The stock market is sending signals that a Biden-led blue wave is getting less certain, says one Wall Street strategist
- While the polls suggest a blue wave victory is in reach for Democrats this November, the stock market isn’t so sure, according to a note from Evercore ISI.
- Wall Street strategists have been forecasting that a blue wave would likely be positive for stocks on hopes of a large stimulus deal shortly after the election, which would help spur a surge in value and cyclical stocks.
- But this week’s rotation out of value and into tech suggests that chances of a blue wave in November are less likely, according to the note.
- Visit Business Insider’s homepage for more stories.
Wall Street is increasingly expecting a blue wave victory for Democrats this November after the polls close, which would likely lead to the reflation trade: a surge in cyclical and value stocks at the expense of technology and growth stocks.
But recent trading activity in the stock market suggests odds of a blue wave are less likely, according to a Tuesday note from Evercore ISI.
Specifically, this week’s rotation out of small cap and value and into large cap and growth could be chalked up to declining odds of a Democratic sweep, according to the note.
The firm pointed to the October surprise in North Carolina’s Senate race between Republican Thom Tillis and Democrat Cal Cunningham as evidence for declining chances of Democrats overtaking the Senate.
“The Democratic ‘dream fiscal program’ odds are lower,” Evercore said as explanation for what is driving the rotation back into tech.
Read more: Jeff James has crushed the market this year thanks to a stock pick that’s soared 1,155%. He shares another bet he expects to deliver similar returns – and lays out 3 additional opportunities in tech.
The firm did concede that other factors could be moving tech stocks, including excitement around
AMSTERDAM (Reuters) – Semiconductor equipment maker ASML Holding NV ASML.AS on Wednesday posted a better-than-expected quarterly earnings and forecast a double-digit growth for next year on strong end-demand for electronics devices.
The company reported sales of 3.96 billion euros ($4.65 billion) in the third quarter ended Sept. 30, ahead of analyst estimates of 3.7 billion euros, and a net profit of 1.06 billion euros. In the third quarter of 2019, ASML reported net profit of 627 million euros and sales of 3 billion euros.
ASML Chief Financial Officer Roger Dassen forecast sales of 3.7 billion euros in the fourth quarter and said the company expected “low double digit” growth in 2021.
ASML has a near monopoly on lithography systems, enormous machines that can cost up to $200 million each and play a vital role in the manufacture of computer chips, mapping out their circuitry.
ASML’s customers include major chipmakers, notably global market leader Taiwan Semiconductor Manufacturing Co Ltd 2330.TW, followed by Samsung Electronics Co Ltd 005930.KS and Intel Corp INTC.O.
Although ASML’s financial performance has not yet been hurt by U.S.-China tensions, it could be affected by a split in the supply lines for semiconductor production, which is highly integrated globally.
The Dutch company had already halted plans to sell its most advanced equipment to China after the U.S. government pressured the Netherlands not to grant export licenses under “dual use” military applications.
Last month, Washington asked U.S. equipment makers to seek a license to ship any equipment to SMIC, China’s oldest and biggest computer chipmaker, over military concerns.
The new U.S. trade curbs on SMIC mean ASML must now apply for a license to sell even older-generation equipment to
What Twitter is doing to help employees keep working from home forever, from inventing to new lingo to using hand signals on video calls
- Twitter has been working on “decentralizing” its workforce since 2018, including adding resources and policies to make life easier for remote workers.
- Some teams at Twitter have invented hand signals to help employees speak up during virtual meetings, while other teams have invented new phrases to get meetings back on track, according to the Washington Post.
- This has come in handy during the coronavirus outbreak: Twitter was the first major tech company to have its workforce start working from home, and CEO Jack Dorsey has told employees they may keep working remotely forever.
- Twitter has since decided to sublease 100,000 square feet at its San Francisco headquarters and has a policy in place to cut pay for employees who move outside the Bay Area to a less expensive region.
- Visit Business Insider’s homepage for more stories.
Even before the coronavirus outbreak hit the US, Twitter was preparing for a future that relied heavily on remote work — and that included employing new tactics to help employees work well together from afar.
That’s according to a new piece by the Washington Post’s Elizabeth Dwoskin, which explores Twitter’s focus on creating a “distributed” workforce, which has been years in the making. The idea was sparked by a successful day working at home for Twitter CEO Jack Dorsey in January 2018, which led him to send a company-wide email celebrating the merits of working outside the office.
“We should always optimize for where people feel their most creative, and I’d love to see us be a lot more flexible about working from home,” Dorsey wrote, according to the Post.
Since then, Dorsey has been outspoken about decentralizing Twitter, which he has described as “the whole promise of the
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When Google announced last month it was pulling the plug on a lease for a new office space in Dublin, Ireland, it set off alarm bells.
Google is a large presence in Dublin’s “Silicon Docks,” where it holds its European headquarters, a part of the city around the docklands area where a who’s who of Big Tech are located, including Facebook, Twitter and Airbnb.
But during the coronavirus pandemic and with the need for remote working, questions are being raised about the viability of large office spaces. Google said it remains committed to Dublin — where it has over 8,000 workers — and has purchased two more buildings that it still plans to fill.
The commercial property market in Dublin slumped in the second quarter as the country was in the depths of lockdown, according to real estate firm CBRE, which reported just 15 office leasing transactions in that period.
Marie Hunt, head of research at CBRE, told CNBC there is likely to be a slowdown in new office deals in the coming months because of Covid-19, but also because “tech occupiers tend to retrench in a presidential year.”
Government agencies have been unable to carry out site visits and tours to woo companies to invest, and Hunt said this was causing a “weakening in take up.”
Shane Fleming, a property expert and the founder of Fleming Real Estate, said that this trend is not unique to Dublin but that the Irish capital still has several large office deals signed and in progress, pointing to ongoing expansions by Amazon and LinkedIn.
TikTok, according to reports, is seeking a large office space in the capital for up to 5,000 people.
Fleming added that housing shortages for workers in the city as well as planning policies