The View from 5th Avenue

The View at Two – 28 January 2021

Let’s Just Pretend That Never Happened… Here I was thinking that it would be a long time before I saw a market phenomenon as strange as watching WTI futures contracts trade at negative prices last year… Granted I’ve been wrong about plenty, but seems safe to say no one was expecting to spend how much time and attention on GameStop this week. But after all the risk-off doom and gloom yesterday, apparently all it took was some time to regroup (and of course a little help from the retail brokerages restricting speculative tickers) for the market to shrug it all off again and attempt to regain the ground lost yesterday. A second look at the Fed’s re-commitment to the current path of QE as well as some reassuring eco data (jobless claims on the decline once again, Dec new home sales up for first time in 5 months, GDP broadly inline) have also chipped in, and earnings beat are finally getting the warm reception they expected (with two notable exceptions). On that note Financials are out in front with T Rowe (TROW +5.6%) leading the way post its reporting, and Semis are ripping once again with Apple suppliers getting a boost from its impressive iPhone numbers. The Software sector is also on the rise due to ServiceNow’s (NOW +7.9%) earnings, while Comcast (CMCSA +7.6%) has had to lift the Media space without much help from Facebook (FB -0.4%). The lone sectors in the red are Tech and Autos thanks to..

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