Up, down whipsawing and waiting: summer “stall” continues. We are in the “summer stall” for the stock market. In our view, it started “Tax Day,” April 16.
Earnings season has ended, and positive reports were the rule, not the exception — as expected. In our view, the markets would not be close to new all-time-highs had it not been so. We also believe there will be more positive surprises ahead in H1 2021 and H2 2022, on the back of productivity gains.
Equities up, down
Equity markets are up this morning, with S&P 500 futures up about 0.5% to start their week. Treasury yields are up, with the 10-year up 4 bps to 1.62%, as oil prices are pushing new highs. WTI is up almost 3% to above $68 for the first time since late 2018 ahead of today’s OPEC+ meeting.
Global equities rebounded across the board last week. The S&P 500 rose 1.2%, led by telecom and consumer discretionary, while utilities lagged. Solid bank earning pushed the financials up. Only utilities were down last week. Year-to-date, all sectors are now higher — with six sporting double-digit gains led by energy, REITs and financials.
Looking ahead: up, down
Since OHFG expects a very strong second half of the year, the investment team continues to look for opportunities to buy our portfolio names at cheaper prices. We expect volatility in the S&P 500 to continue in the second quarter, perhaps resulting in a pullback reaching around 3985–4015.
- Last Fridays Podcast: Waiting: Whipsawing Away
- Lumber Futures Drop 22% in Three Weeks
- 10 serious COVID patients given Israeli drug, leave hospital in one day
Weekly market updates contain general information and express the views of Oak Harvest Investment Services. Oak Harvest believes that all data, articles, and information cited are reliable at the time of creation. However, Oak Harvest does not warrant any information contained herein to be correct, complete, accurate or timely.
Oak Harvest provides links to content produced by other websites that OHFG does not control. Moreover, Oak Harvest does not necessarily approve or endorse such content and does not guarantee its accuracy.
Nothing in this content constitutes personalized investment advice. All charts, indicators, or graphs included or referenced in this content have limitations. No such material is able, in and of itself, to provide a buy or sell recommendation for any security. Strategies and ideas discussed may not be right for you. And views and opinions expressed may change without notice.
Nothing in this content constitutes a recommendation, or an offer or solicitation to buy or sell securities. Also, Oak Harvest makes no assurance as to the accuracy of any forecast or projection made. Not all past forecasts or projections were, nor future forecasts and projections may be, as accurate as those discussed.
Indexes like the S&P 500 are not available for direct investment and your results may differ. Past performance is not indicative of future results. Investing involves the risk of loss.