About Trump leaving DC. Bad news for these stocks, strategists say

A modest recovery is taking place after Monday’s withdrawal, as does eternal hope for fresh encouragement from President-elect Joe Biden’s administration. And why should the market do what it has been doing for a long time? Bounce back again and again.

But is there trouble in heaven? “Capable of Capital Market at 1/6 Capable of Tragic Events Exposed, Virus Growth, a Bad Employment Report and Rising Yields Confirm that a New, More Speculative, More Volatile Phase of the Bull Market Has begun, “BTIG’s chief equity and derivatives strategist Julian Emanuel and equity strategy partner Michael Chu, tell clients in a note.

“Such a phase lasted 6–2 months 1999–2000, as the S&P 500 moved up another 25%, with several 15% selloffs in between. The depth of any pullout in 2021 was substantially Depends on yields. They say that if yields rise, as they did on Monday, many of the high-growth names may be in trouble.

They also provide us Phone of the day, And zero in on a sector they say investors want to pursue.

Last month, he warned that communications and media stocks face risks from higher rates, increased regulatory scrutiny, and “a world exhausted by years of media overload.”

Emanuel and Chu update those views on Tuesday: “President Trump’s office is naturally bound to reduce hunger for the media, as does the reopening of the economy and the eventual return of the trip and ‘off the screen’ Will be in leisure activities. ” More recent steps by Alphabet GOOGL to restrict access to content providers and platforms,
Apple AAPL,
Facebook fb,
And Twitter TWTR,
Can only motivate politicians to keep an eye on them.

Investors then say that they are moving towards value and away from growth stocks, which will depend on the communications sector.

Here is their list of S&P 1500 communications service stocks that have improved their broader index since the end of 2019, but are “ready to move on to lag behind leaders as politicians pay more attention to the media,” While the rest we pay less attention. “

Those stocks listed above are Facebook, Disney Dis,
+ 0.22%,
Netflix nflx,
New York Times, NYT
+ 0.62%,
And the publishers of Marketwatch, which produces this report, News Corp. NWSA,
+ 0.16%

+ 0.61%

The last word goes to Howard Marks, co-founder and co-chairman of Oaktree Capital Management. He goes to length in his latest newspaper about how investors are not seeing that growth versus value stock strategy at all.

He says, “Some of today’s lofty valuations are probably more legitimate than future prospects, while others are laughable – like some companies that take lower valuations may face imminent demise, while others are just momentarily impaired.” Has happened, ”he says. Read more here


US stock futures ES00,
+ 0.25%

+ 0.22%

+ 0.34%
Are moderately high, but European stock SXXP,
Mounts are down due to concerns of COVID-19 infection. Asian stocks rose. TMUBMUSD10Y, yield on 10-year Treasury note
The previous week continues at a high after the biggest weekly increase since June.

Bitcoin BTCUSD,
+ 2.56%
The cryptocurrency continues to fluctuate up to 8% after tumbling between Sunday and Monday.

The buzz

The perception of American small-business sank to a seven-month low in December. Job opening and labor change survey results are also ahead.

German lender Deutsche Bank DB,
The deal reportedly stalled with President Donald Trump and New York’s signature bank SBNY,
+ 0.22%
Calling for his resignation, it also said it would not do business with him after last week’s riots on Capitol Hill. Trump tried to blame those attacks on the “Antifa people” last week, Axios reported, responding to tense phone calls between him and House Minority Leader Kevin McCarthy, who replied that it was “maga” . I know. I was there. ”

Zoom video share of ZM,
The communications technology company said it is selling for $ 1.5 billion in stock.

Network Management Software Group SolarWinds SWI,
It is said that it has recently been found to be the source of cyber attack.

Some Democratic lawmakers say they have tested positive for COVID-19, while sheltering with colleagues who refused to wear face masks during the Capitol Hill riots last week.

Retailer walmart wmt,
+ 0.45%
The investment platform will start its own financial technology company for customers and employees with a support for Robinhood.


Here’s how COVID-19 is progressing in the US, with deaths and cases far from their peaks.

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