Good Morning. Stocks and futures rebounded slightly after Wednesday, their worst sell-off in four months. But the markets are on the verge of a large number of big tech profit calls after today's bell.
Let's review the action.
- The mayor Asia indices are usually lower with the Shanghai Composite the best of the whole bunch to hold onto 0.1% Profit in afternoon trading.
- Short messages: China has fallen far behind when it was doing its part of business for that Phase 1 trading An agreement was signed earlier this year that cut US imports by about half (53%), where they should be below the parameters of the business.
- Samsung's shares have fallen 1.5% in Seoul after the tech giant issued a profit warning falling chip prices.
- The European stock exchanges opened higher before falling slightly as double digit recession concerns increased. The Stoxx Europe 600 was plus 0.6% 90 minutes after the start of trading.
- All eyes are on them ECB today. There is mounting speculation that in the face of a wave of lockdowns, the central bank will: a 500 billion euros more on his bond purchase program.
- Tiffany & Co. was one of the few winners on Wednesday. The rocky advert for French luxury giant LVMH is back after Tiffany's board agreed to shave $ 425 million from the selling price.
- US futures point to a solid opening. That's after the three major exchanges all sold out heavily on Wednesday, wiping out their profits for the month. Tech stocks were among the biggest losers.
- The Dows 943 point drop yesterday sent market professionals back in the history books. Such a steep decline so close to Election Day has only happened twice before – during Great Depression (1932) and in the middle of the global financial crisis If history is a judge, that's bad news for the incumbent.
- If you're a fan of the Predictor of the President– an oft-cited market performance indicator during presidential election cycles – now shows a clear winner for that White House next week.
- There is much on the calendar today: GDP numbers, unemployment claims and income for Facebook, Apple, Amazon and Google from Alphabet.
- gold is flat but trading below after yesterday's sell-off $ 1,880 / ounce.
- A reader sent me a message in this section asking for crypto love. Bitcoin is just below that $ 13,200, About 3% below a multi-year high reached yesterday.
- The dollar is up.
- Raw refuel today. Brent acts below $ 39 / barrel.
Correction area …
“The expectations that COVID-19 is now under control have gone and we are seeing stocks drop another one 10-20% from here. We believe that if the S&P 500 breaks below 3,200 before the election, his next move could drop another 12% 2,890. ”- James McDonald, CEO of Hercules Investments.
… Or just a healthy sale?
"As I write this, those S&P 500 is down 8 percent from the all-time high. That's not nothing, but we saw a major decline and then rebound in September. We saw an almost as sharp drop in June and a subsequent rebound. And of course, we saw a much bigger decline and a much bigger rebound in March. Current The volatility can go away quickly when conditions change. – Brad McMillan, Chief Investment Officer, Commonwealth Financial Network.
FAA (-M) G Thursday
“FB toget AMZN AAPL on Thursday evening. It gets huge and again the chances are higher than any weakness in one of them being read contagious sell signal. All are set to a certain degree of perfection. Everyone has to hit it. “- Hilary Kramer, Chief Investment Officer of Kramer Capital Research.
On Trump stocks versus Biden stocks
The stocks go up or down. But what about right or left? Morgan Stanley analysts have an inventive view of stocks that go into voting. (We'll explain this in more detail in today's readings below.)
J. P. Morgan US Equity Strategy & Global Quantitative Research
A rough winter in Europe
Economists are tearing up and rewriting GDP projections as the pandemic deepens. Berenberg Bank released a note this morning detailing the economic burden of curfews and lockdown-like measures Q4 GDP. Bars and restaurants will be hardest hit.
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