E TalkMarkets Tuesday Talk: Dow Days Of Summer

Canis Major - Wikipedia


The ancient Greeks thought of the constellation Canis Major as a dog chasing Lepus, the hare. The star Sirius (which means scorching or glowing in Greek) is the dog’s nose. In the summer, Sirius rises and sets with the sun. They thought having another star in the summer sky made the days hotter, hence the phrase "Dog Days of Summer". Homer in the Iliad, says the dog star is "an evil portent, bringing heat, and fevers to suffering humanity". 

On Wall Street, the phrase "dog days of summer" is used to define the historically slower trading months of July and August. But with the Dow "high in the sky" and the "earth moving" under its list, these "Dow Days of Summer" seem to be taking a few cues from the ancient Greeks. 

This morning market futures are again in the green, the S&P is shining 3,442, the Dow 28,404 and the Nasdaq 11,626 (as I write). Biden is chasing Trump and there are hurricanes afoot. What do TalkMarkets contributors make of it all?

Simon Peters writing in Exxon To Exit Dow Jones Industrial Average After More Than A Century notes:

"One of the world’s major stock indices is set to undergo some significant changes, with Exxon Mobil (XOM), defense firm Raytheon Technologies (RTN) and drug maker Pfizer (PFE) on the way out of the 30-name index of US blue chip stocks. The trio will be replaced by cloud business software provider Salesforce (CRM), and conglomerate Honeywell (HON). Apple’s (AAPL) four-to-one stock split is one reason the changes are being made, as the index is constructed based on share price rather than market cap, so the change would have dramatically cut the Dow’s technology exposure. The news broke as the Dow (DIA) came within touching distance of breaking even in 2020, after adding 1.4% on Monday. Currently, the Dow is down just 0.8% year-to-date."

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