There was flurry of activity this morning in the market, then the seemed to get very quiet once again. Futures were looking good this A.M., but as Maria Bartiromo interviewed President Trump the wind that Mnuchin had created began to dissipate.
Trump did not seem as optimistic about a deal with the Chinese as Mnuchin had indicated. The China contingent is now off to the G-20 in Osaka, Japan. The big Trump/Xi meeting is Friday.
Here was the mood of the market as we began a new day in the market.
- DJIA futures are ahead by 123 points, with stronger-than-expected earnings from Micron pushing Nasdaq futures up 0.8%, following a series of Fed comments that trimmed hopes of a big July rate cut and weighed down Wall Street benchmarks on Tuesday.
- Treasury Secretary Steve Mnuchin also helped sentiment overnight by stating a U.S.-China trade deal was "90% complete," adding "I think there's a path to complete this" when President Trump and Xi meet later this week at the G20 summit.
- Oil is up 1.9% at $58.90/bbl, gold is 0.7% higher at $1410/ounce and the 10-year Treasury yield is up 3 bps to 2.02%.
- Japan -0.51%.
- Hong Kong +0.13%.
- China -0.19%.
- India +0.40%.
- London +0.13%.
- Paris +0.22%.
- Frankfurt +0.37%.
This is where the early optimism in the market came from.
- "We were about 90% of the way there (with a trade deal with China) and I think there’s a path to complete this," Treasury Secretary Steven Mnuchin told CNBC, ahead of a big G20 meeting between President Xi and President Trump.
- He's also hopeful an agreement could be struck by the end of the year but said "there needs to be the right efforts in place."
- The outcome could be pivotal for financial markets that have been rattled by 18 months of trade tensions between the world's two largest economies.
Does Trump now want NEGATIVE rates?
- President Donald Trump said he'd rather have European Central Bank President Mario Draghi running the U.S.'s central bank "instead of our Fed person," alluding to Fed Reserve Chair Jerome Powell, who Trump nominated to the spot in 2017.
- Trump discussed the Fed chair, among other topics, in an interview with Maria Bartiromo on Fox Business.
- Powell should not have increased interest rates as much as he did, Trump said.
- In addition, the president contends he has "the right" to demote or fire Powell.
The bright spot in the market today was the semiconductor sector. Broadcom (AVGO) continues to be my favorite semi stock.
- Stronger-than-expected earnings from Micron Technologies (NASDAQ:MU) helped boost sentiment overnight, while the chipmaker stuck to its forecast of a second half rebound in the memory chip market resumed shipments to Huawei, sending shares up 10% premarket.
- Qualcomm (NASDAQ:QCOM) and Intel (NASDAQ:INTC) have also started shipping some components to the blacklisted Chinese tech giant after its lawyers studied export restrictions.
- Even when businesses have headquarters in the U.S., they may be able, through ownership of overseas subsidiaries and operations, to classify their technology as foreign, according to Cross Research analyst Steven Fox.
Reports on the U.S. Economy
Another weak Durable Good Report
- May Durable Goods: -1.3% vs. 0.0% expected, -2.8% (revised from -2.1%) prior.
- Core Durable Goods: +0.3%vs. +0.1% expected, -0.1%(revised from flat) prior.
- During an interview with Fox Business, President Trump says, "We should be suing Google and Facebook and perhaps we will."
- Twitter (NYSE:TWTR) -0.3%, Facebook (NASDAQ:FB) -0.3%, and Alphabet (NASDAQ:GOOGL) -0.1% shares turned negative pre-market after the comments
Apple was at the forefront of the Computer and Telephone revolutions. Will it be at the forefront of the Car Revolution?
- Apple (NASDAQ:AAPL) has bought autonomous shuttle company Drive.ai, it tells Axios.
- It's hired on dozens of Drive.ai's engineers as part of the deal. It also bought the autonomous cars and other assets.
- Drive.ai talked with multiple possible acquirers but only Apple was left as a possible suitor. The start-up ceased operations in the past two weeks.
- Apple was reported earlier this month to be taking a look at a deal for Drive.ai, which was once valued at $200M.
I still do not like Tesla’s stock.
- "There is a lot of speculation regarding our vehicle deliveries this quarter," Elon Musk told employees in an email. "The reality is that we are on track to set an all-time record, but it will be very close. However, if we go all out, we can definitely do it!"
- Tesla (NASDAQ:TSLA) has forecast it will deliver 90,000 to 100,000 cars in Q2 after handing over just 63,000 vehicles to customers in the first three months of the year.
- Shares have slumped 34% YTD, in part due to demand concerns that Musk has repeatedly downplayed.
I still do not like Bitcoin either.
- Bitcoin (BTC-USD) prices are partying like its 2017 amid the recent enthusiasm stoked by Facebook's foray into the world of cryptocurrencies.
- Advancing for eight trading sessions in a row, Bitcoin jumped as much as 14% overnight to nearly $13,000, bringing its overall return for the year to 250%.
- Also notable is the fact that the cryptocurrency crossed above 60% market dominance for the first time in over 17 months.
I sent out tweets on the following stocks that caught my eye today: GBTC, ANIP, IYH, EDU, EADSY, ADDYY, VCEL, AMD, & AAPL.