Equities declined on Covid nervousness.  In some regions, cases are rising dramatically.  New York, New Jersey and Connecticut are requiring visitors to self-quarantine if traveling from virus hot spots.  Will the perceived insurgence hamper the recovery?   Johns Hopkins states cases increased by 1.4% Tuesday, nominally higher than the average daily increase of 1.3% over the past seven days.

Radically changing topics, the rebound from the March lows has been focused in several stocks.  FAANGM now comprise a record 24% of the S & P 500.  Their total capitalization is greater than the GDP of Mexico and Japan combined.

Wow!  In years gone by, all would for search for the underfollowed company.  Today it is all about the greatest owned companies hoping for yet even more buyers.  This has been the trend for several years but now it is beyond the manic stage.  No one knows when this trend will end but like every other trend this too shall end.

The economic calendar is crowded today.  How will the markets interpret jobless claims, durable goods, inventories, a regional manufacturing index and revised GDP?  The Citicorp surprise index is still at record levels.  As noted many times the data is consistently stronger than expected.

Last night the foreign markets were mixed.  London was down 0.14%, Paris up 0.48% and Frankfurt up 0.52%.  China was up 0.30%, Japan down 1.22%  and Hang Sang down 0.50%.

The Dow should open nominally lower on Covid fears.  The 10-year is up 6/32 to yield 0.68%.


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. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.