Wall Street Today: Big tech firms are getting bigger

Moomoo Recap US joined discussion · Jul 14, 2021 19:09

Wall Street Today: Big tech firms are getting bigger

Asia eyes steady open after Powell, China data due: markets wrap

Asian stocks look set for a steady start Thursday after Federal Reserve Chair Jerome Powell signaled more U.S. economic progress is needed before stimulus can be pared back and as traders await China growth data.

No market breadth, no problem as Faangs lift S&P 500 higher

Another day, another hotter-than-expected inflation reading -- and the stock market is sitting at record highs.

It wasn’t supposed to go like this. Rising consumer prices were assumed to act as a drag on the value of future earnings, particularly for the duration-heavy technology sector. But look below the S&P 500 Index’s top line and a different picture emerges: Megacap tech stocks are once again dominating and are accounting for nearly all the gains.

Alibaba and Tencent consider opening up their ‘walled gardens’

$Alibaba(BABA.US)$ and $TENCENT(00700.HK)$are considering moves to gradually open up their services to one another.That would mark a big shift for China’s consumer internet.

Initial steps from Alibaba could include introducing Tencent’s WeChat Pay to Alibaba’s e-commerce marketplaces, Taobao and Tmall, some of the people said.

Tencent could make it easier to share Alibaba e-commerce listings on its WeChat messaging app, or allow selected Alibaba services to access WeChat users via so-called mini-programs, some of the people said.

Delta reports first profit since pandemic, helped by U.S. aid

$Delta Air Lines(DAL.US)$ on Wednesday reported a second-quarter profit of $652 million, breaking a five-quarter streak of losses, boosted by rising travel demand and a fresh round of government aid to cover workers’ salaries.

Delta is the first major airline to report financial results for the quarter, with other carriers slated to follow in the coming weeks.

Still, full recovery for airlines is a long way off.

JPMorgan strategist says now could be the best time to buy Asia stocks

The best time to buy Asia stocks could be now, a JPMorgan strategist said Wednesday.

Mixo Das, Asia equity strategist at the bank, said U.S. markets have been hitting record levels while Europe and Japan are approaching their all-time highs. However, Asian markets have not seen the same trend.

On opportunities in China, Das said technology stocks are still a “buy” for investors with a long-term horizon.

The junk bond market is on fire this year as yields hit a record low

Junk bonds aren’t so junky anymore, with a strong fundamental backdrop helping to underpin what traditionally has been one of the riskiest sections of the financial markets.

Yields in the $10.6 trillion space for the lowest-grade bonds in terms of quality are around historic lows after a tumultuous year that saw corporate America face down the pandemic and come out on the other side with balance sheets looking extraordinarily strong.

Jay Powell dismisses claims of Fed complacency on inflation

The Fed chair pushed back against suggestions that the central bank might be complacent about inflation risks during his appearance at the House financial services committee. Powell said the Fed was ready to act if needed to tame prices and that he sympathised with public concern over rising prices.

However, the central bank chief largely stuck to his view that the inflation increases would be transitory and eventually subside.

Blackstone doubles down on US housing with $5bn deal

Blackstone has agreed to buy a $5.1bn portfolio of rent-controlled apartments geared towards low-income families in its second big bet on the US housing market in less than a month.

Together, the deals underscore how Blackstone is again making large-scale investments in American housing.