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Global markets await anxiously for Trump and Xi meeting this week at G-20 summit

Jun 24, 2019

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Market data as of 7am EST

 

US Stocks Preview Ahead of the Open

  • Markets are trying to be optimistic ahead of Trump-Xi G-20 meeting later this week, with front-month Dow Jones minis are +0.24%, S&P 500 minis +0.20% and Nasdaq 100 minis +0.32%
  • President Trump and President Xi and due to meet at the G-20 summit in Japan at the end of the week
  • Federal Reserve Chairman Jerome Powell will give a speech mid-week and investors will be listening for further clues on plans for an interest rate cut
  • Hong Kong protestors took to the streets again this weekend to protest the proposed extradition law
  • In the wake of the US not responding to Iran's downing of a US drove, President Trump has proposed more sanctions, but there is not much more to target
  • SPDR S&P 500 ETF Trust (SPY)  August 2 OTM Puts, Invesco DB US Dollar Index Bullish Fund (UUP) July 19 OTM Calls and iShares MSCI Emerging Markets ETF (EEM)  July 19 OTM Calls are the most actively traded options in today's pre-market
  • The VIX is little changed this morning and is currently at 15.51 after closing at 15.4 last week
  • US 10-Year Treasury Bonds are higher with yields down -2.08 basis points to 2.0332%
  • The US Treasury 2s-10s Spread has narrowed 0.18 basis points to 0.28%
  • WTI Crude is currently up 1.11% to USD$57.28/bbl with the Brent-WTI spread down USD$-1.34 to USD$7.4/bbl
  • Gold is currently up 0.77% to USD$1410.43/oz

Stocks Trending in the News

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Global Consumer Stocks Trending in the News

  • Eldorado Resorts (ERI) is acquiring rival Caesars Entertainment (CZR) to create the largest casino operator in the US.  The deal is valued at $17.3 billion including debt.  It will be a mix of cash and debt and value Caesars at $12.75 per share.  The deal has the backing of activist investor Carl Icahn, Icahn has been pushing for Caesars to be sold.  Eldorado Resorts is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  Caesars Entertainment is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Consumer Discretionary Global Top Stock Ideas.  
  • Overstock.com (OSTK) shares soared on news there are 2 potential bidders for the company.  Overstock.com CEO Patrick Byrne told a conference attendees at a conference in Montauk, NY, that 2 potential bidders have emerged for the firm.  Overstock.com rose as much as 17 % in Friday’s trading session.  Overstock.com is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Unattractive” in our US Consumer Discretionary Global Top Stock Ideas.

Global Information Technology Stocks Trending in the News

  • Apple (AAPL) is warning owners of certain MacBook Pro laptops sold between September 2015 and February 2017 to not use them due to a risk their batteries could overheat and cause injuries.  Apple has recalled the laptops in question, they can catch fire in worst case scenarios.  This is Apple’s second recall of a product this year.  Apple is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.  
  • Cloudera (CLDR) shares rose sharply after it announced a strategic partnership with IBM (IBM).  IBM will resell Cloudera’s Enterprise Data Hub and Coudera Dataflow products.  Cloudera will, in turn, resell IBM’s Watson Studio and BigSQL products.  Cloudera is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Information Technology Global Top Stock Ideas.  IBM is rated “Attractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas

Global Industrials Stocks Trending in the News

  • Daimler (DB:DAI) issued a fresh profit warning over the weekend in the wake of fresh diesel emissions allegations.  Daimler was forced to issue a recall for 60,000 vans and trucks to fix emissions that regulators say are polluting more than they are permitted to.  Daimler lowered full year earnings estimates anticipating higher costs.  Daimler is rated “Unattractive” in our Global Top Stock Ideas.
  • FedEx (FDX) is slashing prices to fill its planes, trying to get online sellers to use its air freight network, WSJ reports.  FedEx is cutting prices for its express air service as the end of its contract with Amazon approaches.  FedEx is offering 2-say air service for the same price its ground service normally costs.  FedEx is trying to fill planes and steal volume from rivals.  FedEx is rated “Unattractive” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Industrials Global Top Stock Ideas.  Amazon is rated “Neutral” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.

Global Health Care Stocks Trending in the News

  • CVS Health (CVS) could double its stock price in 3 years if it changed its business mix to half managed care and care delivery, according to a report by Bernstein.  CVS would need to shed assets and acquire others in those areas.  The report suggests Bernstein acquire a Medicaid managed care firms, physician practices, lab services and/or urgent care practices.  CVS Health is rated “Neutral” in our US Large-Cap Global Top Stock Ideas.

 

 

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International Stock Markets Recaps

  • The Euro Stoxx 600 is currently down -0.23%, the FTSE 100 is down -0.06%, the DAX is down -0.61%, and the CAC 40 is down -0.16%
  • Utilities (-0.16%), Banks (-0.57%), and Basic Resources (-0.41%) stocks are the top performers in the Euro Stoxx 600 today
  • Retail (-0.7%), Health Care (-0.24%), and Construction & Materials (-0.17%) stocks are the worst performers in the Euro Stoxx 600 today
  • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.74x
  • 99 stocks in the Euro Stoxx 600 are at 4-week highs while 28 stocks are at 4-week lows
  • 30 stocks in the Euro Stoxx 600 are overbought while 13 stocks are oversold according to the 16-day RSI Measure
  • The Nikkei 225 finished up +0.13%, the Hang Seng ended up +0.14%, the Hang Seng China Enterprise up +0.29%, and the CSI 300 was +0.19%
  • Investor sentiment for Japanese stocks finished positive with the advance/decline ratio for the Nikkei 225 closing at 1.25x
  • 50 stocks in the Nikkei 225 hit 4-week highs while 14 stocks reached 4-week lows
  • 1 stock in the Nikkei 225 closed overbought while 1 stock closed oversold according to the 16-day RSI Measure
  • Investor sentiment for Hong Kong stocks finished positive with the advance/decline ratio for the Hang Seng closing at 1.5x
  • 18 stocks in the Hang Seng hit 4-week highs while 2 stocks reached 4-week lows
  • 4 stocks in the Hang Seng closed overbought while 0 stocks closed oversold according to the 16-day RSI Measure

 

*Data in Price Return and Updated Real-Time (with a delay), Source: StockDio

 

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