Bellevue Perspectives

Monday Minute

  • Midweek last week, the markets sold off nearly 3% on Wednesday primarily due to a spike in Covid-19 cases, but also partially to polling data on the upcoming Presidential election which shows Biden with a strengthening lead.  On Thursday we saw stabilization thanks in part to news that the U.S. banking regulators unveiled a pair of rules that will make life easier for large banks with complex trading and investment portfolios.  The rules would dial back the Volker Rule instituted after the global financial crisis which restricted banks from engaging in proprietary trading among other requirements. The big banks liked the news and traded higher by 3-4%.
  • The week finished off on the downside as the Fed’s annual stress test results for the banks showed many were close to minimum capital levels.  The Fed responded by suspending stock buybacks and capping dividend payments at current levels for the third quarter.  Additional negative news on the Covid-19 front didn’t help the cause.  Markets traded lower by more than 2% on the day.
  • The equity markets are starting the week off on the positive side today as investors wait for additional stimulus in the face of rising Covid-19 numbers.  Boeing is also giving a boost to the Dow Jones Industrial average as the Federal Aviation Administration gave the green light to key certification test flights for the grounded 737 MAX.  As we mentioned last week, we continue to look for opportunities to hair-cut our winners.

We hope everybody has a fun and safe 4th of July holiday this coming weekend!

HighTower Bellevue is registered with Hightower Securities, LLC, member FINRA and SIPC, and with Hightower Advisors, LLC, a registered investment advisor with the SEC. Securities are offered through Hightower Securities, LLC; advisory services are offered through Hightower Advisors, LLC.

This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.

All data and information reference herein are from sources believed to be reliable. Any opinions, news, research, analyses, prices, or other information contained in this research is provided as general market commentary, it does not constitute investment advice. The team and Hightower shall not in any way be liable for claims, and make no expressed or implied representations or warranties as to the accuracy or completeness of the data and other information, or for statements or errors contained in or omissions from the obtained data and information referenced herein. The data and information are provided as of the date referenced. Such data and information are subject to change without notice.

This document was created for informational purposes only; the opinions expressed are solely those of the team and do not represent those of Hightower Advisors, LLC, or any of its affiliates.