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Have a lovely July 4 weekend, but before you go keep this in mind: the stock market’s rally is probably nearing an ugly death.
And the reasons for it happening are not only building, but are so incredibly easy to grasp. First, one of the hottest parts of the stock market — tech — is starting to sell off. Just over a week ago, a tech stock downdraft freaked out the entire market. On Thursday, selloffs in names such as Facebook, Inc. (FB) and Netflix, Inc. (NFLX) had the same effect. Keep in mind these are rogue-type pullbacks, meaning they come absent bad company-specific news or dreadful industry developments. It’s the clearest sign yet that the smart money is getting worried about valuations in hot sectors of the market.
A post shared by Kim Kardashian West (@kimkardashian) on Jun 23, 2017 at 11:22am PDT
That brings up point number two. Federal Reserve head honchos Janet Yellen and Stanley Fischer came out this week and basically said the stock market is overvalued. Don’t discount the power of these two to move investors out of stocks. They are the Kim Kardashian of the stock market — influencers that could trigger instant actions by people.
On that note, fire up that BBQ.
What’s Hot On TheStreet
Get ready Tesla fanboys: Tesla Inc. (TSLA) CEO Elon Musk said Friday there would be “news on Sunday” about the company’s much anticipated Model 3. While that’s all fine and good, what Musk won’t tell people is how his electric car company may be speeding toward a monopoly.
With the advance of self-driving vehicles, Tony Hughes, managing director at Moody’s Analytics, argued it is not the cars themselves that could lead to the decline in the automotive industry but ride-sharing services like Uber or Lyft. The plan CEO Elon Musk has laid out to create a fleet of self-driving Tesla vehicles for ride-sharing purposes could be the way to save automakers from demise.
A VIP gives his market outlook: Nobel Prize winning-economist Robert Shiller told TheStreet’s Anders Keitz that U.S. equities markets are “quite high” currently but may go even higher in coming months, and that’s why he’s not exiting the market completely. Indeed there’s another thing that could have an unpredictable effect on the market Shiller explains: The narrative around Donald Trump.
“Short-run forecasting of the market is very hard,” said Shiller. “I think it’s a time for caution, but it could go up substantially.”
Apple iPhone 8 pictures leak: Apple Inc.’s (AAPL) iPhone 8 looks kind of cool. That is if yet another photo leak is to be believed. Noted Apple information leaker Benjamin Geskin tweeted photos of an alleged iPhone 8 finished prototype on Thursday evening (head here to see). Suffice it to say, Apple is gearing up for the mother of all product launches. And consumers look ready to respond.
About 92% of iPhone owners say they are “somewhat likely or “extremely likely” to upgrade their smartphone in the next 12 months, according to a note from Morgan Stanley. The loyalty rate is up sharply from 86% one year ago.
As TheStreet’s Lindsay Rittenhouse reports, Nike also confirmed that it teamed up with Amazon (AMZN) to sell certain products on the e-commerce conglomerate’s site. The company is also selling directly to consumers via Instagram.
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