𝙇𝙖𝙨𝙩 𝙬𝙚𝙚𝙠 𝙬𝙚 𝙨𝙖𝙬 𝙂𝙧𝙤𝙬𝙩𝙝 𝙤𝙪𝙩𝙥𝙚𝙧𝙛𝙤𝙧𝙢 𝙑𝙖𝙡𝙪𝙚 𝙞𝙣 𝙜𝙚𝙣𝙚𝙧𝙖𝙡. 𝙏𝙚𝙘𝙝 𝙞𝙣𝙙𝙞𝙘𝙚𝙨 𝙚𝙖𝙧𝙣𝙚𝙙 𝙤𝙫𝙚𝙧 𝙙𝙤𝙪𝙗𝙡𝙚 𝙩𝙝𝙚 𝙬𝙞𝙙𝙚 𝙢𝙖𝙧𝙠𝙚𝙩 𝙬𝙚𝙚𝙠𝙡𝙮 𝙥𝙚𝙧𝙘𝙚𝙣𝙩 𝙘𝙝𝙖𝙣𝙜𝙚 𝙞𝙣 𝙐𝙎. 𝙏𝙝𝙚 𝙧𝙚𝙥𝙤𝙧𝙩𝙞𝙣𝙜 𝙨𝙚𝙖𝙨𝙤𝙣 𝙧𝙤𝙡𝙡𝙨 𝙤𝙪𝙩. 𝙐𝙎 𝙖𝙡𝙨𝙤 𝙝𝙖𝙨 𝙖 𝙣𝙚𝙬 𝙋𝙧𝙚𝙨𝙞𝙙𝙚𝙣𝙩 𝙨𝙬𝙤𝙧𝙣 𝙞𝙣.
Commodities ($GOLD) and yields ($TLT) situation calmed down vs. the 2 weeks before. Still the 10Y Treasury Yield keeps staying at 100bps+, which was hard to believe yet some time ago.
👉 Markets generally looked towards new all-time-highs as the inauguration of the President-elect Joe Biden loomed on Wednesday.
👉 Bank earnings hit the street Tuesday with $BAC (Bank of America Corp) having beat the consensus expectations on earnings, but revenues fell short. The bank released a stock buyback plan and kept dividend pledge at current level. $GS (Goldman Sachs Group Inc) on the other hand beat both on earnigns as well as sales due to better-than-expected result in trading and investment banking.
👉 On Wednesday the inauguration led the markets higher, boosted also by further numbers releases, like $MS (Morgan Stanley) , $PG (Procter & Gamble Co) or $UNH (UnitedHealth) . Star of the day was of course $NFLX (Netflix, Inc.) , which surged more than 13% after strong numbers and the announcement of 200m paid subs being in place.
👉 $AAPL (Apple) outperformed on Thursday after Katy Huberty ($MS analyst) released bullish comments ahead of the company’s numbers due next week. She expects a “record December”. Stock popped almost 4%.
👉 Big tech copmanies led gains also on Friday ($MSFT (Microsoft), $FB (Facebook), $CRM (Salesforce.com Inc)).
👉 The earnings season so far (68/500 reported in $SPX500) is good: Average sales surprise +4%, average earnings surprise a stunning +28%. I wrote about it many times, but again, average analysts’ expectations are yet low (as they were for 3Q20 as well) and beats will possibly cotinue to be plenty. This is possibly one of the major reasons for why the markets are as high as they are currently and (at least for now) don’t lose steam.
👉 Some stats of current state of markets (excerpt from CNBC.com): “The S&P 500 is currently trading at 22.8 times forward earnings, near levels during the 2000 dotcom bubble, according to FactSet. The broad equity benchmark is also 16% above the 200-day moving average, twice the normal levels even in bull markets.”
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 +2%, $NSDQ100 +4,4%, EuroStoxx600 +0,2%, $GER30 +0,6%, $JPN225 +0,4%.
𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀:
👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) still above 100bps, the German curve (10Y Bunds-3M) at 9bps. EuroArea AAA-rated bonds yield curve at 10bps. High Yield Spreads at 3,7.
👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD +1,5%, $SILVER +3% on week.
👉 𝙊𝙞𝙡: -0,5% on week. Not much action again.
👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -0,6% on week, $EURUSD +0,7%.
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