From the Wall Street Journal’s “Stock Futures Edge Lower With Tech Retreating” posted early Tuesday:
The major indexes are hovering close to record levels as investors weigh strong economic data and robust corporate earnings against inflation concerns and rising coronavirus cases in parts of the world. Some money managers say brightening prospects for the economy and for businesses’ profits has been baked into stocks’ valuations.
“The market has already priced in a strong recovery and earnings season over-delivered, but it was still not enough to drive indexes much higher,” said Sophie Chardon, cross-asset strategist at Lombard Odier. “The market is now focusing on the next steps, especially on policy. The next step will be to see how the Fed shifts its monetary policy outlook.”
The improving economic picture is encouraging some investors to step up bets on companies that stand to benefit the most from the recovery. That is leading to a rally in energy and banking stocks, while technology shares have slowed their gains.
“The rotation trade is back and it will gain momentum over the next few weeks,” said Florent Pochon, head of cross-asset strategies at French bank Natixis. “As long as central banks stay dovish and you combine that with the reopening of the economy, then that should be a perfect dynamic for stocks.”
My take: Blah. Meanwhile, a public service announcement on Slack from FOB Robert Paul Leitao:
Just a reminder Apple’s ex-div date this quarter is Friday, May 7th. If you want to take advantage of the 7% higher dividend and are considering adding to your position, due so no later than Thursday to grab the $.22 quarterly payout on the newly purchased shares.