There was lots of green on the screen, as the same tide swept up most of the market yesterday. 

Seven of eleven sectors were higher as traditional safe-havens, and Energy (XLE) watched the parade from the sidelines. 

Chips Ahoy

When I arrived on Wall Street, semiconductor chips weren’t seen as great investments but as commodities prone to oversupply. The VanEck Vectors Semiconductor ETF (SMH) erupted to another new high yesterday. The Nvidia (NVDA)-Factor makes this a unique moment in time. 

Equal But Unequal

It has made sense, from fundamental reasons to just a hunch, to broaden out portfolios to include fewer mega-cap stocks. Many pros have urged investors to focus on the so-called ‘equal weight’ ETF, where every stock has the same impact on the market. 

It's all about large-cap tech.

Good News Was Good News

The Institute of Supply Management (ISM) Service Purchasing Managers’ Index (PMI) came in significantly above the consensus and back into expansion. 

The details were even better than the headline as business activity surged, employment rebounded, and prices fell!

Meanwhile, the Bloomberg US Surprise Index has been in freefall after a series of economic data misses. This brings us back to the debate over whether to root for good or bad news. I always root for the former.  

I’m also somewhat perplexed that stocks haven’t reacted more vigorously to the decline in the ten-year yield. 

Today’s Session

Initial jobless claims climbed to 229,000 well above consensus of 220,000.

Continuing claims edge up to 1.792 million.

Oddly, more bad news is not moving the needle like it had for a long time. 

Comments

Love your new BOOK. If you are ever on KAUAI..Look Me Up..I will buy You lunch..You are a sharp dresser Orlando J. Pacheco Jr. on 6/6/2024 2:17:19 PM

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