Good morning. Happy Friday.
The Asian/Pacific markets did well. Hong Kong, South Korea, India, Taiwan and Thailand gained more than 1%. Europe, Africa and the Middle East are currently mostly up. Poland, Russia, Greece, Hungary, Spain, Italy, Austria, Israel, Portugal and the Czech Republic are posting the biggest gains. Futures in the States point towards positive open for the cash market.
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VIDEO: State of the Market
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The dollar is unchanged. Oil and copper are up. Gold is flat; silver is up. Bonds are down.
Stories/News from Seeking Alpha…
Drumroll for non-farm payrolls
It’s the first Friday of the month, and that means the release of the Labor Department’s monthly employment report. Non-farm payrolls likely increased by 469,000 jobs in November after rising by 638,000 jobs in October, while the unemployment rate probably ticked down 0.1 percentage point to 6.8%. Those figures indicate that jobs growth is slowing for the fifth straight month since 4.8M jobs were added in June, though it also suggests the labor market is continuing to recover despite being in the middle of the worst wave of the pandemic. While some thought traders would be hesitant to place bets before the report, U.S. stock index futures are ahead by 0.4%, following other data on Thursday that showed fewer new U.S. jobless claims than forecast.
Warner’s streaming shockwave
The pandemic-era decision by Warner Bros. (NYSE:T) to send all 17 of its 2021 movies to streaming on the same day as theatrical release is sending a shock throughout the movie industry – with theater stocks sliding on the news (but Warner parent AT&T surprisingly sanguine). Warner has painted the move as a one-year response to the coronavirus crisis, but with the exhibition industry struggling on tight liquidity even early in the pandemic, the question is whether a permanent change in consumer behavior is ahead: Once the theatrical release window is smashed, can it possibly be put back together in 2022? The story has unsurprisingly generated a number of “death of theaters” takes, but there’s a school of thought that sees cinemas evolving into more of a boutique offering, not unlike how some bookstores have survived the Amazon (NASDAQ:AMZN) era – with fewer screens overall, more dining/drinks options a la the Alamo Drafthouse, and higher ticket prices along with entirely different margins.
Vaccine supply chain
Pfizer (NYSE:PFE) expects to ship only half of the 100M COVID-19 vaccine doses this year that it originally planned due to supply chain obstacles, a near-term problem considering its ultra-cold storage requirement of minus 70 degrees Celsius. Headwinds were due to a later-than-expected data readout from the pivotal trial and challenges scaling up the raw material supply chain. Pfizer shares fell as much as 3% on the news, but pared lossed soon after the company said it still expects to ship more than 1B doses in 2021. Meanwhile, Moderna (NASDAQ:MRNA) announced it will supply up to 125M vaccine doses globally in the first quarter, while a study of its vaccine candidate showed durable immunity.
OPEC+ compromises on production hike
It’s official. After five days of difficult talks that exposed new rifts between OPEC+ members, delegates agreed to gradually ease supply cuts next year. 500K barrels a day of production will be added to the market next month, and the group also agreed to hold monthly meetings to decide on subsequent moves. In other energy news, S&P Global Platts has opened consultations on adding U.S. WTI Midland crude to its Dated Brent benchmark, a move that could transform the way oil prices are set in many parts of the world. It reflects the growing importance of American crude internationally – the U.S. restarted crude exports in 2015 – and the fact that supplies of some of the North Sea’s key grades are running out.
The green economy
Denmark, the largest producer of oil and gas in the EU, is putting an end to all oil and gas exploration and extraction in the North Sea by 2050, as well as canceling its latest licensing round. “We are now putting a final end to the fossil era,” said Dan Jørgensen, Denmark’s climate minister. The Nordic country agreed last year on one of the world’s most ambitious climate targets of reducing emissions by 70% by 2030 and being climate neutral in 2050. Denmark currently has 55 oil and gas platforms, scattered across 20 oil and gas fields, and produced the equivalent of 103,000 barrels of oil and gas a day in 2019.
Brexit talks
There’s only four weeks left until the U.K. formally exits the EU on Dec. 31 and a trade deal isn’t looking any more likely. British officials are accusing French President Emmanuel Macron of throwing a wrench into talks last night, saying he is making new Brexit demands at the eleventh hour. The big issues still on table are fishing rights and the “level playing field” of state aid, as well as what “effective remedies” each side could take if the other breaks an agreement. If the two sides fail to reach a deal, the Brexit divorce would end in a nightmare scenario for businesses and investors who say it would sow chaos through supply chains, borders and markets as the region grapples with the vast fallout from COVID-19.
EU budget
Elsewhere in Europe, Hungary and Poland have been blocking the EU’s seven-year budget and its post-crisis recovery fund, stopping nearly €2T from reaching member states, but the bloc may soon be moving on without them. At issue: Payouts from the budget would be suspended to a country if a weighted majority of nations determined a “rule of law” breach, like not adhering to democratic values like prosecuting high-level corruption. EU budget commissioner Johannes Hahn now says lawyers have found a way to get around Warsaw, Budapest and their objections by cutting them out of the recovery fund entirely and moving to a pared-back emergency budget for 2021. Scope for compromise? An EU leader summit scheduled for next week may still see a deal come to fruition, but the bloc has seen some shaky ground in the recent past.
Completely driverless cars
Self-driving cars without human drivers as a back-up are now being tested in China’s Shenzhen, according to Alibaba-backed (NYSE:BABA) AutoX, which said there were 25 vehicles operating in the city. “The next step is to increase the number of cars and the test area size, and to carry out tests in more cities. We have a plan in the next six months to expand to 10 cities globally,” COO Jewel Li told CNBC’s Squawk Box Asia. “It’s close to a sci-fi kind of experience for most of our riders. When you really experience the vehicle fully driving itself, the level of excitement is overwhelming.” While the company’s driverless robotaxis are not open to the general public yet, employees and private guests, such as media, business partners, investors and automakers, can make trips in the vehicles.
#Blacklisted
In the latest escalation of U.S.-China tensions, the Pentagon added China’s largest chipmaker SMIC (OTC:SMI) and national offshore oil and gas producer CNOOC (NYSE:CEO) to a blacklist of alleged Chinese military companies. While the nation has said that it does not engage in industrial espionage, U.S. officials have long claimed that local firms are beholden to the Chinese Communist Party and collect sensitive information on behalf of the People’s Liberation Army. Semiconductor Manufacturing International Corp. is viewed as a major player in China’s effort to boost its domestic chip industry, a drive that was accelerated by the U.S.-China trade war. Beijing may not take the steps lightly. The National People’s Congress recently passed an Export Control Law that would counter any country that “abuses export-control measures” and poses a threat to national security and interests.
What else is happening…
DOJ suit charges Facebook (NASDAQ:FB) with illegally favoring H-1Bs.
Big gains for Lidar company Luminar (NASDAQ:LAZR) after SPAC merger.
Boeing (NYSE:BA) clinches first firm order since 737 MAX grounding.
California to impose regional stay-at-home order.
Who will pay $40B in COVID-19 debt owed to utility companies?
Thursday’s Key Earnings
Cloudera (NYSE:CLDR) +8.5% AH posting stronger-than-expected results.
DocuSign (NASDAQ:DOCU) +3% AH on Q3 beats, upside revenue forecasts.
Kroger (NYSE:KR) -4.4% as top-line miss overshadowed guidance boost.
Marvell (NASDAQ:MRVL) -6% AH noting supply constraints.
TD Bank (NYSE:TD) +0.3% topping estimates, declaring dividend.
Ulta Beauty (NASDAQ:ULTA) -3.5% AH reporting a net sales miss.
Today’s Economic Calendar
8:05 Fed’s Williams Speech
8:30 Non-farm payrolls
8:30 Goods and Services Trade
9:00 Fed’s Evans Speech
10:00 Fed’s Bowman: “Community Banking and FinTech”
10:00 Factory Orders
11:00 Fed’s Kashkari Speech
1:00 PM Baker-Hughes Rig Count
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Good morning. Happy Thursday.
The Asian/Pacific markets leaned up. Hong Kong, South Korea, Malaysia, Thailand and the Philippines did well; New Zealand was weak. Europe, Africa and the Middle East were mixed and little changed. Turkey, South Africa, Israel and the Czech Republic are up; Denmark, Russia, Finland and Switzerland are down. Futures in the States point towards flat open for the cash market.
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Cyber Week Special: info here
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The dollar is down. Oil is flat; copper is up. Gold and silver are up. Bonds are up.
Stories/News from Seeking Alpha…
The great delisting
Congress has set the stage for exiling Chinese stocks from the U.S. after approving a bill that would kick foreign companies off U.S. exchanges if they have failed to comply with the U.S. Public Accounting Oversight Board’s audits for three years in a row. The legislation easily cleared the Senate in May, but has now won bipartisan support in the House and President Trump is expected to sign the bill. Chinese firms have raised money from U.S. shareholders for years, but their auditors violate a fundamental investor protection: China typically will not allow American regulators to inspect their work. Several U.S.-listed Chinese firms, including Alibaba (NYSE:BABA), NetEase (NASDAQ:NTES) and Yum China (NYSE:YUMC), have also recently carried out secondary listings in Hong Kong, which would become more frequent if the law takes effect.
Stimulus headwinds
After an initial tumble on Wednesday, stock indexes mostly closed up later in the day, but couldn’t quite build support for a meaningful rally. Futures are largely unchanged this morning as investors monitor the latest developments from Washington on a possible stimulus bill. What’s going on? Prior to the election, Democrats and Republicans had been sparring over the price tag of a coronavirus aid package and couldn’t narrow differences between a spread of $1.8T and $2.2T. Now, a bipartisan group of lawmakers from the House and Senate have offered a $908B compromise package, but it so far hasn’t been embraced by leaders in either party (only as a “starting point” or has been outright rejected). While initial jobless claims today will give investors a final reading on the labor market before tomorrow’s closely-watched jobs report, the data has so far failed to move the needle on stimulus.
Third of population within three months
The U.S. should be able to distribute enough coronavirus vaccines from Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA) to immunize 100M people by the end of February, which would protect the elderly, healthcare workers and people with pre-existing conditions. There could even be more doses than expected if Johnson & Johnson’s (NYSE:JNJ) potential vaccine is authorized before then, according to Dr. Moncef Slaoui, who is leading the Trump administration’s vaccine program Operation Warp Speed. CVS (NYSE:CVS) and Walgreens (NASDAQ:WBA) are gearing up to deliver most of the vaccine doses for the nation’s approximately 15,600 nursing homes and 29,000 assisted-living communities, but the effort will need to navigate rollout details that may vary by state. Grim milestone… More than 100,000 people are currently sick with coronavirus in hospitals across the U.S., pushing healthcare workers to their limits.
Delivery stretched to its limits
Amid a pandemic-fueled shopping season, UPS (NYSE:UPS) is reportedly adding shipping restrictions on some large retailers such as Gap (NYSE:GPS) and Nike (NYSE:NKE), and notified drivers across the U.S. to stop picking up packages from L.L. Bean, Hot Topic, New Egg and Macy’s (NYSE:M). The National Retail Federation estimated that internet shopping jumped 44% over a recent five-day stretch that included Black Friday and Cyber Monday as orders moved online. UPS and FedEx (NYSE:FDX) have also raised prices in response to the activity and warned merchants that they would hold them to volume agreements.
Singapore first to approve lab-grown meat
We’ve already seen the disruption from plant-based meat suppliers like Beyond Meat (NASDAQ:BYND) and Impossible Foods (IMPF), but another nascent technology that aims to revolutionize meat production has taken a step forward. California food startup Eat Just just won Singapore government approval to sell chicken grown from poultry cells, which are produced in bioreactors without the slaughter of an animal. The company already produces a range of non-animal products, including Just Egg, made with mung beans, and a vegan mayonnaise, but the approval of cultured meat is being hailed as a landmark moment in the industry. The technology has drawn investments from major meatpackers like Cargill and Tyson Foods (NYSE:TSN), and Eat Just is in discussions with American regulators on a potential commercial launch in the U.S.
Gradual production increase?
OPEC+ delegates may have found a way forward. Earlier talks this week had centered on delaying a January production hike by three months, but that option ran into obstacles due to a clash between Saudi Arabia and the UAE. Now, the group appears to be leaning towards an oil cuts rollover, with a modest boost to their collective oil output – by as much as 500,000 barrels a day – starting next month. A compromise would go a long way among some of the world’s biggest producers as they meet later today to formalize a deal.
Boeing 737 MAX
Positive milestones are piling up for Boeing (NYSE:BA) again after American Airlines (NASDAQ:AAL) became the first U.S. carrier to fly the 737 MAX after a 20-month grounding. The media flight was a 45-minute hop from Dallas-Fort Worth airport to American’s maintenance base in Tulsa, Oklahoma, while Brazil’s Gol Linhas Aereas (NYSE:GOL) will become the first to resume 737 MAX commercial service next week. Boeing is also on the cusp of delivering its first MAX – likely to United Airlines (NASDAQ:UAL) – since U.S. regulators reissued an airworthiness certificate. SA contributor Leo Nelissen believes Boeing offers a great investment opportunity as over the past 10 years the stock managed to outperform the S&P 500 despite the post-2018 trouble.
What else is happening…
One of largest SPAC deals: Dyal and Owl Rock (NYSE:ORCC) plan merger.
Up to 40 states plan to sue Facebook (NASDAQ:FB) for antitrust – CNBC.
Southern California braces for area’s biggest power cuts this year.
Costco (NASDAQ:COST) November sales tally misses the consensus mark.
Amazon (NASDAQ:AMZN) in exclusive talks for podcasting’s Wondery – WSJ.
Wednesday’s Key Earnings
CrowdStrike (NASDAQ:CRWD) +12% AH on Q3 beats, upside forecast.
Snowflake (NYSE:SNOW) -3.7% AH missing EPS in first report as a public company.
Today’s Economic Calendar
7:30 Challenger Job-Cut Report
8:30 Initial Jobless Claims
9:45 PMI Composite Final
10:00 ISM Service Index
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
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Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed and with a lean to the upside. South Korea, Taiwan, Indonesia and the Philippines did well. Europe, Africa and the Middle East currently lean down. Poland, Russia, South Africa and Hungary are up; Denmark, France, Germany, Finland, Norway, the Netherlands, Israel and Italy are down. Futures in the States point towards down open for the cash market.
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Cyber Week Special: info here
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The dollar is flat. Oil and copper are down. Gold is up; silver is down. Bonds are down.
Stories/News from Seeking Alpha…
Mass vaccination
The U.K. has become the first country in the world to approve the coronavirus vaccine from Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX), which has been shown to offer up to 95% protection against COVID-19. The first 800,000 doses will be available in the U.K. from next week (another 40M doses are on order), with the jabs being rolled out at hospitals, vaccination centers, and in the community via GPs and pharmacists. Two doses three weeks apart are required for protection and will first be offered to frontline health care workers and nursing home residents, followed by older adults. Other countries aren’t far behind: The U.S. and the EU also are vetting the Pfizer shot along with a similar vaccine made by competitor Moderna (NASDAQ:MRNA), and a similar nod by the FDA is expected as early as next week.
Slight pullback
U.S. stock index futures inched down 0.2% overnight after the market’s historic rally extended to December and the S&P 500 hit a fresh record high. Sentiment got a boost after a group of lawmakers unveiled a $908B bipartisan stimulus plan, and while Senate Majority Leader Mitch McConnell rejected the proposal, investors are still hopeful for a second stimulus package in the lame-duck period for Congress. It comes after Fed Chair Jerome Powell called the economic outlook “extraordinarily uncertain” on Tuesday when he and Treasury Secretary Steven Mnuchin spoke before Congress as part of mandated updates on CARES Act funding. Powell will speak again today at 10 a.m. ET.
Salesforce shakes hands with Slack
The cash-and-stock deal will see the cloud software company buy the messaging app for nearly $28B. It underpins CEO Marc Benioff’s effort to move Salesforce (NYSE:CRM) beyond its core product, which helps manage customer relationships, to providing the software tools for day-to-day operations. The company shelled out $15.3B on data visualization company Tableau in 2019 and, a year earlier, spent $6.5B to acquire MuleSoft, whose back-end software connects data stored in disparate places. Salesforce shares are off 4.4% premarket and Slack (NYSE:WORK) is down nearly 1%, likely because investors were already expecting the announcement.
Silicon Valley exodus
The coronavirus pandemic has given a number of tech companies an excuse to exit California as many question the high cost of living and the state’s hefty taxes amid a broader shift to remote work. Hewlett Packard Enterprise (NYSE:HPE) has become the latest to relocate its headquarters from San Jose, California, to Houston, Texas, following a difficult year that generated a full-year loss. Palantir (NYSE:PLTR) recently moved its headquarters to Denver from Palo Alto, while Silicon Valley electric carmaker Tesla (NASDAQ:TSLA) has long-complained about the state’s regulations and is opening a factory in Austin next year. San Jose Mayor Sam Liccardo called HPE’s decision “a wake-up call,” saying the region needed to “stop demonizing our tech employers, and start working with them to chart a path to a strong recovery.”
Airbnb listing could come before Christmas
Airbnb (ABNB) is making some headlines this week as the vacation rental company begins its IPO roadshow. Terms include 51.9M shares at a price range of $44-$50, which would raise as much as $2.6B at a $35B valuation. At one point Airbnb was even leaning towards a direct listing, where it wouldn’t sell any new shares, but after the pandemic struck it realized it needed the money. The company then raised $2B in debt to bolster its balance sheet and it’s now looking to raise even more.
Walmart+ vs. Amazon Prime
Walmart+ (NYSE:WMT) members will no longer have to spend $35 for next-day or two-day shipping as the service looks to better compete with Amazon Prime (NASDAQ:AMZN) during the coronavirus pandemic. In fact, the number of online-only shoppers across the U.S. jumped 44% over the Thanksgiving holiday weekend, according to the National Retail Federation. The change, effective Friday, only applies to items on Walmart’s website like toys, appliances and clothing, though groceries (which are delivered from stores) will still have the $35 minimum. Bigger picture: Walmart+ was launched just over two months ago, and while the retailer hasn’t yet shared how many customers have joined, BMO Capital Markets estimates that as many as 19M U.S. households may have signed up based on a survey of about 1,000 U.S. shoppers. Amazon Prime had approximately 126M U.S. subscribers as of October, according to an estimate from Consumer Intelligence Research Partners. Walmart+ is also priced at $98 a year or $12.95 a month compared with Amazon Prime, which costs $119 a year or $12.99 a month.
OPEC+ attempts to mend differences
Diplomatic efforts are currently underway to repair that cracks in the 23-nation OPEC alliance as a dispute over how much crude to pump in 2021 broke into the open. The UAE has grown impatient to use its new production capacity, while also planning to launch a regional oil benchmark contract around its Murban crude variety, which needs the kind of volumes that clash with output limits. However, Saudi Arabia’s Energy Minister Prince Abdulaziz Bin Salman signaled his dissatisfaction with the situation on Monday by telling others he may resign as co-chair of a committee that oversees the OPEC+ deal. Members need to hash out a compromise before ministers gather on Thursday, at a meeting that’s been postponed because of the impasse. Most other nations support maintaining the existing curbs into the first quarter and deferring the 1.9M-barrel daily supply increase due to take effect in January by three months. “The risks of the OPEC+ alliance failing to reach an agreement are high as a resurgent virus has seen restrictions on travel increase across Europe and the U.S,” ANZ analysts said in a note, though others are more skeptical. “OPEC+ often generates drama,” declared Helima Croft, chief commodities strategist at RBC. “But we still believe that the group will probably find some face-saving compromise, with a short extension of the current cuts being the most likely outcome.”
How would a Biden administration approach China?
Joe Biden won’t immediately remove the tariffs that the Trump administration imposed on China, but intends to first review the existing U.S.-China agreement, and develop a “coherent strategy” with traditional allies in Europe and Asia. “The best China strategy, I think, is one which gets every one of our – or at least what used to be our – allies on the same page. It’s going to be a major priority for me in the opening weeks of my presidency to try to get us back on the same page with our allies,” Biden told NYT opinion columnist Thomas Friedman. While Trump was focused on the trade deficit with China, Biden says his “goal would be to pursue trade policies that actually produce progress on China’s abusive practices – that’s stealing intellectual property, dumping products, illegal subsidies to corporations” and forcing “tech transfers” from American companies to their Chinese counterparts.
What else is happening…
Nasdaq (NASDAQ:NDAQ) proposes new listing rules to advance board diversity.
Tesla (TSLA) open to talks on auto merger; pushes ‘Game of Pennies.’
FAA issues first certificate for Boeing (NYSE:BA) 737 MAX since 2019 grounding.
Facebook’s (NASDAQ:FB) Oversight Board chooses its first cases.
Tailored Brands (NYSE:TLRD) emerges from Chapter 11 after restructuring.
Tuesday’s Key Earnings
Box (NYSE:BOX) -6.8% AH following a disappointing outlook.
Hewlett Packard Enterprise (HPE) -1.4% AH recording a full-year loss.
Salesforce (CRM) -4.4% AH acquiring Slack for $27.7B.
Slack (WORK) -0.9% AH despite 12K net new paid customers, up 140% Y/Y.
Today’s Economic Calendar
Auto Sales
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
9:00 Fed’s Quarles: “Financial Regulation”
9:00 Fed’s Williams Speech
10:00 Fed’s Harker: Economic Outlook
10:00 Powell Testifies Before House Financial Services Committee
10:30 EIA Petroleum Inventories
1:00 PM Fed’s Williams Speech
2:00 PM Fed’s Beige Book
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Good morning. Happy Tuesday.
The Asian/Pacific markets posted big gains. Japan, China, Hong Kong, South Korea, India, Taiwan, Australia, Malaysia, Indonesia, Thailand and the Philippines did great. Europe, Africa and the Middle East are currently posting solid gains. The UK, Turkey, Russia, Greece, the Netherlands and Austria are up more than 1%. Futures in the States point towards a moderate gap up open for the cash market.
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Cyber Week Special: info here
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The dollar is down. Oil is down; copper is up. Gold and silver are up. Bonds are down.
Stories/News from Seeking Alpha…
Looking back on the best month in decades
Wall Street closed lower yesterday, but enthusiasm about vaccines helped drive historical performances for the averages in November. The S&P 500 (SP500) rose 10.9% for the month, its best November ever. The DJIA (DJI) gained 11.9% for its best month (at any point in the year) since 1987, and the Nasdaq (COMP) rose 11.8% for its best November since 2001. Energy (NYSEARCA:XLE) was by far the best monthly sector performer, up more than 30%. Other cyclical plays like financials (NYSEARCA:XLF) and Industrials (NYSEARCA:XLI) placed second and third. Defensive sectors trailed in November, with utilities (NYSEARCA:XLU) actually falling into the red.
Moderna’s COVID vaccine scheduled for FDA review on Dec. 17
Moderna (NASDAQ:MRNA) earlier on Monday asked U.S. and European health regulators to authorize use of its COVID-19 vaccine after a full analysis of its pivotal study showed it to be 94.1% effective – with 100% efficacy in preventing severe infection. A panel of outside experts advising the U.S. FDA will meet Dec. 17 to review the evidence for Moderna’s vaccine and vote on whether to recommend that the agency authorize its emergency use. A similar meeting has been set for Dec. 10 for the Pfizer (NYSE:PFE)/BioNTech (NASDAQ:BNTX) vaccine. It is unclear how long the FDA will take to make a decision, but Moderna CEO Stéphane Bancel says it is possible the agency could decide within a few days of the advisory panel meeting, or between Dec. 18-20. While both vaccines have shown more than 90% efficacy, mRNA-1273’s less-rigorous distribution and shipping requirements give the Moderna drug a slight edge. Both nonetheless will be used given current production constraints. Moderna rose more than 20% yesterday, its market cap reaching $60B. It’s higher by another 12% in premarket action.
Exxon slashing workforce, taking up to $20B charge
Completing its strategic review, Exxon (NYSE:XOM) expects 15% global workforce reductions by the end of 2021. Capital spending next year is seen at $16B-$19B, and then $20B-$25B annually through 2025. Next up is elimination of less strategic assets like certain dry gas resources in the Appalachian and Rocky Mountains, Oklahoma, Texas, Louisiana and Arkansas in the United States, and in western Canada and Argentina. That’s expected to produce a mammoth, non-cash, after-tax charge of $17B-$20B in Q4. CEO Darren Woods on the moves: “Continued emphasis on high-grading the asset base – through exploration, divestment and prioritization of advantaged development opportunities – will improve earnings power and cash generation, and rebuild balance sheet capacity to manage future commodity price cycles while working to maintain a reliable dividend.”
Amazon Web Services installing Macs to enable remote Apple app development
Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) are teaming on a new cloud computing offering using Mac OS, a move to support a growing customer audience developing apps for Apple devices. Amazon Web Services will make Apple computers available in its data centers, starting with the Mac Mini. That will enable Apple developers to create and test apps remotely rather than maintaining their own machines. And those developers could help feed Apple’s increasing pivot toward software and services. And it offers an edge (for now) over big-cloud rivals Microsoft (NASDAQ:MSFT) and Google (GOOG, GOOGL), which don’t yet offer access to Macs. The initial computers will be a version of Mac Mini that has been previously available – they’ve just been adapted to work with Amazon’s cloud and security infrastructure, and have Wi-Fi and Bluetooth turned off – but those will be updated as Apple launches new equipment (and Apple just unveiled a Mac Mini powered by its own M1 chip).
Bitcoin survives Thanksgiving plunge, rushes back over $19K to new record
To review: Bitcoin (BTC-USD) started November at about $13.8K. On the Tuesday prior to Thanksgiving, it had come within a handful of dollars of touching its epic 2017 high just shy of $20K (also hit near Thanksgiving). By the time holiday meals had begun across the country last week, it had plunged to roughly $16.3K. It’s been rallying since, and crossed back over $19K on Monday, rising as high as $19,835 vs. the previous record of $19,782 set on Dec. 18, 2017.
“We are just getting started,” said Grayscale’s Michael Sonnenshein, appearing on CNBC. Addressing what some see as excessive speculation in crypto, Sonnenshein says inflows into Grayscale’s various crypto vehicles don’t indicate unhealthy investor fervor. Crypto-related names like Microstrategy (NASDAQ:MSTR), Riot Blockchain (NASDAQ:RIOT), and Marathon Patent (NASDAQ:MARA) all posted gains in the 20%-50% range on Monday. Bitcoin has pulled back a hair from yesterday’s record, currently selling for $19.5K.
What else is happening…
Zoom (NASDAQ:ZM) shares drop despite raising guidance and Q3 revenue that more than quadrupled.
Sports betting in Colorado continues to grow.
Thanksgiving slump at the pump points to weak Christmas for oil refiners.
Wendy’s (NASDAQ:WEN) joins with Rebel Foods in ambitious push for 250 cloud kitchens in India.
Monday’s Key Earnings
Zoom Video Communications (ZM) -5% PM after Q3 results.
Today’s Economic Calendar
8:55 Redbook Chain Store Sales
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending
10:00 Powell Testifies Before Senate Banking Committee
11:00 Fed’s Brainard: “Community Reinvestment Act Modernization”
1:15 PM Fed’s Daly Speech
3:00 PM Fed’s Evans Speech
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Good morning. Happy Monday. Hope you had a good weekend..
The Asian/Pacific markets suffered big losses. New Zealand did well, but Japan, Hong Kong, South Korea, Taiwan, Australia, Malaysia, India, Singapore and Thailand dropped more than 1%. Europe, Africa and the Middle East currently lean down. Denmark and Germany are up, while Poland, Turkey, Russia, Greece, South Africa, Norway, Hungary and Israel are weak. Futures in the States point towards a down open or the cash market.
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MoneyShow Presentation
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The dollar is down. Oil is down; copper is up. Gold and silver are down. Bonds are down.
Stories/News from Seeking Alpha…
Mammoth merger on tap as S&P Global nears $44B deal for IHS Markit
S&P Global (NYSE:SPGI) is in advanced talks to acquire IHS Markit (NYSE:INFO) for about $44B in a landmark deal that could be announced as soon as today, according to a WSJ report. Financial data has been a boom business over the past couple of decades, with S&P Global rising to an $82B market cap, and IHS Markit to $37B. S&P’s acquisition of IHS Markit would be the largest of the year, topping Nvidia’s (NASDAQ:NVDA) ~$40B purchase of Arm Holdings and the ~$40B deal between Nippon Telegraph & Telephone (OTCPK:NPPXF, OTCPK:NTTYY) and a subsidiary.
Shopify sets records for its Black Friday sales, topping $2.4 billion
Shopify (NYSE:SHOP) announced Saturday that Black Friday sales were up 75% year-over-year, hitting $2.4 billion from its independent and direct-to-consumer brands. “In just a single day, merchants around the world produced more than 80% of the sales of the entire holiday shopping weekend last year,” said Shopify President Harley Finkelstein, who a few days earlier had also said the company was gearing up for a busy weekend as sales remained red hot. Shopify said the top categories included apparel and accessories, health and beauty, and home and garden. Stocks to watch – Central Garden and Pet (NASDAQ:CENT), Ulta Beauty (NASDAQ:ULTA), Lowe’s (NYSE:LOW), Home Depot (NYSE:HD), and L Brands (NYSE:LB).
Airbnb and DoorDash target higher-than-expected valuations ahead of IPOs
Both set to begin roadshows this week, Airbnb (ABNB) and DoorDash (DASH) are planning for IPO valuations that exceed previous estimates, the Wall Street Journal reports. Airbnb is targeting as much as $33B vs. a previous $30B, while DoorDash is hoping for up to $28B vs. $25B previously. Both companies are on track to list their shares in mid-December, which is usually a quiet month for offerings. The two IPOs would top off a year in which a record amount of money was raised from new issues on U.S. exchanges as booming tech valuations lured a wave of private companies to the public markets. More than $140B has been raised year-to-date in 383 IPOs on U.S. exchanges, exceeding the previous full-year record set during the dot-com boom in 1999, according to Dealogic data dating to 1995. DoorDash and Airbnb have not just survived, but thrived during the pandemic as more people have ordered meals to be delivered rather than go to restaurants and more people preferred renting houses for vacations or longer-term stays rather than staying in hotels.
Tesla wins approval to sell Model Y SUV in China
Chinese regulators have granted Tesla (NASDAQ:TSLA) the OK to sell its Shanghai-made Model Y sport utility vehicle in China, Reuters reports. That’s permission Tesla was reported earlier this month to be seeking, and it had expanded production capacity accordingly at the Shanghai factory, at which it makes its Model 3 sedans. The Ministry of Industry and Information Technology granted its approval on Monday, according to the report.
Trump administration set to add China’s SMIC, CNOOC to defense-related blacklist
The Trump administration is about to add China’s biggest chipmaker, Semiconductor Manufacturing International (OTCQX:SMICY), and oil and gas producer CNOOC (NYSE:CEO) to a blacklist that charges the companies have military ties, Reuters reports. A Trump executive order means that U.S. investors would be prevented from buying securities of the blacklisted companies starting late next year. The list has grown to 35 names with the addition of these two and China Construction Technology and China International Engineering Consulting Corp., but Reuters says the administration is closer to declaring 89 Chinese companies blacklisted due to charged military connections.
Guggenheim’s Scott Minerd wants in on crypto – new rule allows his macro fund to invest in Bitcoin
“The Guggenheim Macro Opportunities Fund (GIOIX, GIOAX) may seek investment exposure to Bitcoin (BTC-USD) indirectly through investing up to 10% of its net asset value in Grayscale Bitcoin Trust (GBTC),” said the company in an SEC filing. The Macro Opportunities Fund – whose chief investment officer is Scott Minerd – has $5.3B in assets under management. For now, any crypto investments will be limited to the purchase of the Grayscale Bitcoin Trust. The fund will make no direct buys of Bitcoin, or any other cryptocurrencies. Checking prices, Bitcoin continues its wild ride of the past few days. It crossed over $19K last Tuesday, plunged to as low as $16.2K on Turkey Day, and has bounced back to $18.5K in early Monday morning action.
What else is happening…
Joe Biden is filling out his economic team.
Black Friday online sales surged, while retail foot traffic took a tumble.
Ford (NYSE:F) on watch after Barron’s says shares could double.
Chinese stocks’ U.S. listings at risk with Congressional vote this week.
Today’s Economic Calendar
9:45 Chicago PMI
10:00 Pending Home Sales
10:30 Dallas Fed Manufacturing Survey
3:00 PM Farm Prices
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