Premarket: Apple is green

apple premarket green 5-5-21From the Wall Street Journal’s “Stock Futures Rise, Pointing to S&P 500 Rebounding” posted early Wednesday:

Stocks are poised to rebound Wednesday after Treasury Secretary Janet Yellen walked back earlier comments that interest rates might need to rise to keep the economy from overheating. She clarified after markets closed that she was neither predicting nor recommending that the Federal Reserve raise rates. Inflation isn’t likely to be a problem, and the Fed can handle it if it does become an issue, she said at The Wall Street Journal’s CEO Council Summit.

“Today is a bit of a relief rally,” said Edward Park, chief investment officer at Brooks Macdonald. “Markets are grinding higher and they are grinding higher on a relative basis because equities remain the most attractive.”

Strong earnings growth and signs that the economy is rebounding quickly are helping boost sentiment, Mr. Park said. “But there is this growing question of how long will monetary policy remain accommodative,” he added.

Money managers said inflation and the Fed’s potential response are likely to become a bigger concern in the second half of the year. Stocks are likely to continue to rally as long as people agree with the Fed’s view that the recent climb in inflation will prove to be fleeting, they said.

“Either the Fed is correct or they are very, very wrong,” said Salman Ahmed, global head of macro at Fidelity International. “It is entirely possible that the market oscillates between these two scenarios” for the next few months, he added.

My take: After yesterday’s bloodletting, this is the least Dr. Premarket could do.

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