Morning Market Report
Tesla downgraded too…story at bottom
Futures Drop As Huawei Boycott Erupts, Slamming Tech
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When the semiconductor index was soaring in the past few weeks even as semi shipments and revenue forecasts plunged to the lowest since the financial crisis, many said that the market knew something other didn't.
As a result of this latest escalation against China's crown tech jewel, an early push higher in S&P futures fizzled and futures slumped, dropping alongside European stocks, while bonds pared an earlier loss and crude oil advanced. In fact, after some early strength, global markets became a sea of rad with Nasdaq futures leading U.S. declines and pointed to a weak opening in New York.
futures were up at a decent clip before pepe went to bed, DOW was +129.
Software and chip maker shares helped pull the Stoxx Europe 600 index lower as chipmakers Infineon Technologies, AMS and STMicroelectronics dropped sharply.
Nikkei Asian Review reported that German chipmaker Infineon had halted shipments to Huawei.
Stocks took a leg lower just after 4am EDT after twitter account @Money_China published unverified rumours that there had been a break down in US-China trade discussions, and that China will suspend business with all suppliers who have agreed to halt supplying Huawei.
the longer this goes on the exposed the sysytem is for what it is…getting old hearing about yet another breakdown however in the long run it is a positive as the central banks have NOWHERE to hide now.
Equities were mixed across Asia, with regional shares playing catch up to the US, and managing to reverse some of last week’s heavy losses on Monday, after the United States said it would lift tariffs in North America, as investors cheered apparent wins by Conservative incumbent parties in elections in Australia and India. Stocks rallied in Australia and the nation’s currency jumped after a surprise election victory for conservative Prime Minister Scott Morrison.
yaaay! for AUSFAGS
In commodities, oil prices jumped after Saudi Energy Minister Khalid al-Falih said that there was consensus among the members of the OPEC to maintain production cuts to “gently” reduce inventories (although Russia did not sound nearly as confident). Both U.S. crude and Brent crude jumped more than 1.1% on Monday, with West Texas Intermediate fetching $63.5 a barrel and Brent crude at $73.04 per barrel.
They have since puled back see cap#3
Market Snapshot
S&P 500 futures down 0.3% to 2,840.00
MXAP up 0.4% to 154.63
MXAPJ up 0.6% to 505.86
Nikkei up 0.2% to 21,301.73
Topix up 0.04% to 1,554.92
Hang Seng Index down 0.6% to 27,787.61
Shanghai Composite down 0.4% to
2,870.60
Sensex up 3.4% to 39,217.80
Australia S&P/ASX 200 up 1.7% to 6,476.10
Kospi unchanged at 2,055.71
STOXX Europe 600 down 0.1% to 381.11
German 10Y yield rose 2.0 bps to -0.084%
Euro up 0.04% to $1.1162
Italian 10Y yield fell 2.4 bps to 2.287%
Spanish 10Y yield rose 0.7 bps to 0.882%
Brent Futures up 0.6% to $72.67/bbl
Gold spot down 0.2% to $1,275.32
U.S. Dollar Index down 0.03% to 97.97
US Event Calendar
8:30am: Chicago Fed Nat Activity Index, est.
-0.2, prior -0.1
9:30am: Fed’s Harker Speaks About
Management Science in Boston
1pm: Clarida, Williams Take Part in ‘Fed
Listens’ Event in New York
7pm: Powell Speaks at Atlanta Fed
Financial Markets Conference
getting a bit desperate are we not?-they do this all the time however it takes on a different meaning now as last week the idiot that used to be second in charge regarding the TARP investigations basically said we need higher inflation-Kashkari, at least he does not have a vote.
https://www.zerohedge.com/news/2019-05-20/stocks-tumble-huawei-boycott-erupts-slamming-tech
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
In other equity news on Tesla
Wedbush Lowers Tesla Price Target to $230 from $275; Says Concerned with Demand for Model 3 in U.S.
https://www.benzinga.com/analyst-ratings/analyst-color/19/05/13770258/wedbush-lowers-tesla-price-target-to-230-from-275-says-concerned-with-demand-for-mo
a day late and many dollars short with this call to $230…however that is the ever the optimist ANALyst community saying that it will return to $230/share from where it is now….good luck with that especially with VW just announcing it's vehicle.
Pre-market trading
TSLA
201.85 -9.18 (-4.35%)
Pre-Market: 8:35AM EDT