Here’s what a Bank of America strategist says investors should do now as the market spin enters its fourth round:

A previous version erroneously listed economic releases that were not expected to be released.

For Bank of America global investment strategist Michael Hartnett, there have been three distinct phases to describe market action over the past eight months.

The first is what he calls the reopening meeting, which began on November 3 due to both the US election and vaccine effectiveness reports. This boosted equities and credit, steepened the yield curve, weakened the US dollar and led to cyclical stocks outperforming defensives.

The next phase was the inflation boom, which started on February 16 with a burst in US retail sales. That led to rising commodities, rising yields, tech sector cracks and value stocks that outperformed growth.

The third phase was what he calls “peak growth/policy” starting on June 16 by the Federal Reserve, as well as easing signals from China. This led to a yield curve collapse, bonds outperformed stocks and commodities, the dollar rose and defensives outperformed cyclical stocks.

So what to do now? He says own defensive quality in the second half as it is both a hedge against peak policies and peak profits. He recommends going long with defensive measures in what he calls the vaccinated markets of the US and Europe, and long cycles and reopenings in favorable vaccine markets, in Japan and emerging markets.

Intel exceeds estimates

Microchip giant Intel INTC,
-0.48%
fell 2% in premarket trading as it reported better-than-projected earnings and sales, but released an analyst-matched third-quarter forecast as Chief Executive Pat Gelsinger said the global semiconductor shortage could extend into 2023.

Twitter TWTR,
+0.04%
rose 4% as it reported much stronger-than-expected revenue and revenue, after adding 7 million new users in three months. Rival social media platform Snap SNAP,
-0.66%
rose 17% as it crushed revenue estimates after adding 13 million users.

Boston beer SAM,
+1.89%
fell 20% as it lost revenue after reporting hard seltzer and beer sales were “softer than we expected.”

The virus-delayed, nearly fanless Tokyo Olympics are about to kick off.

The Wall Street Journal asks: how much are your Oreos?, in an overview of company beliefs about their ability to test price increases.

The flash purchasing managers index for the US will be released. The euro-zone’s sudden PMI hit its 21-year high in July, though the UK reading fell to a four-month low amid what’s been called the ‘Pingdemic’, citing a contact-tracing app forcing employees to stay at home.

The market

US stock futures ES00,
+0.43%

NQ00,
+0.32%
pointed to a solid open, which, if sustained, would mark the fourth consecutive advance for major stock market indices.

The return on the 10-year Treasury TMUBMUSD10Y,
1.308%
amounted to 1.30%. Gold GC00,
-0.17%
traded just below $1,800 an ounce.

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