Morning Commentary
It’s been an interesting week, as the market has begun to stabilize, and it continues to seek new leadership. Don’t get me wrong, there is still hell to pay for companies that miss Wall Street consensus, or give lower guidance, even if it’s just for a couple of quarters.
Today’s examples are Activision (ATVI) and Yelp (YELP).
S&P 500 Index |
+2.43% |
Communication Services (XLC) |
+0.02% |
Consumer Discretionary (XLY) |
+3.76% |
Consumer Staples (XLP) |
+1.97% |
Energy (XLE) |
+1.31% |
Financials (XLF) |
+3.67% |
Health Care (XLV) |
+3.79% |
Industrials (XLI) |
+2.88% |
Materials (XLB) |
+3.09% |
Real Estate (XLRE) |
+2.70% |
Technology (XLK) |
+1.37% |
Utilities (XLU) |
+2.51% |
Over the past five sessions, all S&P sectors are higher, which is a positive sign about distribution.
While tech continues its wild gyrations, maybe there is a bottom for the moment and until the next round of earnings.
Meanwhile, healthcare is rocking lead by insurance companies that no longer need to worry about changes in Obamacare. Pharmaceutical company stocks are doing well despite suggestions of bipartisan efforts to cap drug prices.
Brick and mortar retail names have powered the consumer discretionary sector as consumer confidence remains near the all-time high, and wages have begun to improve.
Financials have finally shown some life, although, those big Wall Street banks are still not living up to the hype of leading the way. At the start of the year, Wall Street universally said big banks would be big winners as higher rates would mean wider margins. The Fed has done its part and will hike for the fourth time this year next month. That was a foregone conclusion. What isn’t clear right now is what happens next year.
I thought the Fed statement yesterday was reasonable, and even made a nod to the curious action of the sharp decline in business investment in the third quarter. That could mean the Fed is prepared to reassess the need for urgent rate hikes, which coupled with the quantitative tightening of $50 billion each month, is beginning to worry banks.
Dow Jones Industrial Average 5-Day Chart
Over the past five days, the Dow Jones Industrial Average is up 3.2%, while the Shanghai Composite is down almost 3.0%.
Shanghai
There have been some interesting developments this week in China ahead of that much anticipated G20 meeting.
China Economic
More Olive Branch?
There is encouraging news. Overnight, American Express became the first foreign company given permission to build a network in China (with a China partner in a 50-50 JV).
The PPI number just came in hotter than expected adding a little more pressure on the market ahead of the opening bell.
Portfolio Balance Changes
20 equally-weighted positions
Communication Services |
Consumer Discretionary |
Consumer Staples |
Energy |
Financials |
Health Care |
2 |
3 |
1 |
1 |
1 |
1 |
Industrials |
Materials |
Real Estate |
Technology |
Utilities |
Cash |
2 |
4 |
0 |
2 |
0 |
3 |
To learn more about our Hotline service and our Portfolio, please email us at info@wstreet.com or contact your account representative. Take a trial to our Hotline, and start building your balanced portfolio today. Click here to get started.
Comments |
I AM AMAZED THAT THE MARKET ROSE ON THE DEMOS HOUSE WIN THAT BASICALLY STOPS ANY MORE TAX CUTS OR ANY GROWTH MEASURES THE TRUMP GAINS ARE FINISHED IN MY OPINION THE PARTY IS OVER ERNIE REMUS on 11/9/2018 2:06:00 PM |
Tweet |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
4/9/2024 1:56 PM | Fighting the Trend |
4/9/2024 9:46 AM | NEXT TIME, MAKE IT A HOLIDAY |
4/8/2024 9:45 PM | Cautious Feel |
4/8/2024 7:19 AM | IT’S ECLIPSE DAY |
4/5/2024 1:51 PM | Higher and Cheaper |
4/5/2024 9:23 AM | MARKETS REEL ON BIDEN’S ISRAEL ULTIMATUM |
4/4/2024 1:42 PM | Stocks Bounce |
4/4/2024 9:31 AM | ESCAPING GRAVITY = ESCAPING REALITY? |
4/3/2024 1:41 PM | Cuts Not Soon |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|