For most of the day, trading yesterday was relatively quiet ahead of a deluge of top tier earnings and economic reports. Late in the afternoon, however, the Treasury announced its quarterly refunding needs which were lower than anticipated. Both the debt and equity market rose modestly on the news.
At 10:00 AM today the influential JOLTS Job Openings is released. The data has consistently surprised on the upside.
After the close tech heavy weights MSFT and GOOG post results. MSFT is the second three trillion-dollar company, eclipsing that mark several days ago. AAPL is the only other company that is in this rarefied air.
Many ask how a three trillion-dollar company can be viewed as a “growth entity” given that this capitalization is greater than entire capitalization of the Russell 2000, the index that was formerly known as the “growth index?”
AAPL, AMZN and META post results on Thursday. The five mentioned mega caps are worth over $10.5 trillion, the greatest concentration of wealth in history.
There was little reaction to the killing of three American servicemen by Iranian proxies. Many are asking why there is an absence of geopolitical premium as the issues in the Middle East are greatly escalating, perhaps at the greatest levels in over 50 years.
Treasuries rallied across the curve, causing little change in its slope.
Last night the foreign markets were mixed. London was up 0.60%, Paris up 0.41% and Frankfurt up 0.12%. China was down 1.83%, Japan up 0.11% and Hang Seng down 2.33%.
Futures are nominally lower ahead of what can be a significant week. The 10-year is up 1/32 to yield 4.08%.
Kent Engelke
Chief Economic Strategist Managing Director
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. 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. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.
