Market Briefing For Thursday, July 25

Circus antics under 'the big top' might be one way to view the mixed and bifurcated sector performance that took Indexes in opposite directions currently, especially in morning trading. It's a swirl of activity; with the FTC actions, which likely led to the DOJ involvement I explored last night; and the unknown outcomes down-the-road.

Secretary of the Treasury Mnuchin clarified the targets (in my view) just a bit; with his singling-out Amazon for 'destroying retail' in the United States. While I dispute his assertion that Walmart wasn't so difficult a challenge for small business; I clearly have concurred on the Amazon approach (actually discussed it yesterday a bit).

Google seems to be less in the Government's cross-hairs, given his remark suggesting they are 'helping the U.S.'; although he didn't say that Chinese fifth-columnists hadn't infiltrated that Company among others.

In tonight's report lets summarize some (not all) of many factors impacting (or possibly impacting) forward news that can be reflected in markets:

The Facebook 'reforms' and fines should set the bar for others heavily involved in violating privacy; and actually help global privacy as well;

While letting it be settled with the FTC rather than the Courts; it likely is what Facebook wanted to avoid an enormous penalty in human terms (culpability) that could have occurred if it went to Court;

What this means is that Facebook sort of covered this up (soft penalty in relation to the revenue and pervasiveness); but it does help regarding a standard of conduct going forward; with overtones for all internet firms, especially those names you know treat 'you' as the product, rather than how most consumers perceive they are merely shopping 'for' product;

Very successful high-tech platforms need to be contained; while a goal of not really inhibiting growth (and actual 'competition') going forward;

How citizens view 'social media' and 'retail marketing' firms as being too intrusive could be reflected at the 'ballot box', but while antitrust laws do not seek to punish success; the tricky part is how to empower entry to markets, without inhibiting that (and voters aren't ready to sort it out);

Amazon is likely the real target; hence Sec'y. Mnuchin's comments; with a caveat that anything related to breakup's could take 'years' to evolve;

Most interesting was AT&T's favorable response to missing increases in Quarterly profits (first time in years); but that's not surprising;

The shares were up not down, which reinforces my view of the dividend being key for now; but also a possibly-higher multiple down-the-road as it moves into a broader streaming-media portfolio of platforms next year;