|Day's Range||2,990.67 - 3,002.19|
|52 Week Range||2,346.58 - 3,027.98|
Yahoo Finance's Myles Udland gives a preview of what will be making headline on Tuesday, September 17th.
Is there a global bond bubble? Portfolio Manager Charlie Bobrinskoy says “Yes,” warning that recession fears are fueling it. Charlie Bobrinskoy, Ariel Investments Vice Chairman Head of Investment Group, joins Yahoo Finance’s
Consider that a tweet from President Donald Trump about tariffs can send the market spinning or soaring. In fact, of course, the matter is far more complex than what Trump tweetsFor example, the S&P Global Sales Report, which was released in early August, shows that the share of S&P 500 (SPX) sales from outside of the U.S. has declined for at least a decade — sliding by five percentage points since 2008, as the chart below indicates. Furthermore, trade protectionism wasn’t even on the general public’s radar until Trump took office.
(Bloomberg) -- European stocks drifted with U.S. index futures while Treasuries continued higher as investors weighed the fallout from a drone attack on one of the world’s biggest oil facilities and the record surge in crude prices that followed.The Europe Stoxx 600 fluctuated with drops in mining companies offsetting gains in oil producers. Contracts on the S&P 500 Index fluctuated. Equities in Shanghai and Hong Kong slid after China’s central bank disappointed investors as it refrained from lowering a key interest rates. Japan’s Topix index rose. Treasuries edged higher alongside the dollar. WTI-grade crude oil gave back some of Monday’s 15% surge. The pound weakened as Prime Minister Boris Johnson’s lawyers prepared to defend his Brexit strategy before the U.K.’s highest court on Tuesday. Saudi Aramco now faces weeks or months before the majority of output is restored at the giant Abqaiq processing plant after the attack, adding a fresh headwind for the global economy. The developments in the Middle East are testing sentiment after a bullish start to the month for global equities and other riskier assets. Iran won’t negotiate with the U.S. on any level, anywhere, the Islamic Republic’s supreme leader said.The events have also overshadowed investor concerns about the simmering trade war. American and Chinese working-level trade negotiators are set to resume talks in the next week and a half, ahead of a meeting of top negotiators in October. Meanwhile, President Donald Trump said the U.S. and Japan have reached an initial trade accord over tariffs.“The key thing to think about is do we have an oil shock or a short-term disruption?” said Virginie Maisonneuve, chief investment officer at Eastspring Investments, in an interview with Bloomberg Television. “You’re seeing this wait-and-see attitude, and that’s why the markets are quite nervous.”In China, officials weakened the currency’s daily reference rate by the most in three weeks. The People’s Bank of China kept the one-year rate on medium-term loans steady on Tuesday, with most analysts now predicting an MLF rate cut in the final quarter of 2019.Following a weak set of economic data from China Monday, “markets were desperately hoping for a more accommodating PBOC,” said Stephen Innes, Asia Pacific Market Strategist at AxiTrader.Elsewhere, the Australian dollar dropped as the central bank reiterated it was prepared to cut interest rates further. Gold declined.These are some key events to keep an eye on this week:The Federal Reserve is widely expected to lower U.S. interest rates in response to slowing global economic growth and muted inflation. Chairman Jerome Powell will hold a post-decision press conference Wednesday.The Bank of Japan monetary policy decision is on Thursday, followed by a briefing from Governor Haruhiko Kuroda.Bank Indonesia and Bank of England also decide policy on Thursday.Australia jobs figures are out Thursday.Friday is quadruple witching day for U.S. markets. When the quarterly expiration of futures and options on indexes and stocks occurs on the same day, surging volatility and trading can follow.Here are the main moves in markets:StocksThe Stoxx Europe 600 Index declined 0.2% as of 8:16 a.m. London time.Futures on the S&P 500 Index dipped 0.2%.The U.K.’s FTSE 100 Index decreased 0.1%.The Shanghai Composite Index sank 1.7%.CurrenciesThe Bloomberg Dollar Spot Index gained 0.1%.The British pound fell 0.2% to $1.2409.The euro was little changed at $1.1005.The Japanese yen weakened 0.1% to 108.20 per dollar.BondsThe yield on 10-year Treasuries declined one basis point to 1.84%.The yield on two-year Treasuries increased less than one basis point to 1.76%.Britain’s 10-year yield rose one basis point to 0.701%.Germany’s 10-year yield climbed less than one basis point to -0.48%.Australia’s 10-year yield sank six basis points to 1.1365%.CommoditiesWest Texas Intermediate crude dipped 1% to $62.28 a barrel.Gold decreased 0.2% to $1,495.89 an ounce.Sugar increased 2.7% to $0.1226 a pound.LME nickel dipped 2.2% to $16,980 per metric ton.\--With assistance from Gregor Stuart Hunter.To contact the reporters on this story: Andreea Papuc in Sydney at email@example.com;Laura Curtis in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Samuel Potter at email@example.com, Todd WhiteFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil was down slightly in early London trading while European markets opened lower as investors weighed up the implications of a major attack on Saudi Arabia’s oil infrastructure at the weekend. Brent crude — the international oil marker — was down 0.7 per cent at $68.58 as markets opened in London, having peeled back as much as 1.7 per cent in Asian trading. West Texas Intermediate, the US benchmark, slipped 0.9 per cent to $62.37.
While the vast majority of our Ultimate Stock-Pickers are not dividend investors, a handful of them--Amana Trust Income AMANX , Columbia Dividend Income LBSAX , Oakmark Equity & Income OAKBX , and Parnassus Equity Income PRBLX --focus more heavily on income-producing stocks in their pursuit of investment return. Warren Buffett at Berkshire Hathaway BRK.B has spoken highly of companies that return capital to shareholders and is not against investing in and holding higher-yielding names, with three of Berkshire's top five holdings--wide-moat rated Wells Fargo WFC , Bank of America BAC , and Coca-Cola KO --accounting for about one third of the insurer's equity portfolio and yielding more than the S&P 500. As you may recall from previous articles, when we screen for top dividend-paying stocks among the holdings of our Ultimate Stock-Pickers, we try to find the highest-quality names that are currently held with conviction by our top managers.
In 1982, Mike Adam, a scholarship student who had dropped out of Magdalen College, Oxford, took a backroom job in his father’s sugar broking firm in London. Together with his close friend from university, Marty Lueck, who was a programmer, and David Harding, a Cambridge-educated scientist fascinated with finance, he designed a trading system. At its heart was a simple concept — financial markets exhibit trends, and computers can be programmed to spot those trends and profit from them.
Stock futures: The stock market and Apple showed resilience as crude oil prices soared Monday. Shopify, Funko and Kraft Heinz fell late on stock-sale buzz.
The weekend bombings of Saudi Arabia's main oil refinery have already sparked U.S. President Donald Trump to pressure the Federal Reserve anew to lower rates. The Fed should enact a "big interest rate drop, stimulus," at its meeting this week, which ends Wednesday, Trump said on Twitter on Monday.
Global stocks edged lower again Tuesday, following one of the biggest single-day declines in oil prices on record, as investors adopted a cautious stance on risk ahead of the Federal Reserve's two-day rate-setting meeting and the start of formal U.S.-China trade talks later this week.
Oil shed some of its massive gains on Tuesday as the United States flagged the possible release of crude reserves, but the threat of military action over the attacks on Saudi oil facilities kept prices elevated and stocks under pressure. Investors otherwise broadly remained on the sidelines ahead of an expected interest rate cut from the U.S. Federal Reserve on Wednesday and the next round of U.S.-China trade talks on Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.66%.
Two Saudi Aramco crude oil facilities were attacked by Iran-backed Houthi rebels using drones. At 10:23 AM, Brent crude oil was trading up 11.2% at $67.
While tech stocks fell sharply in late 2018, they surged again in 2019. How could the market react if tech stocks post lower-than-expected earnings?
(Bloomberg) -- A surge in oil prices following a strike on Saudi Arabia’s crude production will have to get a lot bigger to cause serious trouble for the stock market, according to JPMorgan Chase & Co. strategists led by Marko Kolanovic.The S&P 500 Index may start experiencing a “negative impact” only when oil prices reach a range of $80 to $85 a barrel, Kolanovic said after studying the historic relationship between the two assets. That’s about 30% above from crude’s recent levels around $62.Higher oil prices can bolster energy profits and employment in the industry, but a rapid gain can hurt consumer spending, a key support in the U.S. economy. While Monday’s 15% surge was one of the fastest on record, crude still trades at less than half the peak level seen in 2008. Moreover, intensifying clashes in the Middle East may prompt China and the U.S. to reach a trade deal to remove uncertainty over the global economy, Kolanovic pointed out.“Where is the break-even point when oil starts hurting the S&P 500?” he wrote in a note to clients. “This is still far away.”That’s not to say oil has no impact on stocks at current levels. Energy shares rallied 3.3% Monday along with crude prices, offsetting losses in consumer stocks. To Kolanovic, the outperformance will accelerate a rotation from momentum and low-volatility stocks to value, a process that has bolstered previously unloved industries like energy and caused pain for many traders this month.The reversal came after valuations in low-volatility and momentum stocks increased to unprecedented levels relative to value. So much money has flowed to the long low-vol, short value trade that it’s reminiscent of the 2018 vol-pocalypse to Kolanovic.In 2017, market calm lured investors to a sense of complacency with bets on a decline in volatility reaching a record. That trade went bust in February 2018, leading to the closure of VelocityShares Daily Inverse VIX Short-Term ETN, or known as its ticker XIV.Since then, investors have sought safety in low-vol and shunned risky assets such as energy, pushing the risk-off trade to extremes that Kolanovic sees at the cusp of collapsing like XIV.“These trades worked well until the rotation started, and now are in the early stages of a collapse,” he said. “The recent spike in oil will just accelerate this unwind and eventually lead to a capitulation of the short value/beta trade.”To contact the reporter on this story: Lu Wang in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Chris Nagi, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
All three main stock indexes closed modestly lower on Monday, despite the soaring oil price and rising energy stocks. A drone attack on Saudi Arabian oil infrastructure this past Saturday has disrupted about 5% of the world’s total crude output.
A more than 12% jump in crude oil futures put a damper on the uptrend in stocks today. But the Dow Jones Industrial Average is showing a normal pullback.
DEEP DIVE (Updated with market close information.) Shares of energy companies shot up Monday in the wake of the aerial attack on Saudi Arabia’s Abqaiq oil facility. That led to the suspension of about 5% of world oil production, the largest supply disruption ever.