Monday, July 22, 2019
Home News As Wall Street rises again, this stock sector is a breeze

As Wall Street rises again, this stock sector is a breeze

A "wall of blur".

For example, Michael O'Rourke of JonesTrading describes recent measures for the stock markets, which he says are "outdated by mechanical trading that defies logic." He finds it strange to see so much optimism in the face of political turmoil – a US Shutdown is on Day 26 and the UK is in the grip of a seemingly never-ending Brexit nightmare.

And, and …: "After almost a year of a trade war, it seems that the United States is only going to face a bigger trade deficit with China. Global industrial production and global manufacturing PMI are rolling over, "he writes in a note to customers. Cats and dogs.

But others, like Jani Ziedins of Cracked Market, say these wins are pretty easy to explain. "Big money has come back from the holidays and definitely tends to buy the rebates than the fear of selling," though he says a few bad headlines do not spoil anything.

And the money stole as Netflix technology on Tuesday

NFLX, + 0.73%

and his subscription jump has inspired everyone. Our Call of the day The Real Fly by iBankCoin says if Wall Street is rallying again, investors can rely on a large sector to boost profits.

The self-described "Le Fly" states that 3% bump for the software division on Tuesday represented "alpha personified before the recent downturn."

"The basic story is the repeatability of revenue, the same simple business model that has made NFLX so successful and made Amazon from" a bookseller to Amazon Web Service "and then" gods "for the first time," he says, "staying invested" rattles Names like HubSpot that are experiencing rapid growth

hUBS, + 2.18%


ZEN, + 1.73%


NTNX, + 3.12%

and new relic

NEWR, + 0.98%

Then there is Salesforce

CRM, + 0.24%

The tickets have increased by 150%, compared to a gain of 98% for the S & P over 5 years.

However, there is a caveat, as he says that a high-growth sector like software is not exactly cheap. If the market turns again, software will most likely suffer.

While Netflix has a great start this year – with a plus of 32%, HubSpot and the rest have not done nearly as well.

Remember, there seems to be a limit to what the will-it-now-consumer will pay for his Netflix dependency. Twenty dollars, Reed.

The market

With a series of big bank winnings on Wednesday morning, Dow

YMH9, + 0.51%

and S & P 500

ESH9, + 0.34%

Futures try to rise during the Nasdaq

NQH9, + 0.18%

can be ready for a breather after a heavy overvoltage. The tech index

COMP, + 0.38%

led on Tuesday with the S & P 500 a generally solid day for stocks

SPX, + 0.29%

nice and the Dow

COMP, + 0.38%

ends up higher.

The dollar

DXY, + 0.09%

is softer, gold


paused and rude


a mixed bag.

The FTSE 100 Index

UKX, -0.45%

Investors get the first chance to react to the big Brexit defeat of the British government. European Equities

SXXP, + 0.42%

are largely down the line. Meanwhile, Asia saw a fairly uneventful meeting with the Nikkei

NIK, -0.55%

End lower.

The graphic

Is the classic recommendation to diversify stock / bond prices between 60 and 40 years for the average investor? Our Diagram of the day by Carl Wealth of Sense Ben Carlson tends to affirmation. It is a graph that he often refers to and points out the historical probability of positive returns on the S & P 500 over time. The longer the period, the more positive it becomes.

His 60/40 chart also gives a pretty positive picture to the investor who is willing to stay there. "I was surprised to not see a single negative return over 10 years, but even after 5 years, it was 9.5 out of 10," says Carlson.

A wealth of common sense

And he has also made this nice spread of returns from calendar years, which helps to put a lousy 2018 in the right light for the S & P 500. Disagreements:

A wealth of common sense

The buzzing

It's a big day for financial results. Goldman

GS, + 3.27%

is for top estimates. Bank of America

BAC, + 5.35%

climbs under big revenue. Bank of New York Mellon

BK, + 1.56%

is down on a win-win, as well BlackRock

BLK, + 1.61%

and Charles Schwab

SCHW, + 2.82%

Afterwards there are still to come, and after the bell hears the Wall Street of Alcoa

AA, + 0.88%

Read: Why lending at Wells Fargo, Chase and Citi crashed

And: The $ 100,000 question you should ask your real estate agent

First dates

FDC, + 19.07%

rises to Fiserv in the forerun

FISV, -5.45%

announced an all-stock deal worth $ 22 billion for the Financial Tech group. Fiserv is not doing well.


JWN, -8.27%

is beaten by a downgrade and price reduction by Goldman.

Snapshot Parent Snap

SNAP, -11.77%

After another top executive, this time CFO Tim Stone, breaks in.


SHLDQ, + 6.45%

Chairman Eddie Lampert has reportedly rallied in a bankruptcy auction with a larger $ 5.2 billion deal for the troubled retailer, potentially leaving the stores open.

The Brexit drama will stop next Wednesday as beleaguered Prime Minister Theresa May faces a vote of no confidence. What's next for Britain and the EU, and see what the richest man in the UK has done before this devastating Brexit vote. It even increases the likelihood that the whole thing will be completely scrapped. The drama has definitely triggered some European politicians:

The economy

Investors are unlikely to receive an update on retail sales due to the closure of the government, but an index of home builders is available, along with the Fed's beige book due late in the afternoon.

The stat

$ 80 million – That's how much a bad bet on S & P 500 derivatives costs the French bank BNP Paribas during the Christmas crisis. Bloomberg reports that Antoine Lours, head of the US index trading bank, did this trade shortly before his Christmas break. Surprise, surprise, he's not back yet, says the report.

The quote

Let her eat cake?

"For people who are struggling, we will make them aware of their responsibility, because some of them behave properly while others play around." 600 mayor, as he tries to calm the demonstrators of the "yellow jacket".

Random readings

An American was killed under 15 when terrorists attacked a high-quality hotel in Kenya

Democratic Senator Kirsten Gillibrand said she is running for the presidency

The Spaniards want a smiling devil statue that grabs itself to get the hell out of their city

Maine can not get enough of that Turn ice slice

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