The opinions expressed below are my own and do not necessarily represent those of Visdom Investment Group, LLC.
Calm.
Despite the lack of US/Iran negotiations over the weekend, markets took everything in stride. S&P futures traded without big swings overnight and circled about flat for the most part. The yield curve did climb some, as did crude. The S&P opened down 10, spent the morning in the red small, and rallied to up small in the afternoon. The S&P 500 printed new all-time highs again today. Communication services led among the sectors while consumer staples lagged. Capital flow was very light at 84%.
Markets did not do much today. Bonds and crude continue to react according to the war-is-worsening playbook. Stocks are shrugging that off. There’s no good explanation for equity strength alongside Treasury market weakness. Perhaps excitement for the wave of earnings announcements this week triggered a front-running move and the setback in the Middle East wasn’t large enough to negate it?
177 stocks in the S&P 500 will announce their quarterly results over the rest of this week. If the market can remain somewhat immune to the US/Iran headlines, it will focus on the results of earnings reports. The expectations are for lots of beats. That will probably not surprise investors. The hope is that guidance is rosy. The hope is that companies are looking through the US/Iran situation and seeing wonderful growth and productivity outcomes in the back-to-business future.
I don’t know if that’s a tall order but there is a rationale to it. Single stock news is about to dominate for a change.
See you tomorrow.
-Mike
Visdom Market Commentary
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