Twitter’s fans are chirping happily about its inclusion in the S&P 500, and Apple bulls may be dreaming about creating a Memoji to celebrate its latest record close.
Yet again, Silicon Valley’s big dogs are doing their part this week to bail out the stock market.
FAANG to the rescue? FANGMAN is what Wolf Street’s Wolf Richter has opted to go with, as he blasts Goldman Sachs analysts who argue that big tech stocks aren’t in a bubble.
DataTrek Research’s Nicholas Colas says things are in fact frothy in that sector, but not in the way you might think.
“Large-cap tech is in a bubble, but not necessarily in terms of valuation,” says Colas, providing our call of the day.
“Rather, it is an insulating force field driven by its power to create innovative disruption and growth. Those fundamentals are now at such critical mass that even governments cannot derail them for long.”
Tech strength is among four factors helping the stock market shrug off trade-war worriesreckons the DataTrek co-founder.
Another factor is that President Trump is sparking the trade tensions, and investors ultimately believe he won’t tank stocks before the midterm elections, Colas says.
Read more: Trump’s reversals lead investors to see him as boy who cried wolf
And see: What trade war? The Nasdaq is breaking out
The trade uncertainty also has helped squelch the 10-year Treasury yield
supporting equities, according to Colas. And his fourth factor is that we might weather whatever comes better than other countries do.
“The economic effect of a global trade war may be worse on Europe, Japan and China than they are on the U.S., and global equity investors have to put their money somewhere,” Colas says.
“U.S. equities are threading a very fine needle with their current resilience.”
Key market gauges
Futures for the Dow
, S&P 500
are gaining, after the Dow
and Nasdaq Composite
climbed yesterday, with the Naz closing at a record for the first time since March.
is mostly higher, after Asia finished mixed. Oil
are slipping, while the dollar index
inches up. Bitcoin
is changing hands around $7,400.
See the Market Snapshot column for the latest action.
is fluttering higher in premarket action, after the S&P 500’s minders announced they’re putting the company in their benchmark.
It’s unusual that S&P Dow Jones Indices is adding Twitter to that big-cap index, notes a Wall Street Journal report. That’s because companies are supposed to have four straight quarters of positive as-reported profits for inclusion.
— Jeff Macke (@JeffMacke) June 4, 2018
is rising in premarket trading, after scoring an all-time closing high Monday as the company’s annual Worldwide Developer Conference began.
Among the announcements at yesterday’s WWDC kickoff were new AR features for the next iOS, as well as Memojis (customized, animated emojis) and blocks on tracking by Facebook
. There were also features to help people limit the amount of time they spend glued to their iPhone screens.
A proposal to remove Elon Musk as Tesla’s
chairman will surely fail at today’s annual shareholder meeting. The hootenanny comes as analysts worry about the electric-car maker’s shrinking edge over rivals — and as reporters highlight the company’s increased spending on materials that end up scrapped.
G-III Apparel’s shares
look set for a big up day after an earnings beat, while Francesca’s stock
is unraveling premarket after the retailer’s quarterly report.
On the political front, Trump has withdrawn his invitation for the Super Bowl champion Philadelphia Eagles to visit the White House.
Special counsel Robert Mueller’s office has accused former Trump campaign chairman Paul Manafort of trying to tamper with potential witnesses in the criminal cases against him.
From California to New Jersey, eight states are holding primary elections today, and groups financed by the Koch brothers are launching a campaign against Trump’s tariffs.
After the opening bell, we’re due to get reports on Markit’s services PMI, ISM’s nonmanufacturing index and job openings.
Check out: MarketWatch’s Economic Calendar
Here’s why $60 might be a magic number for Brent crude
— Sara Sjölin (@sarasjolin) June 5, 2018
“Howard Schultz could get some traction in the Democratic Party because Starbucks is seen as a way station of liberalism. But he’s not a particularly charismatic person.” — Douglas Brinkley, a Rice University history professor, takes on the Schultz 2020 buzz.
The coffee colossus’s former CEO is now also shedding the role of executive chairman and saying he will “think about a range of options, and that could include public service.”
Shares in Starbucks
are falling in premarket action.
Check out: Starbucks chairman vows ‘everyone is welcome’ amid backlash over arrests
And see: A trusted digital currency is coming, but it’s not bitcoin, says Howard Schultz
“Päntsdrunk” is allegedly the latest Scandi lifestyle philosophy to know about.
Groan-inspiring Qatar Airways CEO says only men can do his job.
Bill Clinton has co-written a mystery thriller with James Patterson.
The Miss America contest is scrapping its swimsuit competition.
RIP Dwight Clark. He was “incredibly gracious,” says Tom Brady.
One of the most memorable plays in @NFLHistory.
Rest In Peace, Dwight Clark. pic.twitter.com/BhVwwv1xYR
— NFL (@NFL) June 4, 2018
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