Wells Fargo (WFC) and JP Morgan (JPM) set the tone and absent any negative news from Europe the markets put in a solid session. The Standard & Poor’s 500 (SPX) rose for a fourth consecutive day and is higher by 3% from last week’s Grexit anxiety lows. It now stands 1.22% away from its all-time high.
To reiterate what I stated yesterday, I expect the SPX to climb to new highs and beyond, before pulling back for the usual August vacation softness and anxiety of the September FOMC decision. That has not stopped me from taking action within the portfolios. Yesterday, we swapped out what little bit we had left in Yahoo (YHOO) to add to positions in Nordic American Tankers (NAT).
Netflix (NFLX) is going to be in the spotlight today. Before the market opens, shares of the entertainment company will split 7 for 1 and then after the market closes, the company will report its quarterly results. Also reporting quarterly results are an eclectic group of companies, such as: BlackRock (BLK), Intel (INTC), Kinder Morgan (KMI), Seagate Technologies (STX) and, US Bancorp (USB). On top of all that, a slew of economic data will be released, culminating in the Fed’s Beige Book at 2PM.
Overnight, the Bank of Japan held their overnight interest rates steady and the Chinese economy expanded at a 7% annual rate, slightly better than forecasts of 6.8%. Taken together, SPX futures indicated that the rally would extend into a fifth day. Whether or not it does is not that important, because the path of least resistance for the equity markets appears to be higher for now.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long NAT and NFLX— although positions can change at any time.
Scott Rothbort is the President & Founder of LakeView Asset Management, LLC, a registered investment advisor specializing in high net worth private wealth management. For more information on investingwith LakeView Asset Management, LLC call us at 888-9LAKEVIEW or request more information by clicking on the contact button on the top right hand corner of the website. LakeView Management, LLC is a Nevada LLC, with its principal office located in Henderson, NV and branch office located in Millburn, NJ
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