VXX/Jash – So it was net $1,250 and now the Oct $38s are 0.95 ($1,900) so still salvageable. If you want to continue to be long vol, You can assume we won't hit $42 by next Friday, cash the $38s and roll to the Jan $35 ($6)/38 ($5) bull call spread for $1 as those are almost $2 in the money. The short puts are $3.60 at the moment and the Jan $34 puts are also $3.60 so, if you can roll down $6 (15%) every quarter – it's hard to worry about those, right?
The pro-business policies of the new administration were hoped to unleash a wave of corporate lending, but Federal Reserve data show the growth in such loans dropping to 2.1% from 8.1% last November.
"All the turmoil and the inability to move policy through Washington set in,” says Jeff Glenzer from the Association for Financial Professionals.
Others, however, say the slowdown may just be a return to the mean – growth in corporate lending has run well head of GDP growth in the years since the financial crisis.
Q3 earnings results begin this week, with JPMorgan and Citigroup on Thursday. Analysts have been trimming some earnings estimates – U.S. Bancorp (NYSE:USB) and BB&T (NYSE:BBT) to name two – as bank managements during conference season last month signaled slower-than-hoped loan growth.
The Wall Street Journal reports that Apple (NASDAQ:AAPL) has struck a deal with Steven Spielberg to produce new episodes of a classic 1980s sci-fi and horror anthology.
The deal involves Apple, Spielberg’s Amblin Television, and Comcast’s (NASDAQ:CMCSA) NBC and pertains to NBC’s show “Amazing Stories.”
Spielberg will likely serve as executive producer for the ten episodes, which reportedly each have a budget of over $5M.
Apple has committed $1B to developing original programming over the next year and has hired top talent including former Sony TV executives Zack Van Amburg and Jamie Erlicht.
Apple has dropped its planned Elvis Presley biopic with the Weinstein Co. as Harvey Weinstein’s removal from his company, due to an increasing number of sexual assault allegations, triggered a clause that let Apple leave the deal.
Catalan President Carles Puigdemont defuses at least a little bit of tension with Madrid, declaring independence, but then stopping the separation process to instead have talks with the Spanish government.
Puigdemont and his team remain in danger of arrest for sedition, and Spanish President Mariano Rajoy has previously rejected any talks until secession plans are abandoned.
A Rajoy spokesman following Puigdemont's speech: "He has made a deferred declaration of independence … [Puigdemont] has taken his irresponsibility to the absolute extreme by ignoring the laws, citizens."
Down earlier in the session, the Spanish ETF (NYSEARCA:EWP) has jumped into the green, now up 1.5%.
Deutsche Bank has trimmed price targets on Sprint (S -2.9%) and T-Mobile (TMUS -0.5%), saying the much-discussed merger talks face risks as the coming election year brings a swell of populism.
"We remain very bearish on the prospects for deal approval," analyst Matthew Niknam says, trimming the firm's target on Sprint to $7 from $8 (Sprint's down to $7.09 today), and on T-Mobile to $65 from $70 (implying 6.1% upside).
A less corporate-friendly mood is taking over, he notes: "The Democrats' Better Deal agenda highlights ongoing corporate consolidation as a threat to U.S. consumers, and proposes sharper scrutiny of potential deals."
Also today: Sprint owner SoftBank (OTCPK:SFTBY) up 2.8%; T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) up 0.8%.
Wal-Mart (NYSE:WMT) execs painted a bright picture during the company's presentation today for the investment community.
The fresh food business at Sam's Club was highlighted as an area of strength. It was also noted that Sam's e-commerce sales rose 27% during the first half of the year.
Look for zero-based budgeting to start in areas of the company and for e-commerce losses to narrow.
The company expects capex spending to be ~$11B for FY18 and FY19.
Walmart International is expected to open about 255 new stores, including a focus on Mexico and China.
In one of the biggest developments, Wal-Mart management said Walmart.com will feature the Jet.com smart-cart system that allows customers to find cheaper prices if they choose certain checkout and delivery options.
October 10th, 2017 at 3:30 pm
VXX/Jash – So it was net $1,250 and now the Oct $38s are 0.95 ($1,900) so still salvageable. If you want to continue to be long vol, You can assume we won't hit $42 by next Friday, cash the $38s and roll to the Jan $35 ($6)/38 ($5) bull call spread for $1 as those are almost $2 in the money. The short puts are $3.60 at the moment and the Jan $34 puts are also $3.60 so, if you can roll down $6 (15%) every quarter – it's hard to worry about those, right?