U.S. Stock Futures Advance as Investors Weigh Stimulus Talks, , on October 7, 2020 at 5:46 am

Financial News
By
On October 7, 2020
In Financial News
Tags:

(Bloomberg) — U.S. index futures rose as investors assessed the progress of a stimulus plan and a House panel proposal for far-reaching antitrust reforms to curb the power of American technology giants.Fresh comments from U.S. President Donald Trump calling for support for airlines and the Paycheck Protection Program helped reverse earlier losses. December contracts on the S&P 500 Index added 0.3% as of 6:41 a.m. in London, rebounding from a 0.6% loss. Futures on the Nasdaq 100 Index advanced 0.4%, erasing a drop of as much as 0.6%.“So there is still some stimulus perhaps coming before the election,” said Ben Emons, head of global macro strategy at Medley Global Advisors. “That is removing the angst from the Trump tweet earlier that no further negotiations about the stimulus package would take place.”Losses that began with Trump’s suspension of stimulus talks had worsened in technology stocks after the House panel proposed reforms targeting megacap companies like Amazon.com Inc. and Alphabet Inc. The Nasdaq 100 Index fell 1.9% in Tuesday’s cash session, the second big interruption in three days to a recent rally.A 449-page report from the House antitrust subcommittee recommended Congress consider legislation that would either prevent tech companies from owning different lines of businesses, which could lead to breakups, or impose certain organizational structures. Scrutiny of the companies has intensified this year as their market values ballooned, including Apple crossing the $2 trillion threshold in August.“They had been looking richly valued but now with increasing regulatory scrutiny on them, they’re going to be — if nothing else — not 100% focused on their business,” said Kim Forrest, chief investment officer of Bokeh Capital Partners. “This is showing intent, it’s not just idle chatter.”In after-hours trading, Apple slipped as much as 0.7% after dropping 2.9% as of the 4 p.m. New York close. Amazon fell as much as 0.6%, following a decline of 3.1%. Facebook Inc. slid as much as 1.2% in the late session after falling 2.3% in the regular session.Internet and software stocks are vulnerable to event risk because they’ve rallied so hard. A run in which the Nasdaq 100 came close to doubling in about 20 months pushed its price-earnings ratio above 40 at the start of September, a valuation whose only recent precedent is the dot-com bubble.Even with the gauge’s 9% tumble since then, the multiple sits at about 36.5, higher than any time in the last decade and a half.The House report landed about an hour after the broader market buckled on Trump’s curtailment of stimulus talks until after the November election. Megacap tech shares bore the brunt of that shock as well, with gauges of computer, software, communications and consumer nonessential shares falling between 1.5% and 2.1% in the regular session.Trump made the move hours after Federal Reserve Chair Jerome Powell appealed for greater spending to avoid damaging the economic recovery. Democrats had most recently pushed a $2.2 trillion package that failed to garner Republican support in the House, while the White House had endorsed $1.6 trillion.“Stimulus talks were crucial for stocks this week, but today’s shocker completely changed the short-term picture on the Street,” said Ken Berman, a strategist with Gorilla Trades. “We have to wait and see to decide if today’s plunge was only a ‘one-day wonder’ or the start of a more durable shift.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.,

U.S. Stock Futures Advance as Investors Weigh Stimulus Talks(Bloomberg) — U.S. index futures rose as investors assessed the progress of a stimulus plan and a House panel proposal for far-reaching antitrust reforms to curb the power of American technology giants.Fresh comments from U.S. President Donald Trump calling for support for airlines and the Paycheck Protection Program helped reverse earlier losses. December contracts on the S&P 500 Index added 0.3% as of 6:41 a.m. in London, rebounding from a 0.6% loss. Futures on the Nasdaq 100 Index advanced 0.4%, erasing a drop of as much as 0.6%.“So there is still some stimulus perhaps coming before the election,” said Ben Emons, head of global macro strategy at Medley Global Advisors. “That is removing the angst from the Trump tweet earlier that no further negotiations about the stimulus package would take place.”Losses that began with Trump’s suspension of stimulus talks had worsened in technology stocks after the House panel proposed reforms targeting megacap companies like Amazon.com Inc. and Alphabet Inc. The Nasdaq 100 Index fell 1.9% in Tuesday’s cash session, the second big interruption in three days to a recent rally.A 449-page report from the House antitrust subcommittee recommended Congress consider legislation that would either prevent tech companies from owning different lines of businesses, which could lead to breakups, or impose certain organizational structures. Scrutiny of the companies has intensified this year as their market values ballooned, including Apple crossing the $2 trillion threshold in August.“They had been looking richly valued but now with increasing regulatory scrutiny on them, they’re going to be — if nothing else — not 100% focused on their business,” said Kim Forrest, chief investment officer of Bokeh Capital Partners. “This is showing intent, it’s not just idle chatter.”In after-hours trading, Apple slipped as much as 0.7% after dropping 2.9% as of the 4 p.m. New York close. Amazon fell as much as 0.6%, following a decline of 3.1%. Facebook Inc. slid as much as 1.2% in the late session after falling 2.3% in the regular session.Internet and software stocks are vulnerable to event risk because they’ve rallied so hard. A run in which the Nasdaq 100 came close to doubling in about 20 months pushed its price-earnings ratio above 40 at the start of September, a valuation whose only recent precedent is the dot-com bubble.Even with the gauge’s 9% tumble since then, the multiple sits at about 36.5, higher than any time in the last decade and a half.The House report landed about an hour after the broader market buckled on Trump’s curtailment of stimulus talks until after the November election. Megacap tech shares bore the brunt of that shock as well, with gauges of computer, software, communications and consumer nonessential shares falling between 1.5% and 2.1% in the regular session.Trump made the move hours after Federal Reserve Chair Jerome Powell appealed for greater spending to avoid damaging the economic recovery. Democrats had most recently pushed a $2.2 trillion package that failed to garner Republican support in the House, while the White House had endorsed $1.6 trillion.“Stimulus talks were crucial for stocks this week, but today’s shocker completely changed the short-term picture on the Street,” said Ken Berman, a strategist with Gorilla Trades. “We have to wait and see to decide if today’s plunge was only a ‘one-day wonder’ or the start of a more durable shift.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

,

Instant Quote

Enter the Stock Symbol.

Select the Exchange.

Select the Type of Security.

Please enter your First Name.

Please enter your Last Name.

Please enter your phone number.

Please enter your Email Address.

Please enter or select the Total Number of Shares you own.

Please enter or select the Desired Loan Amount you are seeking.

Please select the Loan Purpose.

Please select if you are an Officer/Director.

High West Capital Partners, LLC may only offer certain information to persons who are “Accredited Investors” and/or “Qualified Clients” as those terms are defined under applicable Federal Securities Laws. In order to be an “Accredited Investor” and/or a “Qualified Client”, you must meet the criteria identified in ONE OR MORE of the following categories/paragraphs numbered 1-20 below.

High West Capital Partners, LLC cannot provide you with any information regarding its Loan Programs or Investment Products unless you meet one or more of the following criteria. Furthermore, Foreign nationals who may be exempt from qualifying as a U.S. Accredited Investor are still required to meet the established criteria, in accordance with High West Capital Partners, LLC’s internal lending policies. High West Capital Partners, LLC will not provide information or lend to any individual and/or entity that does not meet one or more of the following criteria:

1) Individual with Net Worth in excess of $1.0 million. A natural person (not an entity) whose net worth, or joint net worth with his or her spouse, at the time of purchase exceeds $1,000,000 USD. (In calculating net worth, you may include your equity in personal property and real estate, including your principal residence, cash, short-term investments, stock and securities. Your inclusion of equity in personal property and real estate should be based on the fair market value of such property less debt secured by such property.)

2) Individual with $200,000 individual Annual Income. A natural person (not an entity) who had individual income of more than $200,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

3) Individual with $300,000 Joint Annual Income. A natural person (not an entity) who had joint income with his or her spouse in excess of $300,000 in each of the preceding two calendar years, and has a reasonable expectation of reaching the same income level in the current year.

4) Corporations or Partnerships. A corporation, partnership, or similar entity that has in excess of $5 million of assets and was not formed for the specific purpose of acquiring an interest in the Corporation or Partnership.

5) Revocable Trust. A trust that is revocable by its grantors and each of whose grantors is an Accredited Investor as defined in one or more of the other categories/paragraphs numbered herein.

6) Irrevocable Trust. A trust (other than an ERISA plan) that (a)is not revocable by its grantors, (b) has in excess of $5 million of assets, (c) was not formed for the specific purpose of acquiring an interest, and (d) is directed by a person who has such knowledge and experience in financial and business matters that such person is capable of evaluating the merits and risks of an investment in the Trust.

7) IRA or Similar Benefit Plan. An IRA, Keogh or similar benefit plan that covers only a single natural person who is an Accredited Investor, as defined in one or more of the other categories/paragraphs numbered herein.

8) Participant-Directed Employee Benefit Plan Account. A participant-directed employee benefit plan investing at the direction of, and for the account of, a participant who is an Accredited Investor, as that term is defined in one or more of the other categories/paragraphs numbered herein.

9) Other ERISA Plan. An employee benefit plan within the meaning of Title I of the ERISA Act other than a participant-directed plan with total assets in excess of $5 million or for which investment decisions (including the decision to purchase an interest) are made by a bank, registered investment adviser, savings and loan association, or insurance company.

10) Government Benefit Plan. A plan established and maintained by a state, municipality, or any agency of a state or municipality, for the benefit of its employees, with total assets in excess of $5 million.

11) Non-Profit Entity. An organization described in Section 501(c)(3) of the Internal Revenue Code, as amended, with total assets in excess of $5 million (including endowment, annuity and life income funds), as shown by the organization’s most recent audited financial statements.

12) A bank, as defined in Section 3(a)(2) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

13) A savings and loan association or similar institution, as defined in Section 3(a)(5)(A) of the Securities Act (whether acting for its own account or in a fiduciary capacity).

14) A broker-dealer registered under the Exchange Act.

15) An insurance company, as defined in Section 2(13) of the Securities Act.

16) A “business development company,” as defined in Section 2(a)(48) of the Investment Company Act.

17) A small business investment company licensed under Section 301 (c) or (d) of the Small Business Investment Act of 1958.

18) A “private business development company” as defined in Section 202(a)(22) of the Advisers Act.

19) Executive Officer or Director. A natural person who is an executive officer, director or general partner of the Partnership or the General Partner, and is an Accredited Investor as that term is defined in one or more of the categories/paragraphs numbered herein.

20) Entity Owned Entirely By Accredited Investors. A corporation, partnership, private investment company or similar entity each of whose equity owners is a natural person who is an Accredited Investor, as that term is defined in one or more of the categories/paragraphs numbered herein.

Please read the notice above and check the box below to continue.

Singapore

168 Robinson Road,
Capital Tower, Singapore 068912
+65 3105 1295

Taiwan

5th Floor, No. 1-8, Section 5, Zhongxiao East Road, Taipei

Hong Kong

R91, 3rd Floor,
Eton Tower, 8 Hysan Ave.
Causeway Bay, Hong Kong
+852 3002 4462

Australia

44 Martin Place, Sydney 2000 Australia
+02 8319 3232

Indonesia

Millennium Centennial Center, 38th Floor, Jl. Jend. Sudirman Kav. 25
Jakarta 12920, Indonesia

Market Coverage