𝙒𝙚 𝙝𝙖𝙙 𝙣𝙚𝙬 𝘼𝙏𝙃𝙨 𝙛𝙤𝙧 𝙩𝙝𝙚 𝙎𝙋𝙓𝟱𝟬𝟬 𝙖𝙣𝙙 𝙩𝙝𝙚 𝘿𝙤𝙬, 𝙬𝙝𝙞𝙡𝙨𝙩 𝙉𝙖𝙨𝙙𝙖𝙦 𝙞𝙨 𝙨𝙩𝙞𝙡𝙡 𝙨𝙩𝙧𝙪𝙜𝙜𝙡𝙞𝙣𝙜 𝙩𝙤 𝙜𝙚𝙩 𝙙𝙚𝙘𝙞𝙨𝙞𝙫𝙚𝙡𝙮 𝙝𝙞𝙜𝙝𝙚𝙧. 𝙃𝙞𝙜𝙝-𝙩𝙚𝙘𝙝 𝙨𝙩𝙤𝙘𝙠 𝙪𝙣𝙙𝙚𝙧𝙥𝙚𝙧𝙛𝙤𝙧𝙢𝙚𝙙 𝙦𝙪𝙞𝙩𝙚 𝙖 𝙗𝙞𝙩 𝙖𝙜𝙖𝙞𝙣. 𝙂𝙤𝙡𝙙 𝙠𝙚𝙚𝙥𝙨 𝙧𝙚𝙜𝙖𝙞𝙣𝙞𝙣𝙜 𝙨𝙩𝙧𝙚𝙣𝙜𝙝𝙩 𝙤𝙛 𝙡𝙖𝙩𝙚, 𝙬𝙝𝙞𝙡𝙨𝙩 𝙧𝙖𝙩𝙚𝙨 𝙖𝙧𝙚 𝙧𝙚𝙡𝙖𝙩𝙞𝙫𝙚𝙡𝙮 𝙨𝙩𝙖𝙗𝙡𝙚.
Value is the word lately, as the economy reopens and restrictions are being lifted around the world, vaccinations continue and the “yields problem” have been temporarily digested. Valuation of the high-flying Growth stocks keep correcting on the other hand. The “sell in May and go away” rule don’t bite this time around, for now…
𝗟𝗮𝘀𝘁 𝘄𝗲𝗲𝗸
👉 From CNBC: “Data going back to 1928 shows that the May-October period has the lowest average and median returns of any six-month period of the year, with the S&P 500 up 66% of the time on an average return of 2.2%, according to Bank of America.”
👉 Monday started on a positive note already with reopening plays like Macy’s, GAP, Royal Carraibean and similars being among the leading names.
👉 On Tuesday “shares of Alphabet and Microsoft were down about 1.6%. Meanwhile, Apple tumbled 3.5%, while Amazon slid 2.2%. The tech giants have struggled to sustain momentum, despite easily beating analysts’ projections a week ago. ” (CNBC) Shares of SNAP confirmed this rule of late and tumbled on week after blowout numbers. $NSDQ100 had its worst day since March.
👉 Similar out/underperformance tendencies persisted on Wednesday too. Shares of $PTON (Peloton Interactive) lost 15% as it recalle dits Tread+ over safety concerns. The stock got a downgrade from BofA.
👉 Weekly jobless data boosted broad market on Thursday, as the “first-time claims for unemployment insurance reached 498,000 for the week ended May 1. It marked a fresh pandemic-era low, and the results beat the Dow Jones estimate of 527,000.” (CNBC)…still all eyes were on Friday’s April jobless report due, which came in….
👉 ….as a massive disappointment with only 266k new job created for the month vs. appx. 1m expected. The market took it pretty typically for this period of the economic cycle: “weak labour data mean lower rates for longer”. The equity indices shrugged off the data and finished the week at the weekly highs.
👉 𝙀𝙛𝙛𝙚𝙘𝙩𝙞𝙫𝙚 𝙬𝙚𝙚𝙠𝙡𝙮 𝙞𝙣𝙙𝙚𝙭 𝙘𝙝𝙖𝙣𝙜𝙚𝙨: $SPX500 +1,2%, $NSDQ100 -1,0%, EuroStoxx600 +1,7%, $GER30 +1,7%, JPN225 +1,9%.
𝗢𝘁𝗵𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗲𝘃𝗲𝗻𝘁𝘀: 👉 𝘽𝙤𝙣𝙙𝙨: the US yield curve (10y-FF) at 157bps, the German curve (10Y Bunds-3M) at 31 bps. EuroArea AAA-rated bonds yield at 43bps. High Yield Spreads at 3,2. 👉 𝘾𝙤𝙢𝙢𝙤𝙙𝙞𝙩𝙞𝙚𝙨 (𝙚𝙭 𝙤𝙞𝙡): $GOLD +3,6% 👉 𝙊𝙞𝙡: +2,1% on week. 👉 𝘾𝙪𝙧𝙧𝙚𝙣𝙘𝙞𝙚𝙨: DXY (Dollar Index) -1,2% on week, EURUSD +1,2%.
Best, GlobalAlphaS
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