Morgans Financial Limited

Morgans AM: Wednesday, 23 June 2021


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US equity markets followed through in Monday night’s (21 June) rebound, with the technology centric Nasdaq logging a fresh record closing high - Dow added +69-points or +0.20% . The broader S&P500 rose +0.51% to 4,246.44, settling just shy of last week’s (14 June) record closing high (4,255.15), with Consumer Discretionary (up +1.04%) and Information Technology (+0.89%) leading nine of the eleven primary sectors higher. Utilities (down -0.68%) and Real Estate (-0.44%) were the only primary sectors to close in the red. Delta Air Lines Inc (down -0.87%) plans to hire more than 1,000 pilots by next summer, according to multiple news reports. Citing an internal memo, Reuters and Bloomberg News separately reported that the airline looks to increase the number of pilots by ~8%, anticipating a recovery in air travel over the next year as international travel restrictions ease. The Nasdaq erased earlier losses to settle +0.79% higher at 14,253.27, eclipsing its previous record close of 14,174.14 set on 14 June. Microsoft Corp rose +1.1% and briefly saw its market capitalisation rise above >US$2 trillion after touching a record intra-day high of US$265.79. Microsoft is looking to join Apple Inc (up +1.27%), which is the only U.S. company to have closed a trading day with a market capitalization above >US $2 trillion. Apple is now worth ~US$2.2 trillion. Alphabet Inc rose +0.43% despite the European Commission announcing that it had opened a formal probe into Google’s digital advertising business in order to assess whether the U.S. company is distorting competition by favouring its own business. The small capitalisation Russell 2000 rose +0.43%. In merger and acquisition (M&A) news, Blackstone Real Estate Income Trust Inc., a real-estate investing platform managed by a unit of private-equity firm Blackstone Group Inc (up +0.10%) announced that it would acquire Home Partners of America in a deal valuing the company at US$6B.
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