Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®
05/17/2021
|
|
-
Fall From Grace: The latest HSBC EM Sentiment Survey shows that only 34% of respondents are bullish on emerging markets (down from 73% at the beginning of 2021) after the index (ticker: EEM) has dropped 8.4% in the past 3 months (versus 4% growth in the S&P500). One reason for the pullback is the fear of rising global inflation. In order to combat inflation emerging markets may be forced to raise their interest rates which would further hamper their covid-stricken economies from fully recovering. Only specific countries that have commodity-linked economies would potentially benefit in this environment (ex: Brazil, Chile, South Africa, Indonesia)
-
Do Share Repurchases Make Cents? – S&P500 companies increased the amount of cash on their balance sheets by around $1.9 trillion over the last year (25% higher than levels at the end of 2019). Companies are now looking to return some of that cash to investors through dividends and share repurchases. Share repurchases in particular will help support the stock market even as it hovers around all-time highs. This focus on returning cash to investors continues to be prioritized by executives over capital expenditures which have substantially declined as a percentage of corporate spending over the past two decades.
-
More Crypto, More Problems: Bitcoin fell around 13% this past week as a result of 1) Elon Musk announcing that Tesla would no longer accept the crypto currency due to environmental concerns, 2) the Department of Justice and IRS reportedly investigating cases of money laundering and tax evasion on the largest crypto exchange (Binance), 3) Colonial Pipeline paying a $5 million ransom in cryptocurrency, which drew further attention to the currency’s nefarious use and 4) the SEC making a staff statement that some investors interpreted as an indication that a US Bitcoin ETF may take longer to come to market than previously believed.
-
Need More Convincing – President Biden is trying to garner the support of small business owners for his plan to increase the corporate tax rate from 21% to 28%. To further this cause a recent analysis by the White House shows that less than 3% of small business owners will face any tax increase since it would not apply to any business that files taxes as “passthrough entity”, which most small businesses do. The analysis however, looks to be doing little to persuade national trade groups such as the US Chamber of Commerce who oppose the President's plan.
Economic Calendar
Monday: Empire state manufacturing index (May), NAHB home builders index (May)
Tuesday: Building permits (Apr), Housing starts (Apr)
Wednesday: FOMC minutes
Thursday: Phila Fed manufactring index (May), Index of leading economic indicators (Apr)
Friday: Markit manufacturing PMI (May), Markit services PMI (May), Existing home sales (Apr)
|
|
US Futures
S&P 4159.75 -0.22%
DOW 34,234 -0.24%
NASDAQ 13,347.25 -0.30%
World Markets
FTSE 7015.75 -0.40%
NIKKEI 27,824.83 -0.92%
Hang Seng 28,194.09
+0.59%
|
|
Treasuries
3 Mo 0.01%
10YR 1.635%
30 YR 2.35%
|
|
Currencies
Euro $1.2164
Pound $1.4108
Yen $109.11
Commodities
Gold 1850.10 +0.65%
WTI Crude 65.55 +0.28%
Silver 27.50
+0.54%
|
|
|
Upcoming Earnings Calls
Monday - CLOV, RIDE, RIOT, FSR
Tuesday - WMT, M, HD, TTWO
Wednesday - TGT, LOW, TJX, CSCO, LB
Thursday - KSS, WOOF, RL, AMAT, PANW
Friday - VFC, DE, FL
|
|
Consider working with Glen Eagle as one of your preferred partner trading desks
Client Focused Trading for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years
Ansie Monaghan
Carol Ann Fernandez
Glen Eagle
4422C Route 27
PO Box 399
Kingston, NJ 08528
(609) 631-8231
|
|
|
|
|
|
|
