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Author Message   Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3872 Registered: 05-2011 Rating: N/A Votes: 0 Posted on Tuesday, January 04, 2022 - 12:12 pm:    Market Briefing: Mega-cap stocks fall; value stocks rise again The stock market is mixed as the love for the mega-cap stocks yesterday has been questioned today; hence, the Nasdaq Composite is down 1.7% while the Dow Jones Industrial Average is up 0.7%. The lopsided market has two proximate causes: The bump in long-term rates, which is undercutting many of the highly-valued growth stocks An upbeat economic growth outlook despite the short-term effects of the Omicron variant We can see the economic view today in the outperformance of the value stocks and the leadership of the cyclical sectors, which includes energy (+2.7%), financials (+2.5%), industrials (+1.9%), and materials (+1.3%). The Russell 3000 Value Index is up 0.9% while the Russell 3000 Growth Index is down 0.8% in a trade reminiscent of the rotational axis on which the 2021 stock market spun. In turn, the Vanguard Mega-Cap Growth ETF (MGK 259.92, -3.55, -1.4%) is down 1.4% while the Invesco S&P 500 Equal Weight ETF (RSP 164.21, +1.32, +0.8%) is up 0.8%. Some of the mega-cap laggards include NVIDIA (NVDA 287.25, -13.96, -4.6%), Tesla (TSLA 1155.36, -44.42, -3.7%), Amazon.com (AMZN 3347.80, -60.29, -1.8%), and Microsoft (MSFT 330.08, -4.67, -1.8%). The 10-yr note yield is at 1.67%, up four basis points from yesterday (and up 16 basis points since the start of 2022). The 2-yr note yield, though, is down two basis points to 0.77% as a comforting drop in the prices index for the December ISM Manufacturing report helped lower the temperature a little bit on rate-hike concerns. The S&P 500 and Russell 2000 are down 0.2%.