Morning Commentary
I hope everyone had a great, restful and patriotic Fourth of July weekend…now its time to get back in the mix and make some money. There is some big news moving the markets.
OPEC failed to come up with an agreement on additional supply and is sending crude higher. West Texas Intermediate (WTI) clears a very pivotal number of $75.70. There is not a lot of resistance up to $100.00; although, such a move would take more inputs from growing demand and limited supply driven by government actions that are already curbing long term investment.
Chinese ride-hailing company Didi (DIDI) is seeing its shares get hammered on news China-state regulators are coming down on companies listing in the United States.
The risk was mentioned ahead of time ,but the company was still able to raise $4.4 billion from American investors (and yes, your pension fund probably bought some) and Wall Street firms, including Goldman Sachs (GS) and Morgan Stanley (MS), which raked in $88.0 million.
I think US regulators should have waited before allowing the IPO. There is so much talk of saving individual investors from themselves, but the people doing all the yapping did nothing to stop folks from taking a huge hit on DIDI this morning.
Inflation Expectations & Markets
With the Fed minutes out on Wednesday, there is great anticipation over what’s on the minds of FOMC members. Meanwhile, the intensity of inflation has surprised everyone, but how long will it last?
Lately, the street is having more doubts on the potential for rate hikes sooner rather than later.
Bond Market: Too Sanguine?
The yield on the ten year continues to breakdown, and while it is up significantly for the year, those fears that came from the velocity of the spike a couple months ago has faded.
I do not think the bond market is too sanguine.
The S&P 500 is up seven straight days for the first time since 1997 – although NASDAQ looks more intriguing before the open. I like the chances of a positive close today for the S&P 500.
Portfolio Approach
We are adding to Health Care this morning in our Hotline Model Portfolio.
Comments |
KEY Indicator market heading south - Dental stocks reached new high Patrick J Pedley on 7/6/2021 10:16:26 AM |
Welcome back Charles and crew. Missed you yesterday, but hope you had a great Independence Day celebration. Lorin K on 7/6/2021 10:34:25 AM |
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