U.S. stock index futures point to a flat, potentially lower open (SPY +0.05%), Global stocks mixed with Fed rate outlook. Crude prices have edged sharply lower this morning to Friday levels as yesterday's 5% rise on an agreement between KSA and Russia to stabilize the oil market fading. Investors are now looking ahead to economic data for hints on the timing of the next Fed rate hike.
Here is the current market situation from CNN Money
European markets are mixed today. The DAX is up 0.41% while the CAC 40 gains 0.14%. The FTSE 100 is off 0.34%.
FRANKFURT/NEW YORK (Reuters) - German pharmaceutical and crop chemicals manufacturer Bayer AG says talks with Monsanto Co have advanced and it is now willing to offer more than $65 billion, a 2 percent increase on its previous offer for the world's largest seeds company.
COPENHAGEN (Reuters) - LEGO A/S reported a decline in revenue growth and profits for the first half of 2016, but only because the Danish toymaker needed time to add production capacity to meet increased demand for its colorful building bricks in North America, the company said on Tuesday.
(Reuters) - Along with the perennial run on leggings, students returning to America's classrooms this year are making a beeline for retro sneakers, "cold-shoulder" tops, versatile laptops and USB drives.
FRANKFURT (Reuters) - Volkswagen has agreed to supply engines to U.S. truck maker Navistar in exchange for a 16.6 percent stake, an alliance forged in part by the need to meet stringent emissions regulations in the United States.
BEIJING (Reuters) - China is lauding its successful hosting of the G20 summit in scenic Hangzhou, with open confrontation largely avoided and broad consensus reached over the fragile state of the global economy and the need for a wide range of policies to fix it.
Just a few short weeks after Hillary Clinton's convention propelled her to an 8-point lead among registered voters in an early-August CNN/ORC Poll, Clinton's lead has largely evaporated despite a challenging month for Trump, which saw an overhaul of his campaign staff, announcements of support for Clinton from several high-profile Republicans and criticism of his campaign strategy. Hillary on the other hand, has suffered from the latest FBI document release Snafu, which has further dented her credibility, while concerns about her health continue to spread among the general public.
Just days after the latest Reuters/IPSOS poll showed Trump jump to a surprising lead, and wiping away what some had said was an "insurmountable" Hillary lead, moments ago the first post-labor day poll by CNN/ORC showed that Donald Trump and Hillary Clinton start the race to November 8 on essentially even ground, with Trump edging Clinton by two points among likely voters, and the contest sparking sharp divisions along demographic lines in a new CNN/ORC Poll.
Trump tops Clinton 45% to 43% in the new survey, with Libertarian Gary Johnson standing at 7% among likely voters in this poll and the Green Party's Jill Stein at just 2%.
While the race at the top remains fierce, CNN adds that neither major third party candidate appears to be making the gains necessary to reach the 15% threshold set by the Commission on Presidential Debates, with just three weeks to go ...
When Morgan Stanley's Adam Parker had a notable change in heart earlier in the year when he turned from a raging bull to a muted bear, it unleashed a series of odd letters to MS clients such as this one from April where "In Bizarre, Schizophrenic Note Morgan Stanley Compares Rally Chasers To "Cockroaches", followed by an angry noted aimed at "Fake Contrarians Who "Only Care About Price", culminating with a letter in July in which he feared becoming the "counter-indicating idiot."
Well, several months later, with the central banks refusing to allow his bearish narrative to manifest itself, this morning Parker flip-flopped again, and once more threw in the towel, this time reverting back to his old bullish ways, when overnight he released a note titled that "We Think the US Stock Market Is Going Higher", something he didn't think for most of 2016.
The justification of his racent change of heart was the same one used by so many other analysts who have zero fundamental legs to stand on: the Fed Model, or low bond yields resulting in high equity valuations. This is what he said:
We are raising our 12-month price targets for the S&P 500 - base case from 2200 to 2300, bear case from 1600 to 1800, and our bull case from 2400 to 2500. Our bull-bear skew is balanced, and our base case upside is now mid-single-digit, consistent with our continued optimistic outlook. While we have argued many times that we think forecasting ...
The return from summer holidays has started in much the same way as we left off August, with another subdued session that has seen European stocks little changed, Asian shares advance and S&P futures are modestly in the green amid a flurry of M&A. The US dollar weakened, with the Bloomberg Dollar Index down 0.2% for the 2nd day in a row as prospects for a U.S. interest-rate hike this month remained subdued.
Among the main overnight news, Bayer AG sweetened its takeover bid for Monsanto Co. for the second time, saying it would be prepared to pay $127.50 a share for the U.S. seed giant provided a negotiated deal can be reached. Monsanto ended last week at $107.44 in New York. Saudi, Russia pledge oil cooperation without agreeing freeze; Fresenius SE buys Spanish hospital group for $6.42 billion. In eco data, German factory order data (July +0.2%, vs exp.0.5%, Last -0.3%) today offered the latest in a recent trend of disappointing data from euro zone and BRC data cast a shadow on U.K. economy. "After a sharp fall in July, business surveys have rebounded in the U.K. in August, suggesting that although the economy should slow in 2H, it is unlikely to experience a sharp recession such as we forecast in June," Credit Suisse analysts write in note
The final Eurozone Q2 GDP print of 0.3%, came in line with expectations, however the bulk of gains (green in chart below) came from trade as a result of the recent decline in the Euro. The ECB may have trouble maintaining the recent rate of declines when it meets on Thursday, September 8, when the best announcement the market may hope for is for Draghi to extend the ECB's bond buying into 2017.
With "bad news again good news", the MSCI Emerging Markets Index climbed to the highest in more than a year as prospects for a U.S. interest-rate hike this ...
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