Video game retailer shares rose 23% in the premarket after Monday’s wild session. For some, this is an exciting reminder of the boom and bust of dot-coms and fears that history may repeat itself.
Maybe one day it will be easier, when robots can think for us. This takes us to our call of the day, who comes from the blog DataTrek Research, who wonders if a fund that depends on artificial intelligence to invest in ideas and is heavy on technology stocks now knows something that we don’t know.
DataTrek observes AI Powered Equity AIEQ,
exchange-traded fund rose 12% in the year to date, against a 2.6% gain for the S&P 500 SPX,
and for 2020 it increased by 25%, against a gain of 18%, respectively. It won 101% of the low points of the March 19 COVID pandemic, against a 72% gain for S&P.
Tesla TSLA, maker of electric cars,
SunPower SPWR solar solutions group,
Advanced Micro Devices AMD chip group,
energy technology group Enphase Energy ENPH,
and technology giant Alphabet GOOGL,
are the top five stakes.
What DataTrek found was that the fund’s top choices are heavier in technology than last October, when stocks with a cyclic flavor, like the health group Pfizer PFE,
and the automaker Ford F,
reached the top 10.
“AIEQ seems to have picked up a good ‘signal’ from the market in the last 12 months, so the fact that it is easing cyclicals at the top of the sheet and maintaining / increasing its exposure to disruptive technology names (TSLA, SPWR, ENPH) is interesting, ”says DataTrek.
What can that mean? A human manager moving away from cyclic cycles at the moment may be a sign that there has been no progress in the launch of the COVID-19 vaccine.
As DataTrek folks say, the moves of this AI ETF reflect those of a successful 1990s hedge fund manager – “well-known actions that touch well-understood themes Perhaps the real power of investment driven by artificial intelligence is simply not thinking too much in things. ”
The markets
YM00 stock futures,
ES00,
NQ00,
are a bit mixed, while European SXXP shares,
are higher. CSI 300 000300 from China,
and Hong Kong’s Hang Seng Index HSI,
lost more than 2% each. This was after the People’s Bank of China, in a surprise move, withdrew funds from the financial system and reportedly warned of asset bubble risks.
The tweet
From Alexis Ohanian, husband of tennis star Serena Williams and co-founder of Reddit:
The buzz
Reporting prior to the opening of the market, shares in the General Electric GE conglomerate,
are increasing as revenue exceeds forecasts, and health group Johnson & Johnson JNJ,
recorded profit and growth in sales of pharmaceutical products. American Express AXP Financial Services Group,
yet to come. After closing, the technology giant Microsoft MSFT,
Starbucks SBUX group coffee,
and Advanced Micro Devices AMD chip companies,
and Texas Instruments TXN,
report.
Etsy ETSY e-commerce site actions,
increased 9% in the pre-market. This change appears to have coincided with a comment on Twitter TWTR,
by Tesla CEO Elon Musk, who said “I kind of love Etsy”.
The Federal Housing Finance Agency’s home price index, the S&P Case-Shiller home price index and consumer confidence data are all ahead.
BlackRock BLK,
Chief Executive Larry Fink says companies must set environmental goals or face divestment.
European Union officials had a tense conversation with the pharmaceutical group AstraZeneca AZN,
AZN,
on Monday because of delays in the COVID-19 vaccine and threatened export controls on any vaccines produced in the region.
Alternative asset manager Apollo Global Management APO,
says Chief Executive Leon Black will step down in July.
Lawmakers are moving ahead with an impeachment trial of former President Donald Trump.
Shares of the holding company of the Chinese technology conglomerate Tencent 700,
retreated, after the 11% increase on Monday, which brought it close to a $ 1 trillion valuation. And the head of China’s central bank struggled to answer a question about the digital payment group Ant Financial, whose initial public offering was delayed.
Random readings
As any good Spaniard will tell you, naps are a good thing.
Snowball fights in the UK? This can be costly.
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