National Watermelon Day and Other Essentials….Despite the notable drop in volumes to start the hottest month of the year, the FANG work horses have been at it again today, pushing the Nasdaq to a fresh record (chart below). However, it’s not only Apple (at an all-time high) and Microsoft (+4.8%) doing work today. A handful of other software and tech helpers have stepped in to take a turn with the baton. Qualcomm (+3.7%), Zoom (+6%), Upwork (+9.3%) and Shopify (+6.2%) are all adding impact thanks to a handful of decent earnings and a friendly upgrade. Even small-caps have shown some life (chart below). However, it won't take much this week to roil a market that remains at levels that feel out of touch with reality. Investors will be watching Booking, Hyatt, Sabre and Norwegian’s latest trends when they report later this week (as well as Marriott and RCL next week). Further, with jobless claims remaining high and job openings stalled, NFP’s will be hard pressed to maintain the narrative the economy is improving. This is not to mention the risk of renewed lockdowns, political posturing and the potential loss of TikTok (cue millions of 12-15 and 40-50 year olds marching on Washington in a coordinated dance routine).
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