SoftBank wants to push Neumann out of the CEO role ahead of the IPO.Technologyread more
The next three weeks are among the rockiest, on a historical basis, of the entire calendar.Trading Nationread more
CNBC's Jim Cramer calls on investors to be wary of the slew of the hyped-up unicorn companies going public this year and encourages the focus to be on deliverable earnings.Investingread more
An annual survey by Piper Jaffray finds iPhone that users willing to upgrade to newly released models declined from last year.Technologyread more
The UK's Civil Aviation Authority said Thomas Cook had now ceased trading and the regulator would work with the government to bring the more than 150,000 British customers...Europe Marketsread more
Trump's call with the foreign leader is reportedly the subject of a whistleblower's complaint that has spurred new accusations of wrongdoing from Democrats.Politicsread more
Rising home prices, coupled with conservative borrowing, have today's homeowners sitting on a record amount of potential cash. Today's mortgage holders saw their home equity...Real Estateread more
Barclays unveiled "a new valuation framework for growth companies" in a note on Monday.Marketsread more
New York Fed President John Williams said Monday that the central bank acted quickly during last week's jolt to overnight lending markets and that the issue appears resolved...The Fedread more
The U.S. manufacturing sector recovered in September with activity growth hitting a five-month high, according to IHS Markit.Marketsread more
In a "two front trade war" the market may find correction territory, according to RBC Capital Markets.
In an escalated trade war with China and now Mexico, U.S. equities may fall 10% from their recent highs, Lori Calvasina, the firm's head of U.S. equity strategy, said in a note to clients Monday.
"The potential for tariffs on Mexico make it even more likely that the S&P 500 will fall to 2650 this summer, taking the index 10% below its April 2019 high," said Calvasina. The bellwether index was at 2,746 Monday morning, down 0.2%.
Last week, President Donald Trump announced the United States will impose a 5% tariff on all Mexican imports starting on June 10. The president said these levies will stay in place until the Mexican government does more to stop illegal migrants from entering the U.S.
Trump's tariffs on Mexico come after a broken trade deal with China caused the president to hike tariffs on $200 billion worth of Chinese goods. In retaliation, China put tariffs on $60 billion worth of imports.
The S&P 500 is already down more than 6% from its high in April.
To get a sense of which sectors in the U.S. equity market are most at risk during an escalated trade war with Mexico, Calvasina tracked companies that mentioned Mexico on earnings calls in the fourth quarter of 2016, following Trump's victory in the election, and the third quarter of 2017, during NAFTA renegotiations.
The energy, materials and consumer staples sectors have the most entanglements with Mexico, Calvasina concluded, and utilities, financials, health care, REITs, tech, and communications have the least.
RBC also evaluated companies with greater than 5% revenues from Mexico.
"Nearly two-thirds of the names that we've identified as getting at least 5% of their revenues from Mexico underperformed the S&P 500 on Friday, the first full trading session after the Mexico tariff news broke when the broader market fell 1.3%," said Calvasina.
Calvasina said for now, she thinks the Mexico tariffs won't go past the 5% level but the markets are bracing for the worst.