Business

Here’s what a Bank of America strategist says investors should do next as market rotation enters round four

For Bank of America global investment strategist Michael Hartnett, there are three different periods to describe market action over the past eight months.

The first was what he said about the reopening protest, which was started on November 3 by both the US election and the reports of the vaccine’s effectiveness. That boosted equities and credit, strengthened the yield curve, weakened the US dollar, and led to cyclical factors that outperformed defenses.

The next phase was an inflationary boom, which began on February 16 as a result of a sharp drop in US retail sales. That led to rising commodity prices, rising output, a rift in the tech sector, and stock values ​​outperforming growth.

The third phase, which he calls the “peak growth/policy,” began June 16 by the Federal Reserve as well as signs of easing from China. That led to a yield curve collapse, bonds outperforming stocks and commodities, a stronger dollar, and better protection against the cycles.

So what to do now? He said his own defensive quality in the second half, as it was both a hedge against peak policy, and top profit. He advises long-term protection in what he calls the US and European vaccination markets, and long-cycle operations and closed reopenings in markets with rising vaccine prices, in Japan. and emerging markets.

Intel tops estimates

Intel chip giant corporation
INTC,
-0.48%

2% slip in pre-market trading as earnings and sales report better than forecast, but give a third-quarter forecast consistent with analysts, As CEO Pat Gelsinger said the global semiconductor shortage could last until 2023.

Twitter
TWTR,
+ 0.04%

up 4% as it reported much stronger than expected earnings and sales, after adding 7 million new users in three months. Rival social media platform Snap
SNAP,
-0.66%

up 17% because it broke revenue estimates after adding 13 million users.

Boston Beer
SAM,
+ 1.89%

20% off for missing earnings after reporting hard beer vending machine and beer vending machine “softer than we expected.”

Delayed virus, Tokyo Olympics almost no fans is open.

The Wall Street Journal asked, How much will your Oreo cost?, in a series of corporate views on their ability to test their price increases.

There were a bunch of busy US economic reports, including the second-quarter employment cost index, personal income for June, and the US quick-buying managers index. Quick PMI from the euro area hit a 21-year high in July, although the UK report fell to a 4-month low amid the so-called “Pingdemic”, referring to to a contact tracing app that is forcing workers to stay home.

Market

US stock futures
ES00,
+ 0.44%

NQ00,
+ 0.36%

are pointing to a solid open that, if sustained, would mark a fourth straight gain for the major stock market indexes.

Yield on 10-year Treasuries
TMUBMUSD10Y,
1,303%

is 1.30%. Yellow
GC00,
-0.55%

traded at just under $1,800 an ounce.

Random reading

This is what is billed is the most accurate map of the Earth.

First in the world 3D printed steel bridge opened.

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https://www.marketwatch.com/story/heres-what-a-bank-of-america-strategist-says-investors-should-do-next-as-market-rotation-enters-round-four-11627036813?rss=1&siteid=rss | Here’s what a Bank of America strategist says investors should do next as market rotation enters round four

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