Five Things to Start Your Week

Good morning. Our Alpha Portfolio is at +7.86% YTD.

• Leading: Turning Point Brands at +39.4%

• Lagging: Crocs at -10.6%.

Market Snapshot

The US markets had a lot to digest last week and had some trouble doing so.

• The S&P 500 slipped 0.8% and was down almost 5% from last week’s record high before a rebound on Friday.

Investors have more clarity on the political battle ahead, with President Biden officially announcing that he won’t run again, presumably setting the stage for a Harris vs. Trump election. But November is far away in market terms, and the outcome remains uncertain despite last week’s ‘Trump trade’.

Looking at the market performance across different regions and sectors:

• Technology: Declines in major tech companies in the US and Asia.

• Financials: Mixed performance with gains in some institutions and declines in others.

• Commodities: Declines in major mining stocks in Australia (BHP).

Big Week for Big Tech

Stock futures are edging higher following the recovery seen in the S&P 500 and Nasdaq 100 on Friday, although they’ve cooled somewhat through the session so far. Treasuries are higher and the dollar is steady. That bounce for the two indexes has followed a brutal, tech-led selloff that left the Nasdaq 100 on the brink of correction territory.

That’ll face a test this week as Microsoft, Meta Platforms, Apple and Amazon all report, collectively nearly $10 trillion in market value and with investors set to scour for details of whether the promise of AI is being fulfilled.

Crypto Cheerleader

Treasury Secretary Janet Yellen has rebuffed former president Donald Trump’s view that a strong dollar is hitting US manufacturers, saying this needs to be looked at with a broader view in an interview with Bloomberg News.

Gold is seen as the best portfolio hedge against a Trump win in the election, according to the latest Markets Live Pulse survey.

Seeing the most price action, however, has been Bitcoin, which rallied to a six-week high as Trump continues his conversion from crypto sceptic to cheerleader.

Newsworthy

This is what’s caught our eye over the weekend.

• Kamala Harris raises $200 million in a week.

• Venezuela’s opposition disputes Maduro claiming victory.

• Israel weighs its response to the deadly Golan Heights strike.

• Qatar’s losses from its World Cup borrowing binge.

• Europe’s luxury goods industry frets about China.