Summer stock market sentiment hasn’t exactly been positive, to say the least.

Over the last couple of months, we’ve seen equities negatively influenced by energy markets, inflationary economic climates, and earnings reports. With so much in play during this post-pandemic economy, the tickers have taken dramatic turns, their trajectories often triggering fear over what’s to come.

As we run the numbers that we know so far about Q2, many believe we may be in for more bad news across the tech, retail, and energy sectors. And so the stock market becomes ever more skittish.

The Wall Street Journal reports:

“The S&P 500 fell 0.6% Monday as the broad-market index began the week on a negative note. The Nasdaq Composite Index shed 1.4% as technology stocks lost ground. The Dow Jones Industrial Average was recently about flat after trading down throughout the morning.

“Stocks staged a recovery in recent days, with the S&P 500 rising nearly 2% last week. The rally cooled on Friday after a stronger-than-expected jobs report showed the labor market is still hot, raising the probability that the Federal Reserve could continue with aggressive interest rate increases and potentially cause a recession. The next key data release, the U.S. consumer-price index for June, is on Wednesday.”

The next couple of weeks should be interesting. Which makes them very much like the last several weeks. Or the last six months, for that matter.

Moreover, Laura Cooper, a macro strategist at BlackRock (BLK), doesn’t believe we’ve found the floor. She says different data points could lead to further market disruptions.

“We’re cautious on equities. We’re not advocating for ‘buy the dip’ at this current juncture,” Cooper said. “We’re in a backdrop where central banks are going to continue raising interest rates and the underlying market narrative continues to be one of potentially rising recession risks.”

Duly noted.

In the very near future, we need to prepare ourselves for Q2 earnings season, including from major financial institutions. JPMorgan Chase (JPM) and Morgan Stanley (MS) are both scheduled to report earnings on Thursday. Then on Friday, they’re followed by BlackRock, Citigroup (C), and Wells Fargo (WFC).  

Buckle up!

More Non-REIT News to Know About 

Yesterday, I wrote about how Elon Musk bailed on his big Twitter (TWTR) acquisition. He said it’s a legitimate decision after the social media platform failed to prove the authenticity of its active accounts.

Now Twitter has come back, vowing to hold him to his original purchase price of $54.20 a share. Not that the tech mogul seems to be respecting that response.

Nor are shareholders. Along with just about every other stock on the exchanges, the Twitter ticker went due south yesterday. 

As of yesterday’s close, it was trading about 38% under Musk’s offer price point.

As this battle between the mouthpiece of America and the country’s most eccentric entrepreneur continues, I’d expect this stock to react like the line on an EKG machine or a liar’s polygraph test.

Sure, you could make a quick buck catching the dips here but be warned – the volatility will be as vicious as the lawyers in this case. 

The World According to REITs 

Let’s end this article on a positive note and look at one REIT that climbed as the broader markets got creamed yesterday. 

American Tower (AMT), an owner and operator of wireless and broadcast communications infrastructure in several countries worldwide, had a stellar day. Its stock ascended $2.93 in a shaking market. 

This on the back of a major agreement in which AMT sold a 29% stake in its U.S. data center business to investment firm Stonepeak for about $2.5 billion. That implies a $10.5 billion valuation for that segment.

“We are pleased to partner with Stonepeak in our U.S. data center business, where we expect to create value through growth in our highly interconnected, cloud on-ramp rich portfolio of data center assets,” said AMT Chief Executive Tom Bartlett.

While not as sexy as the Twitter scandal, this is a great example of a deal done right. 

Once again though, this is one for the watchlist! Don’t buy anything unless it’s trading at a respectable valuation or better.

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