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Financial Advisors Keep An Eye On Tesla Following Cybertruck Unveiling and Strong Pre-Orders

The US stock market registered mixed performance last week helped by trade optimism, a wave of M&A deals, and positive economic data. The S&P 500 and the NASDAQ Composite inched up by 0.23% each, while the Dow Jones Industrial Average declined by 0.05%.
In a big step-up in trade negotiations, China reportedly agreed to raise penalties for intellectual property violations and to lower punishment thresholds for intellectual property theft. The move was a positive sign that could see both countries reach a phase one agreement. However, closer to the end of the week investors were a bit cautious after president Trump signed a bill supporting Hong Kong protesters into law. It remains to be seen whether this will affect negotiations.
In addition, the beginning of the week saw three major deals. Charles Schwab Corporation (NYSE: SCHW) announced that it would buy TD Ameritrade Holding Corp. (NASDAQ: AMTD) for $26 billion. eBay Inc (NASDAQ: EBAY) agreed to sell online ticket exchange platform StubHub to Viagogo for $4.05 billion in cash. LVMH Moet Hennessy Louis Vuitton SE (OTC: LVMHF) entered into an agreement to buy American luxury retailer Tiffany & Co. (NYSE: TIF) for $16.20 billion.

Weak Q3 Retail Earnings Drag Down Markets

US stocks ended last week with losses as retailers posted disappointing third-quarter results and investors weighed mixed signals regarding US and China trade talks. The S&P 500 inched down by 0.38%, NASDAQ Composite lost 0.35%, and the Dow Jones Industrial Average declined by 0.57%.
On Tuesday, a number of retailers started to report their third quarter results. Out of the gate, Home Depot Inc (NYSE: HD) and Kohl’s Corporation (NYSE: KSS) plunged after both companies lowered their outlook, dragging other retailers and the S&P 500 behind. On the following day, Target Corporation (NYSE: TGT) helped the segment recover by posting better-than-expected results and increasing its full-year profit guidance.
Investors were also disappointed by reports that the US-China trade deal might take longer than expected, as both countries are still debating the conditions. Beijing is asking for more extensive tariff rollbacks and the White House is also increasing its demands. Nevertheless, talks are making headway, although the negotiations might be overshadowed by the US Congress passing a bill supporting Hong Kong protesters, although President Trump might veto the bill when it gets on his desk.

Financial Advisors Eye The Walt Disney Company Following Strong Q4 Print, Huge Success of Disney+

US Stocks appreciated in the first half of November fueled by trade optimism and strong earnings posted by most companies. According to FactSet, by November 15, 92% of companies in the S&P 500 had reported their third-quarter results and 75% of these had managed to beat earnings estimates, while 60% of companies had posted better-than-expected revenues. FactSet noted that the percentage of companies that surpassed top and bottom-line estimates are above five-year averages.
The month started with some mixed economic data. October non-farm payrolls showed the US economy having added 128,000 jobs, versus the consensus estimate of 89,000, while the September figure was revised to 180,000 from 136,000. The unemployment rate ticked to 3.6% from 3.5% in September but was in line with expectations.

Financial Advisors Take A Closer Look At Tesla As Stock Tops $300 On Surprise Profit

The second half of October was a positive one for investors as third-quarter earnings season showed most companies reporting better than expected results, Brexit was postponed, the US and China progressed with their trade deal, and the Fed cut the interest rates again. After having announced a “phase one” trade deal, the US and China continued to work out the details with some degree of success as trade negotiators from both countries continue their talks and expect an agreement to be signed in November.
There were also some updates regarding Brexit as the UK and the EU managed to figure out a new deal. However, before the deal was approved, the British Parliament voted to request Prime-Minister Boris Johnson to ask for another delay, which the EU granted, postponing the UK’s leave of the bloc until January 31. In the meantime, the UK is expected to hold a general election in December.

Financial Advisors Look Closer At Fannie Mae As Government Looks To End Conservatorship

Amid an uplifting start of the earnings season, a potential trade deal with China and new Brexit deal, the US stock market had a solid run in the first two weeks of October. The S&P 500 and the Dow Jones Industrial Average gained 1.96% and 1.70%, respectively, while the NASDAQ Composite appreciated by 3.14% through October 17. However, there also have been some worrisome developments that put investors on alert. On the first day of the month, the September ISM manufacturing PMI showed a decline to 47.8% from 49.1% in August, also missing the consensus estimate of 50%. A PMI figure below 50% usually shows that the manufacturing sector is in recession. In addition, the September non-farm payroll figures released by the Department of Labor showed a growth of 136,000 jobs, lower than the previous month’s figure of 168,000 and below the consensus of 145,000. However, the unemployment rate inched lower to 3.5%. Both ISM manufacturing PMI and nonfarm payroll concerned investors, with experts believing that the data could incentivize the Fed to cut interest rates later this month. At the same time, US trade relations with the rest of the world took a couple of interesting turns. On the one hand, following negotiations, the US and China reached a phase one deal that reportedly covers agricultural purchases, intellectual property and financial services. However, the enforcement of the deal is still being worked out...

Financial Advisors Look Up Dan Bilzerian’s Ignite International Brands As Stock Sees Surge In Momentum

The US stock market ended September in the green amid signs of ease in trade tensions with China and monetary policy moves from the Fed in line with expectations. At the beginning of the month, China and the US agreed to hold a fresh round of negotiations in early October and China extended an olive branch by first exempting 16 American products from higher tariffs and then adding some agricultural products to the list, including soybeans and pork. At the same time, on September 18, the Fed reduced the Federal Funds target rate by 25 basis points to 1.75% - 2.00%, marking the second cut in a row. Fed Chair Jerome Powell said the central bank expects the economy to continue moderate growth, but uncertainty over trade and Brexit remains. On the other side of the Atlantic, the European Central Bank also cut its deposit rate by 10 basis points to -0.50% last month. It also announced a restart of Quantitative Easing from November 1. Amid these two main developments, the S&P 500 gained 2.42% in September, while the Dow Jones Industrial Average appreciated...

Financial Advisors Eye Uber As Stock Tanks On Disappointing Q2 Results

The US stock market lost ground in August as investors were processing what was left of earnings season, the July interest rate cut and continuing uncertainty about the global economy and US-China trade tensions. The Dow Jones Industrial Average inched down by 0.86% in August. The S&P 500 performed a bit better, ending the month 0.53% in the red. On the other hand, tech-heavy NASDAQ Composite slid by 1.66%. August started with President Trump saying he’ll authorize an additional 10% tariff on $300 billion worth of goods and products from China as of September 1, sending stocks into a dive. China responded by saying that it doesn’t want a trade war but will have to take countermeasures if the tariffs go into effect. Less than a week later, Beijing announced it was going to suspend purchases of US agricultural products. Trump retaliated further saying on August 23 that he’ll boost the 25% tariff on $250 billion worth of Chinese goods to 30% as of October 1. China responded by putting tariffs on $75 billion worth of US goods starting September 1, as well as a 25% tariff on cars and a 5% tariff on car parts imported from the US starting December 15.

Small-Cap Karyopharm Therapeutics Captures Financial Advisors’ Attention Following FDA Approval of Cancer Drug

The US stock market posted relatively modest gains in July, with trade, earnings, and monetary policy dominating headlines throughout the month. The S&P 500 and Dow Jones Industrial Average inched up by 0.54% and 0.55%, respectively. The tech-heavy NASDAQ Composite appreciated by 1.04%. The month had a mixed start, with some positive signals from the ongoing US-China trade dispute. On June 29, it was announced that the US would restart trade negotiation...

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