The attacks come after state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums.Technologyread more
China's pursuit of the Middle East may spur growth in the Islamic finance sector.World Economyread more
Twitter and Facebook have suspended accounts believed to be tied to a state-backed disinformation campaign originating from inside China.Technologyread more
United States Steel Corp will temporarily lay off hundreds of workers at its Great Lakes facility in Michigan in coming weeks, according to a filing the steelmaker made with...US Marketsread more
The report comes as Trump in recent days has lashed out over media reports about growing recession fears.Politicsread more
Beijing will lower borrowing costs for companies, but that may not boost the economy as much as some hope.China Economyread more
Stocks are bouncing higher but could be trapped in a range longer term, until there's a resolution of the trade wars.Market Insiderread more
Stocks in Asia mostly traded higher Tuesday morning as minutes from the Reserve Bank of Australia's July meeting were released. The People's Bank of China also published its...Asia Marketsread more
Powell will have the opportunity if not to walk back the "midcycle" assessment then to at least provide some further explanation about what it means.Economyread more
Apple has spent more than $6 billion on original TV shows and movies for its forthcoming Apple TV+ service, according to a Financial Times report on Monday.Technologyread more
The Business Roundtable, led by Jamie Dimon, gives a new definition of the "purpose of a corporation."Marketsread more
The Trump administration and the Federal Reserve together could spark a "shock and awe" rally in stocks that would take the S&P 500 to the 3,000 level, according to a J.P. Morgan executive director.
That would represent a 7 percent gain from where the market was trading Wednesday. The S&P 500 closed Wednesday at 2,792, down a point.
"The 'shock and awe' upside scenario involves rescinding all US-China tariffs instantly, causing certain tariff-sensitive firms to raise 2019 guidance, while the Fed commits to keeping reserves at ~$1.3T+. If all this were to come to pass, then the SPX will easily make a run towards 3K," wrote J.P. Morgan's executive director Adam Crisafulli, in a note to clients.
Bank reserves are a portion of the Fed balance sheet and are currently about $1.6 trillion. That is the portion of the balance sheet that is is rolling down as part of its normalization process, and traders have been looking for detail on what level the Fed might stop the program.
President Donald Trump has indefinitely held off on new tariffs on Chinese goods that he had threatened for March 1 because trade talks are progressing toward a deal. However, analysts have said if he does not remove existing tariffs, the market will react negatively to any deal since tariffs have been hurting earnings and the economy.
"Fundamentals argue for the former as the three big stock tailwinds (the Fed Pivot, better earnings, and easing China trade tensions) are largely embedded within the SPX at current levels. There are scenarios whereby these issues could still surprise on the upside but the odds of them unfolding don't seem great," he wrote.
He noted that Powell said the Fed this week that the Fed could conclude balance sheet normalization at $1 trillion in reserves, plus a buffer.
Crisafulli said that investors are wondering whether the S&P 500 will have a long pause below 2,800 or break out in another leg higher towards 2,850.
But he noted the S&P is likely to consolidate the recent rally within the 2,750 to 2,800 range, until the Fed clarifies details of its plan for the balance sheet.
"Bottom Line: the Fed balance sheet specifics remains the next big macro event for US equities but this probably won't arrive until the 3/20 meeting/press conf.," Crisafulli wrote.