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 (NASDAQ:AMZN), (NYSE:UNH), (NYSE:CVS)

• WSJ reporting that in an auction, AMZN among the bidders for Signify Health (NYSE: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 (NASDAQ: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

• (NASDAQ:PANW) Palo Alto

• (NASDAQ:ZM) Zoom

CRYPTO UPDATE

Stablecoin clues from Morgan Stanley (NYSE: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