|Day's Range||3,366.15 - 3,380.69|
|52 Week Range||2,722.27 - 3,385.09|
(Bloomberg) -- European equities climbed alongside U.S. index futures on Monday following China’s pledges to support its economy in the face of the coronavirus outbreak. The yen and gold both slipped.Carmakers led a modest gain in the Stoxx Europe 600 Index, while HSBC Holdings Plc climbed before reporting earnings Tuesday. Health-care giant Bayer AG dropped after losing its first U.S. trial over the herbicide dicamba. Contracts on the three main American indexes increased, though Wall Street was shut for a holiday and Treasuries didn’t trade. European bonds were mixed. The euro eked out a small gain after closing at its lowest since early 2017 on Friday, while the dollar was steady against a basket of its biggest peers.China’s plans to reduce corporate taxes and fees helped push up the benchmark CSI 300 Index, which has now recouped its losses from an almost 8% tumble when trading resumed after the Lunar New Year break. The momentum failed to buoy other Asian markets, however, as stocks dipped in Seoul and Sydney while Japan’s Topix Index dropped after news the country’s economy shrank the most since 2014 last quarter.Investors in risk assets are beginning the week on the front foot after China’s central bank also said it will let banks run up more non-performing loans. Bloomberg Economics estimated the country’s economy ran at just 40% to 50% capacity in the past week, underscoring the short-term damage done by the coronavirus. Cathay Pacific Airways Ltd., which counts on China and Hong Kong for about half of its revenue, gave a “significant” profit warning and blamed the pathogen.“If the Chinese economy does recover and you’ve added all this fiscal and monetary stimulus into it as well, the situation could be that you have much stronger emerging markets into the second half,” Sunny Bangia, a fund manager at Antipodes Partners Ltd., said on Bloomberg TV. “A lot depends on how this virus gets contained and if it can morph into something more minor.”Hubei, the province at the epicenter of the outbreak, reported 1,933 new cases, slightly higher than a day earlier. Concern also built around reports that more than 3,000 travelers on two coronavirus-stricken Carnival Corp. cruise ships are returning home, fanning out to more than 40 countries. Singapore’s government cut its growth forecasts, citing uncertainty over the length and severity of the outbreak. The country is expected to unveil a large stimulus package to mitigate the economic hit.Elsewhere, Bitcoin fell as much as 8.4% from Friday, slipping back below $10,000. WTI crude oil held at about $52 a barrel.Here are some key events coming up:Earnings season rolls on with results from companies including: BHP Group Ltd. on Monday; Tuesday brings Glencore Plc, HSBC Holdings Plc and Walmart Inc.; Deere & Co. results are set for Friday.Germany’s ZEW survey of investor confidence is due Tuesday.Minutes of the most recent Federal Reserve meeting are published on Wednesday.Indonesia is expected to cut interest rates on Thursday, following emerging-market peers from Brazil to South Africa which have lowered borrowing costs already this year.These are the main moves in markets:StocksThe Stoxx Europe 600 Index advanced 0.3% as of 4:50 p.m. London time.Futures on the S&P 500 Index increased 0.2%.Nasdaq 100 Index futures climbed 0.4%.The MSCI Asia Pacific Index fell 0.3%.The MSCI World Index was little changed.CurrenciesThe Bloomberg Dollar Spot Index was little changed.The euro climbed 0.1% to $1.0838.The Japanese yen weakened 0.1% to 109.92 per dollar.The offshore yuan strengthened 0.1% to 6.9833 per dollar.BondsGermany’s 10-year yield was unchanged at -0.40%.Britain’s 10-year yield advanced one basis point to 0.641%.France’s 10-year yield declined one basis point to -0.163%.Japan’s 10-year yield slipped one basis point to -0.033%.CommoditiesWest Texas Intermediate crude gained 0.1% to $52.12 a barrel.Gold weakened 0.1% to $1,581.77 an ounce.LME aluminum decreased 0.1% to $1,720 per metric ton.Iron ore advanced 1.2% to $88.80 per metric ton.\--With assistance from Andreea Papuc and Adam Haigh.To contact the reporter on this story: Todd White in Madrid at email@example.comTo contact the editors responsible for this story: Christopher Anstey at firstname.lastname@example.org, Yakob PeterseilFor 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.
Futures: Walmart, Medtronic and InMode earnings are due Tuesday. IPO stocks InMode, Progyny, Ping are near buy points. So is Taiwan Semiconductor. Buffett-boosted RH is likely to break out.
Retailer Pier 1 has filed for Chapter 11 bankruptcy protection, reports the Wall Street Journal. The filing reportedly was made Monday, with U.S. stock markets closed for Presidents Day, in federal bankruptcy court in Richmond, Va. The Fort Worth, Texas-based home-décor chain had said a month ago that it was shuttering half its stores but might be unable to stave off bankruptcy. The company said in a news release that it would seek a buyer. Shares of Pier 1 are down more than 80% over the past year, and 44% since the start of 2020 alone, as compared with gains of 22% an 4.6% by the benchmark S&P 500 over those spans.
You would have a hard time convincing someone looking at the major U.S. stock-market benchmarks that it is looking like the end of the cycle. Yet Andrew Sheets, chief cross-asset strategist at Morgan Stanley, says there are late-cycle indicators in current markets.
Delta Air Lines Inc. Chief Executive Officer Ed Bastian weighs in on a simmering debate about the proper protocol when reclining one’s seat on a flight.
The Tennessee Department of Treasury made some big changes in its stock investments in the last quarter of 2019. The department, which manages all of the state’s investments, including its pension fund, reduced investments in (GE) (ticker: GE), General Motors (GM) and (VZ) Communications stock (VZ) in the fourth quarter. Tennessee’s treasury also bought more (WMT) stock (WMT).
The euro showed broad-based weakness last week but the momentum has slowed and EUR/USD is seen falling into a consolidation near lows not seen since 2017.
Investors took solace in robust economic data, better-than-expected earning reports and the fact a quorum of the global central banks have the markets back which we will highlight in the Asia Week Ahead section.
The US market is closed for Presidents Day, so in the absence of an unexpected headline shock action could be a bit muted as it typically is during a US holiday weekend.
Markets are closed on Monday. Then, fourth-quarter earnings season continues with earnings from Walmart, Deere, ViacomCBS, Analog Devices, and more.
With tax filing season now underway, we have two full years of the Tax Cuts and Jobs Act (TCJA) changes in the rearview mirror: 2018 and 2019. Not surprisingly, the answers depend on your specific situation and, just as importantly, your perceptions. Perceptions often override reality.
(MSFT)(INTC) and (AAPL) among the biggest stocks in the S&P 500 index, have well outpaced the market benchmark in the past 12 months. “MIA” stocks is an apt term, given the trio has been underweighted by fundamentally-driven large-cap portfolio managers, according to Harvey. “Ironically, some [portfolio managers] admit they have not gone ‘up-cap’ in order to avoid looking like an index fund (painful mistake!),” he wrote.
The Ontario Teachers’ Pension Plan, one of the biggest pensions in the world, more than doubled its BlackBerry stockholdings in the fourth quarter.
Festering worries about the spread of COVID-19 is a potential peril for the U.S. economy, but ailing manufacturers and tepid investment are already muzzling growth.
As the COVID-19 spreads and the patient count and death toll grow, economists are slashing their once-rosy expectations for global growth in 2020.
Mark Spitznagel of Universa Investments is getting ready for the next big drop, but he says he’s fine if it never comes.
There’s no shortage of arguments that the U.S. stock market, whose main benchmark indexes are at record highs, is overvalued. If your investment portfolio is concentrated in an index fund, you might feel you are properly diversified, but there’s a good chance your risk is concentrated among a short list of companies. Jim Roumell, the founder of Roumell Asset Management of Chevy Chase, Md., and manager of the Roumell Opportunistic Value Fund (RAMSX) offers an investment strategy that is truly different: A balanced fund that takes concentrated positions in micro-cap companies that he argues are grossly undervalued.
Munger, who serves as chairman for the Daily Journal along with his Berkshire role, cited the increasing use of EBITDA — earnings before interest, taxes, depreciation and amortization — as an example of that excess. “I don’t like when investment bankers talk about EBITDA, which I call ‘bulls**t earnings,’” Munger, 96 years old, explained.
Bob Doll, chief equity strategist at Chicago fund manager Nuveen, says markets are priced for good news. But he also doesn’t expect a recession.
The Trump administration is considering making it possible for Americans to invest more in the stock market on a tax-free basis, according to a report on Friday citing four unnamed administration officials.
When Warren Buffett turns 90 years old in August, it would be only natural for (BRKA) shareholders to celebrate his success—and worry about the future of the extraordinary company he built. In his 55 years at the helm as CEO, chairman, and investment chief, Buffett turned a struggling textile maker into a $555 billion conglomerate, using investment skills that became the envy of American business. An investor who put $1,000—roughly 50 shares—in Berkshire in 1965 would now have $20 million, against $175,000 for a similar investment in the S&P 500index.