The View from 5th Avenue

The View at Two – 9 December 2020

Cold Water Thrown… Futures were boosted this morning by that familiar, warm feeling of “stimulus hopes”, but some less than encouraging signaling from Congress has US indices sliding lower into the afternoon. You’d think we’d have learned not to put too much faith in assertions of “progress” in negotiations (given we heard a lot of the same even back when Trump still had the incentive of an election to get a deal done) but with so many indices notching ATHs based on the negotiations, you have to take the bad with the good. And for the most part, things are still looking UP for stocks: today’s IPO menu (more below) shows investors’ appetite for risk is far from satiated. Tech is leading the way lower as the session is clinging to its Rotation-ary tilt despite the building sogginess (NDX snapping a 10-day win streak). Autos are leading, along with Telcos getting a boost from AT&T (T +1.8%) reportedly get a bid for DirecTV valuing it at over $15bn. Energy was hanging tough, but has faded as Crude falls back into the red after earlier shrugging off a larger than expected build in US stockpiles.

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