16 Apr A RELATIVELY QUIET DAY
Posted at 13:06h
in Market Commentary
Markets were relatively quiet as two mega sized financials posted disappointing results. Many are beginning to write the current advance is “looking tired.” Will earnings rejuvenate the averages? Several high profile companies report this week including Bank of America, Blackrock, Netflix and IBM.
Commenting briefly about Blackrock, how will competition affect its fee based business? What about assets under management? A generic observation is Wall Street is firing workers at a steady pace, a perplexing observation given that layoffs are occurring in a generally up market. Historically Wall Street fires workers in market downtrends.
I must reiterate the current advance is narrow, focused in a handful of names while all other “fail safe” strategies have imploded.
Speaking of which, NFLX reports at the close. Shares of the company are up almost 30% since the start of the year. To write the obvious, these results will set the tone for FAANG and any surprises could increase volatility.
What will occur today?
Last night the foreign markets were up. London was up 0.33%, Paris up 0.04% and Frankfurt up 0.56%. China was up 2.39%, Japan up 0.24% and hang Sang up 1.07%.
The Dow should open nominally higher on earnings optimism. The 10-year is unchanged at 2.56%.
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results.
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