Rising bond yields can be positive for stocks if two criteria are met. On the recent selloff, we take a “buy the dip” mentality, esp. for tech mega-caps.
Big Tech’s blockbuster earnings results, Trump’s intention to ban TikTok from the US and 85% of S&P 500 companies beating 2Q earnings estimates caught our attention this week.
46% of S&P 500’s market cap will report 2Q results next week. Narrow market breadth and fairly expensive valuations imply that some profit-taking could be due, should management guidance proves underwhelming.
Facebook advertisement boycotts, US Banks Stress Test results, IMF’s warning on the economy, Hyflux’s latest suitor and US visa restrictions for Chinese officials caught our attention this week.