If you were looking for a market boost from the President’s UN speech yesterday, you were probably disappointed.
If you were looking for a market boost from the President’s UN speech yesterday, you were probably disappointed. Pointing market direction wasn’t the primary purpose of the speech in the first place, but market observers seemed to be left scratching their heads after Trump’s America First messaging even in the face of obvious and gathering headwinds. Futures are mainly flat this morning, which should probably be considered an indication of latent strength. We’re looking at a market that is trading near all-time highs in spite of substantial, negative, and persistent geopolitical developments. Why? Earnings. Earnings season is coming again, and investors are loath to abandon a single share in advance of what they expect will be a Q3 pop.
This environment lends itself well to dip-buying. Semiconductor equipment names are soft this morning, led lower by KLAC, LRCX, and TER. All of these names are too high-priced for most traders to engage productively. However, INTC, MCHP, and ON are discounted this morning as well and are more playable for individual participants. Keep your eyes on the Kapnotes trading board for updates throughout the day.
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