Trading Ideas

Top news and what to watch in the markets on Friday, May 29, 2020. …read more […]

Tesla (TSLA) CEO Elon Musk has now received access to the first of 12 potential stock option awards from his extensive 2018 compensation plan- and thanks to the stock’s recent rally, these shares are now worth a whopping $775M.To receive his stock options, the company’s market cap had to stay at $100B or more on a 30-day and six-month moving average, alongside trailing four-quarter revenue of $20B or EBITDA of $1.5B.Musk can now purchase 1.7M Tesla shares at $350.02 each, or $591M total. Based on Thursday’s closing price, these shares now have a total value of about $775M. Of course, …read more […]

(Bloomberg) — The struggle to maintain confidence in Hong Kong’s future is manifesting in its stock and currency markets.Waves of mainland capital are flooding into equities, especially megacap Chinese banks, countering losses sparked by sweeping national security legislation. Tension is also building in the foreign exchange market, where options and forwards show the pegged currency will reach the weak end of its trading band.Stability in financial markets would reinforce the message being promoted by officials and tycoons alike: that tougher laws on dissent will bring calm to a city wracked by violent protests. The city’s leader Carrie Lam cited gains …read more […]

Rosneft does not have enough crude to ship to buyers with which it has long-term supply deals, making it hard for the Russian company to continue with record oil cuts beyond June, four sources familiar with the matter told Reuters on Thursday. Rosneft has told the energy ministry it would be difficult to maintain cuts to the end of the year, as it has had to cut shipments to major buyers, such as Glencore and Trafigura, despite good demand, two sources close to the talks said on condition of anonymity. “There is no doubt Rosneft will …read more […]

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(Bloomberg) — Stocks slipped and U.S. futures edged lower on Friday as President Donald Trump’s planned press conference on China threatened to further stoke tensions between the world’s two largest economies. Treasuries gained along with most European bonds.The Stoxx 600 Index fell for the first time in five days, dragged lower by travel shares and automakers, as deteriorating Sino-American ties cast a cloud over a global stock rally spurred by reopening economies. Contracts on the main U.S. equity benchmarks nudged lower after Trump told reporters he would announce what the administration would do “with respect to China,” following Beijing’s moves …read more […]

Spot gold was unchanged at $1,718.60 per ounce by 0616 GMT. U.S. gold futures rose 0.2% to $1,716.50. “Gold remains wedged between potentially positive economic developments that have been dragging prices lower, and a rise in geopolitical tensions with China over Hong Kong,” said Cameron Alexander, an analyst with Refinitiv-owned metals consultancy GFMS. …read more […]

Oil prices edged lower on Friday, set to post their first weekly fall in five weeks, after U.S. inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening U.S.-China tensions weighed on global financial markets. Brent crude slipped 43 cents, or 1.2%, to $34.86 a barrel by 0643 GMT and U.S. West Texas Intermediate (WTI) crude was at $33.14 a barrel, down 57 cents, or 1.7%. Both contracts are headed for their biggest monthly gains in years as production cuts and optimism about demand recovery led by China supported prices, analysts said. …read more […]

The spotlight Friday will be on the U.S. economy when the Bureau of Economic Analysis released April personal income and spending data. …read more […]

(Bloomberg) — Wall Street giants such as Goldman Sachs Group Inc. and JPMorgan Chase & Co. have tens of billions of dollars at stake in China as political tension risks derailing the nation’s opening of its $45 trillion financial market.Five big U.S. banks had a combined $70.8 billion of exposure to China in 2019, with JPMorgan alone plowing $19.2 billion into lending, trading and investing. That’s a 10% increase from 2018.While their assets in the country are comparatively small, they have big expansion plans there that may come undone if financial services firms are dragged into the tit-for-tat between the …read more […]

(Bloomberg) — Oil is heading for the biggest monthly advance on record as deep supply cuts trim a global glut and easing lockdown restrictions boost fuel consumption after a virus-driven crash.Futures in New York are trading above $33 a barrel, up almost 80% this month for the biggest gain in data going back more than three decades. OPEC+ has pledged to reduce output by about 10 million barrels a day, but the market will be watching for any change when the coalition meets in early June after Russia signaled it would scale back curbs in line with the deal. There …read more […]

A U.S. judge on Thursday said institutional investors, including BlackRock Inc and Allianz SE’s Pacific Investment Management Co, can pursue much of their lawsuit accusing 15 major banks of rigging prices in the $6.6 trillion-a-day foreign exchange market. U.S. District Judge Lorna Schofield in Manhattan said the nearly 1,300 plaintiffs, including many mutual funds and exchange-traded funds, plausibly alleged that the banks conspired to rig currency benchmarks from 2003 to 2013 and profit at their expense. “This is an injury of the type the antitrust laws were intended to prevent,” Schofield wrote in a 40-page decision. …read more […]

(Bloomberg) — Dell Technologies Inc. reported quarterly revenue and profit that were better than projected on greater sales of personal computers to businesses with employees working from home, even while server demand waned. Shares jumped 7% in extended trading.Revenue was $21.9 billion in the period that ended May 1, little-changed from a year earlier, the Round Rock, Texas-based company said Thursday in a statement. On average, analysts estimated $20.8 billion, according to data compiled by Bloomberg. Dell generated profit, excluding some items, of $1.34 per share, easily beating analysts’ projection of 95 cents.Chief Executive Officer Michael Dell has been the …read more […]

Volatility is nothing new in the healthcare sector. Nonetheless, vaccine player Novavax’s (NVAX) recent spectacular moon bound rally is on another level.The stock surged by another 147% this month, cumulatively accruing 1025% of gains in 2020. Which begs the far-fetched question: Has Novavax provided the coveted vaccine? Not yet, but it is taking some big strides towards addressing the issue.The latest share appreciation came following news that the coalition for Epidemic Preparedness Innovations (CEPI) will commit up to $388 million to further the development of Novavax’ vaccine candidate against COVID-19 (SARS-CoV-2), NVX-CoV2373. The investment is CEPI’s biggest to date and …read more […]

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