|Day's Range||3,136.22 - 3,186.82|
|52 Week Range||2,191.86 - 3,393.52|
Stocks rose Friday, and the Nasdaq Composite hit yet another record high, after Gilead Sciences announced that its remdesivir treatment reduced the risk of death for Covid-19 patients, based on new data from the company.
Top news and what to watch in the markets on Friday, July 10, 2020.
Global and US economic data are beating forecasts and there is growing optimism that corporate profits will do likewise, as the second-quarter earnings season plays out in coming weeks. One strong theme supporting equity markets since the worst of the pandemic panic in March is that the shock to companies’ profits will be brief. Analysts anticipate a decline of 21.5 per cent in earnings of the S&P 500 companies during the current calendar year, according to FactSet, accompanied by a slide of 3.9 per cent in revenues.
BARRON'S ROUNDTABLE The members of the Barron’s Roundtable meet every January with the editors of Barron’s to discuss their forecasts for the economy and financial markets, and their favorite investment ideas for the new year.
This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s. Why are investors bidding up a sector so closely linked to a still-uncertain recovery of labor markets? This unprecedented development is due to the enhanced generosity of government social benefits.…[But] it is important to keep in mind that a divided U.S. Congress has yet to commit to a second round of direct payments to households after the first round expires at the end of July.
THE TRADER Second-quarter earnings season may be starting, but more than ever, cash is king. And cash-flow problems could derail stock performance during the second half of 2020. Investors have already written off 2020 as a lost year for profits.
The hope that technology would lower the cost of pay TV is long gone. The number of Americans subscribing to a live TV bundle has fallen to its lowest level since 1997.
A pre-IPO business development company has 19% of its assets invested in the secretive data-analytics company, not to mention a lot of other interesting assets. Plus: What does it mean when analysts are chasing the market on tech target prices?
Twitter (TWTR) closed at $35.40 in the latest trading session, marking a -0.9% move from the prior day.
UnitedHealth Group (UNH) closed the most recent trading day at $291.23, moving +0.02% from the previous trading session.
DocuSign (DOCU) closed the most recent trading day at $210.11, moving -1.09% from the previous trading session.
In the latest trading session, Uber Technologies (UBER) closed at $33.14, marking a -0.03% move from the previous day.
Energy Transfer LP (ET) closed at $6.44 in the latest trading session, marking a +1.58% move from the prior day.
Three of the most beaten-down groups of stocks led today's big day higher for stocks, as investors react to positive news about a potential treatment for COVID-19.
The social media giant is considering suspending political advertising across its platform ahead of the U.S. November election, according to a report.
Yahoo’s stock jumped 64% after it was included in the S&P 500 back in 1999, Reuters points out. Why the same is unlikely for Tesla stock.
The stalled nomination of Judy Shelton, President Donald Trump's controversial pick for the Federal Reserve, got a potential boost Friday when the Senate Banking Committee announced a July 21 vote on her nomination. Shelton's bid has languished since her confirmation hearing in February amid talk she didn't have enough committee support. Shelton, who was an informal Trump adviser during his presidential campaign, has been a long-time advocate for some form of tying the dollar's value to gold. She faces unanimous opposition from Democrats and some Republicans were on the fence. The committee will also vote on a second Trump Fed nominee, Christopher Waller, the director of research at the St. Louis Fed. Waller is expected to be confirmed easily.
U.S. stocks ended higher Friday, with support attributed in part to optimism over a coronavirus treatment as investors attempt to gauge the threat to the economic outlook from a rise in COVID-19 cases. The Dow Jones Industrial Average (DJIA) rose 369.21 points, or 1.4%, to close at 26,075.30. On Thursday, the Dow fell 361.19 points, or 1.4%, to end at 25,706.09; the S&P 500 index lost 17.89 points, or 0.6%, to end at 3,152.05; and the tech-heavy Nasdaq Composite Index closed up 55.25 points, or 0.5%, at 10,547.75, marking its third record in a row and its 27th of 2020.
The Nasdaq composite lagged Friday but continued to impress as it nearly hit a record high and closed near session highs.
(Bloomberg) -- Nerves are fraying underneath the stock market’s technology-fueled rally.Short bets against the biggest equity exchange-traded fund are stubbornly high and recently ticked up, even after the ETF’s 41% climb from March’s lows. The Cboe Volatility Index -- known as the market’s “fear gauge” -- remains elevated, while investors are piling into products that shield against losses. Meanwhile, a near-record mountain of cash seems stuck on the sidelines. All this as liquidity is in short supply.While pundits will argue forever whether any of those things are actually bad news for bulls, the stats show caution is bubbling beneath a surge that’s left behind everything but the biggest of tech companies. Heavyweights such as Apple Inc. and Amazon.com Inc. hitting record highs have helped cushion the S&P 500 from a resurgence in coronavirus cases, with the gauge down about 0.2% over the past month. An equally weighted version of the index -- which gives Royal Caribbean Cruises Ltd. as much influence as Microsoft Corp. -- has tumbled roughly 6.4% over that same period.“It’s been a bull market that really has not been fully embraced,” said Emily Roland, co-chief investment strategist at John Hancock Investment Management. “There’s a certain amount of skepticism inherent in investors today, and it makes sense.”Stubborn ShortsSkepticism is evident in the still-sizable cohort of holdouts betting against the $278 billion SPDR S&P 500 ETF Trust, ticker SPY. Short interest as a percentage of shares outstanding on SPY -- a rough indicator of bearish bets on the fund -- is currently 5.1%, according to data from IHS Markit Ltd. Short-interest reached a near-record of 7.4% on March 3, and was as low as 1.2% at the beginning of 2020.There’s “no doubt” that the Fed’s stimulus is driving the run-up in asset prices, which could explain the unloved nature of the rally, according to Penn Mutual Asset Management.“It’s harder to love a rally if it’s more of a liquidity-driven phenomenon rather than earnings just doing fantastic,” said Mark Heppenstall, the firm’s chief investment officer.Volatility JittersWhile well below March’s soaring heights, the VIX is still flashing warnings for a stock market fresh off its best quarter since 1998. The measure of implied equity swings remains elevated at about 27, roughly double its February low. The gauge spent all of 2019 below 30.Rising stocks usually imply a falling VIX, as markets price in good news on the horizon. However, the blistering speed of the equity rebound has upset that relationship, according to Goldman Sachs Group Inc., which estimates that the gap between the gauge and S&P 500 returns is one of the largest on record.Caution is evident in ETF flows. The $1.2 billion ProShares Ultra VIX Short-Term Futures ETF -- the largest volatility-tracking fund -- posted roughly $263 million in inflows last week for its strongest weekly showing since 2016, and is on track to absorb an additional $159 million this week.Building a BufferThe current landscape has sparked interest in so-called buffer ETFs, which cushion holders from a certain percentage of losses in exchange for a cap on gains. It’s a space pioneered by niche issuer Innovator ETFs -- whose funds have attracted over $3 billion since first launching in 2018 -- though competitors have started to launch rival defined-outcome ETFs as demand grows.“For people who have FOMO right now and they’ve been sitting on the sidelines and missed a 40% bounce, they’re saying, ‘do I get in now or are we back at a top?’” said Bruce Bond, Innovator’s chief executive officer. “It allows them to not have to time the market perfectly, but to get in and participate in the upside.”So far, the buffer funds have worked as advertised. When stocks bottomed on March 23, the $252 million Innovator S&P 500 Power Buffer ETF was nursing year-to-date losses of 17.5% versus the S&P 500’s 30% tumble. Four months later, the Innovator ETF is up about 1.3% in 2020 while the index is still down 1.4%.Cash HoardAnd then there’s the near-record levels of cash sitting on the sidelines. U.S. money-market absorbed $1 trillion during the pandemic-fueled turmoil, swelling total assets to an all-time high of roughly $4.8 trillion in late May. That stockpile has started to shrink -- barely. The total sum still sits at about $4.65 trillion, Investment Company Institute data show.“That money has to come from somewhere, and presumably it’s coming out of risk assets,” said Phil Orlando, chief equity strategist at Federated Hermes. “This extraordinary amount of cash is the one metric you can put your finger on that would suggest you’ve got some concerns.”Shallow DepthWhile massive intervention on the part of the Federal Reserve has largely restored bond market functioning, JPMorgan Chase & Co. warns that equity liquidity levels are far from normal. Market depth for E-mini S&P 500 futures -- the ability to trade without substantially impacting prices -- remains about 60% below levels seen before March’s correction, analysts wrote in a note.That “unstable equilibrium” could leave stocks exposed should turmoil descend on markets again, they wrote.“Liquidity conditions have improved considerably, though not fully, and overall functioning has mostly been restored, but markets remain in an unstable equilibrium and vulnerable to shocks,” strategists including Joyce Chang, Nikolaos Panigirtzoglou and Marko Kolanovic wrote in a report.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Stocks ended higher in thin trade Friday, getting a lift from positive news on a coronavirus treatment. The Dow Jones Industrial Average rose around 369 points, or 1.4%, to end near 26,075, according to preliminary figures, while the S&P 500 advanced around 33 points, or 1%, to end near 3,185. The tech heavy Nasdaq Composite rose nearly 70 points, or 0.7%, to end near 10,617, marking its third consecutive record close. Stocks shed premarket weakness after drug maker Gilead Sciences Inc. released potentially promising data about remdesivir that indicates the experimental COVID-19 drug may reduce deaths.
(Bloomberg) -- U.S. stocks gained as signs that the world could be closer to an effective treatment for Covid-19 blunted concerns that a rising number of cases will curb the global economic recovery.Banks led the S&P 500 Index higher as the gauge extended its weekly gain to 1.8%. The broader index outperformed the tech-heavy Nasdaq 100 on Friday for the first time in almost two weeks. Gilead Sciences Inc. advanced after reporting its Remdesivir treatment cut Covid-19 mortality risk by 62%, helping to ease concern about spreading infections.Oil rallied past $40 a barrel. European shares advanced. Treasuries reversed a gain that had pushed the five-year yield to a record low.With record deaths across America, as well as fears of a second wave in Asia, the spotlight is back on the outlook for the coronavirus as investors head into the weekend. Fiscal and monetary stimulus has buoyed markets thus far, but investors are looking for signals on what additional support may be in the works. Federal Reserve Bank of Dallas President Robert Kaplan, speaking on Fox Business, said he sees the need for more fiscal outlays.“The equity rally can continue,” said Ben Kirby, co-head of investments and portfolio manager at Thornburg Investment Management, which has about $40 billion in assets under management. “We have too much liquidity in the system, and more in the pipeline.”Elsewhere, China shares dropped as selling by state-backed funds signaled authorities wanted to slow the pace of gains following the Shanghai Composite’s eight-day winning run.These are the main moves in markets:StocksThe S&P 500 Index rose 1% as of 4 p.m. New York time.The Stoxx Europe 600 Index climbed 0.9%.The MSCI Asia Pacific Index dipped 1.1%.The MSCI Emerging Market Index sank 0.9%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%.The euro rose 0.1% to $1.1301.The British pound rose 0.2% to $1.2629.The Japanese yen strengthened 0.3% to 106.93 per dollar.BondsThe yield on 10-year Treasuries rose two basis points to 0.64%.Germany’s 10-year yield declined one basis point to -0.47%.Britain’s 10-year yield declined one basis point to 0.15%.CommoditiesWest Texas Intermediate crude rose 2.3% to $40.53 a barrel.Gold fell 0.2% to $1,799.72 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Netflix Inc. continued their torrid record pace Friday, closing up 8% to $548.73. The streaming service, expected to announce yet another strong quarter on July 16, has been one of the top-producing tech stocks since the COVID-19 outbreak in March. Netflix's closing price gave it a valuation above those of rivals Walt Disney Co. , AT&T Inc. , and Comcast Corp. . Netflix shares have also benefited from glowing market research notes in recent days, topped by Goldman Sachs' prediction of its price reaching $670 per share. Netflix shares are up 70% in 2020, while the broader S&P 500 index is down 1.4%.