14 days to the election. It is a tuesday october. Obviously. Lettingpreme Court Pennsylvania go after that election to count ballots. Weve got lots of politics to talk about, and extort an area markets after the drop yesterday that we saw. How much do you think link yesterdays 700 point down drop to stimulus . Jonathan not me, but i think other people might make that link. I think if you want to make that inconsistency an because treasury yields climbed. If you think all of this stimulus was going to drive yields higher, then stimulus talks pulling apart would mean lower yields, higher yields. I think the temptation is to take every single piece of price action and draw a line back down to d. C. From wall street. Israelcretary mnuchin in for the important siding of the united arab emirates, israel, and United States of america. He will have a call with pelosi. Pelosi is going to be briefed by westin later on bloomberg. Lisa i am trying to understand Mitch Mcconnells role in all of this
Now, the nasdaq slipping, posting the worst two days in months. Adding to that, tech regulation is tightening across the globe from china to the eu and here in the united states. Just today, we learned that amazon faces an antitrust complaint in europe. Big tech faces a new administration in the united states. This time around, joe biden seems to have a different attitude to the last time he was in the white house. The rotation, we are seeing that from the center of the market. Joe if you look at one of the hottest areas with tech, it is some of those Cloud Computing names, very rate sensitive because so much of their earnings are backloaded. Up until now, one of the hottest etfs all year, down over the last three days. Really, over the last two days, with the vaccine, with the rates moving up, people not willing to pay as much. Caroline the s p 500 index valuations are phenomenal. 21. 9 times future earnings. Maybe with yields taking a little bit higher, only 1 . But, nevertheless, ma
Come up with a forced him is round is having an impact on the markets. Walmart senator warren say that the retails sales cut slowed last month as government released ease. Barclays is using the recent coin shortage of the gauge of economic reopening. Seeing evidence of a recent slowdown. Not to be too much of a Debbie Downer on the record close but is there something to worry about . Joe we got a be really listed. This is an extraordinary market come back we got a be realistic. Yes, there is no deal yet in d. C. But people have been warning for a while that this or that was going to end this rally. And it has not happened. So, the second wave in all this stuff. And the failure to get a deal is supposed to kill this rally. Has not happened yet. That being said, there are several reasons to be concerned, that people should be wary about including walmart today. For more, joining us now is senior retail analysts jennifer of bloomberg intelligence. Thank you very much for joining us. When
Lamb weston, that was one of our stocks of the hour. Down 11 . I dont know what is going on over there in the 209. Taylor i am never going to live that down. That is good to know. On a more serious note, some of the industrial companies, 5757. R at a spot intraday basis down to about 31 basis points or so. Keyink 54 will be the next resistance level. The flight to quality we have seen, given the fed and some of the weakness we have seen in earnings. Shawne still with us, matthews. It is earnings season and we are getting into it with some of those large mega cap Tech Companies. There is high expectation but also a general sense that given their size, given their market dominance, they really cannot lose. They will have the Revenue Growth and have Margin Expansion there is really not a reason to be afraid of what they will say or report. Do you buy into the i guess teflon nature of some of these names . I think it can last for a while. If you look to the nifty 50, that lasted for quite
Exists, goes. Meeting,he big fed take a look at the 10 year we are down to 58 basis points, going back with that handle. Earlier in march when the 10 year dipped below 50, a strategist said, i am no longer writing about the 10 year because it is nonsense at this point. I push this story forward to see what the fed has to say about this. Caroline lets push it forward to next week and get jonathans perspective. How are you looking at a week where we headed bloomberg . Next week, we get big earnings. Where are the areas of the market that are unloved that could be opportunities . Jonathan if you look at one area that is interesting, it is going to be the financials. If the economy is better, if we get a vaccine earlier, it is going to be that group that is going to either continue to anchor the market lower or if this does relieved to the upside , that is a group that could do better and there is a disparity between credit spreads, which are saying, no one is defaulting on a loan, everyth