What we’re reading (10/17)
“Tech’s Influence Over Markets Eclipses Dot-Com Bubble Peak” (Wall Street Journal). “Technology companies are set to end the year with their greatest share of the stock market ever, topping a dot-com era peak in the latest illustration of their growing influence on global consumers. Companies that do everything from manufacturing phones to operating social-media platforms now account for nearly 40% of the S&P 500, on pace to eclipse a record of 37% from 1999, according to a Dow Jones Market Data analysis of annual market-value data going back 30 years.”
“More Volatility Is Likely Ahead As Rising Cases, Lack Of Stimulus Overshadow Strong Earnings” (CNBC). “Another volatile week may be in store for traders as coronavirus cases rise in the U.S. and Europe while Democrats and Republicans remain at an impasse over new fiscal aid. The Dow Jones Industrial Average and S&P 500 fell for three straight days this week. That slide was the longest losing streak for the averages since mid-September. The two market benchmarks eked out slight gains on Friday to snap their losing streak.”
“The ‘MAGA’ ETF Is Trailing The Market For One Major Reason” (CNN Business). “With less than three weeks until Election Day, President Trump is trailing Joe Biden in the polls. And an ETF whose ticker is the acronym for Trump's famous campaign slogan is lagging the market, too. The Point Bridge GOP Stock Tracker ETF (MAGA), which trades under the symbol MAGA, is down 8% this year -- in sharp contrast to the benchmark S&P 500, which is up 7%.”
“Earnings Were Supposed To Lift The Markets. What Happened?” (Fortune). “Global stocks and U.S. futures are moving in opposite directions with the latter pointing to a weak open. COVID and labor market jitters are weighing heavily on investor sentiment as the stimulus talks bog down. Earnings beats, so far, are failing to lift risk appetite.”
“Will New York Go For Another Wall Streeter As Mayor"?” (Dealbook). “The veteran deal-maker Ray McGuire announced Thursday that he was stepping down as Citigroup’s vice chairman to join the crowded race for New York City mayor. His fellow finance executives sing his praises, but it’s unclear whether that helps or hurts his bid to run a city whose voters have shifted away from the centrist politics of leaders like Mike Bloomberg toward the progressive views of Representative Alexandria Ocasio-Cortez.”
