Institutional investors around the world turn to Cornerstone Macro for Economics, Policy, Strategy, Technicals, Energy, and Options research.
Nancy Lazar highlights companies like $VMC & $MLM have been the biggest beneficiaries of
accelerated infrastructure spending. Given many states’ healthy revenue streams, coupled with our positive U.S. capex outlook, continued infrastructure spending growth is likely. #economics
Our strategy team expects this earnings season to be worse than we have seen in past quarters, particularly for more cyclical sectors. With that in mind, our options team suggests buying the XLI Jul 26th 77 puts for .39, ref 77.45. These puts have a breakeven of -1.1%. $XLI
Nancy Lazar thinks Eurozone real GDP is likely to slow to 0.5% q/q a.r. in 2Q on renewed trade concerns weakening exports, and higher energy prices depressing consumer spending. Some 2Q headwinds are also abating. Sluggish but no recession. #Eurozone #GDP
Andy Laperriere highlights that all 5 top Democratic presidential candidates are in favor of aggressive drug price control legislation, which would pose a significant risk to the pharmaceutical sector. #2020election #democrats #MedicareForAll $XLV
Carter Worth highlights that the relative performance of the S&P 500 Railroad Index has just broken below the well-defined uptrend line in effect the past four years. This is an important market development and he is a seller. $S5RAIL $XLI #stocks