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The Week Ahead – Election Looms Large

Two weeks to go.

Two weeks ago the S&P was down at 3,350, down about 4% from where we are now so don't get complacent – especially into the elections and ESPECIALLY when Global Covid Cases topped 40M this weekend with 8.15M in the US and growing at 0.05M per day along with 220,000 deaths.

You KNOW Trump is lying about the virus, you KNOW Trump has been lying about it since day one.  You KNOW Trump is essentially doing nothing to stop it and I REALLY hate to be that guy every week but how can you let yourself be deluded by all this other nonsense when we are STILL right in the middle of a Global Crisis?  

Come on people, let's not rely on the lie to make us feel good.  This is the chart of how many people per 100,000 in the US are infected by the Corona Virus.  In May, I said I was very concerned because passing 1/250 (400 per 100,000) means that any time I went outside and walked down the street and walked into a store – I probably either passed an infected person or touched something they had touched and we now know the virus lasts a lot longer than we thought on surfaces.  

That was back in May.  Now it's October and 1/2,500 people were infected as we brilliantly ended our lockdown on Memorial Day Weekend to "save" Trump's economy and now 1/40 people are infected.  That means, if you go to a restaurant – even one that's 1/2 empty – you are likely there with an infected person and your children are in class with infected people and now you can't walk down the block without coming in contact with infected people and Trump is doing what to control it before it gets to 1/4 people?  What?  Name SOMETHING???

Our lives are at stake people – our actual lives!  220,000 Americans are dead an "only" 8M out of 330M have contracted the virus so far.  That means 40x more to go and 40x 2,200 is 8,800,000 dead – that's the entire population of New York City DEAD!  That's Los Angeles, Houston and Chicago COMBINED – DEAD!   That's Phoenix, Philadelphia, San Antonio, San Diego, Dallas and San Jose COMBINED – DEAD!   

What is Trump doing about it?  What????

An Inconvenient Truth - ImgurWe are still in the early stage of this disease and, like Global Warming, the earlier you act the easier it is to fix but a failure to act can have catastrophic consequences (like viruses spreading out of control in a changing environment).  Globally, one in 200 people are affected, we may be able to stop the global spread of the virus by, as Trump says, containing it in America where it's growing competely out of control.  Like the wildfires Trump doesn't help to contain either – we simply have to let the virus burn out in America to keep the rest of the World safe at this point.  

Voters in the US will effectively decide the fate of the World in 15 days and, sadly, we've seen this movie play out several times before and people don't want to hear that there's a dangerous virus out there or that the Climate is on the verge of collapsing – because it's DEPRESSING but do you know what's even more depressing – A DEPRESSION – especially on where your money got wiped out in the market crash you didn't want to see coming.  

Sales GIF - Sales BlackFriday - Discover & Share GIFsSo it's my job to warn you – over and over again – to remind you to pay attention to the things you may be ignoring and to get you to avoid the biggest danger of them all – COMPLACENCY.  Please make sure you have a good amount of CASH!!! in your portfolio and please make sure that, if you have long positions, that you also have hedges to insure them.  The upcoming election is a wildcard but so is Black Friday (Nov 27th) – especially one with no shoppers at the stores.  

Black Friday is so-called as it's the first day of the year the ledgers of retailers go from red (the cost of being open all year) to proiftable (black) but how is that going to happen when there are no crowds of shoppers?  And what about all the holiday jobs that aren't going to exist?  Where's all this holiday money going to come from when bonuses and raises are cut?  Why can't this market look even 5 weeks ahead?  

Take a look at Macy's (M), for example, 75% of their profits are made in the 4th Quarter:

That's typical for a retailer – it's all about Christmas and Christmas may be cancelled this year but that's 2 months away and we have an election in two weeks and black Friday 3 weeks after that so first things first.  

Powell spoke first thing this morning but it was about digital currencies, which Central Banks are just starting to pay attention to.  Only 3 more Fed speakers this week and very little data so it's all going to be about earnings and there we get some biggies with IBM tonigh, PG, PM, TRV, NFLX, TXN on Tuesday, VZ,TSLA, WHR, CMG and CSX Wednesday, KO, T, LUV, PHM, FCX, INTC, COF, and MAT on Thursday (speaking of Christmas) and CLF, AXP, and ABB Friday makes for a busy week indeed.

Image

 

Be careful out there!  

 


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  1. Good Morning.


  2. Two weeks / Phil – Hard to believe that these 4 years have gone by already but also unbelievable the damage that has been done to this country. Even if Trump loses, there is still some more damage he can do over the next 3 months – he'll try to burn down everything behind him and he mentioned leaving the country. Which he might need to do, to avoid jail! 

    In the meantime, we'll have a SCOTUS where the majority seems to not believe science so the damage will continue long after he is gone! But they do believe in unfettered capitalism – so good for markets, right. Hard to be optimistic.


  3. After Phil's comments.

    My wife says he wants to collect the boots of the dead once (Mexican expression)


  4. Yes. My calculations take out the people who no longer have covid19 after testing positive earlier, either by dying or recovering, but that leaves 4,599,934 currently infected, a prevalence rate of roughly 1.5% (I use data from here – https://docs.google.com/spreadsheets/u/2/d/e/2PACX-1vRwAqp96T9sYYq2-i7Tj0pvTf6XVHjDSMIKBdZHXiCGGdNC0ypEU9NbngS8mxea55JuCFuua1MUeOj5/pubhtml#)


  5. And that article on the Sturgis outbreak was excellent, by the way.


  6. Don't be sending him to Scotland! We have our own Dollar Store Trump and his merry band of buffoons. 
    here in the UK Wales has got into a full lockdown and our cities are fighting with central government. Oh, we are also running out of ICU beds in some of our largest hospitals which we did not do during the actual lockdown so either (I) this time is worse or (ii) the infected are not dying as quick which could mean younger but sicker.

     


  7. Burn down/stjean    A blue wave will change an awful lot and tdump will soon be shopping for a condo in Moscow.

    There are many lessons to be learned and history will not be kind to those who played a part.

     

    If anything, we need to start preparing for 2022 and beyond, because 'they' will return…. :(



  8. Economy / Phil – Also, looking at Europe now, we will see another period of confinement soon. The second wave is coming and it's looking worse as far as number of infections are concerned. Fewer deaths so far as we learn better treatment, but it will climb as well. The world economy is going to take another hit and it's hard to see things getting better until we have a widely distributed vaccine and we are probably 6 months away from that at best. 


  9. But in the meantime, we'll test herd immunity here with 2M or more deaths it seems!


  10. Good morning!

    Optimistic/StJ – Beats the alternative.  We do need a landslide victory and a big Senate win as well because we can't afford 4 years of gridlock either.  

    Boots of the Dead/Yodi:

    Dora the Explorer and Boots (Zombie version) by Eilyn-Chan.deviantart.com  on @DeviantArt | Scary drawings, Scary art, Zombie cartoon

    1.5%/Snow – Well that's only 1/66 infected.  I feel so much safer!  

    How the Sturgis Motorcycle Rally may have spread coronavirus across the Upper Midwest

    That was a good article. 

    A bit of a struggle to stay green this morning.

    • Media and entertainment industries expect US digital ad market shares to remain flat or diminish through 2021.
    • In 2020, media will account for 4.7% of total US digital ad spending, while entertainment will make up 5.2%.
    • By the end of 2021, media’s share of total digital ad spend in the US will drop again to 4.4%, while entertainment’s will remain flat at 5.2%.
    • Related ETFs: XLCPBSIEME.
    • Wedbush Securities is incrementally more positive on Tesla (NASDAQ:TSLA) ahead of the Q3 earnings report due out on Wednesday.
    • "To this point, we believe Tesla's improved manufacturing efficiency and shining Giga 3 success in China will be on full display later this week and lead to another strong bottom-line performance which should beat the Street in our opinion. In terms of overall unit demand heading into year-end we believe Tesla is on pace to impressively achieve in the area code of 500k units for the year, a line in the sand that was a pipe dream six months ago as Tesla (and other auto players) have navigated this unprecedented COVID backdrop," previews analyst Dan Ives.
    • Wedbush hikes its base case price target to $500 from $475 reflecting underlying demand strength in the field. The bull case price target remains $700
    • Tesla has topped EPS expectations three quarters in a row.
    • See the consensus estimates on Tesla.
    • TSLA +1.38% premarket to $445.73.
    • Ahead of the fiscal Q1 results, Jefferies raises its Microsoft (NASDAQ:MSFT) price target from $240 to $260.
    • Analyst Brent Thill calls Microsoft "one of the best pillars in software, with a durable financial model featuring near double-digit rev growth."
    • Thill forecasts ongoing strength for the Azure cloud platform "as it benefits from an increased shift to cloud computing in the WFH environment and likely offsets any on-premise license weakness."
    • But Thill says the margin outlook "may be tepid given it appears to be an investment year" and notes that MSFT's valuation is currently at a nearly 20-year high.
    • Microsoft will report earnings on October 27 after the bell. Consensus estimates expect $45.8B in revenue and $1.54 EPS.
    • Last quarter, Microsoft reported 50% Y/Y Azure growth, which had decelerated one percentage point from the prior quarter.
    • Microsoft shares are up 0.5% pre-market to $220.82
    • General Electric (NYSE:GE) +2.2% pre-market after GE Capital Aviation Services reaches a preliminary agreement with Pimco to develop an aviation leasing platform to support as much as $3B in aircraft asset financings.
    • "This strategic investment platform will enable GECAS and PIMCO-advised accounts to acquire new and young fuel-efficient aircraft to meet the needs of a diverse set of global airlines over many years," the companies say.
    • GE and Pimco say the portfolio initially will focus on narrowbody aircraft while allowing flexibility to invest in attractive opportunities in the widebody market.
    • "As the airline industry struggles with the effects of the COVID-19 pandemic, the PIMCO-GECAS platform will inject essential liquidity into this critical industry by providing financing solutions at a time when there are fewer traditional financing options for airlines," says PIMCO Chief Investment Officer Dan Ivascyn.
    • Goldman Sachs recently reinstated coverage of GE with a Buy rating and $10 price target, saying CEO Larry Culp and management have made progress in creating a "leaner, structurally more productive company with better capital discipline."
    • Halliburton (NYSE:HAL) +0.7% pre-market after posting better than forecast Q3 adjusted earnings while revenue fell by a sharper than expected 46% Y/Y to $2.98B from $5.55B in the year-ago quarter, as the second largest oilfield services company coped with plunging demand and lower oil prices.
    • The company swung to a net loss of $17M from net income of $295M in the year-ago period.
    • But Chairman, President and CEO Jeff Miller believes the industry may have bottomed out in North America, saying "the pace of activity declines in the international markets is slowing, while the North America industry structure continues to improve, and activity is stabilizing."
    • Q3 revenues from Halliburton's completion and production business fell 55% Y/Y to $1.57B, while drilling and evaluation revenue dropped 31% to $1.4B, both falling just shy of analyst consensus estimates.
    • Q3 revenues from North America plunged 66% Y/Y to $984M; international revenues slid 23% Y/Y to ~$2B.
    • Rival Schlumberger (NYSE:SLB) also reported a Q3 loss and warned the recent economic recovery remained "fragile."

  11. Pharm /  LQDA. Last week you said they are deeply under valued. What price do you consider them fairly valued?  Thx for the heads up call!


  12. Phil, 

    I have 500 shares of PFE basis $30.50

    Also have Sold Jan 22, $35 PUT for 4.00

    Selling a call with end of Nov 2020 covid -19 vaccine approval imminent, does it make sense. As usual, your expertise would be appreciated! Thank you in advance.

    Yodi, you can lend your expertise too! Much appreciated.


  13. Sorry guys, sold 5 puts for the above question.


  14. High stakes for Earth’s climate future in US vote


  15. HHS lawyer: Trump drug-card plan could be illegal




  16. How President Trump measures up on jobs in 6 charts




  17. Jesu1 PFE They pay their div 11/5, If it helps I am in with the Oct23 and Nov 20 40 caller. Both still in credit. With your 500 stock I would wait until after the div. Could go either way. Obviouly if they would have a winner in respect of a vaccine they could jump up to 4$. I feel their premiums are not that great at present. My 2 cents. 


  18. I missed the trade on SCO suggested by Phil.  I believe it was suggested last week.  Could anyone post that deal?  Thanks.


  19. rook…SCO $30 target jan 22 calls are 1 buy 50 (5000) thursdays post
     


  20. Well that didn't hold up well today, did it?  

    PFE/Jasu – I don't think they'll be allowed to profit much from the vaccine in the short-run but, long-term, it's a blockbuster as I'm sure we'll need it regularly.  I certainly wouldn't fully cover, in case it talks off.  Remember, the vaccine is a bonus, we thought it was way undervalued anyway.  

    Top Trades for Mon, 28 Sep 2020 11:19 – PFE & T

    The Week Ahead – 3,350 is Critical for the S&P 500

    While Pfizer may not ultimately "win" the vaccine race, they are a solid blue-chip pharmacuetical company who are clearly able to keep up with the BioTechs WHILE making a healthy profit.  Isn't that the kind of company we like to invest in?

    PFE pays a very nice $1.52 dividend (4.22%) so it's worth considering an ownership play.  Here's one for an example:  Let's say we were willing to own 36,000 worth of PFE at $36, so 1,000 shares.  $36 is not a great price, we're up in the channel but it's a reasonable price.  Rather than buying 1,000 shares for $36,000, we can instead buy 500 shares for $18,000 and PROMISE to buy 500  more for $33 in January of 2023 by selling the 2023 $33 puts for $5.50.  

    Since the put buyer is paying us now in exchange for our promise to buy PFE from them in 2023 (they may wish to set a floor on their stock), we collect $5.50 now and our net entry, if assigned, would be $27.50 – a 16.67% discount to the current price on our next 500 shares. 

    Covered Call Option Strategy Explained | The Options BroMeanwhile, we can also protect ourselves by selling a call option.  Selling a call obligates us to turn over our stock to the call-holder at a set price.  We can sell the 2023 $35 call for $5.30 and that's interesting as it's net $40.30 and we're buying the stock for $36, less the $5.50 for the short puts and less the $5.30 for the short calls so our net entry is just $25.20 and getting called away at $35 would be a $9.80 (38.88%) profit PLUS we're going to collect 1.52 in dividends each year, which is now 6% of our adjusted net entry! 

    So we make 6% interest while waiting 2.25 years to make 38% so call it 50% anticipated profits overall if PFE can manage to hold $35, which is even lower than it is now.  Aren't options fun?  Since our net outlay is just 500 shares x $25.20 = $12,600, if we are assigned another 500 shares at $33 ($16,500), our total cost for 1,000 shares would be $29,100 so our WORST CASE is owning 1,000 shares of PFE for $29.10 per share, a $6.90 (19%) discount to the current price NOT including what we collect in dividends!  

    To summarize that play for our Newsletter Portfolio, it's:

    • Buy 500 shares of PFE for $36 ($18,000) 
    • Sell 5 PFE 2023 $35 calls for $5.30 ($2,650) 
    • Sell 5 PFE 2023 $33 puts for $5.50 ($2,750) 

    That's net $12,600 out of pocket and, if called away at $35 ($17,500) we make $4,900 (39%) against the cash outlay but we will be charged margin against the short puts – it's not a free lunch.  The dividends of $1.52 (0.38 per quarter) will pay us $190 per quarter while we wait, which is 1.5% PER QUARTER – way better than the bank!

    A more aggressive way to play, by comparison, is to do what we call an Artificial Buy/Write where we don't actually own the stock.  Since we are WILLING to own 500 to 1,000 shares at net $29 – selling the 2023 $35 puts for $6.60 is free money since it nets us in for $28.40.  So we can be aggressive and sell 5 of those puts for $3,300 and use that money to buy 15 of the 2023 $30 calls for $8 and sell 15 of the 2023 $37 calls for $4.60 for net $3.40 ($5,100). 

    Why 15 and not 10, which would be net $100?  Because it is my intent to sell short calls over time to create an income stream that will, hopefully, exceed the dividend flow from the other trade.  It will be fun to compare the two's performance over time so we'll put them both in the portfolio and see which one performs best:

    • Sell 5 PFE 2023 $35 puts for $6.60 ($3,300)
    • Buy 15 PFE 2023 $30 calls for $8 ($12,000) 
    • Sell 15 PFE 2023 $37 calls for $4.60 ($6,900) 

    That's net $1,800 on the $10,500 spread so our upside potential is $8,700 (483%), which is substantially more than we expect to make on the straight stock play and our risk is owning 500 shares of PFE for $35 ($17,500) plus the $1,800 we're laying out (assuming we're wiped out on our longs), which would be net $38.60 – a bit higher than the current price.  

    • COVID-19 vaccine developers Pfizer (PFE +0.6%)/BioNTech SE (BNTX +0.5%) and Moderna (MRNA -2.9%) are closing in on their respective enrollment objectives in their large-scale pivotal studies.
    • As of today, Pfizer/BioNTech's 44K-subject Phase 2/3 study evaluating BNT162b2 has enrolled 39,862 participants, 34,601 of which have received the second shot.
    • As of Friday, October 16, Moderna has enrolled 29,521 participants in its 30K-subject Phase 3 study of mRNA-1273, 24,496 of which have received the second jab.
    • Studies testing AstraZeneca (AZN -0.4%) and Johnson & Johnson's (JNJ -1.1%) candidates, AZD1222 and Ad26.COV2-S, respectively, remain paused while safety signals are investigated.
    • Last week, Pfizer chief Albert Bourla said that the company may file its U.S. application for emergency use by late November. It initiated a rolling marketing application in Europe on October 6 and in Canada three days later.
    • Moderna launched a rolling marketing application in Canada on October 13.
    • Other players: Sanofi (SNY +0.2%), GlaxoSmithKline (GSK -0.3%), Dynavax (DVAX -2.5%), Novavax (NVAX -2.1%), Merck (MRK -0.5%)

    SCO/Rookie – Better late than never, right?  

    Fallback Thursday – Reality Hits the Markets

     

    Look at that turnover today, 132,930 contracts were traded 294,677 times!  

    SCO (2x short oil) could be fun to play as it popped 200% in March/April.  Figure $30 as a target and the Jan $22 calls are $1 so let's buy 50 ($5,000) for fun in the STP and risk $2,500.

    If for some reason we get a quick double, we take half off and it's a free ride on the rest.

    • Union Gaming turns cautious on the Macau sector after failing to see any signs of a recovery.
    • "Currently, there's too much friction for a large scale recovery in visitation. Although visas are available, the online/automated process is not. Travelers need to apply in person and processing times can take up to two weeks. On top of that, travelers to Macau still need to present a current (7 days) negative nucleic acid test. This makes last minute, spontaneous, or frequent trips impractical. Macau authorities are considering extending the validity of a negative test to 14 days, which should be moderately helpful," writes analyst John DeCree
    • DeCree also notes that liquidity and VIP junket business remain impaired for Macau operators. There is also gaming concession expiration risk to consider even if the renewal deadline is pushed back a year.
    • Union Gaming moves to a Hold rating from Buy on Wynn Resorts (WYNN -0.1%), Las Vegas Sands (LVS +0.6%), Galaxy Entertainment (OTCPK:GXYEF +1.5%), SJM Holdings (OTCPK:SJMHF) and MGM China (OTCPK:MCHVF). A Buy rating is kept in place on MGM Resorts (NYSE:MGM). Melco Resorts & Entertainment (MLCO -1.7%) was already slotted at Neutral by Union Gaming.
    • The U.S. central bank expects to keep rates in the 0%-0.25% range until labor market conditions reach "maximum employment, until inflation has risen to 2%, and until inflation is on track to moderately exceed 2% for some time," Fed Vice Chair Richard Clarida said in a speech to the American Bankers Association via webcast.
    • "The liftoff will be governed by those factors, not any artificial calendar or time line and when we lift off will depend on the speed of the economic recovery," he said when answering a question from the moderator.
    • And while the economy appears to be rebounding quicker than the Fed originally expected, "it will take some time, perhaps another year for the level of GDP to fully recover to its previous peak," he said in the speech.
    • Getting the unemployment rate to the pre-pandemic level is likely to take even longer, he said. The FOMC's baseline projection sees the unemployment rate falling to 4% by the end of 2023. Personal consumption expenditure inflation is expected to return to 2% by that time, he added.
    • 10-year Treasury yield, which had risen to 0.777% earlier today, now stands at 0.762%. Financial Select Sector SPDR ETF (XLF -0.5%) stays weak amid the extended low rate environment.
    • Previously: FOMC assumed more fiscal stimulus this year – Fed minutes (Oct. 7, 2020)
    • Target (TGT +0.7%) confirms that it will dole out more than $70M on another round of employee bonuses during the pandemic, just ahead of the crush of the holiday season.
    • Target will pay $200 out to more than 35K hourly store, distribution center and contact center employees, as well as paying bonuses to seasonal hires. The payments are expected before early November.
    • The new bonus is the fourth additional incentive the retailer has paid out to front-line workers who cannot work at home since the pandemic started in the U.S.
    • See the current growth grades on Target.
    • Goldman Sachs expects the U.S. Securities and Exchange Commission to withdraw its proposal to boost the minimum asset threshold for funds that are required to file 13F filings after the vast majority of comments submitted to the SEC regarding the proposal opposed the changes.
    • As it currently stands, institutional investment firms with assets under management of $100M are required to disclose their equity holdings in a 13F filing within 45 days of the end of each calendar quarter.
    • The proposal would have lifted the minimum asset threshold to $3.5B. Goldman estimates that the number of hedge funds required to disclose their long positions in stocks would be cut by 89% if the rule is adopted.
    • One of the SEC's five commissioners, the chair of the House of Representatives Financial Services Committee, the CFA Institute, the Business Roundtable, the Investment Company Institute, the NYSE, and Nasdaq, "along with many companies" submitted letters opposing the change.
    • Goldman reviewed the 2,262 letters filed with the SEC commenting on the rule change and found that 99% of them were opposed to the changes; only 24 letters were in favor.
    • Previously: SEC proposes boosting 13F reporting threshold to $3.5B (July 10, 2020).
    • It is an active day of developments in the airline sector with U.S. air passenger traffic topping 1M again even as COVID-19 headlines create some anxiety on booking trends.
    • The TSA reported travel throughput for Sunday of 1,031,505 passengers vs. 2,606,266 for the comparable day a year ago. It was the first time since March 16 since the 1M mark was topped.
    • Of course, the stimulus wildcard is never far from the discussion on airline stocks. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi are set to hold a call this afternoon on a fiscal-stimulus package, which will come just one day before Pelosi's deadline for a pre-election package expires.
    • Sector check: Hawaiian Holdings (HA +6.8%), United Airline (UAL +6.6%), Spirit Airlines (SAVE +3.8%), JetBlue (JBLU +3.4%), Alaska Airlines (AAL +2.5%), SkyWest (SKYW +3.2%), American Airlines Group (AAL +2.5%), Southwest Airlines (LUV +2.4%), Mesa Air (MESA +2.3%) and Delta Air Lines (DAL +1.8%).
    • Dave & Buster's Entertainment (PLAY +10.0%) jumps after selling some bonds earlier today to give it more financial breathing room.
    • The company also entered into additional amendments to its credit facility that among other things provide for a two-year maturity extension of the revolving credit facility to August of 2024, a suspension for certain ratio maintenance covenant requirements until the end of the fiscal quarter ending on or about April 30, 2022 and a $150M minimum liquidity covenant.
    • Dave & Buster's one-year chart
    • Assets under management at the world's 500 largest asset managers topped $100T for the first time last year, totaling $104.4T, according to research from Willis Towers Watson's Thinking Ahead Institute.
    • That's  up 14.8% from 2018 and an almost three-fold increase from $35.2T in 2000.
    • The research, conducted in conjunction with Pensions & Investment newspaper, also confirms the concentration among the top 20 managers whose market share increased during the period to 43% of total assets vs. 38% in 2000 and 29% in 1995.
    • During that time, 232 asset manager names have dropped out of the ranking.
    • “The investment industry has always been dynamic, but the pace of change is speeding up, manifested notably through consolidation,” said Roger Urwin, co-founder of the Thinking Ahead Institute.
    • Among other trends of the note is the growth of passive and index tracking, factor-based strategies and solutions. Passively managed assets in the survey increased to $7.9T in 2019, up from $4.9T in 2015.
    • The top five money managers as of Dec. 31, 2019 were: BlackRock (BLK +0.4%) with $7.43T in assets, Vanguard Group with $6.15T, State Street (STT -1.2%) Global with $3.12T, Fidelity Investments with $3.04T, and Allianz Group (OTCPK:ALIZF +0.3%) with $2.54T.
    • See Blackrock's return on assets vs. State Street's and Allianz's over the past five years:
    • JinkoSolar (JKS +5.7%) shares surge to an all-time high after the company captures an order from German renewable project developer Juwi Hellas to supply the Kozani solar project in Greece, which the company says will be the largest bifacial solar project ever built in Europe.
    • JinkoSolar says it will deliver 204 MW of Swan bifacial modules with transparent backsheet from DuPont for the solar complex, with construction expected to begin in November 2021.
    • "The Kozani project will become Europe's benchmark for renewable energy in terms of competitively priced and subsidy-free solar power," says Frank Niendorf, General Manager of JinkoSolar Europe.
    • JKS shares have been on a tear, more than doubling in less than a month and soaring five-fold over the past year.

  21. Yikes, things turning ugly.

    Nice to have hedges, isn't it?

    3,420 on the dot.  

    Continuing talks among top Democrats and Trump administration officials, as well as evidence of China’s economic rebound, are attracting investors’ focus.5511 minutes ago

    Hopes are rising that China can pull the globe out of its coronavirus-induced funk, much as it did during the global financial crisis more than a decade ago—but economists offer a long list of reasons to be skeptical.

    The statewide restrictions on bars, restaurants and other indoor spaces had been temporarily suspended last week as the state faced rising cases of Covid-19.

    Melinda Gates on What Covid Has Exposed

    An interview with Melinda Gates at WSJ Tech Live about her work on the coronavirus and the inequities the pandemic has revealed.
    Fed Takes Cautious Approach to Possibly Issuing Digital Currency

    The Federal Reserve is in no hurry to issue a digital currency, Chairman Jerome Powell said, citing unresolved concerns including the potential for theft and fraud.41 minutes ago

    Boeing Production Cuts Force Suppliers to Lay Off Staff, Rethink Future

    Boeing’s production cuts have sent shockwaves through the aviation industry, forcing suppliers to lay off thousands of employees. Tool Gauge reconfigured its operations just after opening a new facility in Tacoma, Wash., designed to manufacture Boeing parts.

    Governments are flexing enforcement muscles more forcefully than any time since March in response to a resurgence of the coronavirus. Fines for public-health violations are rising in most countries and so are punishments for breaking curfews, local lockdowns and quarantines.


  22. I guess it's Monday so meaningless… In fact, many days are now meaningless because markets only react to one thing now – free money from CB or from the government. Anything else like fundamentals is being drowned by the trillions being injected in economies around the world. You have companies that should be bankrupt now being held together by taxpayers – look at airlines for example! 


  23. IBM – No  Outlook – the restructuring is starting….


  24. “We are making strategic decisions, taking actions, and increasing investments today to better position our business and accelerate our top line growth on a sustainable basis,” Chief Executive Arvind Krishna said on the call.

    Analysts surveyed by FactSet expect adjusted fourth-quarter earnings of $4.09 a share on revenue of $20.81 billion.

    The company reported third-quarter net income of $2.3 billion, or $2.58 a share, compared with $2.68 a share in the year-ago period. Earnings from continuing operations were $1.89 a share, compared with $1.87 a share in the year-ago period. Revenue fell to $17.6 billion from $18.03 billion in the year-ago quarter, continuing a long-term sales decline that has seen revenue fall year-over-year in all but four of the past 33 quarters.

     

    International Business Machines Corp. revenue continued to decline in the third quarter, according to a Monday earnings report, and shares sank in after-hours trading as the company said it would not provide an outlook.

    On a conference call, IBM IBM, -0.32% Chief Financial Officer James Kavanaugh said the company would be taking charges of $2.3 billion in the fourth quarter “to simplify and streamline our business” as the company transitions to spinning off its IT outsourcing business. “Given this uncertainty and consistent with our direction for most of this year, we are not going to provide guidance.”

     

    IBM earnings snapshot. 

    https://www.marketwatch.com/story/ibm-stock-slips-after-earnings-show-another-revenue-decline-11603139248


  25. IBM money charts:


  26. Phil / INTC – this is a big deal – wonder how much push back on from regs and national security?

    Intel Corp. INTC 0.78% is nearing a deal to sell a memory-chip unit to South Korea’s SK Hynix Inc. 000660 1.64% for roughly $10 billion, in a move that would reorient the semiconductor giant away from an area of historical importance that has become increasingly challenged.

    The companies are discussing a deal that could be announced as soon as Monday, according to people familiar with the matter, assuming the talks don’t fall apart at the last minute. Specifics of the transaction, including exactly what SK Hynix would be buying, couldn’t be learned.

    The Intel unit makes NAND flash memory products primarily used in devices such as hard drives, thumb drives and cameras. The U.S. chip maker has been weighing getting out of the business for some time, driven by sagging prices for flash memory.


  27. Does anyone think they get this stimulus deal through? 


  28. Good morning!

    IBM/Batman – 3rd straight quarter of revenue declines but still, I think last Q and this Q were excusable and they still made $2.3Bn or $2.58/$125 share – I'll take that.  

    INTC/Batman – Never should have gotten into memory in the first place.  May as well become a copper miner. 

    Stimulus/Jeff – Eventually but I don't think Trump thinks it's going to help (get him elected) now, which means he doesn't care enough to force the GOP to compromise and, once he loses the election – he'll "punish" the voters by not signing a bill so we'll have to wait for Biden, most likely.


  29. Stimulus/Jeff – Pelosi thinks it will benefit Trump, so she'll keep stalling and pretending she's willing to compromise when she has no intention of doing so.