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By Alex
Eule | Monday, April 26 Tech
Highs. After a
two-month-plus hiatus, tech stocks are back in record territory. The
tech-heavy Nasdaq Composite rose 0.9% on the day, closing at an all-time
high for the first time since Feb. 12. The other major indexes have hit
numerous highs in the time since, but pricey tech stocks had been weighed
down by worries about inflation and a shift to
value-oriented, re-opening focused stocks. Now that
yields have settled down and tech earnings are here, investors have
rotated out of the rotation. Apple, Facebook,
Google-parent Alphabet, and Amazon.com lead a
busy week of earnings. Tesla reported impressive numbers tonight (more on
that below). There's
plenty of other news to keep investors busy this week, with the Federal
Reserve finishing a two-day policy meeting on
Wednesday, followed by a press conference from Fed Chairman Jerome
Powell. While no one expects
substantial news from the Fed, any Powell comments about inflation could
prove market moving. Barron's Alexandra
Scaggs previewed the Fed
meeting: "Investors are trying to figure out when the central bank will
start withdrawing its support for markets by reducing the pace of its bond
purchases," Alex wrote
today. The most likely answer is, not yet. The
consensus among economists at Bank of America, Deutsche Bank, and Jefferies
seems to be that policy makers will wait until June (or more broadly, this
summer) to start signaling the start of a withdrawal from markets. For now,
investors are biding their time. Just 9.5 billion shares traded hands
today, well below this year's 13.2 billion average. |
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DJIA: -0.18% to 33,981.57 The Hot
Stock: Otis Worldwide +7.0% Best Sector:
Energy +0.7%
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