MONDAY MARKET UPDATE - Jackson Hole Thursday, Powell Friday @ 10 a.m.

MONDAY MARKET UPDATE - Jackson Hole Thursday, Powell Friday @ 10 a.m.

MARKET UPDATE

15% 2-month rally based on:

  1. Decade low exposures (high cash levels, no hedge fund leverage)

  2. Better than feared Q2 earnings

  3. Peaking U.S. gas prices

  4. Lower 10 year yield to 3% from 3.5%

Month-to-date

  • S&P 500                +2.4%

  • Nasdaq                 +2.5%

  • TSX                         +2.1%

10yr       3%

Jackson Hole: Thursday and Friday

  • Powell speaks at 10 a.m. on Friday

  • 10 year yield has moved up from 2.5% to 3% in a month

  • Higher yield helping support a strong U.S. dollar

 

 

Crude    90

  • China cut interest rates and announced $29.3B in special loans to developers

  • Iran nuclear deal negotiations continue

Amazon AMZNUNHCVS

  • WSJ reporting that in an auction, AMZN among the bidders for Signify Health SGFY

  • Signify (market cap $5B) is up 26% in pre-market

  • Signify is a home-health services provider

  • CVS Health and UNH also bidding

Tesla TSLA

  • Stock split Wednesday

  • Telsa price for new version of their full self-driving option rising to $15,000 from $12,000 in September

Earnings

  • PANW Palo Alto

  • ZM Zoom

CRYPTO UPDATE

Stablecoin clues from Morgan Stanley MS:

  • Stablecoin availability = sign of liquidity & demand for crypto leverage

  • “This week marked the first time since April that stablecoin market capitalization has stopped falling on a monthly basis”

  • Margin calls have paused

  • Re-leverage demand still hasn’t picked up though

  • Watch: Growth of stablecoin market cap = potential growth of crypto leverage

Source: TheDailyShot

Posted In: contributorsmarket updateCryptocurrencyCommoditiesMarkets

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