|Day's Range||2,913.48 - 2,931.00|
|52 Week Range||2,346.58 - 3,027.98|
U.S. stocks rallied Monday morning in an at least temporary reprieve after a mid-August rout. U.S. government bond yields rose across the curve, led by yields on 30-year bonds and 10-year notes.
Investors await commentary from Federal Reserve Chair Jerome Powell this week at the annual Jackson Hole conference on Friday.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Stocks rallied after the Trump administration signaled progress on trade negotiations and speculation grew that major central banks will keep shoring up their economies. Treasuries slumped.The S&P 500 Index rose for a third day as U.S. Commerce Secretary Wilbur Ross said the nation will delay restrictions imposed on some business operations of China’s Huawei Technologies Co. The Treasury market was unfazed by President Donald Trump’s call for the central bank to cut rates by “at least 100 basis points.” Long-dated bonds were moving the yield curve away from inversion, as the U.S. government weighed borrowing for a century. Bunds tumbled as Germany was said to be preparing fiscal stimulus measures. The week started on a positive note as news on Huawei was seen as encouraging for the long-awaited trade pact between the world’s two largest economies. Despite the move, the company said it’s still being treated unjustly by the U.S. The announcement of a 90-day reprieve followed a tweet from President Trump over the weekend indicating the U.S. was “doing very well with China, and talking,” but suggesting he wasn’t ready to sign a deal.“It’s kind of like a drunken walk,” said Paul Nolte, a money manager at Kingsview Asset Management in Chicago. “There’s no rhyme or reason from day to day as to what’s happening with trade, and trade is really what’s driving the markets. And there’s no way to handicap it. There is no glide path, there is no, ‘Here’s what happening.’ It’s a random walk.”Later this week, traders will be sifting through Federal Reserve Chairman Jerome Powell’s remarks about the challenges for monetary policy at the central bank’s Jackson Hole symposium. Analysts expect him to do nothing to disabuse investors of the widespread perception that the central bank will cut rates by another quarter of a percentage point next month.Equities plunged last week after the key U.S. 2-year and 10-year yield curve briefly flipped for the first time since 2007, spurring fears of an economic downturn. But this correction is likely to be short-lived and U.S. stocks will recover as soon as early September, according to JPMorgan Chase & Co. strategists led by Mislav Matejka, as stimulus from major central banks outweighs worries about a slowdown.In corporate news, Chinese Internet stocks soared in U.S. hours on trade optimism. Estee Lauder Cos. jumped after the cosmetics company forecast earnings that topped analysts’ estimates. PG&E Corp. plunged as a judge ruled that a jury should determine whether the California utility giant should pay as much as $18 billion in damages to wildfire victims.Elsewhere, oil climbed as a drone attack in Saudi Arabia highlighted simmering Middle East tension. Gold declined.Here are some notable events coming up:Minutes of the Fed’s July meeting will provide details on the discussions leading to the first interest-rate cut in a decade when they are released on Wednesday.Thursday brings the Bank Indonesia rate decision and press conference with Governor Perry Warjiyo.Flash PMIs are due for the euro area on Thursday.Kansas City Federal Reserve Bank hosts its annual central banking symposium in Jackson Hole, Wyoming, starting Thursday. Fed Chairman Jerome Powell will give remarks on Friday.Here are the main moves in markets:StocksThe S&P 500 rose 1.3% to 2,926.80 as of 1:01 p.m. New York time.The Stoxx Europe 600 Index climbed 1.1%.The MSCI Asia Pacific Index gained 0.9%.CurrenciesThe Bloomberg Dollar Spot Index increased 0.2%.The euro was little changed at $1.1095.The Japanese yen fell 0.2% to 106.54 per dollar.BondsThe yield on 10-year Treasuries rose four basis points to 1.59%.Germany’s 10-year yield increased four basis points to -0.65%.Britain’s 10-year yield advanced less than one basis point to 0.47%.CommoditiesThe Bloomberg Commodity Index decreased 0.3%.West Texas Intermediate crude climbed 1.7% to $55.82 a barrel.Gold fell 0.8% to $1,511.50 an ounce.\--With assistance from Adam Haigh, Todd White and Laura Curtis.To contact the reporters on this story: Rita Nazareth in New York at firstname.lastname@example.org;Sarah Ponczek in New York at email@example.comTo contact the editors responsible for this story: Jeremy Herron at firstname.lastname@example.org, Rita NazarethFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
China's central bank unveiled a key interest rate reform on Saturday to help steer borrowing costs lower for companies, close on the heels of reports of a potential German economic easing. After the three main Wall Street indexes racked up their third straight weekly loss despite Friday's bounce, investors will look to weigh trade risks and signs of slowing growth against the potential for more action from the U.S. Federal Reserve and others in September. The focus this week will be on Wednesday's release of minutes from the Fed's July policy meeting, when the central bank cut rates for the first time in more than a decade, and Chair Jerome Powell's speech at a central banks meeting in Jackson Hole on Friday.
After the three main Wall Street indexes racked up their third straight weekly loss despite Friday's bounce, investors will look to weigh trade risks and signs of slowing growth against the potential for more action from the U.S. Federal Reserve and others in September. Shares of Apple Inc provided the biggest boost to the three main Wall Street indexes. President Donald Trump said on Sunday that he had spoken with Apple Chief Executive Tim Cook about the impact of U.S. tariffs.
(Bloomberg) -- Lyft Inc. shares dropped sharply at the market open on Monday, but then quickly recovered, as some early investors got their first opportunity to sell the stock.Shares of the ride-hailing operator fell as much as 3.7% to $50.51, before gaining as much as 2.1% in New York. A block of 1.04 million in Lyft Class A shares, or about 2.6% of float, traded at a market value of $53.7 million at 9:30 a.m., according to Bloomberg data. The performance compares to the S&P 500, which rose more than 1%. The company had estimated that about 258 million Class A shares may become eligible for sale at the market open on Monday.To contact the reporter on this story: Esha Dey in New York at email@example.comTo contact the editor responsible for this story: Brad Olesen at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
According to President Trump, the US economy is “poised for big growth after trade deals are completed.” Markets are volatile amid the trade war.
On August 15, in an interview with CNBC, Mark Zandi said that the trade war hurts the US economy. The trade war has a negative impact on certain sectors.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Just when the market is looking for a positive catalyst to revive its rally, the European Central Bank’s Olli Rehn seems to think it’s a good move to float the idea of equity purchases as a means of stimulus. But a number of investors and strategists aren’t too thrilled and warn of the risk of artificially overvalued assets.In an interview with the Wall Street Journal last week, Rehn said that it was better for the ECB to overshoot than undershoot market expectations when it comes to new support measures, and didn’t rule out adding equities to the central bank’s stimulus program.“I hope the ECB won’t start buying stocks,” said Roelof Salomons, chief strategist at Kempen Capital Management. “Buying stocks is great for investors but it won’t move the needle -- it will create a bubble instead. The ECB has already made a mistake with bond purchases."The rationale behind possible stock purchases is to stimulate household consumption and help European companies raise capital at higher prices to finance investment, according to Laurent Douillet, a Bloomberg Intelligence strategist. Yet, simply buying equities won’t push European firms to boost their capex plans, says Kempen’s Salomons. For that to happen, countries like France and Italy need to implement reforms while Germany needs to increase government spending, he says.If the ECB were to start buying stocks, it wouldn’t be the first central bank to engage in such extraordinary measure. The Bank of Japan has been buying exchange-traded funds since 2010 and now dominates the nation’s ETF industry, spurring concerns among money managers about an equity overhang.“I am a bit skeptical,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg in Frankfurt. “Equity buying by a central bank has not worked in Japan. And for the euro zone, the wealth effect should be quite limited."At last July’s meeting, ECB policy makers committed to review a swathe of options including interest-rate cuts and renewed quantitative easing. Meanwhile, European equity funds have seen almost non-stop outflows since March 2018, having lost about $87 billion this year alone, according to Bank of America and EPFR Global.While Rehn may be considering launching stock purchases, the majority of the ECB’s governing council would oppose such a move, says Peter Schaffrik, a global macro strategist at RBC Capital Markets. “I am at this stage not even really thinking about the risks of this scenario as I just don’t think this is a realistic option, it’s a red herring."However, it’s important to note that many strategists and investors had also doubted that the ECB would ever start its 2.6 trillion-euro ($2.9 trillion) bond-buying program to stimulate growth.And some support such a move. Rick Rieder, BlackRock’s chief investment officer for global fixed income, said in April that the ECB should consider buying stocks as a form of additional stimulus as debt costs in Europe are much lower and equity is “too expensive.”“It’s a conflict between investors and economists,” says Kempen’s Salomons. “Markets love shorter-term gains even if those come with long-term concerns. You don’t want to be in the ECB’s shoes.”In the meantime, Euro Stoxx 50 futures are up 0.5% ahead of the open, while S&P 500 futures are rising 0.6%.SECTORS IN FOCUS TODAY:Watch German stocks after the government hinted that the country could add about 50 billion euros of spending, putting a number on the possible stimulus for the first time while also indicating nothing was imminent on that front.Watch Italian equities ahead of a confidence vote in the government on Tuesday. The League and Five Star appear to be beyond healing, with the latter moving to distance itself from Deputy Prime Minister and League leader Matteo Salvini.Watch trade-sensitive stocks as the rollercoaster that is keeping up with the state of U.S.-China trade talks begins with a degree of positivity. U.S. President Donald Trump tweeted his team is “doing very well with China, and talking!”COMMENT:“Investors have fled equities in favor of bond and money market funds at a record rate this year,” Bernstein strategists write in a note. “This low level of investor sentiment provides a cushion for the market so we are not bearish despite worsening macro data. At the very least, this makes this August very different from the last Chinese devaluation of August 2015 when investors had been buying in the prior six months.”NOTES FROM THE SELL SIDE:Jefferies says EON’s earnings outlook continues to appear subdued, although these challenges are now better understood by the market. Broker lifts rating to hold from underperform.Citi raises X5 Retail to buy, and sees co. delivering growth in an environment where growth is becoming more rare. Says “conservatively” models 7.6% Ebitda margin this year, up from previous 7.3%.The U.K. buy-to-let market remains in “decent health” and there’s significant upside for the likes of Charter Court, OneSavings Bank and Paragon Banking, Peel Hunt writes in a note boosting price targets on all three firms. Paragon (buy, PT 580p) is top pick, Charter Court kept at buy (PT 400p), OneSavings also buy (PT 470p).Morgan Stanley initiates Colruyt at equal-weight, seeing free cash generation as able to provide some support to the shares even if risk/reward remains skewed toward the downside.COMPANY NEWS AND M&A:DSV Completes Acquisition of Panalpina; Sees DKK2,200M SynergiesDassault Systemes Says Medidata Stockholders Approve PurchaseGrand City Properties 1H FFO Up 7%; Confirms 2019 GuidanceBpost CEO Van Gerven to Leave Co. in Feb.: De StandaardLundin Norway Makes Small Oil Find South of Edvard Grieg: NPDMitie Set to Sell Stake in Gather & Gather in GBP90M Deal: SkyVapiano CEO Everke to Resign From Office Effective Aug. 31TECHNICAL OUTLOOK for Stoxx 600 index:Resistance at 370.8 (200-DMA); 374.5 (61.8% Fibo); ~386 (uptrend); 395.1 (July high)Support at 365.5 (50% Fibo, May low); 356.5 (38.2% Fibo)RSI: 39.2TECHNICAL OUTLOOK for Euro Stoxx 50 index:Resistance at ~3,400 (uptrend) 3,403 (61.8% Fibo); 3,444 (50-DMA)Support at 3,249 (June/August low); 3,300 (200-DMA)RSI: 41.5MAIN RESEARCH AND RATING CHANGES:UPGRADES:CNH Industrial upgraded to overweight at Morgan StanleyEON upgraded to hold at Jefferies; PT 7.80 EurosHumana upgraded to buy at ABG; PT 55 KronorNovozymes raised to neutral at JPMorgan; Price Target 275 KronerRatos upgraded to hold at SEB Equities; PT 18 KronorScout24 Upgraded to Buy at Kepler Cheuvreux; PT 57.50 EurosX5 Retail GDRs upgraded to buy at CitiDOWNGRADES:Paragon GmbH & Co KGaA cut to hold at Bankhaus LampeTechnogym downgraded to hold at BerenbergINITIATIONS:Colruyt rated new equal-weight at Morgan Stanley; PT 43.40 EurosMARKETS:MSCI Asia Pacific up 0.4%, Nikkei 225 up 0.8% S&P 500 up 1.4%, Dow up 1.2%, Nasdaq up 1.7%Euro down 0.01% at $1.1089Dollar Index up 0.08% at 98.22Yen down 0.01% at 106.39Brent up 1.2% at $59.3/bbl, WTI up 1% to $55.4/bblLME 3m Copper up 0.3% at $5763/MTGold spot down 0.5% at $1506/ozUS 10Yr yield up 3bps at 1.58% ECONOMIC DATA (All times CET):10am: (IT) June Current Account Balance, prior 2.6b10am: (EC) June ECB Current Account SA, prior 29.7b11am: (EC) July CPI Core YoY, est. 0.9%, prior 0.9%11am: (EC) July CPI MoM, est. -0.4%, prior 0.2%11am: (EC) July CPI YoY, est. 1.1%, prior 1.3%\--With assistance from Michael Msika.To contact the reporter on this story: Ksenia Galouchko in London at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, Jon MenonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
From Monday through Thursday, my family's stock investments fell more than many people earn in a year. Here's what I plan to do about it.
Based on Friday’s price action and the momentum into the close, the direction of the September E-mini S&P; 500 Index on Monday is likely to be determined by trader reaction to the main 50% level at 2881.00.
The yield curve inversion had markets tumbling amid concerns of a coming recession, but what is a "yield curve" and how (and/or why) does it invert?
On a day stocks bounced back, NVIDIA shares rose after the company reported a strong quarter, as did those of Deere despite challenges in the agricultural industry.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.U.S. stocks rose for a second day as investors got a reprieve from trade posturing and speculation mounted that European officials will bolster stimulus if growth in the region continues to sputter. Treasuries nudged lower, lifting yields from multiyear lows.The S&P 500 jumped more than 1%, notching its 13th straight session with an intraday move of that magnitude as August volatility persisted. The index lost 1% in the five days for a third straight drop. Bulls got ammunition when on a report Germany would engage in deficit spending in the event of a recession. A day earlier, a European Central Bank official said monetary stimulus would be greater than investors anticipated. Germany’s Dax surged and the region’s bonds retreated.In the U.S., chipmakers paced Friday’s advance after Nvidia Corp.’s after quarterly sales and profit beat estimates. Banks also rose as the yield curve steepened, with two-year rates slipping and 10-years turning higher. Deere & Co. rebounded even after cutting guidance, blaming in part the trade war for undermining sales. In Asia, shares in Hong Kong rallied, Chinese stocks edged higher and Korean equities fell.The prospect for strong European stimulus bolstered confidence that the U.S. economy would be spared some of the ill-effects of the slowdown in that region. Investors remained on edge over trade after a week of back-and-forth headlines delivered wild swings in the equity and bond markets. With traders gunning for more rate cuts from the Federal Reserve, chair Jerome Powell may give a hint of his thinking when he speaks Aug. 23 at the annual central bankers retreat in Jackson Hole, Wyoming.“The Fed, in order to keep this expansion going, needs to provide additional accommodation,” Tiffany Wilding, U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “Whether they are able to arrest the downturn -- there is some question around that. Ultimately we think that they will be able to.”Here are the main moves in markets:StocksThe S&P 500 Index gained 1.45% as of 4 p.m. New York time.The Dow Jones Industrial Average rose 1.2%.The Stoxx Europe 600 Index rose 1.2%.The Shanghai Composite Index climbed 0.3%.The MSCI Emerging Market Index increased 0.7%, trimming the week’s loss to 1.1%.CurrenciesThe Bloomberg Dollar Spot Index rose 0.1%, pushing its weekly advance to 0.5%.The euro fell 0.1% to $1.1092.The British pound jumped 0.5% to $1.2146.The onshore yuan dipped 0.1% to 7.04 per dollar.The Japanese yen declined 0.2% to 106.34 per dollar.BondsThe yield on 10-year Treasuries rose two basis points to 1.5454%.The yield on two-year Treasuries fell one basis point to 1.48%.Germany’s 10-year yield rose three one basis points to -0.685%.Britain’s 10-year yield climbed six basis points to 0.466%.CommoditiesWest Texas Intermediate crude rose 0.6% to $54.76 a barrel.Iron ore climbed 0.3% to $86.75 per metric ton.Gold futures decreased 0.6% to $1,522.60 an ounce.\--With assistance from Nancy Moran, Adam Haigh and Yakob Peterseil.To contact the reporters on this story: Jeremy Herron in New York at email@example.com;Sarah Ponczek in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeremy Herron at email@example.com, ;Christopher Anstey at firstname.lastname@example.org, Namitha JagadeeshFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Plunging Treasury bond yields spooked a lot of investors this past week, especially after the yield on the 10-year Treasury briefly fell below that of the 2-year for the first time in more than a decade. That so-called inverted yield curve has preceded each of the last seven recessions. But Scott Ladner, chief investment officer at Horizon Investments, tells Yahoo Finance that the U.S. stock market shouldn’t necessarily be taking its cue from the bond market right now. That’s because about $17 trillion of government bonds worldwide are trading at negative yields, according to Bloomberg.
Investing.com - Stocks rallied Friday, finishing near their highs for the day, as trade tensions appeared to ease and reports suggested Germany might consider ideas to stimulate its faltering economy.
Lower U.S. interest rates could help support outperforming U.S. homebuilder stocks, even as they raise worries about the economy, while a bonanza of industry data and Federal Reserve speakers next week are likely to help shape the outlook. Mortgage rates have been declining with U.S. Treasury debt yields, and the outlook for interest rates suggests further easing after the Federal Reserve lowered rates last month and indicated it could cut again this year, depending on data. This week, U.S. 30-year Treasury yields fell to a record low below 2%, while benchmark 10-year yields declined to a three-year trough as trade tensions linger and global economic growth continues to slow.
The S&P; 500 has been very noisy during the week, breaking down towards the 50 week EMA before bouncing. It this does show a bit of conflict, which after the last couple of weeks might be a good thing.
Stock markets recovered a bit during the day on Friday, breaking the top of the candle stick from the previous session which of course is a bullish sign. At this point though, it looks a bit choppy.
Among stocks, Nvidia Corp jumped 6.2% after posting better-than-expected quarterly profit and revenue, lifting the Philadelphia chip index 2.51%. Applied Materials Inc fell 1.8% after chip gear maker cautioned that recovery in the memory chip market is unlikely before 2020. The S&P 500 bank sub-sector rose 2.51% as rate-sensitive lenders benefited from U.S. Treasury bond yields easing off their lows.