dChan
Anonymous ID: 2c1346 Aug. 24, 2020, 1:34 p.m. No.10404884   🗄️.is đź”—kun   >>4920 >>4946 >>5020

Market Report-Monday, August 24th, 2020-S&P500 and NASDAQ ATH with Dow closing highest since February

 

So keep in mind that this market is quite stretched-blown up to these levels again by a parade of FRBNY three-letter bail-out/ "asset"purchase programs that really only help the monied participants. Still have a ways to go for the ATH on the DOW (29,568.57) and the third Q is winding down (on monday next week).

It's been pretty dull overall and the old saying is never short a dull market however as mentioned we are closing in on 3Q end and it would behoove (((them))) to have a little ride down so that this is reflected on everyones statements when they are mailed out in the first few days of Sept. This is not a prediction however imo they would be losing an opp (that I do not want them to take for obvious reasons) by not playing around with this. Remember most people only care about the markets when they go down-rarely give it a look when it is up or sideways.

Dow (^DJI): +378.54 (+1.36%) to 28,308.87

Nasdaq (^IXIC): +67.92 (+0.60%) to 11,379.72

S&P 500 (^GSPC): +34.21 (+1.01%) to 3,431.37

Crude (CL=F): +$0.09 (+0.21%) to $42.43 a barrel

Gold (GC=F): -$14.30 (-0.73%) to $1,932.70 per ounce

10-year Treasury (^TNX): +0.6 bps to yield 0.6460%

 

see this regarding mark-to-market (not being used in most cases) and mark-to-model (this is what the internally produced marketing/valuation presentations produced by these banks that say what these assets are worth) being used.

 

Opaque Level 3 Assets Mysteriously Rose In Value 20% For Major Banks During COVID Crisis

The most difficult to value opaque assets on a bank's books - called Level 3 assets - rose by more than 20% for lenders like Barclays Plc, Citigroup Inc., BNP Paribas SA and Societe Generale SA during the first half of 2020. These sometimes illiquid and difficult to value trades are now worth a cumulative $250 billion, according to Bloomberg. Level 3 assets can include distressed debt, some mortgage backed bonds, high risk loans and derivatives linked to things like interest rates and corporate debt.

-Citigroup had the biggest Level 3 increase since December among 13 banks analyzed by Bloomberg – up about 80% to $14.5 billion.

-Goldman Sachs Group Inc.’s 28% increase to $29.4 billion makes it the second-biggest holder. The majority of its Level 3 holdings are merchant-banking investments, which also became harder to value.

-Deutsche Bank holds more than any other firm, even as it struggles to shrink; Level 3 assets are greater than half its CET1 capital – also the most of any bank.

-Barclays, whose investment bank has been repeatedly criticized by an activist investor, reported an increase of about 40%.

-SocGen, which has ousted executives amid trading losses, reported a 53% jump.

-Credit Suisse’s Level 3 assets have declined since the first quarter, spokesman James Quinn said in a statement. The bank’s turnover of the securities meaning how quickly it buys and sells them is the highest in the industry, he said.

ALL of these banks are on life-support (bullshit FRB "stress" test results aside becuase the FRB allows the banks to hide assets in the "hold-to-maturity" bucket so they are never placed in consideration for that "test".

https://www.zerohedge.com/markets/opaque-level-3-assets-mysteriously-rose-value-20-major-banks-during-covid-crisis

 

The numbers:

U.S. stocks rose to record highs and bonds fell on signs that the Trump administration may fast-track vaccines and treatments for coronavirus. The S&P 500 notched another all-time high as optimism mounted that the virus wouldn’t hamper growth. The Nasdaq Composite also closed a record for a second consecutive session. Companies that benefit from a more robust economic restart led the gains. Carnival Corp. and United Airlines Holdings Inc. surged more than 9%, while Kohl’s Corp. and Gap Inc. jumped at least 7%. Casinos, carmakers and homebuilders joined the rally. Of the 11 S&P industry sectors, only health care finished lower. The dollar edged higher on Monday before Federal Reserve Chairman Jerome Powell this week will give a highly anticipated speech about the U.S. central bank’s policy framework review. Powell’s speech on Thursday will likely be the next major dollar driver, with investors watching to see if he signals that the U.S. central bank will shift its inflation target to an average. This would allow inflation to rise higher than previously before the Fed raises rates, making up for decades of benign price increases.

 

https://www.reuters.com/article/us-global-forex/dollar-inches-higher-fed-chair-powells-speech-major-focus-this-week-idUSKBN25K019

https://finance.yahoo.com/quote/%5EDJI

https://www.marketwatch.com/investing/index/dxy