Advertisements



Pizza Hut seeks 40,000 new workers by the end of the year

Pizza Hut said Thursday that the pizza chain and its franchisees are looking for 40,000 new permanent workers by the end of 2021. Most of the openings are for drivers and cooks. Pizza Hut and franchisees are also hosting a virtual career event, Pizza Hut: Pathways to Possibility, on Sept. 29 to showcase how workers can advance their career with the brand. Pizza Hut joins a number of companies that are offering programs, benefits and pay to attract and retain workers in a tight labor market. Pizza Hut is part of the Yum Brands Inc. portfolio. Yum stock has gained 15.7% for the year to date while the S&P 500 index is up 18.6% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch53 min. ago Related News

ThredUp and Madewell partner for Brooklyn secondhand store

ThredUp Inc. said Thursday that it has partnered with clothing and accessories brand Madewell for A Circular Store, a secondhand shop in Brooklyn that sells previously owned Madewell items. The store will be open for a limited time, and is a bricks-and-mortar extension of the Madewell Forever e-commerce site that launched in July. Items are priced from $10 to $40. "We've designed a store to represent the future of fashion -- a circular future in which retailers design for longevity, and consumers shop with resale in mind," said Erin Wallace, vice president of integrated marketing at ThredUp, in a statement. ThredUp's stock, which went public in March, has slumped 22% over the past three months, while the S&P 500 index has gained 5% over that period. Also see: A.K.A. Brands shares slump in trading debut as company highlights risk that eco-conscious Gen Z shoppers will reject its fast-fashion business modelMarket Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch53 min. ago Related News

Rao"s, Noosa parent Sovos Brands soars 21% as trading begins

Sovos Brands Inc. , parent company to pasta sauce brand Rao's and yogurt brand Noosa, soared 20.8% as trading began on Thursday. Shares priced at $12 per share, below the expected range of $14 to $16. The company sold 23.33 million shares in the IPO to raise $280.0 million. The IPO pricing valued the company at about $1.17 billion. The stock is trading on the Nasdaq under the ticker "SOVO." The company joins a number of others including Remitly Global Inc. and EngageSmart Inc. that began trading on Thursday alone. The Renaissance IPO ETF has gained 8.1% for the year to date while the S&P 500 index is up 18.6% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch53 min. ago Related News

Brilliant Earth skyrockets 27% in trading debut

Jewelry seller Brilliant Earth Group Inc. made its trading debut on Thursday, skyrocketing 27.3% out of the gate. The company halved its IPO offering to 8.33 million shares in the IPO, and priced at $12, below the expected range of between $14 and $16 per share. Brilliant Earth is trading on the Nasdaq under the ticker "BRLT." It joins a number of companies, including Remitly Global Inc. , Sovos Brands Inc. , and EngageSmart Inc. that began trading on Thursday. There were 14 IPO deals planned for this week. The Renaissance IPO ETF has gained 8.2% for the year to date while the S&P 500 index is up 18.6% for the period. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news......»»

Category: topSource: marketwatch53 min. ago Related News

Is Invesco S&P 500 Equal Weight Utilities ETF (RYU) a Strong ETF Right Now?

Smart Beta ETF report for RYU The Invesco S&P 500 Equal Weight Utilities ETF (RYU) made its debut on 11/01/2006, and is a smart beta exchange traded fund that provides broad exposure to the Utilities/Infrastructure ETFs category of the market.What Are Smart Beta ETFs?The ETF industry has traditionally been dominated by products based on market capitalization weighted indexes that are designed to represent the market or a particular segment of the market.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.Fund Sponsor & IndexBecause the fund has amassed over $236.42 million, this makes it one of the average sized ETFs in the Utilities/Infrastructure ETFs. RYU is managed by Invesco. RYU seeks to match the performance of the S&P 500 Equal Weight Telecommunication Services & Utilities Index before fees and expenses.This index is an unmanaged equal weighted version of the S&P 500 Utilities Index that consists of common stocks of the following industries: electric utilities, gas utilities, multi-utilities & unregulated power & water utilities,telecommunication service companies, including fixed-line, cellular, wireless, high bandwidth & fiber-optic cable networks.Cost & Other ExpensesSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for RYU are 0.40%, which makes it one of the cheaper products in the space.RYU's 12-month trailing dividend yield is 2.66%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Utilities sector - about 100% of the portfolio.Looking at individual holdings, Nrg Energy Inc (NRG) accounts for about 4.03% of total assets, followed by Nextera Energy Inc (NEE) and American Electric Power Co Inc (AEP).Its top 10 holdings account for approximately 36.79% of RYU's total assets under management.Performance and RiskThe ETF has added roughly 9.61% so far this year and was up about 17.18% in the last one year (as of 09/23/2021). In the past 52-week period, it has traded between $91.65 and $112.58.The ETF has a beta of 0.40 and standard deviation of 25.21% for the trailing three-year period, making it a medium risk choice in the space. With about 29 holdings, it has more concentrated exposure than peers.AlternativesInvesco S&P 500 Equal Weight Utilities ETF is a reasonable option for investors seeking to outperform the Utilities/Infrastructure ETFs segment of the market. However, there are other ETFs in the space which investors could consider.Vanguard Utilities ETF (VPU) tracks MSCI US Investable Market Utilities 25/50 Index and the Utilities Select Sector SPDR ETF (XLU) tracks Utilities Select Sector Index. Vanguard Utilities ETF has $4.93 billion in assets, Utilities Select Sector SPDR ETF has $12.82 billion. VPU has an expense ratio of 0.10% and XLU charges 0.12%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Utilities/Infrastructure ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Equal Weight Utilities ETF (RYU): ETF Research Reports NextEra Energy, Inc. (NEE): Free Stock Analysis Report NRG Energy, Inc. (NRG): Free Stock Analysis Report American Electric Power Company, Inc. (AEP): Free Stock Analysis Report Utilities Select Sector SPDR ETF (XLU): ETF Research Reports Vanguard Utilities ETF (VPU): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Should Franklin LibertyQ U.S. Equity ETF (FLQL) Be on Your Investing Radar?

Style Box ETF report for FLQL If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the Franklin LibertyQ U.S. Equity ETF (FLQL), a passively managed exchange traded fund launched on 04/26/2017.The fund is sponsored by Franklin Templeton Investments. It has amassed assets over $1.18 billion, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendCompanies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.15%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.77%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation to the Information Technology sector--about 23.50% of the portfolio. Healthcare and Industrials round out the top three.Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 1.20% of total assets, followed by Adobe Inc (ADBE) and Eli Lilly + Co (LLY).The top 10 holdings account for about 10.92% of total assets under management.Performance and RiskFLQL seeks to match the performance of the LibertyQ US Large Cap Equity Index before fees and expenses. The U.S. Large Cap Underlying Index seeks to achieve a lower level of risk and higher risk-adjusted performance than the Russell 1000 Index over the long term by applying a multi-factor selection process, which is designed to select equity securities from the Russell 1000 Index that have favorable exposure to four investment style factors quality, value, momentum and low volatility.The ETF has added about 17.14% so far this year and was up about 28.96% in the last one year (as of 09/23/2021). In the past 52-week period, it has traded between $33.63 and $45.19.The ETF has a beta of 0.90 and standard deviation of 21.48% for the trailing three-year period. With about 258 holdings, it effectively diversifies company-specific risk.AlternativesFranklin LibertyQ U.S. Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FLQL is an excellent option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.The iShares Core S&P 500 ETF (IVV) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $300.17 billion in assets, SPDR S&P 500 ETF has $398.44 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Franklin LibertyQ U.S. Equity ETF (FLQL): ETF Research Reports Eli Lilly and Company (LLY): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports iShares Core S&P 500 ETF (IVV): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Fed Gives Bond-Buy Tapering Signal Without Timeline: 5 Picks

We have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These are: AAPL, MSFT, NVDA, DHR and COST. On Sep 22, Wall Street closed sharply higher ending its 4-day losing streak and recouped some of the losses it has suffered in September. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — rallied 1% each, while the small-cap-centric Russell 2000 surged 1.5%.U.S. stock markets rebounded following Fed Chairman Jerome Powell’s confirmation that a shift from the central bank’s ultra-dovish monetary policy is not immediate. The Fed will maintain its monetary stimulus and stick to a near-zero short-term benchmark interest rate at least for the time being.Powell Maintains Dovish StanceIn his statement after the conclusion of the two-day FOMC meeting, Fed Chairman Jerome Powell said “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”Fed Chairman made the point that it is “more important to do it right than fast.” “While no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” he said.Powell said that the central bank’s further progress test has been met regarding its inflation target. He added “My own view is the test for substantial further progress on employment is all but met.” However, Powell made it clear “For me it wouldn’t take a knockout, great, super strong employment report. It would take a reasonably good employment report for me to feel like that test is met.”Fed’s latest dot plot for rate projection is showing nine out of18 members believing that the first rate cut will come in the second half of 2022. This number was just seven after June’s FOMC meeting. However, Powell had commented in June that dot plots should be taken with a “big grain of salt.” It is “not a great forecaster of future rate moves." Fed's policy will be guided by the actual outcome of economic variables and not by its officials' expectations about the future.Tapering Likely Priced in Market ValuationThe Fed Chairman has said repeatedly that the central bank will give enough indication to market participants before it actually starts tapering in order to minimize volatility.Although the Fed has restrained from providing any timeline as to when the tapering of the monthly $120 billion bond-buy program will start, many economists and financial researchers believe that the announcement will come in the next FOMC meeting in November and the process will start from December.Despite this, yesterday’s rally indicates that the impact of tapering seems already factored in market valuations. The central bank had taken this extraordinary measure last year to tackle an extraordinary health hazard-led economic devastation. Everyone knows that this monetary stimulus will fade out gradually with the pace of U.S. economic recovery.Therefore, a possible tapering of the Fed’s monthly $80 billion Treasury Notes and $40 billion mortgage-backed bond-buying program this year may not shake market participants’ confidence. The important point is that the Fed has taken an extremely cautious approach to tapering its quantitative easing program.Stock Selection CriteriaAt this stage, it will be prudent to invest in stocks of U.S. corporate behemoths (market capital > $100 billion) that have performed better than the market’s benchmark — the S&P 500 Index — in the past month, amid September’s volatility.The stocks must carry a favorable Zacks Rank. These companies have highly established business models spread across the world, lucrative product pipelines, globally acclaimed brand recognition and robust financial positions, which will help them to cope with a higher interest rate.Accordingly, we have narrowed down our search to five U.S. corporate behemoths that have strong growth potential for the rest of 2021. These stocks have seen positive earnings estimate revisions in the last 60 days. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The chart below shows the price performance of our five picks in the past month.Image Source: Zacks Investment ResearchApple Inc.'s AAPL Services and Wearables businesses are expected to drive top-line growth in fiscal 2021 and beyond. Although Apple’s business primarily runs around its flagship iPhone, the Services portfolio has emerged as the company’s new cash cow. Its focus on autonomous vehicles and augmented reality/virtual reality technologies presents growth opportunities in the long haul.This Zacks Rank #1 company has an expected earnings growth rate of 2.2% for next year (ending September 2022) after estimated 70.4% growth in the current year (ending September 2021). The Zacks Consensus Estimate for next year improved 6.3% over the last 60 days.Microsoft Corp. MSFT is introducing new and improved Surface devices that could encourage enterprises to stick with Windows as they move toward BYOD and cloud computing. Microsoft’s advantages in this respect are two-fold.First, the company has a very large installed base of Office users. Most legacy data are based on Office, so enterprises are usually reluctant to use other productivity solutions. Second, the BYOD model is dependent on security and cloud integration, both of which are Microsoft’s strengths.This Zacks Rank#2 company has an expected earnings growth rate of 8.4% for the current year (ending June 2022). The Zacks Consensus Estimate for current-year earnings improved 3.7% over the last 60 days.NVIDIA Corp. NVDA is benefiting from the coronavirus-induced work-from-home and learn-at-home wave. It is also benefiting from strong growth in GeForce desktop and notebook GPUs, which are boosting gaming revenues.Moreover, a surge in Hyperscale demand remains a tailwind for the company’s Data Center business. The expansion of NVIDIA GeForce NOW is expected to drive its user base. Further, a solid uptake of artificial intelligence-based smart cockpit infotainment solutions is a boon.This Zacks Rank #2 company has an expected earnings growth rate of 68% for the current year (ending January 2022). The Zacks Consensus Estimate for current-year earnings has improved 5.8% over the last 60 days.Danaher Corp. DHR is poised to gain from Danaher Business System (“DBS”), the policy of rewarding shareholders through dividend payments, synergistic benefits from acquired assets and investment in product innovation in the quarters ahead.The company anticipates core revenue growth in the mid to high-teens range for the third quarter of 2021 and in the high-teens for 2021. The pandemic-led tailwinds are expected to boost core sales by high-single digits in the third quarter and by 10% in 2021.This Zacks Rank #2 company has an expected earnings growth rate of 50.4% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1% over the last 30 days.Costco Wholesale Corp. COST operates membership warehouses in the United States, Puerto Rico, Canada, the United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, Iceland, China, and Taiwan. It offers branded and private-label products in a range of merchandise categories.Its growth strategies, better price management, decent membership trend and increasing penetration of e-commerce business reinforce its position. The strategy to sell products at discounted prices has helped to draw customers seeking both value and convenience. These factors have been aiding in registering impressive sales numbers.This Zacks Rank #2 company has an expected earnings growth rate of 7.9% for the current year (ending August 2022). The Zacks Consensus Estimate for current-year earnings has improved 1.1% over the last 30 days. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Danaher Corporation (DHR): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Defense Stock Roundup: LMT Wins Big Order, BA Reveals Solid 10-Year Market View

Over the past five trading sessions, the defense biggies put up a mixed show. While Lockheed and Boeing shares gained, those of General Dynamics and Textron lost. Over the past week, a generous flow of contracts from the Pentagon is likely to have kept major defense contractors buoyant. Moreover, an impressive long-term outlook for the commercial aerospace market released by the aircraft giant, Boeing, must have also added impetus to the aerospace-defense industry’s growth.Consequently, major defense stock indices ended in the green in the trailing five trading sessions. The S&P 500 Aerospace & Defense (Industry) index inched up 1%, while the Dow Jones U.S. Aerospace & Defense index rose 1.2% in the aforementioned time period.Among the past week’s highlights, defense majors namely Lockheed Martin LMT, Raytheon Technologies RTX, Boeing BA, and Curtiss-Wright CW secured a number of notable deals from the Department of Defense’s daily funding session. Moreover, Boeing announced an encouraging outlook for global as well as European aviation industries.Recap of Past Week’s Important Stories1.    Lockheed Martin clinched annualized contracts for fiscal years 2021-2023, involving the sustainment of its global F-35 fleet, from the F-35 Joint Program Office. Successful completion of these contracts will result in further reduction in overall operations and support costs for the F-35 program.Per Reuters, these contracts are valued at a huge $6.6 billion. Per the terms, Lockheed will support operations and sustainment of its global F-35 fleet.  The contract also requires the company to build enterprise capacity for supporting the future fleet of more than 3,000 F-35 jets (read more: Lockheed Wins $6.6B Deal for Sustainment of F-35 Jets).2.    Boeing won a contract worth $1.62 billion involving the Minuteman III Intercontinental Ballistic Missile (ICBM). The Air Force Nuclear Weapons Center, Hill Air Force Base, UT has awarded the agreement. The contract is projected to be completed by Sep 27, 2039. Per the terms, Boeing will conduct repair of the ICBM guidance set.Work related to this deal will be carried out in Newark, OH (read more: Boeing Wins $1.6B Deal to Repair Minuteman III ICBM).In its latest long-term outlook for the global aircraft market, Boeing projects opportunities worth $9 trillion over the next decade. This reflects a solid 5.9% improvement over the prior long-term outlook made by America’s largest jet maker in 2020.  Boeing forecasts global demand for new commercial planes to reach 19,000 by 2030, indicating an improvement of 3.5% from 2020’s figure. Market opportunities for commercial jets are now projected to be worth $3.2 billion over the next decade, which reflects a solid 10.3% hike over the prior 10-year forecast. Through 2040, Boeing projects commercial jet demand to be more than 43,500 new airplanes, reflecting an increase of about 500 planes from last year's forecast (read more: Boeing Upgrades Long-Term Jet Market Outlook: Stocks to Gain).Boeing also revealed its outlook for the European aviation market. Per this report, 3.1% growth is forecast for annual air passenger traffic in Europe through 2040.Per the recent report, European airlines are estimated to acquire more than 8,705 new jets valued at approximately $1.5 trillion over the next 20 years. This implies an improvement of 36.4% over $1.1 trillion worth 20-year market opportunities forecast earlier by Boeing (read more: Jet Stocks to Gain as Boeing Expects Rise in Europe Air Traffic).3.    Raytheon’s business segment, Collins Aerospace, secured a modification contract worth $294 million, under which it will procure 8,085 AN/ARC-210(v) radios. The Naval Air Warfare Center Aircraft Division, Patuxent River, MD has awarded the agreement.The contract is projected to be completed in September 2024. Per the terms, the aforementioned radios will be installed in more than 400 strategic and tactical airborne, seaborne, and land-based (mobile and fixed) platforms (read more: Raytheon Wins $294M Deal for Communications Radios).The company also won a modification contract worth $140 million for supplying 36 AN/APG-79(V)4 radar systems to support radar integration into the C/F-18A aircraft. The Naval Air Systems Command, Patuxent River, MD awarded this agreement.The contract is expected to be completed in March 2024 and will serve the government of Canada. The majority of  the work related to this deal will be executed in Forest, MS, and El Segundo, CA (read more: Raytheon Wins $140M Deal to Supply AN/APG-79 Radars).4.    Curtiss-Wright secured a $100-million contract from Bechtel Plant Machinery, Inc. to supply pumps for the U.S. Navy’s Virginia-class submarine, Columbia-class submarine, and Ford-class aircraft carrier programs. The company will be performing this contracted work at its Cheswick, PA facility (read more: Curtiss-Wright Gets Naval Order to Support U.S. Defense).PerformanceOver the past five trading sessions, the defense biggies put up a mixed show. While Lockheed, Boeing gained, General Dynamics and Textron’s shares lost.In the last six months, the industry's performance was mostly impressive, except that for Lockheed and Boeing. Textron TXT gained the most with a 24.5% surge in share price, followed by L3Harris Technologies.The following table shows the price movement of the major defense players over the past five trading days and during the last six months.CompanyPast WeekLast 6 MonthsLMT0.24%-4.45%BA1.29%-17.00%GD-2.38%9.74%RTX0.47%8.05%NOC-2.03%10.92%TXT-1.14%24.49%LHX-2.61%12.47%      More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Lockheed Martin Corporation (LMT): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report CurtissWright Corporation (CW): Free Stock Analysis Report Raytheon Technologies Corporation (RTX): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Stock Market News for Sep 23, 2021

Wall Street closed sharply higher on Wednesday ending a four-day losing streak. Wall Street closed sharply higher on Wednesday following Fed Chairman Jerome Powell’s confirmation that a shift from the central bank’s ultra-dovish monetary policy is not immediate. Moreover, problems related to the beleaguered Chinese property developer Evergrande eased to some extent. All three major stock indexes ended in positive territory.How Did The Benchmarks Perform?The Dow Jones Industrial Average (DJI) advanced 1% or 338.48 points to close at 34,258.32. Notably, 25 components of the 30-stock index ended in the green while 5 in red. This was the blue-chip index’s best single-day performance in two months. Moreover, the tech-heavy Nasdaq Composite finished at 14,896.85, rising 1% or 150.45 points due to strong performance by large-cap technology stocks.Meanwhile, the S&P 500 climbed 1% to end at 4,395.64, marking its best single-day performance since Jul 23. The Energy Select Sector SPDR (XLE), the Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector (SPDR) and the Materials Select Sector SPDR (XLB) jumped 3.1%, 1.7%, 1.4%, 1.4% and 1%, respectively. Nine out of eleven sectors of the benchmark index closed in positive territory while two ended in red.The fear-gauge CBOE Volatility Index (VIX) dropped 14.3% to 20.87. A total of 9.91 billion shares were traded on Wednesday, lower than the last 20-session average of 9. 99 billion. Advancers outnumbered decliners on the NYSE by a 3.88-to-1 ratio. On Nasdaq, a 2.38-to-1 ratio favored advancing issues.Fed Gives Tapering Signal But No TimelineThe Fed will maintain its monetary stimulus and will stick to a near-zero short-term benchmark interest rate at least for the time being. In his statement after the conclusion of the two-day FOMC meeting, Fed Chairman Jerome Powell said “If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted.”Powell made the point that it is “more important to do it right than fast.” “While no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate,” he said.Powell said that the central bank’s further progress test has been met regarding its inflation target. He further added “My own view is the test for substantial further progress on employment is all but met.” However, Powell made it clear “For me it wouldn’t take a knockout, great, super strong employment report. It would take a reasonably good employment report for me to feel like that test is met.”Fed’s latest dot plot for rate projection is showing nine out 18 members believe that the first-rate cut will come in the second half of 2022. This number was just seven after June’s FOMC meeting.Although the Fed restrained from providing any timeline when the tapering of the monthly $120 billion bond-buy program will start, many economists and financial researchers believe that the announcement will come in the next FOMC meeting in November and the process will start from December.Evergrande Crisis EasesFinancial problems related to the Chinese property developer behemoth Evergrande eased to some extent. On Sep 22, Hengda Real Estate Group, a unit of the company, pledged to make an on-time interest payment on Sep 23 on a mainland-traded bond denominated in yuan. Moreover, China’s central bank reportedly injected liquidity in the economy and considering potential restructuring of Evergrande.Consequently, commodity prices, especially the crude-oil prices have jumped. Shares of Devon Energy Corp. DVN and APA Corp. APA climbed 6.8% and 7.2%, respectively. Both stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Economic DataThe National Association of Realtors reported that existing home sales fell 2% in August to a seasonally adjusted annualized rate of 5.88 million units. The consensus estimate was 5.87 million units. July’s sales were revised upward to 6 million units from 5.99 million units reported earlier. Year over year, existing home sales dropped 1.5%, marking its first decline in 14 months.The Energy Information Administration reported that the U.S. crude oil inventories fell 3.5 million barrels for the week ended Sep 17. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report APA Corporation (APA): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Jobless Claims Numbers Disappoint, Bounce Off Lows

Initial claims of 351K were a big increase from the 320K expected, as well as the upwardly revised 335K reported for the previous week. Thursday, September 23, 2021Markets are up again, buying the dip that still exists from Monday’s trading activity. Currently, the Dow is +240 points, the S&P 500 +25 and the tech-heavy Nasdaq +82 points. Losses yesterday were basically cut in half from the -2% sell-off we saw at the start of the week. Dare we expect we finish the week in the green after such an awful start? In any case, that -5% pruning on the major indexes looks to have been evaded yet again in 2021.Initial Jobless Claims came in notably higher than expectations: 351K was a big increase from the 320K expected, as well as the upwardly revised 335K reported for the previous week. This is the second-straight month of higher new jobless claims; we are back to levels not seen since mid-August. (The week of Labor Day — a shortened week — looks to have provided our cycle low at 312K.)Continuing Claims also bounced northward, although this metric still looks down from last week’s report: 2.845 million is a tad lower than last week’s 2.85 million originally reported. The previous week’s downwardly revised 2.714 million is currently our post-Covid low (if we can yet call it “post-Covid”; the Delta variant continues to assert itself in certain regions of our labor force), but today’s estimate on longer-term jobless claims had been for a new low 2.65 million.We won’t see our next monthly jobs reports until two weeks from now, even though a week from tomorrow is October 1st. Much rests on the Employment Situation in terms of the direction our economy faces, which in turn directly affects the stock market. But coming off a quite disappointing August employment figure and now with weekly jobless claims bouncing off lows, we’ll continue to keep a close eye on labor forcer developments.After the market opens for regular session trading today, we’ll see September’s Markit PMI prints for both Manufacturing and Services. Manufacturing is expected to take a small step forward — 61.7 estimated versus 61.1 reported the previous month — while Services are anticipated at 54.9, down a half-point from August’s 55.1. In either case, a 50-level is the balance between growth and contraction, so we’re well above that level.Pre-market indexes have slipped from where they were ahead of new jobless claims numbers, but are still comfortably positive a half-hour prior to the opening bell. The Dow has slipped to +225 points, the S&P +20 the Nasdaq +35. Perhaps these numbers will slide further and take another steps down after yesterday’s bargain shopping. But for now, even our “disappointing” report headlines are still pretty strong, historically speaking.Questions or comments about this article and/or its author? Click here>> More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco QQQ (QQQ): ETF Research Reports SPDR S&P 500 ETF (SPY): ETF Research Reports SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports To read this article on Zacks.com click here......»»

Category: topSource: zacks1 hr. 24 min. ago Related News

4 Sector ETFs Gaining Double Digits Amid September Selling

We have highlighted four that have gained in double-digits over the past month and could be compelling picks in the weeks ahead even if September selling continues. With only a few trading days left, September, known for being a weak month for stock markets, has turned out to be brutal given a myriad of woes. These include concerns over accelerating coronavirus infections, renewed inflation fears, signs of a slowdown in China, potential for high corporate tax rates and Fed’s tapering worries.Concerns over the financial contagion of the potential failure of China’s Evergrande property group and the ongoing debates over the debt limit in Washington also made investors’ jittery early this week. But these worries seemed to ease with the China Evergrande deal on some of its looming debt payments as well as the House passing a bill to avert government shutdown.Notably, the S&P 500 Index logged in its worst day on Sep 20 since May 12 after three consecutive weekly declines. Every sector in the index is on track to end the month in negative territory for the first time since March 2020. Meanwhile, the five biggest tech titans — including Microsoft MSFT, Google-owner Alphabet GOOGL, Amazon.com AMZN, Apple AAPL, and Facebook FB collectively shed more than $500 billion since the Nasdaq 100 peaked on Sep 7 (read: September's Weak History Turning True: 5 ETF Buying Zones).The S&P 500 has dropped 3.7% so far in September, dragged down by a 7.2% decline in the materials sector. If the loss persists for the remaining trading days of the month, it will be the index’s first monthly decline since January.In such a scenario, a few sector ETFs are still trading in green. We have highlighted four that have gained in double-digits over the past month and could be compelling picks in the weeks ahead even if September selling continues.North Shore Global Uranium Mining ETF URNM – Up 44.9%Uranium stocks have been on a tear buoyed by growing social media attention, restart of nuclear reactors in Japan after 10 years and the growing uranium supply deficit, being accelerated by COVID-19 pandemic related production cuts (read: Why Uranium Stocks & ETFs are Going Nuclear).This ETF provides exposure to companies that are involved in the mining, exploration, development and production of uranium, as well as companies that hold physical uranium or other non-mining assets. It follows the North Shore Global Uranium Mining Index and charges investors 85 bps in annual fee. The ETF holds 35 stocks in its basket with a heavy concentration on the top two firms accounting for a combined 27.3% share while other make up for no more than 9.7% share. It has accumulated $780.1 million in its asset base and trades in a good volume of 298,000 shares per day on average.SonicShares Global Shipping ETF BOAT – Up 12.2%The global shipping industry is enjoying a smooth sailing due to supply chain disruptions around the world caused by the pandemic. Port congestion and delays are the primary drivers as the pandemic has halted the movement of ships and will continue to do so at least in the near term.BOAT provides pure-play exposure to the global maritime shipping industry by tracking the Solactive Global Shipping Index. The index consists of global shipping companies engaged in the maritime transportation of goods and raw materials, including consumer and industrial products, vehicles, dry bulk, crude oil and liquefied natural gas. The product holds 53 stocks in its basket with heavy concentration on the top two firms at 10% share each. It has amassed $10.1 million in its asset base since its inception last month and charges 69 bps in annual fees. The fund trades in average daily volume of 17,000 shares (read: What's Behind the Smooth Sailing of the Top ETF of 2021?).Invesco DWA Energy Momentum ETF PXI – Up 11.5%The energy sector has gained momentum on oil price surge driven by tightening supply and expectations of an increase in demand as vaccination roll-outs widen. While many of the energy ETFs have been rising, PXI is the biggest beneficiary. This fund tracks the Dorsey Wright Energy Technical Leaders Index, which is designed to identify companies that are showing relative strength (momentum). It charges 60 bps in annual fees and trades in a good volume of 139,000 shares a day on average. The fund has 36 stocks in its basket with each making up for less than 4.8% of assets and AUM of $64.1 million. It has a Zacks ETF Rank #3 (Hold) with a High risk outlook.Simplify Volt Fintech Disruption ETF VFIN – Up 10.1%Digitalization has been powering this niche ETF. It seeks to offer exposure to the most disruptive fintech companies that are on the forefront of cashless payments. It aims to invest close to 25% across Square (SQ) stock and Square call options while targeting 25% in Lemonade (LMND) stock and Lemonade call options. A modest put option overlay is designed to help mitigate sharp market crashes. The product has accumulated $2.7 million since its inception in late December and charges 0.95% in annual fees. It trades in an average daily volume of 2,000 shares. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco DWA Energy Momentum ETF (PXI): ETF Research Reports North Shore Global Uranium Mining ETF (URNM): ETF Research Reports Simplify Volt Fintech Disruption ETF (VFIN): ETF Research Reports SonicShares Global Shipping ETF (BOAT): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Initial Claims Rise Unexpectedly Last Week

Initial Claims Rise Unexpectedly Last Week. Markets are up again, buying the dip that still exists from Monday’s trading activity. Currently, the Dow is +240 points, the S&P 500 +25 and the tech-heavy Nasdaq +82 points. Losses yesterday were basically cut in half from the -2% sell-off we saw at the start of the week. Dare we expect we finish the week in the green after such an awful start? In any case, that -5% pruning on the major indexes looks to have been evaded yet again in 2021.Initial Jobless Claims came in notably higher than expectations: 351K was a big increase from the 320K expected, as well as the upwardly revised 335K reported for the previous week. This is the second-straight month of higher new jobless claims; we are back to levels not seen since mid-August. (The week of Labor Day — a shortened week — looks to have provided our cycle low at 312K.)Continuing Claims also bounced northward, although this metric still looks down from last week’s report: 2.845 million is a tad lower than last week’s 2.85 million originally reported. The previous week’s downwardly revised 2.714 million is currently our post-Covid low (if we can yet call it “post-Covid”; the Delta variant continues to assert itself in certain regions of our labor force), but today’s estimate on longer-term jobless claims had been for a new low 2.65 million.We won’t see our next monthly jobs reports until two weeks from now, even though a week from tomorrow is October 1st. Much rests on the Employment Situation in terms of the direction our economy faces, which in turn directly affects the stock market. But coming off a quite disappointing August employment figure and now with weekly jobless claims bouncing off lows, we’ll continue to keep a close eye on labor forcer developments.After the market opens for regular session trading today, we’ll see September’s Markit PMI prints for both Manufacturing and Services. Manufacturing is expected to take a small step forward — 61.7 estimated versus 61.1 reported the previous month — while Services are anticipated at 54.9, down a half-point from August’s 55.1. In either case, a 50-level is the balance between growth and contraction, so we’re well above that level.Pre-market indexes have slipped from where they were ahead of new jobless claims numbers, but are still comfortably positive a half-hour prior to the opening bell. The Dow has slipped to +225 points, the S&P +20 the Nasdaq +35. Perhaps these numbers will slide further and take another steps down after yesterday’s bargain shopping. But for now, even our “disappointing” report headlines are still pretty strong, historically speaking. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks1 hr. 24 min. ago Related News

Futures Rise On Taper, Evergrande Optimism

Futures Rise On Taper, Evergrande Optimism US index futures jumped overnight even as the Fed confirmed that a November tapering was now guaranteed and would be completed by mid-2022 with one rate hike now on deck, while maintaining the possibility to extend stimulus if necessitated by the economy. Sentiment got an additional boost from a strong showing of Evergrande stock - which closed up 17% - during the Chinese session, which peaked just after Bloomberg reported that China told Evergrande to avoid a near-term dollar bond default and which suggested that the "government wants to avoid an imminent collapse of the developer" however that quickly reversed when the WSJ reported, just one hour later, that China was making preparations for Evergrande's demise, and although that hammered stocks, the report explicitly noted that a worst-case scenario for Evergrande would mean a partial or full nationalization as "local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion." In other words, both reports are bullish: either foreign creditors are made whole (no default) as per BBG or the situation deteriorates and Evergrande is nationalized ("SOEs step in") as per WSJ. According to Bloomberg, confidence is building that markets can ride out a pullback in Fed stimulus, unlike 2013 when the taper tantrum triggered large losses in bonds and equities. "Investors are betting that the economic and profit recovery will be strong enough to outweigh a reduction in asset purchases, while ultra-low rates will continue to support riskier assets even as concerns linger about contagion from China’s real-estate woes." That's one view: the other is that the Fed has so broken the market's discounting ability we won't know just how bad tapering will get until it actually begins. “The Fed has got to be pleased that their communication on the longer way to tapering has avoided the dreaded fear of the tantrum,” Jeffrey Rosenberg, senior portfolio manager for systematic fixed income at BlackRock Inc., said on Bloomberg Television. “This is a very good outcome for the Fed in terms of signaling their intent to give the market information well ahead of the tapering decision.” Then there is the question of Evergrande: “With regards to Evergrande, all those people who are waiting for a Lehman moment in China will probably have to wait another turn,” said Ken Peng, an investment strategist at Citi Private Bank Asia Pacific. “So I wouldn’t treat this as completely bad, but there are definitely a lot of risks on the horizon.” In any case, today's action is a continuation of the best day in two months for both the Dow and the S&P which staged a strong recovery from two-month lows hit earlier in the week, and as of 745am ET, S&P 500 E-minis were up 25.25 points, or 0.6%, Dow E-minis were up 202 points, or 0.59%, while Nasdaq 100 E-minis were up 92.0 points, or 0.60%. In the premarket, electric vehicle startup Lucid Group rose 3.1% in U.S. premarket trading. PAVmed (PVM US) jumps 11% after its Lucid Diagnostics unit announced plans to list on the Global Market of the Nasdaq Stock Market.  Here are some of the biggest movers today: U.S.-listed Chinese stocks rise in premarket trading as fears of contagion from China Evergrande Group’s debt crisis ease. Blackberry (BB US) shares rise 8.7% in premarket after co.’s 2Q adjusted revenue beat the average of analysts’ estimates Eargo (EAR US) falls 57% in Thursday premarket after the hearing aid company revealed it was the target of a Justice Department criminal probe and withdrew its forecasts for the year Amplitude Healthcare Acquisition (AMHC US) doubled in U.S. premarket trading after the SPAC’s shareholders approved the previously announced business combination with Jasper Therapeutics Steelcase (SCS US) fell 4.8% Wednesday postmarket after the office products company reported revenue for the second quarter that missed the average analyst estimate Vertex Energy Inc. (VTNR US) gained 2.1% premarket after saying the planned acquisition of a refinery in Mobile, Alabama from Royal DutVTNR US Equitych Shell Plc is on schedule Synlogic (SYBX US) shares declined 9.7% premarket after it launched a stock offering launched without disclosing a size HB Fuller (FUL US) climbed 2.7% in postmarket trading after third quarter sales beat even the highest analyst estimate Europe's Stoxx 600 index rose 0.9%, lifted by carmakers, tech stocks and utilities, which helped it recover losses sparked earlier in the week by concerns about Evergrande and China’s crackdown on its property sector. The gauge held its gain after surveys of purchasing managers showed business activity in the euro area lost momentum and slowed broadly in September after demand peaked over the summer and supply-chain bottlenecks hurt services and manufacturers. Euro Area Composite PMI (September, Flash): 56.1, consensus 58.5, last 59.0. Euro Area Manufacturing PMI (September, Flash): 58.7, consensus 60.3, last 61.4. Euro Area Services PMI (September, Flash): 56.3, consensus 58.5, last 59.0. Germany Composite PMI (September, Flash): 55.3, consensus 59.2, last 60.0. France Composite PMI (September, Flash): 55.1, consensus 55.7, last 55.9. UK Composite PMI (September, Flash): 54.1, consensus 54.6, last 54.8. Commenting on Europe's PMIs, Goldman said that the Euro area composite PMI declined by 2.9pt to 56.1 in September, well below consensus expectations. The softening was broad-based across countries but primarily led by Germany. The peripheral composite flash PMI also weakened significantly in September but remain very high by historical standards (-2.4pt to 57.5). Across sectors, the September composite decline was also broad-based, with manufacturing output softening (-3.3pt to 55.6) to a similar extent as services (-2.7pt to 56.3). Supply-side issues and upward cost and price pressures continued to be widely reported. Expectations of future output growth declined by less than spot output on the back of delta variant worries and supply issues, remaining far above historically average levels. Earlier in the session, Asian stocks rose for the first time in four sessions, as Hong Kong helped lead a rally on hopes that troubled property firm China Evergrande Group will make progress on debt repayment. The MSCI Asia Pacific Index climbed as much as 0.5%, with Tencent and Meituan providing the biggest boosts. The Hang Seng jumped as much as 2.5%, led by real estate stocks as Evergrande surged more than 30%. Hong Kong shares later pared their gains. Asian markets were also cheered by gains in U.S. stocks overnight even as the Federal Reserve said it may begin scaling back stimulus this year. A $17 billion net liquidity injection from the People’s Bank of China also provided a lift, while the Fed and Bank of Japan downplayed Evergrande risks in comments accompanying policy decisions Wednesday. Evergrande’s stock closed 18% higher in Hong Kong, in a delayed reaction to news a unit of the developer had negotiated interest payments on yuan notes. A coupon payment on its 2022 dollar bond is due on Thursday “Investors are perhaps reassessing the tail risk of a disorderly fallout from Evergrande’s credit issues,” said Chetan Seth, a strategist at Nomura. “However, I am not sure if the fundamental issue around its sustainable deleveraging has been addressed. I suspect markets will likely remain quite volatile until we have some definite direction from authorities on the eventual resolution of Evergrande’s debt problems.” Stocks rose in most markets, with Australia, Taiwan, Singapore and India also among the day’s big winners. South Korea’s benchmark was the lone decliner, while Japan was closed for a holiday In rates, Treasuries were off session lows, with the 10Y trading a 1.34%, but remained under pressure in early U.S. session led by intermediate sectors, where 5Y yield touched highest since July 2. Wednesday’s dramatic yield-curve flattening move unleashed by Fed communications continued, compressing 5s30s spread to 93.8bp, lowest since May 2020. UK 10-year yield climbed 3.4bp to session high 0.833% following BOE rate decision (7-2 vote to keep bond-buying target unchanged); bunds outperformed slightly. Peripheral spreads tighten with long-end Italy outperforming. In FX, the Bloomberg Dollar Spot Index reversed an earlier gain and dropped 0.3% as the dollar weakened against all of its Group-of-10 peers apart from the yen amid a more positive sentiment. CAD, NOK and SEK are the strongest performers in G-10, JPY the laggard.  The euro and the pound briefly pared gains after weaker-than-forecast German and British PMIs. The pound rebounded from an eight-month low amid a return of global risk appetite as investors assessed whether the Bank of England will follow the Federal Reserve’s hawkish tone later Thursday. The yield differential between 10-year German and Italian debt narrowed to its tightest since April. Norway’s krone advanced after Norges Bank raised its policy rate in line with expectations and signaled a faster pace of tightening over the coming years. The franc whipsawed as the Swiss National Bank kept its policy rate and deposit rate at record lows, as expected, and reiterated its pledge to wage currency market interventions. The yen fell as a unit of China Evergrande said it had reached an agreement with bond holders over an interest payment, reducing demand for haven assets. Turkey’s lira slumped toa record low against the dollar after the central bank unexpectedly cut interest rates. In commodities, crude futures drifted lower after a rangebound Asia session. WTI was 0.25% lower, trading near $72; Brent dips into the red, so far holding above $76. Spot gold adds $3.5, gentle reversing Asia’s losses to trade near $1,771/oz. Base metals are well bid with LME aluminum leading gains. Bitcoin steadied just below $44,000. Looking at the day ahead, we get the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Market Snapshot S&P 500 futures up 0.7% to 4,413.75 STOXX Europe 600 up 1.1% to 468.32 MXAP up 0.5% to 200.57 MXAPJ up 0.9% to 645.76 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 1.2% to 24,510.98 Shanghai Composite up 0.4% to 3,642.22 Sensex up 1.4% to 59,728.37 Australia S&P/ASX 200 up 1.0% to 7,370.22 Kospi down 0.4% to 3,127.58 German 10Y yield fell 5.6 bps to -0.306% Euro up 0.4% to $1.1728 Brent Futures up 0.3% to $76.39/bbl Gold spot up 0.0% to $1,768.25 U.S. Dollar Index down 0.33% to 93.16 Top Overnight News from Bloomberg Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, telling the embattled developer to focus on completing unfinished properties and repaying individual investors while avoiding a near-term default on dollar bonds China’s central bank net-injected the most short- term liquidity in eight months into the financial system, with markets roiled by concerns over China Evergrande Group’s debt crisis Europe’s worst energy crisis in decades could drag deep into the cold months as Russia is unlikely to boost shipments until at least November Business activity in the euro area “markedly” lost momentum in September after demand peaked over the summer and supply chain bottlenecks hurt both services and manufacturers. Surveys of purchasing managers by IHS Markit showed growth in both sectors slowing more than expected, bringing overall activity to a five-month low. Input costs, meanwhile, surged to the highest in 21 years, according to the report The U.K. private sector had its weakest month since the height of the winter lockdown and inflation pressures escalated in September, adding to evidence that the recovery is running into significant headwinds, IHS Markit said The U.K.’s record- breaking debut green bond sale has given debt chief Robert Stheeman conviction on the benefits of an environmental borrowing program. The 10 billion-pound ($13.7 billion) deal this week was the biggest-ever ethical bond sale and the country is already planning another offering next month A more detailed look at global markets courtesy of Newsquaw Asian equity markets traded mostly positive as the region took its cue from the gains in US with the improved global sentiment spurred by some easing of Evergrande concerns and with stocks also unfazed by the marginally more hawkish than anticipated FOMC announcement (detailed above). ASX 200 (+1.0%) was underpinned by outperformance in the commodity-related sectors and strength in defensives, which have more than atoned for the losses in tech and financials, as well as helped markets overlook the record daily COVID-19 infections in Victoria state. Hang Seng (+0.7%) and Shanghai Comp. (+0.6%) were also positive after another respectable liquidity operation by the PBoC and with some relief in Evergrande shares which saw early gains of more than 30% after recent reports suggested a potential restructuring by China’s government and with the Co. Chairman noting that the top priority is to help wealth investors redeem their products, although the majority of the Evergrande gains were then pared and unit China Evergrande New Energy Vehicle fully retraced the initial double-digit advances. KOSPI (-0.5%) was the laggard as it played catch up to the recent losses on its first trading day of the week and amid concerns that COVID cases could surge following the holiday period, while Japanese markets were closed in observance of the Autumnal Equinox Day. China Pumps $17 Billion Into System Amid Evergrande Concerns China Stocks From Property to Tech Jump on Evergrande Respite Philippines Holds Key Rate to Spur Growth Amid Higher Prices Taiwan’s Trade Deal Application Sets Up Showdown With China Top Asian News European equities (Stoxx 600 +0.9%) trade on the front-foot and have extended gains since the cash open with the Stoxx 600 now higher on the week after Monday’s heavy losses. From a macro perspective, price action in Europe has been undeterred by a slowdown in Eurozone PMIs which saw the composite metric slip to 56.1 from 59.0 (exp. 58.5) with IHS Markit noting “an unwelcome combination of sharply slower economic growth and steeply rising prices.” Instead, stocks in the region have taken the cue from a firmer US and Asia-Pac handover with performance in Chinese markets aided by further liquidity injections by the PBoC. Some positivity has also been observed on the Evergrande front amid mounting expectations of a potential restructuring at the company. That said, at the time of writing, it remains unclear what the company’s intentions are for repaying its USD 83.5mln onshore coupon payment. Note, ING highlights that “missing that payment today would still leave a 30-day grace period before this is registered as a default”. The most recent reports via WSJ indicate that Chinese authorities are asking local governments to begin preparations for the potential downfall of Evergrande; however, the article highlights that this is a last resort and Beijing is reluctant to step in. Nonetheless, this article has taken the shine off the mornings risk appetite, though we do remain firmer on the session. Stateside, as the dust settles on yesterday’s FOMC announcement, futures are firmer with outperformance in the RTY (+0.8% vs. ES +0.7%). Sectors in Europe are higher across the board with outperformance in Tech and Autos with the latter aided by gains in Faurecia (+4.6%) who sit at the top of the Stoxx 600 after making an unsurprising cut to its guidance, which will at least provide some clarity on the Co.’s near-term future; in sympathy, Valeo (+6.6) is also a notable gainer in the region. To the downside, Entain (+2.6%) sit at the foot of the Stoxx 600 after recent strong gains with the latest newsflow surrounding the Co. noting that MGM Resorts is considering different methods to acquire control of the BetMGM online gambling business JV, following the DraftKings offer for Entain, according to sources. The agreement between Entain and MGM gives MGM the ability to block any deal with competing businesses; MGM officials believe this grants the leverage to take full control of BetMGM without spending much. Top European News BOE Confronts Rising Prices, Slower Growth: Decision Guide La Banque Postale Eyes Retail, Asset Management M&A in Europe Activist Bluebell Raises Pressure on Glaxo CEO Walmsley Norway Delivers Rate Lift-Off With Next Hike Set for December In FX, not much bang for the Buck even though the FOMC matched the most hawkish market expectations and Fed chair Powell arguably went further by concluding in the post-meeting press conference that substantial progress on the lagging labour front is all but done. Hence, assuming the economy remains on course, tapering could start as soon as November and be completed my the middle of 2022, though he continued to play down tightening prospects irrespective of the more hawkish trajectory implied by the latest SEP dot plots that are now skewed towards at least one hike next year and a cumulative seven over the forecast horizon. However, the Greenback only managed to grind out marginally higher highs overnight, with the index reaching 93.526 vs 93.517 at best yesterday before retreating quite sharply and quickly to 93.138 in advance of jobless claims and Markit’s flash PMIs. CAD/NZD/AUD - The Loonie is leading the comeback charge in major circles and only partially assisted by WTI keeping a firm bid mostly beyond Usd 72/brl, and Usd/Cad may remain contained within 1.2796-50 ahead of Canadian retail sales given decent option expiry interest nearby and protecting the downside (1 bn between 1.2650-65 and 2.7 bn from 1.2620-00). Meanwhile, the Kiwi has secured a firmer grip on the 0.7000 handle to test 0.7050 pre-NZ trade and the Aussie is looking much more comfortable beyond 0.7250 amidst signs of improvement in the flash PMIs, albeit with the services and composite headline indices still some way short of the 50.0 mark. NOK/GBP/EUR/CHF - All firmer, and the Norwegian Crown outperforming following confirmation of the start of rate normalisation by the Norges Bank that also underscored another 25 bp hike in December and further tightening via a loftier rate path. Eur/Nok encountered some support around 10.1000 for a while, but is now below, while the Pound has rebounded against the Dollar and Euro in the run up to the BoE at midday. Cable is back up around 1.3770 and Eur/Gbp circa 0.8580 as Eur/Usd hovers in the low 1.1700 area eyeing multiple and a couple of huge option expiries (at the 1.1700 strike in 4.1 bn, 1.1730 in 1 bn, 1.1745-55 totalling 2.7 bn and 1.8 bn from 1.1790-1.1800). Note, Eurozone and UK flash PMIs did not live up to their name, but hardly impacted. Elsewhere, the Franc is lagging either side of 0.9250 vs the Buck and 1.0835 against the Euro on the back of a dovish SNB Quarterly Review that retained a high Chf valuation and necessity to maintain NIRP, with only minor change in the ordering of the language surrounding intervention. JPY - The Yen is struggling to keep its head afloat of 110.00 vs the Greenback as Treasury yields rebound and risk sentiment remains bullish pre-Japanese CPI and in thinner trading conditions due to the Autumn Equinox holiday. In commodities, WTI and Brent have been choppy throughout the morning in-spite of the broadly constructive risk appetite. Benchmarks spent much of the morning in proximity to the unchanged mark but the most recent Evergrande developments, via WSJ, have dampened sentiment and sent WTI and Brent back into negative territory for the session and printing incremental fresh lows at the time of publication. Back to crude, newsflow has once again centred around energy ministry commentary with Iraq making clear that oil exports will continue to increase. Elsewhere, gas remains at the forefront of focus particularly in the UK/Europe but developments today have been somewhat incremental. On the subject, Citi writes that Asia and Europe Nat. Gas prices could reach USD 100/MMBtu of USD 580/BOE in the winter, under their tail-risk scenario. For metals, its very much a case of more of the same with base-metals supportive, albeit off-best given Evergrande, after a robust APAC session post-FOMC. Given the gas issues, desks highlight that some companies are being forced to suspend/reduce production of items such as steel in Asian/European markets, a narrative that could become pertinent for broader prices if the situation continues. Elsewhere, spot gold and silver are both modestly firmer but remain well within the range of yesterday’s session and are yet to recovery from the pressure seen in wake of the FOMC. US Event Calendar 8:30am: Sept. Initial Jobless Claims, est. 320,000, prior 332,000; Continuing Claims, est. 2.6m, prior 2.67m 8:30am: Aug. Chicago Fed Nat Activity Index, est. 0.50, prior 0.53 9:45am: Sept. Markit US Composite PMI, prior 55.4 9:45am: Sept. Markit US Services PMI, est. 54.9, prior 55.1 9:45am: Sept. Markit US Manufacturing PMI, est. 61.0, prior 61.1 11am: Sept. Kansas City Fed Manf. Activity, est. 25, prior 29 12pm: 2Q US Household Change in Net Wor, prior $5t DB's Jim Reid concludes the overnight wrap My wife was at a parents event at school last night so I had to read three lots of bedtime stories just as the Fed were announcing their policy decision. Peppa Pig, Biff and Kipper, and somebody called Wonder Kid were interspersed with Powell’s press conference live on my phone. It’s fair to say the kids weren’t that impressed by the dot plot and just wanted to join them up. The twins (just turned 4) got their first reading book homework this week and it was a bit sad that one of them was deemed ready to have one with words whereas the other one only pictures. The latter was very upset and cried that his brother had words and he didn’t. That should create even more competitive tension! Back to the dots and yesterday’s Fed meeting was on the hawkish side in terms of the dots and also in terms of Powell’s confidence that the taper could be complete by mid-2022. Powell said that the Fed could begin tapering bond purchases as soon as the November FOMC meeting, in line with our US economists’ forecasts. He left some room for uncertainty, saying they would taper only “If the economy continues to progress broadly in line with expectations, and also the overall situation is appropriate for this.” However he made clear that “the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.” The quarterly “dot plot” showed that the 18 FOMC officials were split on whether to start raising rates next year or not. In June, the median dot indicated no rate increases until 2023, but now 6 members see a 25bps raise next year and 3 members see two such hikes. Their inflation forecasts were also revised up and DB’s Matt Luzzetti writes in his FOMC review (link here) that “If inflation is at or below the Fed's current forecast next year of 2.3% core PCE, liftoff is likely to come in 2023, consistent with our view. However, if inflation proves to be higher with inflation expectations continuing to rise, the first rate increase could well migrate into 2022.” Markets took the overall meeting very much in its stride with the biggest impact probably being a yield curve flattening even if US 10yr Treasury yields traded in just over a 4bp range yesterday and finishing -2.2bps lower at 1.301%. The 5y30y curve flattened -6.7bps to 95.6bps, its flattest level since August 2020, while the 2y10y curve was -4.2bps flatter. So the market seems to believe the more hawkish the Fed gets the more likely they’ll control inflation and/or choke the recovery. The puzzle is that even if the dots are correct, real Fed funds should still be negative and very accommodative historically for all of the forecasting period. As such the market has a very dim view of the ability of the economy to withstand rate hikes or alternatively that the QE technicals are overpowering everything at the moment. In equities, the S&P 500 was up nearly +1.0% 15 minutes prior to the Fed, and then rallied a further 0.5% in the immediate aftermath before a late dip look it back to +0.95%. The late dip meant that the S&P still has not seen a 1% up day since July 23. The index’s rise was driven by cyclicals in particular with energy (+3.17%), semiconductors (-2.20%), and banks (+2.13%) leading the way. Asian markets are mostly trading higher this morning with the Hang Seng (+0.69%), Shanghai Comp (+0.58%), ASX (+1.03%) and India’s Nifty (+0.81%) all up. The Kospi (-0.36%) is trading lower though and is still catching up from the early week holidays. Japan’s markets are closed for a holiday today. Futures on the S&P 500 are up +0.25% while those on the Stoxx 50 are up +0.49%. There is no new news on the Evergrande debt crisis however markets participants are likely to pay attention to whether the group is able to make interest rate payment on its 5 year dollar note today after the group had said yesterday that it resolved a domestic bond coupon by negotiations which was also due today. As we highlighted in our CoTD flash poll conducted earlier this week, market participants are not too worried about a wider fallout from the Evergrande crisis and even the Hang Seng Properties index is up +3.93% this morning and is largely back at the levels before the big Monday sell-off of -6.69%. Overnight we have received flash PMIs for Australia which improved as parts of the country have eased the coronavirus restrictions. The services reading came in at 44.9 (vs. 42.9 last month) and the manufacturing print was even stronger at 57.3 (vs. 52.0 last month). Japan’s flash PMIs will be out tomorrow due to today’s holiday. Ahead of the Fed, markets had continued to rebound from their declines earlier in the week, with Europe’s STOXX 600 gaining +0.99% to narrowly put the index in positive territory for the week. This continues the theme of a relative outperformance among European equities compared to the US, with the STOXX 600 having outpaced the S&P 500 for 5 consecutive sessions now, though obviously by a slim margin yesterday. Sovereign bonds in Europe also posted gains, with yields on 10yr bunds (-0.7bps), OATs (-1.0bps) and BTPs (-3.2bps) all moving lower. Furthermore, there was another tightening in peripheral spreads, with the gap in Italian 10yr yields over bunds falling to 98.8bps yesterday, less than half a basis point away from its tightest level since early April. Moving to fiscal and with Democrats seemingly unable to pass the $3.5 trillion Biden budget plan by Monday, when the House is set to vote on the bipartisan infrastructure bill, Republican leadership is calling on their members to vote against the bipartisan bill in hopes of delaying the process further. While the there is still a high likelihood the measure will eventually get passed, time is becoming a factor. Congress now has just over a week to get a government funding bill through both chambers of congress as well as raise the debt ceiling by next month. Republicans have told Democrats to do the latter in a partisan manner and include it in the reconciliation process which could mean that a significant portion of the Biden economic agenda – mostly encapsulated in the $3.5 trillion over 10 year budget – may have to be cut down to get the entire Democratic caucus on board. Looking ahead, an event to watch out for today will be the Bank of England’s policy decision at 12:00 London time, where our economists write (link here) that they expect no change in the policy settings. However, they do expect a reaffirmation of the BoE’s updated forward guidance that some tightening will be needed over the next few years to keep inflation in check, even if it’s too early to expect a further hawkish pivot at this stage. Staying on the UK, two further energy suppliers (Avro Energy and Green Supplier) ceased trading yesterday amidst the surge in gas prices, with the two supplying 2.9% of domestic customers between them. We have actually seen a modest fall in European natural gas prices over the last couple of days, with the benchmark future down -4.81% since its close on Monday, although it’s worth noting that still leaves them up +75.90% since the start of August alone. There wasn’t much data to speak of yesterday, though US existing home sales fell to an annualised rate of 5.88 in August (vs. 5.89m expected). Separately, the European Commission’s advance consumer confidence reading for the Euro Area unexpectedly rose to -4.0 in September (vs. -5.9 expected). To the day ahead now, the data highlights include the September flash PMIs from around the world, while in the US there’s the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Tyler Durden Thu, 09/23/2021 - 08:13.....»»

Category: blogSource: zerohedge1 hr. 24 min. ago Related News

Nomura Reveals "The Flow To Know" As Markets Reverse From Selling To "Big Rally"

Nomura Reveals 'The Flow To Know' As Markets Reverse From Selling To "Big Rally" In the end, despite a generally unexpected upward shift in the FOMC dots which pushed the median 2022 dot to indicate one rate hike next year (and another 2 each in 2023 and 2024), the outcome was not nearly the "hawkish surprise" that Nomura's Charlie McElligott warned could tip the market sharply lower... or higher (especially since the market believes that the Fed will end its hiking plans well before they are fully executed, giving the Fed just 1% of breathing room). Commenting on the FOMC announcement this morning, the Nomura quant summarized it as a “low surprises” yet still incrementally more "hawkish" Fed: November taper in-line Taper length marginal surprise with goal to end mid-year, but still implies near the “expected” $10B / $5B per month reduction Where a more “hawkish” dot plot is being viewed somewhat skeptically by the market on account of “a lot of hikes in a short period of time” with 6.5 hikes by end ’24, in addition to upcoming voter / non-voter member turnover which muddles dovish / hawkish balances of voters Continued “both sides of mouth” language from Powell, yet again going out of his way to separate the “end of tapering” from the beginning of rate hikes, while noting the policy rate as still accommodative) All-in, McElligott called the announcement a “low surprise” Fed, which cleared us of “event-risk” while avoiding any sort of “(hawkish) Rate Shock,” as 10Y yields continue their chop inside the well-established range "despite obvious impacts on curves of course, as front (Reds) through belly reprices further, while long end / duration rallied and closed at best levels on the day—because ultimately, taking multple steps closer to removing accomodation ultimately means “tighter financial conditions” that will moderate the economy down the road." Indeed, one look at the 10Y year today suggests that the market is finally waking up with the 10Y surging to 1.40%, the first time since July. So with a removal of the primary catalyst for larger rate volatility, the Nomura strategist notes this also "further closes the recent (and awesome) “window for volatility expansion” within the Equities Vol complex, which opened around last week’s Op-Ex cycle turn, and brought with it incredible (and long-awaited) Vol / Stock movement (SPX -4.1% in 3 days hi / lo)." This then takes us back to a point McElligott has made repeatedly in recent days, namely the “conditioned per back-test” appearance of “reflexive vol sellers” in arresting the crescendoing US Equities selloff peaking which were cratering Monday afternoon, which materialized most notably in the form of Put sellers harvesting rich downside Vols into the accelerating drawdown, in addition to funds monetizing their actual downside hedges, both of which Nomura pointed out before created lots of Delta to buy in the process which then rallied the tape off the lows into the closing bounce However, in a notable departure from this downside Vol harvesting and hedge monetization, one small, baby-step positive development observed by Nomura is that the SPX Put Skew has come off that prior 99.9%ile “boil” and inflected  into something at least a touch less extreme, with McElligott now seeing SPX 1m Put Skew @ 96.8%ile / 3m Put Skew @ 96.9%ile, down from near record highs. Additionally, the bank continues to see more profit-taking from “long vol” positions in the VIX ETN space, with the Net (long) Vega position over the past week having decreased by 8.1mm as traders monetized into the Vol spike. Perhaps most notably, we have also witnessed saw the appearance of some rare buyers of equity upside vol yesterday into the rally, when about an hour into yesterday’s US cash session, 3 large SPY Call Spreads traded, creating ~$1 billion of Delta to buy across aggregated hedges: Buyer of 43k SPY Oct 443/452 Call Spreads for $3.89 (463M delta, 670k vega) Buyer of 32k SPY Nov 448/460 Call Spreads for $4.36 (236M delta, 635k vega) Buyer of 26k SPY Dec 31st 448/470 Call Spreads for $7.91 (263M delta, 900k vega) There were several other bullish expressions, including someone taking bullish shots in the "utterly left-for-dead" China, with FXI Jan 42 Calls bought and the sale of 7700 EEM Jan 51 Puts. Yet despite the return of such scattered bullish flows, McElligott notes that there remains much angst in the Vol space (Skew still roofed as downside demand remaining extreme), versus still “pervasive skepticism” towards broad Equities upside index / ETF / sectors / industries (Call Skew still nuked) SPX (Mega-Cap US Eq) 1m Skew 98.8%ile, 3m Skew 99.1%ile; vs no upside love, with 1m Call Skew 0.5%ile, 3m Call Skew 1.3%ile QQQ (Nasdaq / Secular Growth / Tech) 1m Skew 99.0%ile, 3m Skew 96.7%ile; while 1m Call Skew just nowhere at 0.8%ile, 3m Call Skew 4.4%ile IWM (Russell / Small Cap) 1m Skew 86.6%ile; no love for upside tho with 1m Call Skew 16.5%ile FXI (China) 1m Skew 92.8%ile, 3m Skew 82.9%ile; but still seeing negligible desire for upside with 1m Call Skew 14.5%ile FWIW, the only “upside tail” / bid to Call Skew remains parked in those “inflation sensitive” idiosycratic spots like OIH / XOP / XLE / SMH Looking at this latest flow menu, McElligott notes that the bottom line here is that "we are seeing *some* normalization in select vol metrics (e.g. term structure in SPX and QQQ, or aforementioned “off the worst” levels in extreme Put Skew)…but we continue to price-in “stress” and definitely not giving anything close to an “all clear” just yet." This dynamic matters because it will continue to “drag up” trailing realized vol which can then continue to both constrain VaR/lead to netting- and gross-down behavior as well as drive further near-term de-allocation pressure from Vol Control. Indeed, and in keeping with McElligott's recent warning that vol-control has a lot to sell here, his Vol Control model estimates a sale of $9.8B SPX futs yesterday from the universe, in aggregate bringing total selling to $20.2B over the past 2 weeks. Yet while vol-control rebalancing flows remain a bearish concern, dealer Gamma is turning increasingly favorable. To be sure, we saw the impact of the still-extreme negative Dealer Gamma vs spot across SPX SPY, QQQ and IWM in the +2% rally off the yesterday morning lows, with what McElligott dubbed “spastic” accelerant flow which required more buying the higher spot went. But now that spot is higher and billions in Delta has been added, the market is in a far more comfortable spot; indeed, the latest options positioning analytics now shows that SPX / SPY Dealers are back in a more stable “long Gamma vs spot” position ($1.8B, 33.7%ile, flips below 4371)... ...while still “short Gamma vs spot” in QQQ, but getting close to home (-$499.9mm, 2.6%ile, but flips positive above 372.16, which is mere basis points away). It is this normalization in gamma that McElligott concludes sets us up for the “stability now, big rally later”: as stocks continue to rise, the positive feedback loop emerges as the resumption of “long Gamma” stabilization from Dealers beget more overwriting/ options selling flow from the usual suspects, which in turn leads to a reversal over the next few weeks out of what has been this local “realized vol rallying up to implied” dynamic that is behind much of the recent selling. When we do, expect to see the now traditional resumption of tighter daily ranges and lower rVol. Looking out; looking out 2 weeks to 1 month is when he expects "lumpy re-allocation flows from Vol Control types" who also join the bullish fray and the slow, steady and never-ending meltup makes a triumphal return. Tyler Durden Thu, 09/23/2021 - 12:10.....»»

Category: blogSource: zerohedge1 hr. 24 min. ago Related News

U.S. leading economic index jumps 0.9% in August

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch3 hr. 24 min. ago Related News

IHS Markit flash U.S. manufacturing index dips to 60.5 in September from 61.1

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch3 hr. 40 min. ago Related News

US stocks gain after China tells Evergrande to pay its debts and avoid default

US stocks gained on Thursday as concerns around Evergrande's debt crisis continued to cool. Drew Angerer/Getty Images US stocks gained on Thursday, continuing its rebound from Monday's Evergrande-induced sell-off.China told Evergrande to pay its upcoming US-dollar denominated debt payments and avoid default, according to a Bloomberg report.At the same time, Beijing is telling local officials across the country to prepare for a "possible storm" related to the Evergrande debt crisis, The Wall Street Journal reported.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.US stocks edged higher in Thursday trades, continuing the rebound from Monday's Evergrande-induced sell-off in which the Dow Jones fell nearly 1,000 points.The gain on Thursday came after Bloomberg reported that China told Evergrande to pay its upcoming debt payments on US-dollar denominated bonds, and to avoid default. That may be giving investors a reason for relief as the S&P 500 trades just ten points below last Friday's levels.But longer-term, Evergrande's $300 billion debt problem isn't going away, and Beijing is warning local officials across the country to prepare for a "possible storm" related to a potential default of the country's second largest property developer, The Wall Street Journal reported.Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:S&P 500: 4,418.40, up 0.52%Dow Jones Industrial Average: 34,529.93, up 0.79% (271.61 points)Nasdaq Composite: 14,951.28, up 0.37%US weekly jobless claims rose to 351,000 last week as the hiring recovery continued to move forward. That's slightly higher than economist expectations of 320,000. Continuing claims increased 2.85 million for the week that ended September 11.Cathie Wood said at a Morningstar investment conference on Wednesday that Ark Invest would sell its position in Tesla if the stock hit its 5-year price target of $3,000 within the next year and little changes to its long-term thesis. Wood also reiterated her view that the stock market is not in a bubble.Altcoins surged on Thursday, with cosmos, dot, and sol jumping sharply as the Evergrande debt crisis continues to cool down. Coinbase wants to strengthen its legal and compliance team as it steps up collaboration with crypto regulators. The move comes after its recent spat with the SEC regarding a lending product. Oil prices moved higher. West Texas Intermediate crude jumped as much as 0.18%, to $72.36 per barrel. Brent crude, oil's international benchmark, jumped 0.13%, to $76.29 per barrel.Gold fell as much as 1.23%, to $1,757.00 per ounce.Read the original article on Business Insider.....»»

Category: topSource: businessinsider3 hr. 52 min. ago Related News

Stocks rally as investors shrug off Fed tapering signals

U.S. stock indexes continued higher Thursday as investors digested the Federal Reserve’s plans for tapering its asset purchase and raising interest rates......»»

Category: topSource: foxnews3 hr. 52 min. ago Related News

IHS Markit flash U.S. services index falls to 54.4 in September from 55.1

This is a Real-time headline. These are breaking news, delivered the minute it happens, delivered ticker-tape style. Visit www.marketwatch.com or the quote page for more information about this breaking news......»»

Category: topSource: marketwatch3 hr. 52 min. ago Related News

Global stocks and cryptocurrencies rally after the Fed provides clarity on tapering, while Evergrande fears subside for now

Stock markets were unfazed by the Federal Reserve saying it was likely to cut back its bond purchases soon - which most analysts read as November. Fed boss Jerome Powell said the central bank is likely to start tapering soon. Sarah Silbiger/Getty Images Global stocks and cryptocurrencies rallied Thursday after the Federal Reserve gave more details on its tapering plan. Analysts broadly said they expect the Fed to cut back bond purchases in November, with some scope for a delay. Fears about Chinese property developer Evergrande cooled, but an offshore $83.5 million interest payment loomed on Thursday. See more stories on Insider's business page. Global stocks and cryptocurrencies rose Thursday after the Federal Reserve provided more clarity on its plan for the withdrawal of stimulus, while fears around indebted Chinese property developer Evergrande cooled for the time being.S&P 500 futures were up 0.74% at 4.50 a.m. ET, after the index snapped a four-day losing streak to close 0.95% higher Wednesday. Dow Jones futures advanced 0.71%, while Nasdaq 100 futures also put on 0.71%, signaling gains when markets open later in the day.Asian stocks advanced overnight as worries receded about risks to the wider financial system from an Evergrande debt default. China's CSI 300 index of Shanghai and Shenzhen-listed stocks rose 0.65%, while Hong Kong's Hang Seng climbed 1.01%.In Europe, the pan-continental Stoxx 600 climbed 1.02% in early trading, while London's FTSE 100 gained 0.48%.Cryptocurrencies rallied across the board after tumbling along with stocks earlier in the week. Bitcoin was up 1% to $43,891, according to Bloomberg prices. Ether, cardano, binance coin and other altcoins all rose more sharply.Stocks climbed after the US Federal Reserve, the world's most powerful central bank, on Wednesday heavily suggested that it would start cutting back on its bond purchases from November, and finish the job by the middle of 2022. Some Fed policymakers also said they'd like to see interest rates start rising as soon as next year.Analysts said markets were reassured that Fed Chair Jerome Powell left the door open to maintaining stimulus if the US economy needs it, and by his cautious approach to movement on interest rates.Jim O'Sullivan, chief US macro strategist at TD Securities, said Powell gave an "unambiguous" signal that the Fed would start tapering bond purchases in November. O'Sullivan said he doesn't expect it to start hiking interest rates until 2023.Neil Wilson, chief market analyst at trading platform Markets.com, said: "Jay Powell continues to walk the line between guiding the market to expect tightening without unduly worrying investors."Read more: Meet the 8 strategists calling for a stock market correction by the end of the year as Wall Street turns bearish. Here are their key concerns and top recommendations for positioning against a market meltdown.Still in focus for investors is the $300 billion debt crunch faced by Evergrande, China's second-biggest property developer. Fears the company could collapse and send shockwaves across the global economy helped push US stocks to their worst losses since May on Monday.Yet those concerns were easing somewhat, after Evergrande unit Hengda said it had "resolved" an onshore interest payment via negotiation and the company reassured retail investors that they were a top priority. China's injection of 90 billion yuan ($13.9 billion) into the banking system also bolstered those hoping Beijing would step in to contain any shocks.Shares in Evergrande jumped 17.62% on Thursday, although they remain more than 80% lower for the year.But the property developer is still seen as in perilous position, and investors are closely watching a key test for Evergrande Thursday, when an $83.5 million interest payment on an offshore bond is due.The US bond market was little changed after the Fed meeting, a sign that the central bank hadn't ruffled feathers. The yield on the key 10-year US Treasury note was roughly flat at 1.336% on Thursday. Yields move inversely to prices.Oil prices continued to rise as the global economy reopened and supplies tightened. Brent crude was up 0.12% to $76.29, while WTI crude was 0.1% higher at $72.28 a barrel.Read the original article on Business Insider.....»»

Category: topSource: businessinsider4 hr. 8 min. ago Related News