Morning Commentary
It was an intriguing day for the Dow Industrial Average (DJIA), which essentially closed unchanged, following the trajectory of Boeing (BA) after it popped at the start of trading, only to stumble on news of zero aircraft orders and only 13 deliveries last month. Microsoft (MSFT) also pressured the Big Board as big Tech names were sideswiped by the Federal Trade Commission (FTC), which announced an investigation of up to 400 smaller rivals over the past ten years, including:
It’s a compelling move during an election year, where many candidates have promised to undo big acquisitions, such as Facebook’s (FB) purchase of Instagram. Imagine trying to unwind smaller deals from a decade ago. That would be a nightmare. There is no doubt the sharks have been circling these names for some time, but I have mostly felt it was all a part of international shakedown efforts, with governments grabbing big chunks of cash with antitrust action.
S&P 500 Index |
+0.17% |
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Communication Services (XLC) |
-0.11% |
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Consumer Discretionary (XLY) |
+0.79% |
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Consumer Staples (XLP) |
-0.37% |
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Energy (XLE) |
+1.12% |
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Financials (XLF) |
+0.35% |
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Health Care (XLV) |
+0.60% |
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Industrials (XLI) |
+0.38% |
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Materials (XLB) |
+0.55% |
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Real Estate (XLRE) |
+1.21% |
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Technology (XLK) |
-0.34% |
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Utilities (XLU) |
+0.36% |
Broad Market Pulse
S&P 500
The Dow Jones is only thirty stocks, and nowhere near a representative of the overall stock market as it’s missing entire sectors. The S&P 500, on the other hand, is wider and more encompassing. Yesterday, the index finished at a record high, along with the NASDAQ Composite.
NYSE
NASDAQ
Workers on the Move
The so-called JOLTs report saw a sharp decline in job openings, but the 6.42 million is still higher than the 5.9 million Americans currently unemployed. Moreover, we are seeing a steady movement in ‘quits,’ which are higher now than a year ago at 3.49 million. I suspect this will translate into higher wage growth.
Portfolio Approach
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Comments |
In the unemployment section: what's the definition of "quits"? William Brown on 2/12/2020 10:30:20 AM |
people voluntarily leaving job - it's a subcategory of separations Charles Payne on 2/12/2020 10:36:23 AM |
The FTC can't unwind 10yr old small acquisitions. They can only use this as a trend of market predatory practices. Corporations will typically "incorporate" acquired companies into existing divisions. Trading on this news is not a good idea at this time. Ken Knight on 2/17/2020 5:17:16 PM |
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4/22/2024 9:30 AM | LIVE BY THE SWORD … |
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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 |
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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 |
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