A reversal of market leadership Friday. Tech stocks like Facebook and Amazon and energy stocks drove the Nasdaq higher as Treasury yields took a break from their recent quick climb.
But Mercadien Asset Management’s Ken Kamen says investors should avoid Big Tech stocks for now.
“Maybe stay away from the momentum tech stocks. All those tech stocks that were in the middle of you know we used to call them FAANGS and as normal companies came in we changed the acronyms. I can't even keep up with them. I mean I, I think right now you want to be away from momentum investing 'cause the momentum is clearly been out of growth and into value.”
But on Friday, growth stocks outperformed financials and other value stocks that are seen as benefiting more from the reopening of the economy. Investors took profit on banks after the Federal Reserve said it would not extend a temporary pandemic regulatory break that was due to expire this month.
The Nasdaq gained three-fourth percent. The S&P 500 finished nearly flat. But the Dow lost seven-tenth percent. For the week, the three main indexes lost ground.
FedEx was the S&P’s top gainer, shooting up nearly 6%. The delivery company’s quarterly profit jumped more than expected. It was able to charge higher prices amid surging volume for e-commerce deliveries during the holiday season.
But Nike shares dropped 4%. The athletic apparel maker’s sales rose but missed Wall Street’s targets due to shipping issues and a sales slump at its stores.