Extinct him investor fixed income investors interested. They are crushing yields. Joining us now is jeff rosenberg. Its fantastic to get you on the show for this topic, the role that treasuries play in a portfolio, from 2020 looking out. Its a huge topic at blackrock. How are you thinking about this question . This i wrote a piece on and continue to write under the theme on investing without a parachute. This september is a really good example. We wrote pieces on it and everybody is talking about it and its like ok, what does the new world look like that we are going into . In september, equities are down 8 and treasury yields are highlighted by all of those comments. Barely budging. Its the combination of the low yield makes the income relatively unattractive, a couple of comments in there about taking credit risks. And it will come around to that question in a second. But another thing that is difficult about the investing outlook now and where treasury yields are is that they are no
Taking a break yesterday, but we have apple climbing again. Investors want in on this defensive and growthy tech stop. Facebook up 4. 7 after facebook and twitter both blocked President Trump, a video on covid misinformation. Facebook getting a bounce on that considering they had not taken a strong action in the past, something some investors wanted to see. Making it interesting, when we take a look at the vix on the nasdaq 100, it is higher. That tells you going into the payrolls report or some expectation volatility tomorrow could pop. David stocks may not be moving much yet, but there is action on the bond side. My question is how low can the 10 year yield go. We are well into negative territory on the real yield. Abigail this is a great question. We have had this rally for stocks, not just out of the march lows, but more recently as the nasdaq has been carving out alltime highs. Over the last five weeks, bonds have been rallying. A very persistent rally in stocks and bonds. Many fo
Drawing some questions about that data and how reliable it can be. To the upside, spotify closing up about 8. 4 . That company signing an exclusive deal with joe rogan, one of the more popular podcasters, a deal that could be worth more than 100 million this year. Scarlet pretty incredible deal for mr. Rogan. This incredible reversal we saw in late trading, almost three stocks down for everyone that is higher on the new york stock exchange. Of the 11 industries on the s p 500, all 11 are down. On the dow, only three gainers. The market turned pretty quickly from what was looking like an extension of yesterdays rally. Reportinggoing to be this week. Walmart and home depot, for the most part, showed they are getting a little bit of a boost from their status as a businesses. It is interesting to see how the shift in consumer buying patterns have been reflect in the sales. Also point should out, outside of equities, we did see Wti Crude Oil moving higher. Mind, when we went from that may t
Since the 80s on a week to week basis. If you want to take delivery for crude oil, you can put it in storage but you probably will not have use for it. If you reopen the economy, you , but thisl recoveries is very much what is expected in markets across the board. Romaine we just want to check on the markets. We did get the closing bell. Up on the three major indices. Stephen mentioned small caps a little bit earlier. The russell 2000 up about 1. 2 . Thebiggest laggards were big cap tech names. We are awaiting alphabet, also names like starbucks, ford after the bell. Scarlet in the big cap space, you have health care and Communication Services leading the decline. The small caps space, downmer and discretionary about 2 on the day. A rare case of outperformance. It has prompted people to start positioning for that recovery. Romaine we are getting alphabet earnings right now. Those numbers coming through. Q operating income at 7. 8 lien. Number, and the operating margin coming in it 19 v
Another beyond meat and uber on deck what are you seeing in the which thes you bet. A couple of charts first, the set up is paypal for a breakout to new highs. Its right at the set up is perfect. The first chart, take a look at the symmetry of this circumstance you have a 23 , 23day plunge, a 23day ricochet. You start at 124, you drop to 82, you go right back to 124, so again, a 35 decline, which you can see there, 51 rally, all very symmetric in terms of price and time and here we are right back at the time look at the second chart, this pulls it back a bit longer. Look at the authority of this level the stock has approached this and re approached this, and this is a perfect kind of set up for a news related break out earnings and earnings are coming next week. The other thing i would point out of course is how its relative performance is done the next chart is a twopanel chart and this also is important. Pay pal, you can see on the bottom panel, its relative performance has already b