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MONDAY MARKET UPDATE - Jackson Hole Thursday, Powell Friday @ 10 a.m.

Published 22/08/2022, 15:50
MONDAY MARKET UPDATE - Jackson Hole Thursday, Powell Friday @ 10 a.m.
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MARKET UPDATE 15% 2-month rally based on:

  • Decade low exposures (high cash levels, no hedge fund leverage)

  • Better than feared Q2 earnings

  • Peaking U.S. gas prices

  • Lower 10 year yield to 3% from 3.5%

  • Month-to-date

    • S&P 500 +2.4%

    • Nasdaq +2.5%

    • TSX +2.1%

    10yr 3%

    Jackson Hole: Thursday and Friday

    • Powell speaks at 10 a.m. on Friday

    • 10 year yield has moved up from 2.5% to 3% in a month

    • Higher yield helping support a strong U.S. dollar

    Crude 90

    • China cut interest rates and announced $29.3B in special loans to developers

    • Iran nuclear deal negotiations continue

    Amazon (NASDAQ: NASDAQ:AMZN), (NYSE: UNH), (NYSE: CVS)

    • WSJ reporting that in an auction, AMZN among the bidders for Signify Health (NYSE: SGFY)

    • Signify (market cap $5B) is up 26% in pre-market

    • Signify is a home-health services provider

    • CVS Health and UNH also bidding

    Tesla (NASDAQ: TSLA (NASDAQ:TSLA))

    • Stock split Wednesday

    • Telsa price for new version of their full self-driving option rising to $15,000 from $12,000 in September

    Earnings

    • (NASDAQ: PANW) Palo Alto (NASDAQ:PANW)

    • (NASDAQ: ZM) Zoom

    CRYPTO UPDATE Stablecoin clues from Morgan Stanley (NYSE: NYSE:MS):

    • Stablecoin availability = sign of liquidity & demand for crypto leverage

    • “This week marked the first time since April that stablecoin market capitalization has stopped falling on a monthly basis”

    • Margin calls have paused

    • Re-leverage demand still hasn’t picked up though

    • Watch: Growth of stablecoin market cap = potential growth of crypto leverage

    Source: TheDailyShot

    © 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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