Hey Folks, I hope your weekend is going great for you. The markets are showing signs of confusion as we are hit almost on a daily basis with bullish and bearish news print that is then reflected in price action. Even given all of these issues the Bulls still want to push price action higher but we must watch how long the Bulls can stay in control. Check our take below;
WEEKLY SOUND BITES;
• Large-cap benchmarks narrowly managed a third consecutive week of gains, while small-cap shares lagged slightly after a recent streak of outperformance. Within the S&P 500 Index, industrials and utilities shares outperformed, while financials recorded losses as investors gave a lukewarm reception to bank earnings reports…Covid worries also seemed to dampen sentiment during much of the week. Investors appeared concerned by the continued rise in cases in the U.S. and Europe while Wednesday brought news of pauses in trials of both J&J’s vaccine and Eli Lilly’s antibody treatment…The S&P has risen over 56% from the Mar 23rd lows while share-holder wealth has increased over $14.2 T, and with Treasury yields very low it forces fixed income money managers to chase returns in riskier higher yielding Corporate Debt…
• The week’s economic data were mixed. Core retail sales rose 1.4% in September, easily reversing a downwardly revised 0.3% drop in August. A preliminary gauge of October consumer sentiment also surprised moderately on the upside, however, weekly jobless claims disappointed, rising to 898,000, a two-month high…
• Treasury yields rose after the retail sales report but decreased through most of the week, driven in part by the Fed’s purchases of U.S. government debt (over $80 B monthly with $40B for mortgage backed securities), concerns surrounding vaccine trials, and softness in key components of the latest consumer price index data… Meanwhile, rising COVID-19 cases in Europe and concerns surrounding fiscal stimulus negotiations in the U.S. continued to weigh on sentiment in the investment-grade corporate bond market.
• UK Prime Minister Boris Johnson said the country should get ready for a no-deal exit from the European Union (EU) on December 31, in response to Brussels’ demands for more unilateral concessions. However, Johnson kept the door open for more talks, saying he would listen to proposals based on a “fundamental change of approach.”
• Platform Companies Big Rise – Companies that create a transactions or ecosystems between Buyers and Sellers like UBER, MSFT,AAPL, AMZN, GOOGL, FB, BABA, MA, V…in fact 9 of the 10 largest tech companies by market value are platform companies…others I like are SHOP, NVDA, NOW and PYPL…
Enjoy This Week’s Market Round-Up;
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