|Day's Range||2,976.31 - 3,000.00|
|52 Week Range||2,346.58 - 3,027.98|
Earnings season is trundling on, and even though we got numbers from companies like JPMorgan Chase, Netflix and UnitedHealth Group last week, this week looks set to be even more exciting.
It very well could take you longer to read this story than it would to ride on the world’s shortest scheduled passenger flight. Loganair, a Scottish regional airline, holds that title thanks to its itinerary between Westray and Papa Westray, two of the Orkney Islands located north of Great Britain. The 10,000-mile nonstop voyage on a Boeing (BA) 787-9 from New York to Sydney will be the world’s longest flight.
Moody’s Analytics sees a good chance for President Donald Trump's reelection. Its models suggest that his chances depend on three economic conditions.
Prepare for an earnings onslaught in the week ahead, headlined by Tesla Inc., Boeing Co. and a flurry of big tech names.
Commerzbank loaded up on newly public stocks that were slumping in the third quarter. All but Uber have continued to slip in October.
Very high and rising levels of corporate debt in the major economies have been troubling central banks and regulators for several years, but until now there has been little willingness to take direct policy measures to reduce the associated financial risks. Last week, however, the IMF issued a strong warning that action is “urgently” needed to head off the danger of a financial meltdown in the corporate sector, which could potentially spread into the banking and shadow banking sectors. Among the three largest economies, the IMF argues, the eurozone is currently the least at risk of a major collapse in its corporate sector, largely because it addressed some of the problems of excess debt after the euro crisis in 2012.
Varma, Finland’s largest investor, bought the tech stocks in the third quarter, a move that has paid off so far in October. It also purchased Twitter stock, which has slumped.
U.K. Prime Minister Boris Johnson has sent a request to the EU for a delay to Brexit - but without his signature. The request was accompanied by a second letter, signed by Mr Johnson, which says he believes that a delay would be a mistake. The PM was required by law to ask the EU for an extension to the 31 October deadline after losing a Commons vote earlier Saturday. EU Council President Donald Tusk tweeted that he had received the extension request.He did not provide details of its content, but added that he will now consult EU leaders "on how to react". Hours after losing a cvote in a historic Saturday session in the House of Commons, the prime minister ordered a senior diplomat to send an unsigned photocopy of the call by MPs set out in the so-called Benn Act, passed last month. A senior Downing Street source said that the hard copy and email copy of the letter would be conveyed by Sir Tim Barrow, the UK's representative in Brussels.
Investors have long been told that the ideal portfolio should carry 60% of its holdings in equities and 40% in bonds, a mix that provides greater exposure to historically superior stock returns, while also granting the diversification benefits and lower risk of fixed-income investments. “The relationship between asset classes has changed so much that many investors now buy equities not for future growth but for current income, and buy bonds to participate in price rallies,” Harris and Woodard wrote.
One longtime CME trader’s says this kind of stock-market manipulation hasn’t been seen since al Qaeda cashed in before initiating the Sept. 11 attacks.
Earnings season is well under way, with Wall Street digging into the numbers with the hopes of divining how the stock market will finish a tumultuous 2019. In many ways, this has made the stock market a kind of Rorschach test for bears and bulls — squint hard enough and you see exactly what you want to see. Here are three companies that seemed to win high marks in their recent earnings report that may actually be setting off warning bells, and three more that initially stumbled but could be worth a look.
October is proving to be as gentle as a kitten to stock-market investors so far, belying its history as the most volatile month of the year.
It may seem counter-intuitive but home builder stocks are a strong cyclical buy, according to several analysts citing multiple data points, and they’re also a seasonal play for late October into early November.
British MPs on Saturday passed an amendment 322-to-306 that will delay Brexit until Parliament passes the bill implementing the withdrawal agreement. The so-called Letwin amendment will have the effect of postponing a vote on the withdrawal agreement negotiated by U.K. Prime Minister Boris Johnson with the European Union and will force Johnson to ask the EU for an extension. Proponents of the Letwin amendment say it will prevent a no-deal Brexit from occuring on Oct. 31.
A viral Vanity Fair article that suggested traders may have had foreknowledge about a series of geopolitical events — and profited handsomely from them — is “patently false,” according to the Chicago Mercantile Exchange.
The good news, according to Leon Cooperman of Omega Advisors, is that the current bull market, currently the longest on record, still has gas in the tank and could see a 10% rally over the next six months. Then there’s the bad news
CBS and Viacom had news that Wall Street didn’t like—on page 117 of a 793-page document offering details about the companies’ merger. Management expects the combined company to produce less profit and lower cash flows than Wall Street anticipated.
Oil prices might be acting like a warning light when it comes to the stock market, which is trading near all-time highs despite growing concern over the U.S.-China tariff battle and rising global trade tensions.
Bill Gurley, a general partner of Benchmark Capital, bought $3.1 million of the online-clothing retailer’s shares. It’s the first time a Stitch Fix insider has bought stock on the open market since the company’s IPO in November 2017.
Johnson & Johnson, Nucor, Illinois Tool Works, Pentair, and W.W. Grainger have kept their dividends intact and growing for years, making them solid investment considerations for a low-rate world
(Bloomberg) -- While the idea Donald Trump’s White House might have leaked market-moving news isn’t crazy, a new magazine story suggesting traders made billions of dollars front-running geopolitical events failed to pass the smell test among Wall Street professionals.Analysts and investors who spoke to Bloomberg News were mostly skeptical of a Vanity Fair article titled “The Fantastically Profitable Mystery of the Trump Chaos Trades” that raises the possibility traders did more than get lucky buying S&P 500 futures right before big market swings. While nothing is impossible, experts who examined the story said any implication that people traded on inside information fell short of being proven.“I don’t see where the dots are connected,” said Michael O’Rourke, JonesTrading’s chief market strategist. “Unless you have the trading records, which you don’t, you can’t tie one and one together to make two the way this story is laid out.”The story’s author, William D. Cohan, said “of course I’m standing by my reports,” which reflected the accounts of sources in Chicago trading pits. The one-time Bloomberg Opinion columnist said he was alerted to trading patterns that caught the attention of professionals with decades of experience, and that alternate explanations could exist.“I don’t make any allegations, I don’t know what really happened. I was just being reportorial about what traders in the pit were seeing,” he said. “Do I trust my sources? Absolutely. Are they vastly experienced? Absolutely. Does everybody see things differently? Probably. What I’m saying is ‘Hey, there are regulators whose job it is to see these things and investigate them.’”The article describes five big trades in S&P 500 e-mini futures from June 28 to Sept. 13, ranging from 55,000 to 420,000 contracts. It said each position was taken shortly before market-moving news -- three times involving the U.S.-China trade war, once the bombing of Saudi oil fields and once Hong Kong politics. Thanks to market reactions, the magazine said, people involved in the transactions could’ve booked gains of $82.5 million on the smallest to $1.8 billion on the biggest.But attributing sinister intent to a handful of trades that quickly became money-makers ignores how common such large trades are in the futures market, said industry pros. Given how often people move tens of thousands of futures contracts at once -- and how often people like President Donald Trump send stocks reeling -- someone looking for suspicious timing is guaranteed to find it.“Typically these stories focus on the times you’re right. No one writes about people buying a couple hundred million of e-minis and the market doesn’t do anything,” said Max Gokhman, the head of asset allocation for Pacific Life Fund Advisors. “Volume spikes happen all the time.”Anita Liskey, a spokeswoman for CME Group Inc., the exchange where S&P 500 futures trade, declined to comment. The Vanity Fair article cited a spokeswoman for the CME saying the trades in question didn’t originate from a single source and they were of no concern.One trading expert, the chief executive officer of a major quantitative shop who asked not to be identified, said an analysis by his firm suggests no giant trades like the ones the article described appear to have happened. The story says that in the last 10 minutes of trading on Aug. 23, someone bought 386,000 of the September S&P 500 contracts. That number is close to the total volume for September e-minis from 3:50 p.m. to 4 p.m. New York time, spread over thousands of trades -- unlikely to be the work of a single person.Moreover, CME rules prohibit anyone from owning more than 60,000 e-minis at a time. And such a trade would’ve been gargantuan: worth nearly $60 billion. That’s big enough to send the stock market sharply higher and probably trigger trading halts, according to the CEO. That didn’t happen.The Vanity Fair story described Chicago pit traders concerned that people got inside information on “Trump or Beijing’s latest thinking” before taking the positions. Others saw coincidence. In a world where the president sends markets up and down multiple times a day, they said, it’s possible to depict virtually all trading as a reaction to something he does.“Every time stocks move after some crazy Donald Trump news -- which, again, is every time stocks move -- half the people who traded futures ahead of the move will look smart (and the other half will look dumb), and you can, if you want, build a conspiracy theory out of that,” Bloomberg Opinion columnist Matt Levine wrote Thursday.Prompted by the Vanity Fair article, Democratic Representatives Ted Lieu and Kathleen Rice called for a federal investigation into the timing around sales of e-mini futures contracts before significant geopolitical events or statements from Trump.“Millions of futures contracts trade a day, billions of dollars trade a day, so to make a connection, I feel like it’s very hard to do,” said JonesTrading’s O’Rourke. “To me the article just speaks more about the national sentiment about the office of the president.”(Adds U.S. House members calling for an investigation. An earlier version of this story was corrected to remove erroneous volume data.)To contact the reporters on this story: Sarah Ponczek in New York at firstname.lastname@example.org;Nick Baker in Chicago at email@example.comTo contact the editors responsible for this story: Chris Nagi at firstname.lastname@example.org;Jeremy Herron at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors say fears of credit-ratings downgrades to debt-laden companies is a top concern as the U.S. economy shows signs of weakening
The main U.S. stock indexes edged lower on Friday. Economic growth in China continues to slow down in the third quarter, while essential elements of the trade deal and a vote for Brexit remain closely watched.
Investing.com – Stocks finished the week on a down note on slumps in Boeing and Johnson & Johnson, plus new worries about Chinese economic growth.