If Tech Bloodbath is replaced, run these two giants in the second half of the recovery, says a senior analyst

If Tech Bloodbath is replaced, run these two giants in the second half of the recovery, says a senior analyst

Without a clear stimulus, the winners of 2020 were completely crushed on Thursday – Apple, Microsoft, Tesla TSLA,
-9.02%
Zoom Video Communications ZM,
-9.97%.
Sales are not limited to technology stocks – Small Caps RUT,
-2.99%
Value Stocks VLUE,
-2.34%
Fell. Only hard-hit travel stocks actually rose.

The stock market was delayed. Great technology is south. The technical term is a low correction in overboat stocks after a period of intense one-way price action, ”said Jeffrey Haley, Onda’s Asia Pacific Senior Market Analyst. “For the rest, the market was very long and erroneous, and now their P&L [profit and loss] gone.”

A chart from Bespoke Investment Group beautifully captures the fact that the winners were sold.

AD Elphinbain Crossing the Wall Street blog It is said that these types of days between rallies are not uncommon. Contra-trend rallies are common within big rallies, but we can’t say this marks the end of a superstar stock rally. Obviously, there are nervous investors out there and the Bears have proven they are ready to go backwards, ”he says.

Dan Eves, a senior tech sector analyst at Weedbush Securities, was not shaken.

“Meanwhile [Thursday’s] A technology bubble and prolonged evaluation becomes the talk of the city as large-scale sales cause some white knuckles on the street, and we believe secular growth themes around the technology sector are unprecedented, increasing growth stories 1 in the context of COVID in 2 years, ”says Eves. “Although a lot of good news has been added to these names, we see today’s pullbacks as opportunities to acquire secular growth stories in cloud, cybersecurity and tech stallware FAANG names,” he said, representing FAANG Facebook FB.
-3.76%,
Amazon AMZN,
-4.62%,
Apple, Netflix NFLX,
-4.90%
And Google owner Alphabet GOOG,
-5.00%.

Eves says the second phase of the economic recovery, in the second half of this year and 2021, will “supercharge” the base and growth paths of top-ranked tech stocks. “As a result of this next step, street numbers are rising and tech stocks are being restructured. The risk to trade and the hunt for secular growth stories will keep technology investors focused despite the fluctuations as they move into the fall. There is general unrest over US / China trade tensions and the November election, ”Eves said.

He says investors should focus on Apple AAPL
-8.00%
Microsoft MSFT,
-6.19%.
“For Apple, the service business is a rock of Gibraltar [Chief Executive Tim] Cook & Co. is now pushing for greater demand for drum roll smartphone upgrades, with the iPhone 12 5G supercycle set to launch in early October, ”says Eves. For Microsoft, “this cloud shift too [work-from-home] Dynamic is looking to stay here and in the years to come the company will be the main beneficiary of this trend with its flagship Azure / Office 365 franchise, ”he says.

Buzz

Nonfarm payrolls report is an important measure of how far the financial recovery from lockdowns has progressed. According to market watchdog economists, 1.2 million jobs were created in August, including about 250,000 temporary census workers, after growing by 1.76 million in July and 4.79 million in June. The unemployment rate is expected to fall to 9.8 percent.

The slow pace is an indication that the U.S. economy is still battling COVID-19, which means local controls and people staying at home for fear of catching the virus. We know there will be no stronger return cards until the virus is under control, ”said Piet Haynes Christiansson, chief analyst at Danske Bank.

The Dutch bank used this graphic to demonstrate how the currency market would react.

Out of payroll, Broadcom AVGO,
-6.11%
Demand from cloud and telecom customers helped semiconductor and industrial software maker earn stronger than forecast on Thursday.

Markets

S&P 500 ES00,
-0.28%
The deal surpasses the Nasdaq-100 NQ00,
-1.28%
A day after the big sale.

Asian ADOW,
-1.46%
Shares down, European stocks SXXP,
-0.38%
High end.

Reads randomly

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Mergers are not limited to Wall Street – Two black holes are untied. Synergies were noticeable.

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