QQQ Churns in Late Hours on Apple, Amazon Earnings
Comment of the Day

August 03 2023

Commentary by Eoin Treacy

QQQ Churns in Late Hours on Apple, Amazon Earnings

This article from Bloomberg may be of interest to subscribers. Here is a section:

In late trading, a $207 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) whipsawed after Amazon.com Inc.’s bullish revenue forecast and Apple Inc.’s disappointing iPhone sales. Longer-dated Treasuries are now set for their worst week of 2023 amid signs of unexpected economic strength and concern over a widening budget deficit.

A report Thursday underscored resilient demand for workers, while separate numbers showed labor productivity climbed, helping to offset rising labor costs. Those figures preceded the government’s employment data — forecast to show the US added 200,000 jobs in July. While that would be the weakest print since the end of 2020, it’s still a strong advance historically.

Eoin Treacy's view

The 10-year yield continues to extend its breakout. This is less about inflation fears and more about profligate spending and no plan to rein it in. The higher the return demanded by investors to buy Treasuries the worse the relative return from other asset classes looks.

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