|Day's Range||0.0100 - 0.0100|
Negative interest rates upend familiar financial relationships, yet they have become pervasive across several developed global markets Continue reading...
U.S. markets and stock ETFs slipped toward the end of Thursday, a day after the Federal Reserve cut interest rates and left investors wondering about the future monetary policy outlook. On Thursday, the Invesco QQQ Trust (QQQ) was up 0.2%, SPDR Dow Jones Industrial Average ETF (DIA) fell 0.2% and SPDR S&P 500 ETF (SPY) was flat. Investors continued to comb over the Fed's latest outlook on interest rate cuts while waiting for further developments in trade talks between the U.S. and China as representatives were scheduled to meet on Thursday, the Wall Street Journal reports.
It was a very quiet day in the stock market today, with the S&P 500 and Dow Jones Industrial Average finishing close to flat on Thursday.The SPDR S&P 500 ETF (NYSEARCA:SPY) fell 1 basis point, the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) dropped 0.2% and the PowerShares QQQ ETF (NASDAQ:QQQ) rallied almost 0.2%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWe've had a lot of news to digest lately, even though the stock market continues to chop around close to its high. The SPY ETF actually made a new all-time high on Thursday, albeit briefly.However, we've now seen significant moves in bonds, gold, high-growth tech stocks and have seen the S&P 500 break out of its August trading range. Further, investors heard from the Federal Reserve on Wednesday that it will cut interest rates. To top it all off, U.S.-China trade war headline risks are still possible.It's been a complex couple of weeks. It also has some investors wondering what asset class will make the next big move. Will it be bitcoin? Breakout or Breakdown for Bitcoin?Bitcoin bounced hard off its $9,600 lows today, but the charts do not look all that great. The cryptocurrency is below most of its major moving averages, with the exception of the 200-day. Worse though, it's making a series of lower highs as resistance squeezes it against support down near $9,360.This pattern is known as a descending triangle, a bearish technical setup where investors are looking for resistance to break the asset price below support. In this case, a break below $9,360 support could send bitcoin down to its 200-day moving average, currently near $8,000. * 8 Dividend Stocks to Buy for a Recession If bitcoin can hurdles its 20-day, 50-day and 100-day moving averages, as well as downtrend resistance -- which would require a move north of $10,500 presently -- then we have a breakout on our hands.The best setup for investors may be to wait and see which one comes first, and then place their respective trades. That's opposed to guessing whether it will breakout or breakdown.Investors can also trade bitcoin via the Grayscale Bitcoin Trust (OTCMKTS:GBTC), shown below. Movers in the Stock Market TodayMicrosoft (NASDAQ:MSFT) stock hit new all-time highs after the company announced a $40 billion buyback plan and upped its dividend by 11% to 51 cents per share. While the payout remains stubbornly low -- yielding just under 1.5% -- keep in mind that MSFT stock is up nearly 150% over the past three years. In 2019 alone, it's up about 25%.It continues to lead mega-cap tech in market cap too, now trading with a $1.1 trillion valuation.Tesla's (NASDAQ:TSLA) Model 3 received the top safety rating from the Insurance Institute of Highway Safety. That's the first of Tesla's four vehicles to receive the designation, if we're including the original Roadster.Airbnb says the company will go public in 2020 after earlier announcing that it generated $2 billion in revenue in the second quarter. While there were rumblings of a 2019 IPO at one point, there's little surprise this one isn't coming this year. The lackluster response from the public for Uber (NYSE:UBER), Lyft (NASDAQ:LYFT), Slack (NYSE:WORK) and certainly We didn't help matters.Roku (NASDAQ:ROKU) tumbled more than 13% on Wednesday and was set for another nauseating run on Thursday. In pre-market trading, shares were down more than 5% at one point. However, after the company announced several new streaming products, shares ended the day higher, climbing 3% on Thursday. Let's see if the recent lows can stick. Otherwise, this may just be a dead-cat bounce before more lows are made. Splitting Up?According to reports, AT&T (NYSE:T) is reportedly weighing whether to divest its DirecTV unit. This could come via spinoff or potentially a combination with Dish Network (NASDAQ:DISH). AT&T acquired the asset in 2015 for nearly $50 billion.The asset generates solid cash flow for AT&T, but with its bloated balance sheet and the continual loss of subscribers due to cord-cutting, DirecTV is a business that investors bemoan. AT&T has since said it's not considering the move, but shares still rallied roughly 1% on the day.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU and T. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post Stock Market Today: Breakout or Breakdown for Bitcoin? appeared first on InvestorPlace.
U.S. equity markets and stock ETFs faltered but tried to regain their step after the Federal Reserve cut interest rates and provided an uncertain outlook for the rest of the year. On Wednesday, the Invesco QQQ Trust (QQQ) was down 0.1%, SPDR Dow Jones Industrial Average ETF (DIA) rose 0.1% and SPDR S&P 500 ETF (SPY) was flat. The equity markets slipped late Wednesday after the Fed's murky guideline on their next move, citing ongoing "uncertainties” about the outlook and pledging to “act as appropriate” to sustain the expansion, Reuters reports.
Housing Starts last month grew 12% to 1.264 million seasonally adjusted, annualized units, well in front of the 4.1% growth expected and 1.260 million units in the consensus estimate.
A narrow trading range combined with an increase in the volatility index as investors appear poised to move money from stocks to bonds.
U.S. markets and stock ETFs regained their footing toward the end of Tuesday after oil prices retreated from a record jump in the prior session and as investors waited on a widely anticipated interest rate cut out of the Federal Reserve Wednesday. On Tuesday, the Invesco QQQ Trust (QQQ) increased 0.5%, SPDR Dow Jones Industrial Average ETF (DIA) rose 0.1% and SPDR S&P 500 ETF (SPY) was 0.3% higher. The pullback in crude oil prices weighed on sentiment early Tuesday after Saudi Arabia announced output could return more quickly than initially anticipated, the Wall Street Journal reports.
It was another relatively quiet session in the stock market today. On Tuesday we saw the SPDR S&P 500 ETF (NYSEARCA:SPY) rally 0.3%, the SPDR Dow Jones Industrial Average (NYSEARCA:DIA) jump 0.2% and the PowerShares QQQ ETF (NASDAQ:QQQ) climb 0.5%.That's as investors try to get positioned ahead of the Federal Reserve's announcement on Wednesday. It doesn't help that there's a quadruple witching day this Friday, one of four throughout the year, as we roll into the fourth quarter.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Assets Moving Ahead of the FedWhile it's been a relatively calm Monday and Tuesday in the equity markets, the same cannot be said about financial markets over the past month.Earlier this month, we had the SPY, DIA and QQQ break out of their choppy trading ranges. Amid that breakout though, we had a deep correction in high-growth tech stocks like Roku (NASDAQ:ROKU), Alteryx (NYSE:AYX), The Trade Desk (NASDAQ:TTD), Veeva Systems (NYSE:VEEV) and many, many others.We recently caught a nice pullback both in gold and bonds after an absolutely explosive rally in the SPDR Gold Shares (NYSEARCA:GLD) and the iShares 20+ Treasury Bond ETF (NASDAQ:TLT). The latter's decline helped spring a potent rebound in bank stocks, by the way.Finally, how could we forget the move in crude oil. Following a drone strike in Saudi Arabia over the weekend, oil prices were skyrocketing. While they have come down off the highs, and with Saudi production expected to come fully back online in the coming weeks, crude is still up about 7.5% from its closing price last week.To say the Fed has a full plate is putting it lightly. What to Expect From the FedThere is now a greater chance of no rate cut on Wednesday than there is of a rate cut. This has not been the norm over the past few days or weeks, mind you.Currently, the Fed Funds futures are pricing in 52.7% probability the Fed does not raise interest rates tomorrow. The other 47.3% probability calls for a 25-basis point cut. Essentially, a coin flip. * 7 Momentum Stocks to Buy On the Dip Just a day ago, the figures stood at 37.7% probability of no cut and 62.3% chance of a cut. A week ago it was even more drastic. Participants were pricing in a greater than 92% chance the Fed cuts rates, with a less than 10% probability of no cut.Finally, a month ago, the market wasn't even pricing in the chances of no cut. Instead, it was expecting a cut of at least 25-basis points, while there was a 22.3% probability of a 50-basis point cut.Sorry for the deluge of statistics, but they underscore how much can change in a relatively short amount of time. It will be interesting to hear what Fed Chair Jerome Powell has to say about the economy and the recent fluctuations in various assets.With unemployment low and stocks near their highs, it's easy to make the case for "no cut." But if that's the course the Fed chooses, it will surely hear from a chorus of dovish detractors -- as well as President Donald Trump. Movers in the Stock Market TodayShopify (NYSE:SHOP) stock fell 2.7% after the company announced a 1.9 million share secondary offering. The deal is for Class A stock that priced at $317.50, raising just over $600 million for the company. The move comes as little surprise given that Shopify stock is still up roughly 140% in 2019 and after its recent $450 million acquisition.Following Disney's (NYSE:DIS) acquisition of Twenty-First Century Fox, the company is getting to work on its balance sheet. Disney is looking to deleverage a bit after digesting that big $71.3 billion deal, tendering more than $4.2 billion worth of notes. It increased its intended purchases as well.Micron (NASDAQ:MU) caught a price target boost from $55 to $65 at Cascend Securities. The analysts maintain a "buy" rating and believe MU has "good value" after evaluating the DRAM market. Shares ended the day higher by 1.4% at $50.84.Oh, and thank goodness the WeWork IPO is being shelved -- at least for a little while. We had some gripes about that one.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU and TTD. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Stock Market Today: What to Expect From the Federal Reserve appeared first on InvestorPlace.
Despite headline hysteria, many companies are reporting positive earnings. Co-CIO Francis Gannon explains how we’re investing during this time of two tales Continue reading...
In Part 3 (the final segment) in the series, I discuss a case that symbolized nearly all of the flawed thinking during the 2007 to 2009 market crash Continue reading...