Market Moment
Glen Eagle®: America’s Women-Owned Trading Desk®
05/10/2021
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No Pauper With Copper: The price of Copper hit its highest level in a decade last Friday. Many investors bought copper in the expectation of a global economic re-opening which seemed wise since China was one of the first economies to recover and has historically accounted for half of all copper consumption globally. Copper prices might continue north as we march forward, based on the green-revolution narrative. Cases in point - copper is essential in the metal cabling used to transmit electricity from solar and wind facilities, and electric cars are built with 4x the amount of copper as traditional cars.
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Summarize It For Me: The Federal Reserve estimates that the true unemployment rate is close to 10% (significantly higher than the often reported 5.8%). Despite this unemployment rate, a recent study by the National Federation of Independent Business found that 42% of small businesses could not fill open job positions in March. The main reasons for this seems to be 1) some parents cannot return to work until schools and daycares re-open 2) 16 million Americans are still receiving unemployment benefits, which can be more than a paycheck for many jobs 3) some workers a still worried about contracting the virus and 4) employers can’t find the workers with the skillset they need or are unwilling to raise wages to attract those workers.
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American Premium: Currently, Chinese tech companies trade at a discount compared to their American peers. With Alibaba outselling Amazon, Baidu leading the pack in AI patents, and Tencent with over 1 billion on their platform, some investors see this as a buying opportunity. But even with the three expected to produce substantially more future cash flow than the American companies, can they sustain such growth with the ever-changing Chinese regulatory environment? The uncertainty will continue to impact the trading of these stocks.
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Beware of Bubbles: Although the market as a whole is not necessarily in bubble territory some analysts believe there are investment areas with bubble-like features. Junk rated bonds are now trading at their lowest yields since 1995, home prices have reached peak levels last seen in 2006 right before the Great Financial Crisis, and the value of all cryptocurrencies has grown to $2.4 trillion, which is more than all US dollars in circulation. If inflation does prove to be higher than expected and interest rates rise, these assets could be some of the hardest hit.
Economic Calendar
Monday: N/A
Tuesday: NFIB Small business index (Apr), Job Openings (Mar)
Wednesday: CPI (Apr), Core CPI (Apr), Federal budget (Apr)
Thursday: PPI (Apr))
Friday: Retail sales (Apr), Import price index (Apr), Industrial production (Apr), Capital Utilization (Apr), Consumer sentiment (May), Business inventories (Mar)
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US Futures
S&P 4225.0 -.001%
DOW 34,749 +0.18%
NASDAQ 13,667.25 -0.31%
World Markets
FTSE 7128.2 -0.02%
NIKKEI 29,518 +0.55%
Hang Seng 28,595.66
-0.052%
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Treasuries
3 Mo 0.02%
10YR 1.577%
30 YR 2.28%
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Currencies
Euro $1.2164
Pound $1.409
Yen $108.747
Commodities
Gold 1835.9 +0.25%
WTI Crude 65.15 +0.39%
Silver 27.78
+1.16%
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Upcoming Earnings Calls
Monday - MAR, COTY, DUK, TSN, WKHS, RBLX, NUAN, OXY, AFRM, NVAX, REAL, SDC,SPCE
Tuesday - PLTR, LMND, CHK, FUBO, OPEN, EA
Wednesday - COMP, BMBL, SONO, VRM, TDVP, GTII, POSH, WISH
Thursday - BABA, YETI, COIN, DASH, DIS, ABNB, BLNK
Friday - N/A
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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
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