at $23.50 a share in a registered direct offering.
7. APE – Buzzing Stars: ⭐⭐⭐
Feb 02: APE shares were trading 10.55% higher after the Federal Reserve raised interest rates by 25 bps and with Nasdaq rising 3.25%.
Feb 10: APE shares slid 15.44% after the company announced an $85 million debt repayment on Feb 9.
8. AMZN – Buzzing Stars: ⭐⭐⭐
Feb 02: Amazon shares gained 7.38% due to overall market strength and expectations for its after-market fourth-quarter earnings.
Feb 03: Amazon shares dropped 8.43% after it reported the first unprofitable year since 2014 and lower-than-expected Q1 revenue guidance, and a possible antitrust lawsuit from the Federal Trade Commission.
Feb 13: Amazon shares rallied 1.98% with its Super Bowl commercial going viral and its self-driving cabs tested on California public roads for the first time.
9. META – Buzzing Stars: ⭐⭐⭐
Feb 02: Meta stocks soared 23.28%. On the Feb 1 after-market earnings release, Meta reported revenue that beat expectations and emphasized cost control, which prompted a 20% after-hours closing spike.
Feb 08: Meta stocks shed 4.27%, with the Nasdaq falling 1.68% and the Dow falling 0.61%.
Feb 13: Meta stocks climbed 3.03% after being reported delaying final budgets for several teams' budgets ahead of a new round of job cuts expected in March.
10. BABA – Buzzing Stars: ⭐⭐
Feb 09: Alibaba shares rallied 3.19% after announcing that it will raise $1B to support Asian and Middle East tech startups with Saudi Arabia's Public Investment Fund.
Feb 24: Alibaba shares fell 5.48% after it reported its Q3 FY23 results. Shares of Chinese companies are trading lower amid rising U.S. inflation concerns, with Nasdaq Golden Dragon China down 3.86%.
That's all for today's Monthly Buzz. Thanks for reading!
Source: All the news events mentioned above are from moomoo news. The percentage change data of the above stocks are from moomoo's daily quotes.
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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DreamMighty : Inflation cools, but is growth next?
rabitter : The main thesis of the current market rebound is based on the assumption that energy prices will drop, and in turn, cool inflation, allowing the Fed to steadily lower rates again.
BeckyBoo : March and April should be upward market conditions.
MACKGforEver : Amazon , Google , Apple and few other big tech stocks are still overvalued in my opinion.
Take Amazon - it was around 80 something USD per share before the pandemic , and that was already an optimistic valuation at that time.
Shaaaw : Brace For Volatility
All G33nius : 'Scraped through', but with plenty of learning along the way.
151372415 BeckyBoo : according to Michael burry that predicted the gfc thats when the 2nd recession will hit
73238242 : Hello