Clash Or Credit
With one eye on securing a trade deal and another on looking like the winner, the US is thinking about removing tariffs on $112 billion worth of Chinese goods. The US-China trade war has cast a long shadow over the global economy lately, so any de-escalation in tensions should – at least for now – give it a bit more room to breathe.
Market Running On Positive Spin Cycle
The stock market seems to be in a wash-rinse-repeat reaction mode, as it is indicated to open higher on the same spin cycle that has driven the Dow, Nasdaq, and S&P 500 to record-high levels. In brief, there is optimism about positive-sounding U.S. China trade negotiations; there is optimism that the growth outlook is better than feared…
Elections Usually Boost Earnings
UK Sparks: M&S Profits Fall 17%
Marks & Spencer Group has declared that it is delivering “far-reaching change at pace,” despite interim underlying pre-tax profits falling by 17% to £177m on revenues down 2.1% at £4.86bn. The profits decline was due to weak clothing and home furnishing revenues, which were 7.8% lower and down 5.5% on a like-for-like basis.
Closing Bell (Nov 6)
News Light, Eyes On Rates & CNY
WTI Crude (CL) Testing Month Long Upchannel Resistance
Technical Take: Nov. 5, 2019
Stocks Steady After Record-Setting Rally
Spotting Trends: 3 Sectors to Consider in Q4
S-REITs Held Gains, Issued $940 million in New Units in October
In October, five REITs issued S$940 million in new units pursuant to secondary fund raising activities. This followed placements by Mapletree Commercial Trust and Keppel Pacific Oak US REIT and rights issue offerings by Keppel DC REIT, Manulife US REIT & ESR-REIT.
The Fed Gives Stocks Free Rein To Run. Can The Rally Continue?
Last week’s Federal Reserve (Fed) meeting proceeded largely as expected, but a very important development for stocks occurred during the follow-up press conference. As expected, the Fed decided to cut rates by 25 basis points. Additionally, in its announcement, the Fed removed the language that stated it would “act as appropriate to sustain the expansion.”
Stocks Are Ready To Rise on November 5, Be Careful
Grain Express: Nov. 5, 2019
December corn futures were softer to start the week as the lack of bullish headlines coupled with harvest pressure was too much for the bulls to overcome. Crop Progress was released after the close, showing corn conditions unchanged at 58% good/excellent. Harvest is said to be 52% complete, this is 2% behind expectations and 23% behind the five-year average.
Earnings Data Is Wrong & Why it Can Cost You Money
The Facts About Buybacks
Before we debate the merits of buybacks, it is important to understand what they are. Profitable companies generate excess cash on a regular basis. They have a variety of options for what to do with it. They can reinvest it back in their business. They can just keep it in the bank. They can buy other companies with it . They can pay down debt. They can pay dividends. They can also buy back their own stock.
Earnings Surprise On The Upside
Chart of the Week – Intermediate Term Momentum: Quarterly Rate of Change (QROC), S&P 500 (SPX)
Morning Insights: Nov. 5, 2019
UK Sparks: ABF Profits Fall 8%
Associated British Foods has announced an 8% fall in full-year pre-tax profits to £1.17bn, despite revenues increasing by 2% to £15.8bn. The profits drop came after an exceptional charge of £79m for a writedown at Allied Bakeries and a group pensions charge. Operating profits were down 5% at £1.28bn, while adjusted pre-tax profits were up 2% at £1.4bn. The group’s grocery businesses, which include Twinings and Ryvita, grew profits by 13% to £380m, while Primark profits rose by 8% to £913m, despite a 2% decline in like-for-like sales mainly due to weak trading in Germany.
Closing Bell (Nov 5)
Mood Music Keeps Playing
Nasdaq100 (NQ) Trying to Form 6th Straight Green Weekly Candle
U.S. Muni Market: Supply Surge Set to Keep Muni Costs Manageable
Securities Lending Report: 10/28/2019 – 11/01/2019
Positive Trade Talks, Tech Transfers Barred? Asian Equities: Room to Run?
Japan was closed today, which meant it missed out on a strong day across the board as Asian equity markets responded favorably to the US’ strong market moves Friday. In addition, there were multiple positive developments in US-China trade talks over the last 72 hours.
Grain Express: November 4, 2019
Last week, corn futures traded both sides of unchanged but finished fractionally higher. Crop Progress will be out this afternoon, after that, much of the attention will turn towards Friday’s WASDE report. We will continue to compile estimates and have those for you by mid-week. Friday’s Commitment of traders showed that funds sold 9,322 contracts from October 22nd to October 29th, expanding their net short position to 85,337.