9/18/2020
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The clock is ‘Tiking’
The Commerce Department announced Friday morning it would ban U.S. business transactions with Chinse-owned social apps WeChat and TikTok on Sunday. The Trump administration is still reviewing proposals on the TikTok-Oracle (ORCL)/Walmart (WMT) partnership, which has many moving parts. TikTok owner ByteDance agreed to list the video-sharing app on a U.S. stock exchange, which could happen within a year, though there are still concerns over whether the Chinese parent would be allowed to retain a majority stake in the new company. Today’s announcement from the Commerce Department appears to be enforcing President Trump’s original executive order from August 6th that gave TikTok 45 days to sell its U.S. business to a U.S. company or face a ban in the U.S. Shares of Oracle and Walmart are both down fractionally in the premarket.
Sub-zero rates in England you say
The Bank of England indicated Thursday that it could cut interest rates below zero for the first time in its 326-year history as it tries to shore up a U.K. economic recovery that is facing the dual headwinds of the coronavirus and Brexit. The British economy suffered one of the deepest recessions in the world this year when many sectors were effectively shutdown to help contain the pandemic. Though the economy has recouped some ground as lockdown restrictions were eased, the economy was still around 12% smaller at the end of July than it was in February, when the pandemic started in Europe.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.30%, near 3361
U.S. Crude Oil futures (/CL) -0.22%, near $41.10 a barrel
CBOE Volatility Index (VIX) -2.6%, near 25.75
U.S. Gold Futures (/GC) +0.50%, near $1960 an ounce
Major Economic Reports:
7:30 am CT – Current Account
9:00 am CT – Consumer Sentiment
9:00 am CT – Leading Indicators
12:00 pm CT – Baker-Hughes Rig Count
Notable Earnings
Friday:
A.M. – N/A
P.M.– N/A
Monday:
A.M. – N/A
P.M. – N/A
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9/17/2020
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A Raise Too Far leads to Powell’s Plunge
After the Fed pledged to keep interest rates at zero through 2023 to help the economy get back on its feet, Chairman Jerome Powell made comments about the Fed’s limited abilitiesand that it was up to Congress to step in for further assistance. U.S. stocks rose following the initial policy statement but began moving lower as Chairman Powell’s press conference progressed, as the equity market was not happy with his comments. S&P 500 futures (/ES) are continuing to move lower this morning, as worse than expected August Housing Starts and Building Permits releases have perpetuated the selloff in stock futures.
Tik, Tok, Boom
Just as the bidding war to control the U.S. division of video sharing app TikTok was starting to finalize, new questions are beginning to surface. The Trump administration is looking to give U.S. investors a majority share in the company that would takeover control of the Chinese owned TikTok. Oracle (ORCL) was previously reported to be a partner in the new U.S. company that takes control of TikTok operations. The Chinese owner, ByteDance has sought to retain a majority ownership and that is raising concerns among Senate Republicans. Oracle is trading almost 3% lower in the pre-market.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) -1.6%, near 3324
U.S. Crude Oil futures (/CL) -0.5%, near $39.95 a barrel
CBOE Volatility Index (VIX) +11%, near 28.90
U.S. Gold Futures (/GC) -1.3%, near $1943 an ounce
Major Economic Reports:
7:30 am CT- Jobless Claims
7:30 am CT – Housing Starts and Permits
7:30 am CT – Philadelphia Fed Manufacturing Index
9:30 am CT – EIA Natural Gas Report
12:00 pm CT- 10-Yr TIPS Auction
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Notable Earnings
Thursday:
A.M. – APOG
P.M. – AFIB
Friday:
A.M. – N/A
P.M.– N/A
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**BOLD above indicates important and potential market-moving news and information
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9/16/2020
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Spoon-Fed
Today marks the first public appearance for Jerome Powell since his surprise Jackson Hole symposium comments encompassing a bigger appetite for inflation. The next rate hike isn’t projected until 2024 now despite the red-hot market as a super-accommodative tone which has been sent. Economists are eagerly awaiting comments around the Fed’s intermediate plans for their $7 trillion balance sheet and expected bond-buying pace going forward as the FOMC will likely downplay the recent success. The 10-year yield has slipped intra-day in its last 5 sessions and currently rests near 0.663% ahead of the today's press conference after the two-day meeting adjourns.
Not waking up from the Bad Dream-liner
Boeing (BA) can’t shake the ongoing nightmare scenario for the 737MAX now two years removed from the tragic series of crashes that killed 346 passengers due to major malfunctions in the touted next-generation aircraft shortly after being commissioned. Re-certification continues to be delayed with more findings recently surfacing that must be resolved before being deemed air-worthy. The re-certification process could potentially be pushed back into 2021 before getting the green light. A scathing Housing Committee report was just released this morning which found systematic failures between Boeing (BA) as well as the FAA and highlights the complexities of the oversight process. Shares of Boeing are currently down 1% ahead of the opening bell as shares have remained in a tight pattern since early June awaiting any good news. Demand has also shifted dramatically as travel has completely been altered amid the pandemic.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.34%, near 3406
U.S. Crude Oil futures (/CL) +2.77%, near $39.40 a barrel
CBOE Volatility Index (VIX) +.24%, near 25.65
U.S. Gold Futures (/GC) +0.71%, near $1980 an ounce
Major Economic Reports:
6:00 am CT – MBA Mortgage Applications
7:55 am CT – Retail Sales
9:00 am CT – Atlanta Fed Business Inflation Expectations
9:00 am CT – Business Inventories
9:00 am CT – Housing Market Index
9:30 am CT – EIA Petroleum Status Report
1:00 pm CT – FOMC Announcement
1:30 pm CT – Fed Chair Press Conference
Notable Earnings
Wednesday:
A.M. – BRC
P.M. – MLHR, OSH
Thursday:
A.M. – APOG
P.M. – AFIB
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**BOLD above indicates important and potential market-moving news and information
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9/15/2020
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Wide world of sports betting
ESPN, a cable sports channel, and subsidary of Disney (DIS), has signed deals with Caesar's Entertainment (CZR) and DraftKings (DKNG) to strengthen its position in the growing sports betting market. ESPN becomes the exclusive odds provider and co-exclusive link out of provider to Caesars. Caesar's will also become a sponsor on ESPN fantasy sports products. Caesar's is the largest casino operator in the United States. In the deal, online sports betting operator DrafKings will become the exclusive daily fantasy sports provider with ESPN. The company will get daily sports segments on ESPN’s premier studio show as well. Shares of Disney are unchanged, while shares of Caesar's are up modestly in the premarket after being up 10% yesterday. DraftKings shares are down slightly in the premarket after rallying over 17% yesterday.
Let’s get ready to reveal
Apple (AAPL) is expected to show off its latest smart watch and iPad’s today at the company’s annual September event that they are calling ‘Time Flies’, which starts at 12 pm CT today. The company normally features a new phone at this annual event, but they are delaying the release of its 5G phone for a few weeks. During this first virtual-only product reveal event, it is anticipated that the multinational technology company will be announcing the new Watch Series 6, iPad Air and perhaps new fitness and health services, among other things. Analysts are also looking for Apple to begin bundling different services, such as music and videos, as the company works to bolster its software business beyond the iPhone, which makes up about 50% of sales. Shares of Apple are up 2.5% in the premarket.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +0.85%, near 3401
U.S. Crude Oil futures (/CL) +1.05%, near $37.65 a barrel
CBOE Volatility Index (VIX) -2.2%, near 25.30
U.S. Gold Futures (/GC) +0.60%, near $1975 an ounce
Major Economic Reports:
7:30 am CT – Empire State Manufacturing Index
7:30 am CT – Import and Export Prices
7:55 am CT – Redbook
8:15 am CT – Industrial Production
Notable Earnings
Tuesday:
A.M. – CBRL, DAVA
P.M.– ADBE, FDX
Wednesday:
A.M. – BRC
P.M. – MLHR, OSH
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9/14/2020
The Week Ahead
Do We Have a Deal?
The bidding war for the U.S. operations of the video sharing app TikTok may be finally over. Oracle (ORCL) looks to have beat out Microsoft (MSFT) for the title of “trusted tech partner” for the company in the U.S. The deal would still need to be approved by the White House and the Committee on Foreign Investment in the U.S. The structure of the deal is most likely not an outright sale, but rather a partnership. ORCL is trading 7% higher in the pre-market, while MSFT is down fractionally.
Merger Monday
Shares of biopharmaceutical company, Immunomedics (IMMU) have move than doubled after Gilead Sciences (GILD) announced they would pay approximately $21 billion or $88 per share in cash for the cancer drug maker. Chip maker, Nvidia (NVDA) is trading 7% higher in the pre-market after they agreed to buy Arm Holdings from SoftBank Group for roughly $40 billion, making it the largest acquisition in the semiconductor space.
Market Movers and Shakers (as of this writing)
S&P 500 futures (/ES) +1.26%, near 3365
U.S. Crude Oil futures (/CL) -0.5%, near $37.15 a barrel
CBOE Volatility Index (VIX) -2.6%, near 26.15
U.S. Gold Futures (/GC) +0.9%, near $1965 an ounce
Economic Releases (9/14-9/18):
Monday:
10:00 am CT – Export Expectations
Tuesday:
7:30 am CT – Empire State Manufacturing Index
7:30 am CT – Import and Export Prices
7:55 am CT – Redbook
8:15 am CT – Industrial Production
Wednesday:
6:00 am CT – MBA Mortgage Applications
7:55 am CT – Retail Sales
9:00 am CT – Atlanta Fed Business Inflation Expectations
9:00 am CT – Business Inventories
9:00 am CT – Housing Market Index
9:30 am CT – EIA Petroleum Status Report
1:00 pm CT – FOMC Announcement
1:30 pm CT – Fed Chair Press Conference
Thursday:
7:30 am CT – Jobless Claims
7:30 am CT – Housing Starts and Permits
7:30 am CT – Philadelphia Fed Manufacturing Index
9:30 am CT – EIA Natural Gas Report
12:00 pm CT – 10-Yr TIPS Auction
3:30 pm CT – Fed Balance Sheet
3:30 pm CT – Money Supply
Friday:
7:30 am CT – Current Account
9:00 am CT – Consumer Sentiment
9:00 am CT – Leading Indicators
12:00 pm CT – Baker-Hughes Rig Count
Major Earnings for the Upcoming Week (9/14-9/18):
Monday:
A.M. – MVC, WB
P.M. – AGX, ASPU, LEN
Tuesday:
A.M. – CBRL, DAVA
P.M. – ADBE, FDX
Wednesday:
A.M. – BRC
P.M. – MLHR, OSH
Thursday:
A.M. – APOG
P.M. – AFIB
Friday:
A.M. – N/A
P.M.– N/A
*Follow us on Twitter @TradeWise
*BOLD above indicates important and potential market-moving news and information
TradeWise is offering a free trial for 2 trading strategies for 60 days each: Use coupon code marketblog to apply this trial on your current account at www.tradewise.com or contact us at support@tradewise.com
