Buy While You Wait?… US equities once again feel like they’re waiting for more catalysts to restart the rally party, but in the meantime why not grind out some more ATHs? A green finish is no sure thing however, as the S&P just blipped into negative territory momentarily with 2 hours left in the trading day. Stimulus talks continue to reassert themselves as the apple of investors’ eyes as vaccine excitement wears off, but that doesn’t mean much progress is being made. The latest back and forth today saw Senate leader McConnell say a deal is “within reach” but excitement has waned in the last hour or so as the two sides remain apart on key issues after a phone call between Pelosi and McConnell this afternoon. The mood this morning was boosted by more comforting eco data, with lighter than expected jobless claims providing a nice appetizer for NFPs tomorrow and Markit Services PMIs and ISM Services data both healthily in expansion territory. The Nasdaq is outperforming the S&P thanks to a few high flying software earnings (CRWD +14%, ZS +23%) but SPX has more of a Value tilt with Energy applauding OPEC+ reaching a deal to taper supply increases gently. Solid results from PVH (+8.7%) are leading Apparel names higher, while the cruisers (CCL +10%, NCLH +10%, RCL +5%) tow Hotel/Leisure higher following broker upgrades (we also hosted Carnival CEO yesterday, ask for more!). Hard to complain about a lack of action considering where stocks currently stand… especially when US daily COVID hospitalizations and death both marked their own records yesterday…
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