Treasury yields move lower as investors look ahead to Fed meeting
- U.S. government debt prices were higher Tuesday morning ahead of a meeting by the U.S. Federal Reserve.
- At 1:30 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.8156%, while the yield on the 30-year Treasury bond was also lower at around 2.2482%.
- The Fed is starting a two-day meeting Tuesday with the bank expected to keep interest rates unchanged.
- Elsewhere, NBC News reported, citing multiple sources, that the Democrats plan to announce two articles of impeachment against President Donald Trump on Tuesday.
- On the data front, the National Federation of Independent Business (NFIB) survey for November will be released at 6 a.m. ET.
- Revised figures for third-quarter productivity and third-quarter unit labor costs will follow slightly later in the session.
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Asia stocks mostly slip as China consumer inflation jumps in November
- Stocks in Asia mostly slipped in Tuesday morning trade as Chinese inflation data showed a surge in consumer prices in November.
- Mainland Chinese stocks declined in early trade, with the Shanghai composite down about 0.2% and the Shenzhen component slipping 0.25%.
- Chinese consumer inflation jumped in November, according to data released by the country's National Bureau of Statistics on Tuesday.
- Elsewhere, Japan's Nikkei 225 declined 0.18% in morning trade while the Topix index was 0.1% lower.
- Overall, the MSCI Asia ex-Japan traded 0.17% lower.
- Meanwhile, on the U.S.-China trade front, Bloomberg reported Tuesday that U.S. Agriculture Secretary Sonny Perdue said Washington is unlikely to impose upcoming tariffs on Chinese exports, set to go into effect on Dec. 15.
- Oil prices slipped in the morning of Asian trading hours, with international benchmark Brent crude futures shedding 0.2% to $64.12 per barrel.
Stocks making the biggest moves after hours: Stitch Fix, Agilent, Toll Brothers and more
- Shares of Stitch Fix spiked nearly 13% during extended trading after the online styling service posted first-quarter earnings that topped analyst expectations.
- Stitch Fix reported an earnings per share of $0 on revenue of $445 million, exceeding the 6 cent loss per share and revenue of $441 million Wall Street expected, according to Refinitiv consensus estimates.
- Casey's General Stores shares sank more than 5% after the company lowered its fiscal year 2020 guidance and reported mixed second-quarter earnings.
- In the second quarter, the company earned $2.21 per share on revenue of $2.49 billion, while analysts expected earnings of $2.15 per share and revenue of $2.53 billion, according to Refinitiv.
- Analysts had expected a loss of 30 cents per share and revenue of $105.5 million, according to Refinitiv consensus estimates.
'You guys are based in California, not Ukraine, right?' — an analyst mocked Trump's CrowdStrike conspiracy on the firm's earnings call
- The US president referenced a wild conspiracy about CrowdStrike — that it's hiding a Democratic National Committee server in Ukraine containing incriminating evidence about the Democrats and the 2016 election — during the phone call with Ukraine's president that sparked the ongoing impeachment hearings.
- Yet in an Associated Press interview in 2017, Trump said he'd "heard it's owned by a very rich Ukrainian" and it's "Ukraine-based." Trump's suspicions about CrowdStrike are rooted in the Democratic National Committee's hiring of the firm to fight off hackers that gained access to its email and chat servers and stole data in 2016.
- Trump's suspicions about CrowdStrike are rooted in the Democratic National Committee's hiring of the firm to fight off hackers that gained access to its email and chat servers and stole data in 2016.
JP Morgan sees S&P 500 rising 8% in 2020 as economy 'reaccelerates'
- The record-setting stock market rally will gain steam in 2020 as the stage is set for the global economy to recover, according to J.P. Morgan.
- Betting on a limited U.S.-China trade deal and a reacceleration in the global economy, the analyst is more bullish than other Wall Street's big equity strategists who see a modest 5% rise on average.
- He noted the election is generally good for stocks with the S&P 500 rising 12% on average through the prior year with a hit rate of 90%.
- Lakos-Bujas sees a partial U.S.-China trade deal with some rollback on tariffs to be agreed upon ahead of the 2020 election, at a minimum.
- Many expect stocks to come under pressure if they couldn't reach an agreement before the new tariffs on Chinese good kick in on Dec.15.
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'Grotty' smoke blankets Sydney
- Temperatures are forecast to soar throughout the day before a southerly buster helps clear the smoke from coastal areas in the afternoon.
- These conditions, combined with "grotty" smoke pollution, will put a lot of stress on vulnerable people in the coming days, NSW authorities have warned.
- NSW Rural Fire Service commissioner Shane Fitzsimmons says wind speeds on Tuesday won't be as high as previous dangerous bushfire days, but high temperatures and low humidity would cancel this out.
- There were almost 90 fires burning across NSW on Monday evening with 39 of those out of control.
- Sydney siders woke up to a strong smoke haze blanketing the city on Tuesday morning reducing the visibility of Sydney's iconic sites to near nothing.
- For the third straight Monday, the Federal Reserve conducted funding operations designed to give traders extra liquidity near the end of the month.
Agilent shares rise after Bill Ackman stake revealed
- Shares of Agilent Technologies gained more than 3% in after-hours trading on Monday after hedge fund investor Bill Ackman revealed he has taken a stake in the lab testing equipment maker.
- A regulatory filing showed Ackman's hedge fund, Pershing Square Capital, owns more than 2.9 million Agilent shares, bringing his stake to around $246 million.
- Some investors had speculated that Ackman's next big tech buy would be Netflix.
- Don Bilson, head of event-driven research at Gordon Haskett, was among the analysts thinking the well-known hedge fund investor and activist may be snapping up a stake in the video streamer.
- Shares of Netflix fell slightly in after hours trading when the Agilent stake was revealed.
- This stake doesn't totally rule out that Ackman would be buying some Netflix but it made it less likely in some investors eyes.
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Investors are terrified of something a year from now and they're placing bets to hedge themselves
- Stock investors are hedging in a big way against something scary coming at them this time next year and it could be related to the outcome of the presidential election.
- The price of buying downside puts, meaning a negative bet on the S&P 500 is at a historical level compared to the price for upside calls, or an opposite bet in the option markets for higher prices, according to Julian Emanuel, head of equity and derivatives strategy at BTIG.
- By this time next year, the Nov. 3 election will have been over for a little over a month.
- Emanuel said it's unclear which way investors think the election would go.
- He said the S&P 500 skew, meaning how expensive puts are to calls, is in the 99th percentile and at a historic level over the election date.
11 mind-blowing facts about New York's economy
- There's New York City and its five boroughs: an ultra-urban landscape on a couple of small islands where about half the state's population lives.
- Here are 11 mind-blowing facts about the economy of New York - both the city and the state.
- If New York were a country, it would have the 11th biggest economy in the world, falling between Canada and South Korea.
- If you've spent any time in Upstate New York you know the state is famous for its apples and apple cider.
- When hedge-fund billionaire Ken Griffin bought the 24,000-square-foot penthouse at 220 Central Park in New York City for $238 million he became the owner of the most expensive home in the US.
- Manhattan may have some of the priciest real estate in the country, but two cities in Upstate New York are among the most affordable.
Silicon Valley's new focus on profits could make millennial lifestyles more expensive
- To hit profitability sooner, management teams "will need to cut costs and ultimately raise prices which could markedly impact demand," Ives said.
- Uber has said it expects to lose $3.2 billion this year, while Lyft reported a roughly $1 billion loss for the first quarter alone.
- Historically, these gig-economy start-ups have been able offer lower prices as an incentive to sign up for their service.
- Lyft CEO Logan Green told investors on a conference call last week that it implemented "modest pricing increases" over the last two quarters, which he said were matched by competitors.
- In January, Netflix implemented its biggest price increase since launching its streaming service 12 years ago.
- To reach profits sooner, management teams need to cut costs and ultimately raise prices which could markedly impact demand, he said.