Walk, don’t run, to the next stock-market record. That looks to be the order of the day as the S&P 500 appears to have 2,900 in its sights, but only just.
Making it tough for the index, which tapped that big level on Tuesday for the first time ever, is the fact that a long holiday weekend is looming.
Plus we’re about to roll into September, which is with potentially market-moving events — more trade deadlines, a potential U.S. government shutdown and another Fed meeting, for starters — that could keep investors nervous. Never mind that September historically has been a for stocks.
With that comes our call of the day, which cautions against investors dipping a toe in stocks right now. “If the best trade is buying weakness and selling strength, no matter how safe 2,900 feels, this is definitely the wrong time to be buying,” writes blogger Jani Ziedins.
He says chasing prices higher is a bad idea because a big chunk of the upside for stocks has already been seen, and the risks of a “normal and healthy dip” rise with every point.
“In fact, if the best trade is buying weakness and selling strength, this is actually a darn good time to start thinking about locking-in profits. Remember, we only make money when we sell our winners and it is impossible to buy the next dip if we don’t have cash,” says Ziedins, who adds that he’s still upbeat on the medium-to-long term and looking for a rally into the year-end.
Here’s more measured advice from Jeremy Glaser, a senior director at Morningstar. Wall Street’s record run is no time to panic, he says, but “could be a good opportunity to double check that your portfolio is in good shape in case a downturn is in the cards.”
With an update of GDP data on the way, Dow S&P 500 and Nasdaq , after the S&P and Nasdaq closed at records for a third straight session on Tuesday. Gold is slipping and the dollar is up, along with crude Bitcoin has firmed up.
Overseas, Europe is tilting lower (though Zara parent Inditex is getting hammered), while Asia markets .
A revision to second-quarter GDP is coming at 8:30 a.m. Eastern Time, followed 90 minutes later by pending home sales.
The performance gap between U.S. and eurozone stock markets keeps widening, with the U.S. doing better. But don’t get tempted onto the continent by thinking it’s a good deal, cautions a team of equity strategists led by Mislav Matejka at J.P. Morgan Cazenove, in a recent note.
Matejka reasons that the eurozone is still trading at an “outright premium” to the U.S. on a price/earnings metric, and some big-picture factors, such as the fuss over Italy’s budget, making the team cautious going forward. He backs that up with a couple of charts. The first lays out how sour it is gotten for eurozone stocks lately:
But the second shows how really, on that P/E basis, eurozone stocks still aren’t that cheap:
Weed is on a roll lately. Canada-based producer Tilray is soaring after , and it looks like the next big thing could be
Amazon reportedly plans to challenge Roku with an Shares of the e-commerce retailer are up this morning, but Roku is taking a bit of a hit. Meanwhile, Sears is soaring after the beleaguered department-store chain
Dick’s Sporting Goods is slumping after .
If Democrats win the midterm elections and control of Congress, it will be a “miserable two years” and plenty of violence, POTUS reportedly . In Florida, Donald Trump’s backing turned things around for Rep. Ron DeSantis,
“Not cheap, by any metric, even when compared with Ferrari ”—That was on the estimated 5 billion pound ($6.4 billion) valuation for luxury car maker Aston Martin. The maker of James Bond’s ride on Wednesday for a London listing.
He didn’t even get to the price of the actual cars.
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