Although the indices are back to the highs of the day, breadth remains sluggish at around 3,800-3,075. There are some better movers such as recent China IPO's like IQiYI (IQ) and Bilibili (BILI) and the FAANG names. It is still quite choppy but the overall tone is positive and the S&P 500 is at day high.
One negative is the yield curve which continues to flatten and is causing issues for smaller banks in particular. Some of the major banks report in the morning and it will be interesting to see how they address this issue.
A theme that many traders ae looking to play in the near term is 5-G, or fifth-generation, wireless. This technology uses satellite spectrum to greatly increase speed and responsiveness.
On July 2 I named Intelsat SA (I) as my Stock of the Week at SharkInvesting.com Intelsat opened that morning at $16.55. I'm adding to my position today as the stock moves higher on this announcement from the FCC:
"FCC has taken another step toward promoting American leadership in the next generation of wireless connectivity, or 5G, expanding high-speed broadband access across the United States and closing the digital divide. The Order and Notice of Proposed Rulemaking adopted today identifies new opportunities for flexible use in up to 500 megahertz of mid-band spectrum between 3.7 and 4.2 GHz. Mid-band spectrum is well-suited for next-generation wireless services."
Intelsat operates a satellite-based communication system that serves media companies, telecom operators and other companies.
The main story here is the introduction of 5G which is much faster than previously data transfer systems but requires satellite spectrum. Intelsat is one of the largest players in a certain satellite spectrum that can be transferred to use for 5G service and the FCC announcement today is an indication that it will look into allowing Intelstat to sell some of its spectrum to wireless broadband providers.
Kerrisdale Capital put out a buy rec on the company with a huge price target of $150. The stock moved sharply higher on the news but reversed completely. The stock is now jumping again on the FCC news and I am building my position.