Private equity stocks suffer in August
President Trump’s recent decision to allow broader access to alternative assets in 401(k) plans seemed to shield private equity stocks from a tough August.
Several big players, including Black Stone, KKR, Apollo, and ARES Management, experienced a downturn that broke their winning streak that had lasted several months. These companies saw their stocks drop between 2.7% and 5.7% in August, underperforming compared to the S&P 500 since the start of the year.
August was a rough month for Apollo Global Management, which has now experienced notable fluctuations over the past month.
Carlisle Group stood out amid these declines, marking its fourth consecutive month of profits with a 3.2% increase in August.
Some investors have expressed concerns that companies may find it challenging to offload older investments at favorable prices, potentially impacting profits.
Capital economics says fixed income yields on longer dates are at risk of rising
Long-standing government bonds, which have been stable for over a decade, are currently facing significant pressure this year. This is primarily due to shifting demand from traditional buyers, as noted by Thomas Matthews from the Asia-Pacific region.
The central banks have scaled back their support for the long end of the market, a move that was part of normalizing monetary policy after years of quantitative easing and zero interest rates.
They previously constituted a crucial source of demand for government bonds across the spectrum. However, as their presence diminishes, other sources of demand are struggling to compensate for this loss.
“Without substantial financial adjustments, which seem unlikely, we anticipate that the longer end of the curve will remain unstable with the potential for yields to rise again, at least temporarily,” Matthews said.
Please see stocks moving outside of business hours
Here’s a glimpse at some stocks that have shown notable movements outside regular trading hours.
- La-Z-Boy – Shares fell by more than 21%. The recliner manufacturer posted earnings of 47 cents per share, missing analysts’ expectations of 53 cents, and also provided guidance that was lower than anticipated.
- Toll Brothers – The luxury home builder saw a slight increase of 1.6% despite surpassing expectations this past quarter. They reported earnings of $3.73 per share, with revenues totaling $2.88 billion, compared to forecasts of $3.60 per share and $2.85 billion in revenue.
Stock futures are almost flat
As of 6 PM, futures tied to the Dow, S&P 500, and Nasdaq 100 showed little change.
