06-06-2017, 11:01 PM
Few areas of the US market performed better than small-cap stocks following the presidential election. But hedge funds are betting the group's best days are finished. The Russell 2000 has surged by 17% since Donald Trump's victory — handily outpacing the S&P 500 by more than 3 percentage points — amid expectations that the more domestically focused group would be best positioned to benefit from a lower corporate tax rate. Now that investors are growing increasing skeptical that any of Trump's policies will be passed in timely fashion, those big relative gains in small-cap shares look awfully precarious. Large speculative investors agree. They hold the biggest net short position in six years on the Russell 2000, according to data compiled by the Commodity Futures Trading Commission.
Hedge funds loading up on bets against small caps - Business Insider
Wage growth returned to Japan in April, with a revision wiping out the contraction from the month prior and suggesting the outlook for lifting inflation may be less dire than previously thought – albeit still far from ideal. Labour cash earnings growth rose to 0.5 per cent year on year in April, up from a revised reading of no growth in March (previously a contraction of 0.4 per cent) and besting a median forecast of 0.3 per cent from economists surveyed by Bloomberg.
Japan wage growth returns in April
Apple shares were downgraded to sector weight from overweight by technology-focused research firm Pacific Crest in a note Sunday. Analyst Andy Hargreaves told clients to buy Alphabet shares with the money raised by selling some Apple stock. "We believe AAPL anticipates strong performance in the iPhone 8 cycle, while providing relatively little weight to risks through the cycle or the potential for iPhone sales to decline in FY19," wrote the analyst. He cited risks "around gross margins, elasticity, supply issues, or the likelihood for declines beyond the iPhone 8 cycle."
Apple gets rare downgrade by Pacific Crest to start week
It is supremely odd that the technology industry's most revered gadget maker, Apple Inc., responded Monday to a tech device first introduced by a relative gadget lightweight, Amazon.This state of affairs would have seemed impossible in late 2014, when the digital shopping company first introduced a home speaker with a voice-activated digital helper built in. Yet here we are. Apple took the covers off a home speaker called HomePod with Siri as a voice-activated butler.I'm sure HomePod will be great, at least for listening to music. Apple seems focused on making the very best home speaker, particularly for people who use the company's Apple Music service. Probably sensibly, Apple executives spent far less time trumpeting how HomePod will work with Siri, which is still too dumb for all but basic functions like setting reminders.
Apple's Golden Handcuffs - Bloomberg Gadfly
It’s been a rough year for Samsung Electronics Co. in certain respects. The South Korean company had to kill off the fire-prone Note 7 smartphone, then heir apparent Jay Y. Lee was put on trial for alleged bribery. Yet Samsung shares have soared with strong sales of semiconductors and displays. Indeed, its share have outperformed Apple Inc.’s in a stellar year for the iPhone maker.
In Year of Disaster, Samsung Shares Outperform Apple's: Chart - Bloomberg