KEY POINTS Does a relative shortage of stocks combined with somewhat mechanical sources of buying explain the Dow rising to 29,000? What’s truly scarce are big, reliable cash flows that investors believe will endure economic wobbles and constant technological disruption. This has created a vastly bifurcated market, and an unusually wide spread between the valuation of the most expensive stocks and the cheapest ones. In aggregate Apple-Microsoft-Alphabet trades at 26-times this year’s profits, with no debt and enormous capacity to invest, buy back stock or fund future dividends. The broad market is below 19-times earnings.
Amidst a recovery rally from Wednesdays selloff, President Trump announced an additional round of tariffs on goods coming into the United States from China as stocks dived.
Stock traders eagerly await Apple (AAPL) earnings due Tuesday afternoon. Past hiccups from the company have spurred equity turmoil and currency flash crashes, here are the top 3 themes to watch.
US stocks closed mostly in the red following a volatile day of trading. Traders will now look to Thursdays trade balance data for insight into the US-China trade war.
The S&P 500 looks to end Fridays session in a range that previously offered considerable resistance in a week where the SPY, IVV and VOO ETFs recorded $6.4 billion in inflows.