Wall Street Strategies
Hello! Sign in or Register


Morning Commentary

TECH TITANS ON THE HILL

By Charles Payne, CEO & Principal Analyst
7/29/2020 9:34 AM

Yesterday, traditional safe havens rallied as the broad market never gained traction. Perhaps out of frustration, sellers were overwhelmed with reluctant buyers to send major indices lower into the close.  There was never a sense of panic. On the contrary, there was a sense of boredom. I was surprised at how much Materials sold off, but I expected Communication Services and Technology to wilt from all the unknowns.

One unknown is today’s trek to Capitol Hill, where the focus is supposed to be on antitrust issues, but expect any topic to be fair game from Congressmen looking to score points.

S&P 500 Index

 

-0.65%

Communication Services XLC

 

-1.03%

Consumer Discretionary XLY

 

-0.99%

Consumer Staples XLP

+0.37%

 

Energy XLE

 

-1.70%

Financials XLF

 

-0.25%

Health Care XLV

 

-0.11%

Industrials XLI

 

-0.69%

Materials XLB

 

-2.20%

Real Estate XLRE

+2.02%

 

Technology XLK

 

-1.17%

Utilities XLU

+1.51%

 

Market breadth suggests buyers were in the mix, and aggressively buying names with lesser weights in major indices.

Market Breadth

NYSE

NASDAQ

Advancing

1,349

1,120

Declining

1,602

2,205

52 Week High

80

67

52 Week Low

8

20

Up Volume

2.07B

1.91B

Down Volume

1.97B

1.94B

 

Cloudier Outlook

Yesterday’s Consumer Confidence report did more to inform Washington, D.C., and Wall Street. The report was expected to decline, but it came in well below the consensus, and it was all about two things:

Also, there were large declines in several states that saw increases in COVID-19, including Michigan, Florida, Texas, and California.

 Consumer Confidence

July

June

Present Conditions

94.2

86.7

Expectations

91.5

106.1

Present Conditions: 94.2 from 86.7

Expectations: 91.5 from 106.1

Members of Congress must read between the lines in this Consumer Confidence report. This doesn’t mean paying folks not to work. It means a plan that facilitates employment while taking care of those without near-term job prospects.

Portfolio Approach

We continued to build cash after taking profits on a couple of positions that stalled. This morning, we are adding two positions in Industrials in our Hotline Model Portfolio. If you are not a current subscriber to our Hotline, get started today. Contact your account representative or email Info@wstreet.com.

Today’s Session

We are swamped with earnings releases, which have been much better than expect, but the reactions vary.  Conference calls are more critical than ever, as listeners try to gauge not just words, but tone.  It has been a long time since we have been here with analysts playing psychiatrists, too.

Speaking of which, Fed Chairman Powell is expected to have a very somber tone. Meanwhile, those Big Tech CEOs are expected to have firm tones, as they express the importance of their companies.  

It is going to be an interesting day.  

 


 

Add Your Comment


Submitted comments are subject to moderation before posting.


Home | Products & Services | Education | In The Media | Help | About Us |
Disclaimer | Privacy Policy | Terms of Use |
All Rights Reserved.