Value and cyclical sectors have given back some of their early-year outperformance in recent weeks, but as long as bond yields begin to rebound, value and cyclicals should outpace growth…said Tom Essaye, founder of Sevens Report Research. Click here to read the full article.
Then value stocks started to look alive in the later part of 2020. Using Vanguard Value ETF (VTV) for value and Vanguard Growth ETF (VUG) for growth, Tom Essaye, editor of The Sevens Report newsletter notes from Aug. 31 to Nov. 30, value outperformed growth, 6.4% to 2.1%. But…Click here to read the full article.
What’s in Today’s Report:
Futures are down more than 1% as AAPL sharply cut Q4 revenue guidance.
AAPL cut Q4 revenue guidance to $84 bln from the previous $89-$93 bln range, citing slowing Chinese demand as the main negative influence.
Economically UK Construction PMI and Euro Zone Money supply both slightly missed expectations.
The entire tech sector will be in focus today to see how well it can hold up in the face of the AAPL news, which wasn’t a shock as analysts and suppliers have been cutting IPhone numbers for months. If stocks can set the lows early in the day and rally back, that would be an anecdotal sign near term selling pressure may be exhausted.
Away from AAPL, we get a lot of economic data today including (in order of importance): ISM Manufacturing Index (E: 57.9), ADP Employment Report (E: 175K), Jobless Claims (E: 217K) and Motor Vehicle Sales (E: 17.3M). Data today could be important because if the data is firm, it should decrease the AAPL fallout. However, if the data is weak, then it’s going to be another ugly day as the news will reinforce worries about corporate earnings and economic growth.