The five largest S&P 500 stocks (AAPL, MSFT, AMZN, GOOGL, FB) are expected to grow 3Q sales and EPS by +13% and +1%... the rest of the S&P500 will see a -5% revenue drop and a -24% drop in EPS.
Intervention after intervention by Powell’s Federal Reserve and it remains to be seen what exactly is being accomplished beyond barely keeping the economy afloat (when all market factors are considered)...
Although all the stocks in the DJIA are intended to be in line with broader economic trends, the similarities end there. For some DJIA stocks, 2020 has brought growth and opportunity - for others, quite the opposite.
This is the same WHO which refused to call Covid-19 a global pandemic for weeks in the crucial early stages, and openly encouraged local and global travel, as it is doing again now.
"There seems to be a bit more hope on a fiscal program breakthrough before the elections, and hopes for a better-than-consensus-based earnings season to start tomorrow"
Several EU countries to experience a GDP contraction in 4Q especially those who already faced a contraction in the services sector in September, such as France and Spain.
America is at a crossroads with revolution on our doorstep. On one side are the Patriots; those who seek to preserve, protect, and defend the Constitution. On the other side are Marxist insurrectionists; those who believe that America is evil and the cause of so many problems in world.
"Some emerging information could quickly turn into trends on two key US policy debates. This would give investors some unexpected, and underpriced, clarity." - Morgan Stanley
This dynamic will persist, until there are consequences. Which will first be felt in the markets, then reverberate through the economy, and circle back to our political parties. And when such dynamics reverse, they do so fast, ferociously.
"..we are going to spend a boatload of money. They are going to spend it a little differently and on different priorities, but they are going to spend a boatload of money. They are politicians, and they can’t help it..."
