Top 10 Holdings as of 5/31/2017: Oppenheimer Large Cap Revenue ETF (RWL): 4.59581%, McKesson Corp (MCK): 4.09086%, UnitedHealth Group Inc (UNH): 3.6966%, AT&T Inc (T): 2.87233%, Consumer Staples Select Sector SPDR® ETF (XLP): 2.52132%, The Home Depot Inc (HD): 1.88797%, Microsoft Corp (MSFT): 1.80121%, Comcast Corp Class A (CMCSA): 1.73035%, CVS Health Corp (CVS): 1.66878%, Bank of America Corporation (BAC): 1.62437%
Standard & Poor's affirms U.S. 'AA+' long-term and 'A-1+' short-term unsolicited sovereign credit ratings, and says the outlook remains stable.
S&P says "high general government debt, relatively short-term oriented policymaking, and uncertainty about policy formulation constrain the ratings."
S&P says the "lack of cohesion [in D.C.] complicates the ability to effectively and proactively advance legislation in Congress, particularly on fiscal policy... we don't expect a meaningful expansion or reduction of the fiscal deficit over the forecast period."
A duo of blue and pink diamond earrings were just auctioned off for $57M at Sotheby's (NYSE:BID) - a record price for a set of earrings.
Alongside, BID's stock price is near an all-time high.
Writing on Seeking Alpha, Edge Lab, reminds of a maxim of another SA contributor, Chris DeMuth: Sell when the ratio of the Sotheby's to Loews (NYSE:L) gets too high. The basic idea isn't difficult to decipher: When things on a relative basis are going a bit too well at the luxury auction house, capital markets might be fairly well picked over.
Going back to 2006, Edge Labs found five instances when this ratio got too perky - in each case, the market corrected shortly thereafter. It's in that perky zone today.
Edge Labs: "If this indicator remains true, and the market corrects, then you can blame it on a pair of $57M earrings."
Stock futures are on the decline this evening following news of the abrupt firing of FBI Director James Comey.
Comey was informed by President Trump that he was being terminated on the clear recommendation of Deputy Attorney General Rod Rosenstein and Attorney General Jeff Sessions (who had previously recused himself from investigating any connections between Trump and Russia).
Documents released by the White House point to Comey's handling of the investigation into Hillary Clinton's e-mails as the reason for the firing.
The news is likely to soak up oxygen in Washington and at least put a crimp in plans to reform healthcare and taxes. This, after the VIX hit a 24-year low.
S&P e-Mini futures are down 0.2% and Dow futures down 0.22%.
Meanwhile, 30-year Treasury futures are up 0.2% and 10-year futures up 0.13%. Gold has risen by $8.50, to $1,224.60 and silver up 0.83% to $16.20.
If the powerful bull market in stocks is discounting a future of stronger economic growth, then why are bond prices on the rise, say the equity bears, noting the 10-year Treasury yield on Friday closed at its lowest since late November at 2.317%.
A bull may retort that, yes, yields are down a bit this year, but still sharply higher over a longer period - the 10-year stood at 1.50% on Labor Day. Since soaring to about 2.60% in mid-December, the 10-year has remained in a range of about 2.3-2.6% Whether that's a top in yields or a consolidation before moving on to higher levels in up for debate.