Investor sentiment is mixed as investors continue to grapple with rising risks of a slowing economy, even as more and more companies beat analyst’s earning expectations. While strong earnings have boosted confidence in corporate recovery (Boeing has just posted profits for the first time in almost two years), investors aren’t entirely bullish. McDonalds, Apple, and Microsoft are the latest companies to post big earnings, but despite stellar numbers, investors remain cautious. Apple released their earnings after yesterday’s close, but despite record growth, news of potential supply shortages and slower growth overshadowed all positive news and the stock fell afterhours.
Chinese stocks including those listed abroad have been in turmoil as the Asian nation attempts to implement far-reaching reforms in several sectors including education and technology. Concern over the regulatory crackdown helped contribute to a downbeat day for U.S. equities on Tuesday, with the S&P 500 finishing half a percent lower yesterday.
But the dip buying army was armed and waiting. There was a tremendous amount of flow moving into both broad and tech specific ETFs, with SPY adding $3.55 billion in fresh flow and QQQ receiving $474 million, bringing its 4 day total to more than $3.2 billion. Three Chinese American Depositary Receipts (ADRs) -- electric-vehicle makers NIO Inc. and XPeng Inc. and e-commerce giant Alibaba Group Holding -- were among the most-purchased companies according to companies that track retail order flow.
Despite the massive flows yesterday U.S. futures are muted this morning and stocks are mixed, as investors weigh earnings from technology heavyweights while factoring China’s selloff. Investors remain worried about the threat to global growth from the delta variant and the potential for tighter policy within China.
As the Fed continues their meeting today, investors are awaiting their thoughts on monetary policy. Inflation remains front of mind for investors and while economists seem to agree that the recent inflation is simply transitory, if it does persist, the economic recovery we have been enjoying could be threatened.
As proof that the CDC is getting concerned about the spread of the Delta variant. Americans fully vaccinated against COVID-19 are now instructed to wearing masks in indoor public places in regions where the coronavirus and especially the Delta variant are spreading rapidly, U.S. authorities said on Tuesday. The changes mark a reversal of the CDC's announcement in May that prompted millions of vaccinated Americans to shed their face coverings.Diversion
: REAL or FAKE?
A viral video is going around showing Tom Brady can throw directly into a jug machine 3x in a row.