On the heels of some dazzling Independence Day bashes, traders are back at their posts ready to digest big data that’s coming up.— DJ Ross One July 5, 2019 There’s a lot riding on June payroll numbers, where a bigger-than-expected bounce from May’s dismal 75,000 rise could muddy the waters for a July Fed interest rate cut, even if investors and President Trump are clamoring for it.
A ‘melt-up’ refers to a sharp move higher for assets that comes as investors, worried about missing out on big gains, pile in. The downside to all that rushing in is often though, is that a big pullback often follows, hence the ‘bubble’ reference. The market Dow YMU19, -0.19% , S&P ESU19, -0.21% and Nasdaq NQU19, -0.23% futures are down as the data nears.
The buzz Smartphone and chip maker Samsung Electronics 005930, -0.76% warned of a 56% second-quarter profit drop, as it cites weak chip demand and fallout from U.S.-China trade tensions. On that note, the U.S. says it had plenty of national-security reasons to enact a ban on Huawei - this is the first response to a lawsuit filed by the Chinese telecom group.
The chart This question keeps coming up. Exactly who is buying stocks right now? Our chart of the day from Bank of America Merrill Lynch shows how money has been flowing out of global equities even as U.S. indexes hit record highs. While you’d think they’d be moving in tandem, the bank shows flows and equity returns the most disconnected since 2016.
After the Bubble comes the Mega Meltdown! Short Sellers are waiting for that Moment of Truth!!
It's been 'mini-bubbling' since 2012. Pay attention.