To Bank of America planetary concern strategist Michael Hartnett, determination person been 3 chiseled phases to picture marketplace enactment implicit the past 8 months.
The archetypal is what helium labels the reopening rally, started connected Nov. 3 by some the U.S. predetermination and the reports of vaccine effectiveness. That boosted stocks and credit, steepened the output curve, weakened the U.S. dollar, and led to cyclicals outperforming defensives.
The adjacent signifier was the ostentation boom, started connected Feb. 16 by blowout U.S. retail sales. That led to commodities rising, yields surging, cracks successful the exertion sector, and worth stocks outperforming growth.
The 3rd signifier was what helium calls “peak growth/policy,” starting connected Jun. 16 by the Federal Reserve arsenic good arsenic easing signs from China. That led to a output curve collapse, bonds outperforming stocks and commodities, the dollar rising, and defensives outperforming cyclicals.
So what to bash now? He says ain antiaircraft prime successful the 2nd half, arsenic it is some a hedge against highest policy, and highest profits. He advises going agelong defensives successful what helium calls the vaccinated markets of the U.S. and Europe, and agelong cyclicals and reopening plays successful markets with vaccine upside, successful Japan and emerging markets.
Intel tops estimates
Microchip elephantine Intel INTC, -0.48% slipped 2% successful premarket commercialized arsenic it reported better-than-forecast nett and sales, but issued an analyst-matching third-quarter forecast, as Chief Executive Pat Gelsinger said the planetary semiconductor shortage whitethorn agelong into 2023.
Twitter TWTR, +0.04% roseate 4% arsenic it reported much stronger than expected net and revenue, aft adding 7 cardinal caller users successful 3 months. Rival societal media level Snap SNAP, -0.66% jumped 17% arsenic it crushed gross estimates aft adding 13 cardinal users.
The virus-delayed, nearly fan-free Tokyo Olympics are opening.
The Wall Street Journal asks, however overmuch volition your Oreos cost, successful a roundup of firm views connected their quality to trial terms increases.
There’s a engaged slate of U.S. economical reports, including the employment outgo scale for the 2nd quarter, idiosyncratic income for June and flash purchasing managers scale for the U.S. The flash PMI from the eurozone reached a 21-year precocious successful July, though the U.K. speechmaking fell to a four-month debased amid what’s called the “Pingdemic,” referring to a interaction tracing app that is forcing workers to enactment home.
Here is what’s billed as the most-accurate representation of Earth.
The world’s archetypal 3D-printed alloy bridge has opened.
Need to Know starts aboriginal and is updated until the opening bell, but motion up here to get it delivered erstwhile to your email box. The emailed mentation volition beryllium sent retired astatine astir 7:30 a.m. Eastern.
Want much for the time ahead? Sign up for The Barron’s Daily, a greeting briefing for investors, including exclusive commentary from Barron’s and MarketWatch writers.