$RGBP Closed Up 1.171%
Mi Day Tuesday + 8.43%
Yahoo Finance Live: Market Movers
Yahoo Finance Video • August 21, 2018
Wall St. up on trade hopes, S&P equals longest bull run
Reuters •August 21, 2018
Strength In Technology And Mining Stocks Leads The Overall Market Higher; Sep E-Mini S&Ps Up +0.19% At A 6-1/2 Month High; Dollar Index Down -0.37% At A 1-Week Low.
Sep E-mini S&Ps (ESU18 +0.16%) this morning are up +0.19% at a 6-1/2 month high on strength in technology stocks led by a 1% increase in Apple in pre-market trading after Bank of America/Merrill Lynch reiterated its Buy rating on the stock and raised its price target on Apple to $250 from $230.
Today's Economic Calendar
U.S. gold futures climbed above $1,200 an ounce overnight on the back of a weaker dollar, after President Trump said he was "not thrilled" with Fed Chair Jerome Powell for raising interest rates. Base metals also joined the party, with London copper advancing for a second day and crossing the $6,000-a-tonne mark, along with big price moves for zinc, nickel and aluminum.
The S&P 500 will tie the record for the longest U.S. bull market in history today at nearly 3,500 days, rising more than 320% since March 9, 2009. It's a record few would have predicted when stocks struggled to find their footing after a 50% plunge during the financial crisis. There is still no shortage of bearish warnings out there as analysts debate the future, but many investors continue to see plenty of gas left in the tank for equities.
NAFTA talks between the U.S. and Mexico will resume today in Washington, with many expecting the two sides to finalize an agreement in principle on a range of bilateral issues. That would pave the way for Canada, which has been sidelined for weeks from the negotiations, to return to the bargaining table. Timing is also a big issue ahead of U.S. midterm elections in November.
More trade tensions? Germany's current account surplus will remain the world's largest for the third year running in 2018 at $299B, followed by Japan with $200B, according to the Ifo institute. "On the other end of the spectrum, the U.S. is set to remain the country with the largest current account deficit with roughly $420B." The situation is set to spark criticism of Germany's export strength and Chancellor Angela Merkel's fiscal policies.
The U.S. Department of Energy is offering 11M barrels of crude for sale from the nation's Strategic Petroleum Reserve ahead of sanctions on Iran that are expected to reduce global oil supplies and increase prices. The SPR was established in the 1970s after the U.S. economy was paralyzed by an oil embargo. As recently as 2011 it contained 727M barrels in caverns along the Texas and Louisiana coasts.
"I won't mention names but when they take certain people off of Twitter (NYSE:TWTR) or Facebook (NASDAQ:FB) and they're making that decision, that is really a dangerous thing because that could be you tomorrow," President Trump told Reuters. The comments raise the (ever-present?) specter of regulation that has haunted social media firms over the past year, amid controversies over data privacy and the services' handling of political news.
Uncovering new Russian hacking attempts targeting U.S. political groups ahead of the midterm elections, Microsoft (NASDAQ:MSFT) is expanding its Defending Democracy Program with a new initiative called AccountGuard. "This technology is free of charge to candidates, campaigns and related political institutions using Office 365," said Brad Smith, Microsoft's chief legal officer, adding that the software includes threat notification and security guidance.
A group of 22 state attorneys general and the District of Columbia late Monday asked a U.S. appeals court to reinstate Obama-era landmark net neutrality rules and reject the Trump administration's efforts to preempt states from imposing their own rules guaranteeing an open internet. Several internet companies also filed a separate legal challenge to overturn the FCC decision, including Mozilla, Vimeo, ETSY, and numerous media and technology advocacy groups.
Throwing a grenade into the increasingly competitive world of retail investing, JPMorgan (NYSE:JPM) is rolling out a digital investing service next week that comes bundled with free or discounted trades, a sophisticated portfolio-building tool and no-fee access to the bank's stock research. "You Invest," more than two years in the making, has a distinct advantage over many competitors: JPMorgan already has financial ties with half of American households.
Volumes of bitcoin futures listed by CME Group (NASDAQ:CME) doubled in July and continued to increase in August, but such growth has been lacking at fellow Chicago exchange operator CBOE Global Markets (NASDAQ:CBOE). The two exchanges are under pressure to gain traction because it's rare for similar futures contracts to flourish in more than one venue. A third company, Intercontinental Exchange (NYSE:ICE), plans to offer its own bitcoin futures in November.
Several crypto exchanges have signed on to what appears to be the industry’s first self-regulatory organization - called the Virtual Commodity Association - in a step toward transparency in the opaque and volatile market. Representatives from Bittrex, bitFlyer USA, Bitstamp and Gemini will meet in September to begin setting goals for the group founded by the Winklevoss twins, including rules for the marketplaces and guidelines for members.
BHP Billiton -1.6% premarket as fiscal-year net profit fell 37% due to a massive write-down on its U.S. onshore oil and gas assets, U.S. corporate tax cuts and the ongoing fallout from its Brazilian dam collapse. BHP still announced a record dividend of $0.63/share, up from $0.43/share a year earlier, but the world's biggest miner by market value lowered its projection for productivity gains.
Venezuela's PDVSA and ConocoPhillips have reached a payment agreement over a $2B arbitration, suspending a dispute that blocked the state-run company from exporting oil from most of its key Caribbean facilities. The case relates to the nationalization of Conoco (NYSE:COP) assets dating back over a decade in Venezuela. An international court ruled in favor of Conoco in April and ordered PDVSA to pay, but no payment had been forthcoming.
World Gainers & Losers
Company Price % Change
Data as of 11:40am ET
Sep 10-year T-notes (ZNU18 -0-045) this morning are down -5 ticks. Monday's closes: TYU8 -0.50, FVU8 -0.50. Sep 10-year T-notes on Monday rallied to a 2-1/2 month high and closed higher on fund short-covering as CFTC data showed that speculative short positions on 10-year T-notes exploded to a record high 698,194 contracts in the week ended Aug 14. T-notes were also supported by comments by Atlanta Fed President Bostic who said "businesses are increasingly cautious" due to trade uncertainty, which creates a downside risk for the economy.
The dollar index (DXY00 -0.40%) this morning is down -0.358 (-0.37%) at a fresh 1-week low. EUR/USD (^EURUSD+0.42%) is up +0.0036 (+0.31%) at a 1-week high. USD/JPY (^USDJPY +0.14%) is up +0.17 (+0.15%). Monday's closes: Dollar Index -0.201 (-0.21%), EUR/USD +0.0044 (+0.38%), USD/JPY -0.43 (-0.39%). The dollar index on Monday fell to a 1-week low and closed lower on the fall in the 10-year T-note yield to a 1-1/2 month low, which reduces the dollar's interest rate differentials, and on dovish comments from Atlanta Fed President Bostic who said "businesses are increasingly cautious" due to trade uncertainty.
Currencies vs. USD $1= % Change
United Kingdom Pound
Data as of 10:36am ET
Metals this morning are higher with Dec gold (GCZ18 +0.49%) +5.7 (+0.48%), Sep silver (SIU18 +0.75%) +0.125 (+0.85%) and Sep copper (HGU18 +0.94%) +0.025 (+0.94%). Monday's closes: Dec gold +10.4 (+0.88%), Sep silver +0.039 (+0.27%), Sep copper +0.0395 (+1.50%). Metals on Monday closed higher on a weaker dollar. Copper found support on stronger Chinese copper demand as China unwrought copper imports from Jan-Jul rose +16% y/y to 3.043 MMT. Copper was also supported by signs of stronger demand after LME cancelled warrants, or orders to withdraw copper from LME warehouses, jumped +11,525 MT to a 1-1/4 month high of 36,050 MT.
Sep WTI crude oil (CLU18 +0.90%) this morning is up +49 cents (+0.74%). Sep gasoline (RBU18 +0.64%) is +0.91 (+0.45%). Monday's closes: Sep crude oil +0.52 (+0.79%), Sep gasoline +3.42 (+1.73%). Sep crude oil and gasoline on Monday closed higher on the fall in the dollar index to a 1-week low and on global supply concerns as oil workers began a strike at North Sea oil platforms run by Total SA. Crude oil prices were undercut by the stronger dollar.
Key U.S. News:
No economic reports or Fed speakers scheduled.
Notable Russell 2000 earnings reports today include:
Toll Brothers (consensus $1.03)
Urban Outfitters (0.77)
U.S. IPO's scheduled to price today:
Megalith Financial Acquisition Corp (MFAC/U)
Equity conferences during the remainder of this week:
BMO Capital Markets Silicon Valley Tech Tour on Tue
Data Integrity Seminar on Wed
Mobile Payments Conference 2018 on Wed-Thu
ACI US Base Oils and Lubricants Summit on Thu
SEB Industrial & Technology Seminar on Thu
UBS Kohler Utility Mini-Conference on Thu
NGAUS Conference on Fri
Apple (AAPL -0.97%) gained nearly 1% in pre-market trading after Bank of America/Merrill Lynch reiterated its 'Buy' rating on the stock and raised their price target on Apple to $250 from $230.
Discovery (DISCA +3.60%) was upgraded to 'Buy' from 'Hold' at Jeffries with a price target of $34.
Ingersoll-Rand Plc (IR +0.02%) was rated a new 'Overweight' at Morgan Stanley with a price target of $111.
MercadoLibre (MELI -1.37%) lost 1% in after-hours trading after it reported an $800 million convertible senior note offering.
Lennox International (LII +1.19%) was rated a new 'Underweight' at Morgan Stanley with a price target of $201.
Honeywell International (HON +0.19%) was rated a new 'Overweight' at Morgan Stanley with a price target of $175.
Nordson (NDSN -0.22%) dropped nearly 9% in after-hours trading after it forecast Q4 EPS of $1.38 to $1.64, the midpoint below consensus of $1.53.
Conagra Brands (CAG +0.08%) was rated a new 'Overweight' at Stephens with a price target of $45.
Paylocity Holding (PCTY +1.07%) was rated a new 'Buy' at Guggenheim Securities with a price target of $80.
Fabrinet (FN +0.78%) climbed more than 6% in after-hours trading after it reported Q4 revenue of $345.3 million, above consensus of $338.0 million, and then forecast Q1 revenue of $347 million to $355 million, the midpoint above consensus of $348.3 million.
Workday (WDAY +0.45%) was upgraded to 'Buy' from suspended coverage at Guggenheim Securities with a price target of $175.
Jeffries Financial Group (@symbolPercentChange(JEF was rated a new 'Outperform' at Keefe, Bruyette & Woods with a price target of $29.
Appian (APPN +0.11%) slid more than 2% in after-hours trading after it announced the launch of a proposed underwritten public offering of 2.0 million shares of its Class A common stock, of which 1.675 million are being offered by Appian and 325,000 shares are being offered by existing stockholders of Appian.
Vital Therapies (VTL unch) gained more than 2% in after-hours trading after it was rated a new 'Overweight' at Cantor Fitzgerald with a price target of $18.