E-mini S&P 500 (March): Settled at 3816.75, down 50.75
E-mini Nasdaq-100 (March): Settled at 12,681.75, down 373.50
Yesterday was many things, but it certainly wasn’t a bloodbath. Amid a sea of red, energies were +1.43%, financials +0.75%, and industrials +0.07%. This highlights the rotation from growth to value that's been taking place since September and the recent surge in rates has only been a tailwind.
At the same time, it’s wrong to think, “stick a fork in tech, it’s done.” There are ways to carefully balance a portfolio and prepare for such shifts. As we look ahead, we still believe that Apple, Microsoft, and Salesforce are staples within a portfolio for years to come. Do they always need to be your largest holdings? Simply put, that answer is no. Please email us at firstname.lastname@example.org with a convenient time to connect if you'd like to discuss our portfolio balance and your unique situation.
Nonfarm Payroll is on deck for tomorrow, but first, this morning’s weekly Jobless Claims improved from last week and beat expectations. We find tomorrow’s jobs report as critical as ever. It comes at a time when economic activity is steadfastly improving, but the jobs landscape has been stagnant.
Fed Chair Jerome Powell, who speaks today at 11:05 a.m. CT, has said real Unemployment is closer to 10%. Without full employment, or at least a pace of improvement in job growth that signals full employment is around the corner, it paves the way for added fiscal and monetary policy.
A strong read tomorrow would also reinvigorate rates, theoretically pricing in a taper of such accommodative policy, and would likely hurt risk assets over the coming days and weeks.
Yesterday’s ISM Nonmanufacturing missed by a wide margin, yet it still showed steady expansion at 55.3. Let’s not forget that read: it’s an inflection point as the services industry could be the first shoe to drop in a snapback recovery. Lastly, Factory Orders came due at 9:00 a.m. CT.
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