Good Evening:

Markets had a relatively strong week, given what we’ve been seeing, with a sour ending. This S&P 500 actually got above 4,000 today briefly but retreated into the close. Snap reported earnings after the bell Thursday and had a significant miss. Several downgrades followed. The company was down nearly 40% into the close. The action in Friday’s market suggested investors are worried Snap’s weakness foretells weakness for other companies who butter their bread with digital advertising. Communications Services was the biggest laggard, followed by Technology. Defensives saw relative strength.

This risk is more idiosyncratic to advertisers in particular and represents a nasty crosswind with economic activity slowing. Apple changed its privacy policy settings in its vast and lucrative mobile ecosystem to switch off its Identifier For Advertisers (IDFA) that is so essential to companies like Alphabet and Meta to inform their advertisement strategies and assess their success. Both companies were down over 6%.

The markets still managed to close the week positive. While Friday’s drop was big it was concentrated mostly in digital advertisers, a few of whom are huge parts of the index. Bank earnings showed a stronger US consumer than those with mounting gro...

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