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Good Morning. Global stocks are rising as well as US futures due to optimism. Washington will conclude a deal for a new stimulus package.
Let's see where the investors put their money.
- The mayor Asia indices are mixed with the Hang Seng, which shows the way up 0.6%.
- This will not go down well in Washington: China So far the bargain is on Phase One trade agreement. It is committed to purchase $ 25.3 billion Worth of US energy this year, but has only bought so far 5%. The two sides will meet in the middle of the month Assess progress so far.
- The clock continues to tick Microsoft TikTok advertising. The big obstacle for Microsoft: how to evaluate the video sharing app?
- The European exchanges jumped out of the gates this morning with benchmark Stoxx Europe 600 above 0.5% outdoors, before climbing.
- The EU opened one Antitrust Authority in the $ 2 billion deal proposed by Google to acquire Fitbit. "The essence of the research is that Google – already a leader in online advertising in Europe, where it has one 94% share of the search market– could further strengthen this position by gaining access to Fitbit's health data, ”writes David Meyer of Fortune.
- It is still unclear whether the deadly explosion in a large port yesterday BeirutThe Lebanese capital was an accident or an attack. The Lebanese economy was in turmoil even before COVID. The Crude oil price climbed on concerns that the region would sink into further instability.
- The mayor US indices Try to extend the rally on Wednesday as the futures are all higher.
- The GOP and Dems are still close $ 2.5 trillion apart in talks about a new one Coronavirus stimulus packageBut Treasury Secretary Steven Mnuchin says there will be a deal by the end of the week. According to a new Fortune Survey Monkey survey, U.S. adults are predominantly (80%) in favor of a second round of stimulus tests.
- Disney stocks are more than 4% in pre-market trading today after the company released its Streaming subscribers Number crowned 100 million. The cruise and amusement park business was "pounding," according to Aric Jenkins of Fortune.
- Do you remember last week when Kodak shares lifted? The SEC is currently investigating the circumstances surrounding the disclosure of the company that received it Federal loan of $ 765 millionThe Wall Street Journal reports that money is needed to have a major impact on the pharmaceutical industry.
- gold hit a new record nearby $ 2,050.
- The Dollar has fallen.
- Raw is in volatile trading.
App-swinging day traders are becoming a market power. Goldman Sachs said June was another record month for retail. The four largest online brokers – Schwab, E-Trade, Interactive Brokers and TD Ameritrade – registered again 8 million trades in the month.
They probably haven't lost their jerseys as the major indexes all performed well in June. Over the past few months, however, we have repeatedly seen the impact of retail on strange corners of the market with highly volatile fluctuations in selected stocks. Hertz and Kodak come to mind.
Just last week, the Kodak shares shot up 25% higher $ 60 at a time after the company announced that it had received a $ 765 million federal loan. Where is trading today? It's under $ 15.
Hertz was another roller coaster ride. It is now essentially a penny stick. Every move in or out of the stock triggers large drops or profits. Retailers will be offering the stock in early June. It more than doubled within two days and then crashed. It is decreased by 73% since that blip. The stock chart below shows the volume increase followed by sporadic trading. This is not for the faint of heart.
The retail army is hardly a phenomenon only for Americans. Retailers have recently been accumulating in India's most indebted, depressed companies.
But so that you don't think this is a fringe area of the market, Goldman Sachs has more data to chew on. Household investors, a group that includes retailers, now make up 36% of $ 55 trillion US stock market. Household investors as a trading block are three times the size of ETFs and private investment funds.
As the largest sole proprietorship on the market, household investors have the ability to move stocks up or down in a big way. And no doubt they will continue to confuse investment professionals.
Note: I admit that I haven't fully understood some of these crazy stock fluctuations that retailers are likely fueling – the Robinhood crowd as it has come to be known. If you are one of these dealers, please write me a message. I would like to learn more about your investment philosophy.
I wish everyone a pleasant day. I'll see you here tomorrow.
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