Stock Market News for Sep 30, 2020

Stock Market News for Sep 30, 2020

Wall Street closed lower on Tuesday as investors remained concern about renewed spike in coronavirus infections in the United States and Europe. Bitcoin of America offers a number of convenient ways to transfer your bitcoin or litecoin to commonly used USD payment gateways like prepaid debit cards /PRNewswire/ — Read the full report: The market is growing mainly due to the rising cardiovascular and… What will the global economy and international trade regime look like under a Trump or Biden administration and how will that impact foreign exchange markets? Stock futures jumped Thursday morning heading into the first session of October and the fourth quarter. Three actions you can take instead of panicking about the prospect of a bubble.

Wall Street closed lower on Tuesday as investors remained concern about renewed spike in coronavirus infections in the United States and Europe. Moreover, market participants stayed sidelined before the first presidential debate to be held later this evening. All the three major stock indexes ended in the red.

The Dow Jones Industrial Average (DJI) dropped 0.5% or 131.40 points to close at 27,452.66, reversing 3-day winning streak. Notably, 26 components of the 30-stock index ended in the red while 4 finished in green. The blue-chip index is 3.8% below to become green year to date. Moreover, the tech-laden Nasdaq Composite finished at 11,085.25, shedding 0.3% due to the weak showing by large-cap stocks, terminating 3-day winning run.

Meanwhile, the S&P 500 fell 0.5% to end at 3,335.47, reversing third successive day of gains. The Financials Select Sector SPDR (XLF) and the Energy Select Sector SPDR (XLE) plunged 1.3% and 2.8%, respectively. Notably, ten out of eleven sectors of the benchmark index closed in negative zone and one in the green.

The fear-gauge CBOE Volatility Index (VIX) was up 0.3% to 26.27. A total of 8.31 billion shares were traded on Tuesday, lower than the last 20-session average of 9.99 billion. Decliners outnumbered advancers on the NYSE by a 1.53-to-1 ratio. On Nasdaq, a 1.07-to-1 ratio favored declining issues.

On Sep 29, New York City Mayor Bill de Blasio said the city’s positive rate of coronavirus tests per day has reached above 3% for the first time in months. Moreover, Texas, Wisconsin, Oklahoma and Colorado also witnessed a spike in COVID-19 new cases. Additionally, resurgence of coronavirus in several major European countries like the U.K., Spain and France has significantly dented investors’ confidence as it will have direct impact on reopening stocks especially travel and entertainment.

Consequently, shares of major airline stocks such as JetBlue Airways Corp. (JBLU – Free Report) , American Airlines Group Inc. (AAL – Free Report) , United Airlines Holdings Inc. (UAL – Free Report) and Southwest Airlines Co. (LUV – Free Report) plummeted 4.4%, 4%, 4% and 1.7%, respectively. American Airlines and United Airlines carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The first presidential debate between President Donald Trump and his Democrat challenger former Vice-President Joe Biden will take place in Cleveland, Ohio at 9 PM ET on Sep 29. Market participants will try to find any clue regarding U.S. economic recovery, policy to control coronavirus and geopolitical issues that these two challengers will likely to implement after winning election, which is scheduled on Nov 3.

On Sep 29, the conference board reported that its consumer confidence index for the month of September came in at 101.8, highest in six months. The metric exceeded the consensus estimate of 89.6. Notably, consumer confidence increase in September after back-to-back monthly decline. Meanwhile, August index was also revised upward to 86.3 from 84.8 reported earlier. The index in September marked the biggest one-month jump in 17 years.

The Present Situation Index, which gauges consumers’ views on current market conditions, climbed from 85.8 in August to 98.5. Moreover, the Expectations Index, which is a measure of consumers’ short-term (for the next six months) outlook for income, business and labor market conditions, surged to 104 from 86.6 in August.

The S&P CoreLogic Case-Shiller U.S. National Home Price Index increased to 4.8% annually in July from 4.3% in June. The 10-City Composite increase to 3.3% annually from 2.8% in the previous month. The 20-City Composite rose 3.9% annually from 3.5% in the prior month.

The Department of Commerce reported that U.S. trade deficit in goods increased 3.5% to $82.9 billion in August. Imports of goods rose 3.1% to $201.3 billion while goods exports grew 2.8% to $118.3 billion.

JPMorgan Admits Metal, Treasuries Spoofing, to Pay $920M Fine

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Last year, it generated $24 billion in global revenues. By 2020, it’s predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

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Author: Zacks Investment Research

Easily Spend Your Bitcoin via Prepaid Debit Card or a PayPal Account with Bitcoin of America’s Easy to Use Trading Platform | Press release Bitcoin News

Easily Spend Your Bitcoin via Prepaid Debit Card or a PayPal Account with Bitcoin of America’s Easy to Use Trading Platform | Press release Bitcoin News

Bitcoin of America offers a number of convenient ways to transfer your bitcoin or litecoin to commonly used USD payment gateways like prepaid debit cards or a PayPal account. Read the guides below to find the method that’s best for you. Most commonly, bank transfers are used to transfer bitcoin, but using popular fiat gateways like PayPal and Prepaid debit cards can make it easy to spend Bitcoin and Litecoin anywhere that accepts USD.

Sell Bitcoin to Prepaid Debit Card

Want to spend your crypto at any location across the globe that accepts debit cards, to make purchases of goods and services?

Simply sell your bitcoin or litecoin using Bitcoin of America’s online exchange, and you will receive a prepaid debit card for the amount sold for use immediately online; you can also obtain a physical card in the mail.

If you aren’t already familiar with how prepaid cards work, they function in pretty much the same way that a pay-as-you-go mobile phone does, when you top up the phone with cash. In other words, with prepaid cards you credit the card with cash in order to use them, and add more cash when the credit on the card is low.

Each time you sell bitcoin the card transaction increases your cash balance, but unlike a normal debit card, a prepaid card is not connected to a bank account. Another benefit of a card which only holds the money you have, because it’s not tied to your bank, is that if you fall victim to a scam, you only lose the money on your prepaid card.

In summary, the benefit of prepaid cards is that it’s a great option if you are looking for a quick, easy, and straightforward way of selling your bitcoin or litecoin without the hassle of using your bank account to wire money.

The minimum amount you can receive following a sale on Bitcoin of America using your prepaid card is $25.00 and a maximum of $1999.00.

PayPal Account

Another method is that you can receive the proceeds of selling your bitcoin or litecoin to your PayPal account on the Bitcoin of America exchange. PayPal is one of the most popular and trusted online payment methods, an accessible and secure digital e-wallet, a safe way to withdraw funds after selling bitcoin or litecoin.

If you haven’t tried it before, PayPal also comes with a one-touch service enabling you to checkout without having to re-enter your login details, which is also available on the mobile app.

Just as a prepaid card has its benefits for limiting the impact of scammers, so PayPal is particularly well-suited for crypto investment purposes, designed with user protection in mind, monitoring transactions 24/7 to eliminate identity theft and phishing attacks.

There is also the option to connect your account to a debit or credit card. If you see a “confirm credit card” link in the card details section of your PayPal Wallet, you’ll need to confirm your card before you can use it with PayPal. If you don’t see this link, you can begin using your card right away.

Bear in mind that you cannot as an individual use PayPal to sell bitcoin or litecoin, as it runs contrary to the acceptable use policy, which states “You may not use the PayPal service for activities that: Section 3, h) involve currency exchanges or check cashing businesses”.

To read step by step instructions on How to Sell Bitcoin to a prepaid card or PayPal, visit the guide on the Bitcoin of America website.

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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Author: Press release

Embolic Protection Devices Market - Global Outlook and Forecast 2020-2025

Embolic Protection Devices Market – Global Outlook and Forecast 2020-2025

NEW YORK, Oct. 1, 2020 /PRNewswire/ —

Read the full report:

The market is growing mainly due to the rising cardiovascular and neurovascular diseases across the globe. Globally, such diseases are primarily caused by several factors, including obesity, lack of physical activities, and hypertension. Epidemiological studies have reported that cardiac and neuro diseases are recognized as the leading cause of morbidity and mortality worldwide. Several factors influence the growth of the global embolic protection devices market. The rising demand for cerebral embolic protection devices is expected to drive the growth of the market. Growing demand for cerebral protection while performing neurovascular surgeries such as carotid artery stenting is another driving factor for the global embolic protection devices market.

The following factors are likely to contribute to the growth of the embolic protection devices market during the forecast period:
• Emergence of Advanced Embolic Protection Devices
• New Product Approvals
• Demand for Cerebral Embolic Protection Devices

The study considers the present scenario of the embolic protection devices market and its market dynamics for the period 2019?2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The study offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

Global Embolic Protection Devices Market Segmentation
The global embolic protection devices market research report includes a detailed segmentation by product, application, indication, end-user, and geography. The filter devices segment accounts for the maximum market share. This is due to effective clinical results for percutaneous and transcatheter surgical techniques to treat cardiac and neuro disorders. It is expected to grow at the highest CAGR owing to greater safety and procedural outcomes. The high success rate and the growing patient pool for several cardiac and neuro diseases is likely to influence segment growth. The filter devices have a larger profile than the occlusion devices segment. Availability of latest-generation devices Such as ANGIOGUARD RX Guidewire System, by Cardinal Health & FilterWire EZ by Boston Scientific, is driving the growth of the filter devices segment.

The cardiac & peripheral segment is expected to retain its market dominance during the forecast period. Filter or occlusion embolic protection devices have proven clinical benefits and can be used when technically feasible for cardiac & peripheral applications. As a result, there is a huge demand for EPDs for treating CVDs across the globe. While APAC is expected to grow at the highest CAGR, North America is likely to retain dominance in the market.

North America is the single largest market for embolic protection companies. The region has become strategically important for several prominent vendors, such as Boston Scientific and Abbott. Medtronic embolic protection devices are expected to be innovative as the company is investing significant expenditure in R&D. The US is the major revenue contributor to the market, accounted for a share of 90% in 2019.

Europe is the second-largest market for embolic protection devices and accounted for a share of 34% in 2019. It is growing at a healthy rate and is expected to grow at a similar pace during the forecast period. Germany, France, the UK, Spain, and Italy are the major revenue contributors to this region.

Segmentation by Geography
• North America
o US
o Canada
• Europe
o UK
o Germany
o France
o Italy
o Spain
o China
o Japan
o India
o South Korea
o Australia
• Latin America
o Brazil
o Argentina
o Mexico
• Middle East & Africa
o South Africa
o Saudi Arabia

The global embolic protection devices market share is highly concentrated. The market has the presence of few established players holding the majority of the market share. Vendors are offering several filter and occlusion embolic protection devices. They are competing based on factors such as technology advances, safety features, regulatory approvals, marketing strategies, and distribution channels.

Prominent Vendors
• Boston Scientific
• Abbott
• Medtronic

Other Prominent Vendors
• Cardinal Health
• Cardiovascular Systems
• Contego Medical
• InspireMD
• Silk Road Medical
• Terumo
• Venus Medtech

Investigational Companies
• Cardiotimus
• Filterlex
• Innovative Cardiovascular Solutions
• Protembis
• Transverse Medical

1. What is the market size of the global embolic protection devices market analysis?
2. What are the factors impacting the growth of the embolic protection devices market
3. What are the drivers, trends, and restraints in the market?
4. Who are the leading vendors and what are their market shares?

Read the full report:

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need – instantly, in one place.

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Author: Reportlinker

Will Trade Wars Persist After the US Election?

Will Trade Wars Persist After the US Election?

Trade Wars, US-China Relationship, EU-US Trade Relations Talking Points:

  • US-led trade wars with China and the EU likely to continue under Trump administration
  • Multi-layered geopolitical issues not pertaining to trade may spill into trade discussions
  • Biden administration may ease tensions with EU but less incentive to relieve China pressure

Doubling Down on China

If re-elected, President Donald Trump would likely double down on China and seek additional concessions through “Phase 2” of their long-awaited, comprehensive trade agreement. While “Phase 1” was signed, the coronavirus pandemic complicated what was an already-fragile situation. Domestic demand was hammered and as a result, China was unable to hold up its end of the bargain.

10 Key Dates in US-China Trade War Timeline

  • January 22, 2018: US tariffs all imported washing machines and solar panels (not just from China)
  • March 8, 2018: US orders 25% tariff on steel imports, 10% tariff on aluminum
  • April 2, 2018: China imposes tariffs of up to 25% on 128 US products
  • August 7, 2018: US posts list of $16 billion of Chinese goods to be taxed at 25%. China retaliates with 25% duties on $16 billion of US goods
  • December 1, 2018: China and US agree to 90-day ceasefire, both sides talk to discuss resolution
  • May 5,2019: After trade talks failed, Trump tweets intent to raise tariffs on $200b of Chinese goods to 25% on May 10
  • August 1, 2019: US-China trade talks failed at G20, Trump announces 10% tariff on $300b of Chinese imports
  • August 5, 2019: China halts US agricultural purchases, USD/CNY breaks past 7.000 exchange rate
  • September 20, 2019: After 2-day meeting, USTR announces tariff exclusions on 400 Chinese products
  • October 11, 2019: Trump announces Phase 1 deal. It is officially signed on January 15, 2020

There are an additional +30 key dates worthy of accounting, but the most recent developments at the time of writing are listed in this article.

Furthermore, reconciliation is made even more difficult based on different accounting methods both the US and China employ. Not entirely by coincidence, each sides’ approach favor their respective positions. Mr. Trump’s pivot towards greater leniency in the trade war in late 2020 may have been the result of a practical maneuver to avoid stirring economic and financial turbulence ahead of the election.

Impact of US-China Trade War on FX Markets - Daily Chart

Source: TradingView

Having said that, if re-elected, the President would likely revive pressure on China alongside an aggressive pursuit for the ratification of “Phase 2”. This may also occur in tandem with the diplomatic strains with Beijing over the sweeping national security bill for Hong Kong that has drawn international criticism. Growing tension over that geopolitical hot spot could spill over into trade talks like it did in 2019.

Another hot-button issue that may rattle stocks and cycle-sensitive assets are issues pertaining to China-based technology software. Controversy over TikTok, WeChat and Huawei’s 5G installations continue to be sticking points in cross-Pacific relations and will only likely be amplified under a Trump administration. The restriction of technology exports to Huawei has led China to start creating a plan to develop its own semi-conductors.

Political stress in the South China Sea over Beijing’s military and economic activities have also intensified US-China relations. In addition to island-building and base constructions, the Asian giant’s aggressive claim to strategic fisheries has further created regional discontent with Vietnam, Taiwan and the Philippines to name a few. The Trump administration’s stronger stance against China could raise the risk of a head-on conflict – though this is still a relatively low probability.

The South China Sea: A Fisherman’s Utopian Dystopia

The South China Sea: A Fisherman's Utopian Dystopia

Source: Bloomberg using image by University of British Columbia

Together, these geopolitical risks could put a premium on haven-linked currencies like the US Dollar and anti-risk Japanese Yen but a discount on growth-anchored FX like the Australian and New Zealand Dollars. They could be particularly susceptible to deteriorating US-China tensions given their strong reliance on the latter’s robust economic performance. This dynamic may be amplified if these issues spill over into trade talks.

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From a market-oriented perspective, the re-election of Donald Trump could push the US Dollar higher along with the anti-risk Japanese Yen based on trade considerations discreetly. In his first term, the President not only started a trade war with China that many believe throttled global growth prospects, but his administration’s policies also fractured relations with Europe. The latter was hit with aluminum and steel tariffs with threats of additional import duties.

Arguably the most formidable tax threat against Europe – which has not yet been taken off the table – is auto tariffs. This one in particular could be economically devastating since it would directly impact Germany – the region’s largest economy and biggest car manufacturer – the hardest. Last year, Trump almost used Section 232 of the Trade Expansion Act of 1962, a Cold War-era policy measure that would have increased auto tariffs by 25%.

The European Union responded in kind by using tariffs targeted at politically-strategic states with key exports. Orange juice and bourbon were two of the many products that were hit. The former is a key export from Florida, a swing state in US elections and the latter is a signature export of Kentucky – the state of Senate Majority leader Mitch McConnell.

10 Key Dates in US-EU Trade War Timeline

  • March 1, 2018: Trump announces US is preparing to impose metal tariffs
  • March 3, 2018: EU plans to retaliate with politically-strategic tariffs like Bourbon and orange juice
  • March 8, 2018: US orders 25% tariff on steel imports, 10% tariff on aluminum
  • March 22, 2018: US gives temporary exemptions to the EU among others
  • May 22, 2018: US announces in investigation on whether auto imports pose a national security threat
  • June 1, 2018: EU-US trade talks fail on permanent exemption from aluminum and steel tariffs
  • June 6, 2018: US imposes tariffs on EU, Europe says ready to respond with €2.8b worth of duties
  • July 1, 2018: EU warns US that nearly $300b of US auto exports may be hit with tariffs
  • July 25, 2018: Trump and then-EC President Junker broker a deal, metal tariffs are lifted

Note: From July 25, 2018 on, the EU and US engaged in a multiple tit-for-tat trade exchanges and threats of additional countermeasures too long to list. The most recent one is listed in the paragraph below.

An almost two-decade trade dispute with the World Trade Organization (WTO) over illegal subsidies to aircraft giants Airbus and Boeing are another force widening the US-EU rift. The most recent ruling tilted in favor of Washington, which was given the largest arbitration award in the organization’s history. It authorizes the US to legally impose $7.5 billion worth of tariffs on European goods – and Washington took it.

This came much to the chagrin of EU policymakers who were hoping to reach a tariff-free resolution. In mid-August, Washington said it would keep a 15% tariff on Airbus and a 25% tariff on other European goods. Brussels is now waiting to hit back with its own tariffs should it be afforded WTO approval for illegal US subsidies to aeronautical giant Boeing.

Diverging foreign policy approaches in the Middle East – specifically towards Iran – may also add another layer of geopolitical tension that hinders cross-Atlantic cooperation. After Trump backed out of the 2015 nuclear deal and re-imposed sanctions on Iran, EU policymakers scrambled to find ways to incentivize Iran to stick to the agreement. This came much to the disdain of key officials in the Trump administration.

European officials created what is known as the Instrument in Support of Trade Exchanges (INSTEX). This special purpose vehicle (SPV) allows European firms to circumvent US sanctions by facilitating non-SWIFT and non-US Dollar denominated trade with Iran. Washington warned that such an action could result in the sanctioning of EU firms, but Brussels made it clear that such policies could result in tariffs on US firms.

Lighter Pressure on China

Given what Democratic nominee Joe Biden and his running mate Kamala Harris have said in the election cycle, it appears their approach to China on trade will have a lighter touch. Mr. Biden said that “America’s farmers have been crushed by [Trump]’s tariff war with China”. Harris echoed this sentiment, saying that the economic conflict was “punishing American consumers [and] killing American jobs”.

Having said that, the removal of tariffs may come with strings attached. In order to avoid being labeled as ‘soft on China’, especially with Beijing’s national security bill in Hong Kong, Biden may also have to stand up to the Asian giant. In addition to growing tension in the South China Sea, he may have to leverage alleviating pressure on trade in exchange for strategic geopolitical concessions in the aforementioned areas.

The prospect of reconciliation – or at least not escalating tension – could boost market sentiment and help restore confidence in the gradual restoration of international trade norms, a considerable contribution to global growth. Cross-continental equity markets would likely rally from this prospect along with growth-anchored currencies like the Australian and New Zealand Dollars. The anti-risk Japanese Yen and US Dollar, however, may not thrive in this environment.

In line with Biden’s comparatively more conventional approach to policy, cross-Atlantic reconciliation would likely be high on the agenda. Repealing the $7.5 billion worth of tariffs on European products and general normalization of bilateral trade relations could be one part of a broader multi-pronged effort to restore fractured relations. This could help lift equities but undercut demand for havens like the US Dollar.

Having said that, Biden may encounter some friction with EU policymakers on issues pertaining to digital sovereignty, through perhaps to a lesser degree than what Trump has faced. In 2019, France almost signed into a law a digital tax that appeared to overwhelmingly target US firms. The Trump administration fell back on their modus operandi and subsequently threatened to impose tariffs if the bill became law.

The so-called GAFA group – Google, Apple, Facebook and Amazon – have also had run-ins with EU lawmakers. What a resolution under Biden’s administration would look like is unclear, but what is almost certain is the expectation of continued tension between EU officials and US tech giants. Uncertainty here may hurt technology stocks, but the ripple effect may be comparatively smaller than if Trump were to deal with it.

— Written by Zabelin, Currency Analyst for

To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter


Author: Dimitri Zabelin

Stock market news live updates: Stocks buoyed by stimulus hopes; jobless claims less than expected

Stock market news live updates: Stocks buoyed by stimulus hopes; jobless claims less than expected

Stocks jumped Thursday in the first session of October and the fourth quarter, supported by expectations that Washington could provide more stimulus money for a recovery that may be losing momentum.

The Dow added more than 220 points, or 0.8%, shortly after market open, with shares of Boeing (BA) gaining more than 2%. Apple (AAPL) and Intel (INTC) each also rose more than 1%.

The three major indices closed out September lower, with the S&P 500 falling nearly 4% for its first monthly loss since March. Each of the S&P 500, Nasdaq and Dow posted their worst Septembers since 2011.

But zooming out to include trading from July and August, equities’ third-quarter performance held up much more strongly. The S&P 500 posted its best third-quarter advance since 2010 with a rise of 8.5%, led by the Amazon-heavy (AMZN) consumer discretionary sector with a quarterly gain of nearly 15%.

Investors are bracing for the potential for September’s volatility to carry over into October, with political uncertainty top of mind. Markets’ hopes for a fiscal stimulus package before the general election dimmed on Wednesday, after more talks between Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi did not produce an agreement on new virus relief measures, though the two officials said they made progress and planned to discuss further.

The economic situation at the hands of the pandemic remains dire. Airlines American Airlines (AAL) and United Airlines Holdings (UAL) are moving forward with a collective 32,000 job cuts after contingencies tied to federal coronavirus relief aid they received earlier this year expired on Wednesday.

And a host of companies across industries announced new forthcoming job cuts this week, indicating that the historic workforce reductions taking place earlier this year amid the pandemic had not finished yet. Disney (DIS) said Tuesday it would be cutting 28,000 workers across its resort business, and insurance giant Allstate (ALL) on Wednesday announced an about 8% workforce reduction impacting some 3,800 jobs. Goldman Sachs (GS) is also reportedly looking to cut about 400 jobs, Bloomberg reported Wednesday, and the oil major Shell (RDS-B) announced plans to cut up to 9,000 jobs by 2022.

The labor market reports Thursday and Friday did not and will not capture these planned layoffs. The Labor Department’s weekly jobless claims report Thursday morning showed that another 837,000 people filed first-time unemployment insurance claims for the week ended Sept. 26.

That was below consensus forecasts of 850,000 and a marginal improvement from the previous week’s 870,000 — but the fifth straight week that new claims totaled fewer than 1 million. Meanwhile, Friday’s monthly jobs report – the last before the election – is expected to show a fifth straight month of net payroll gains, with consensus economists looking for 868,000 jobs to have come back in September.

Here were the main moves in markets as of 4:03 p.m. ET:

  • S&P 500 (^GSPC): +25.28 points (+0.75%) to 3,388.28

  • Dow (^DJI): +190.36 points (+0.69%) to 27,972.06

  • Nasdaq (^IXIC): +131.96 (+1.2%) to 11,298.49

  • Crude (CL=F): -$1.20 (-2.98%) to $39.02 a barrel

  • Gold (GC=F): +$12.40 (+0.65%) to $1,907.90 per ounce

  • 10-year Treasury (^TNX): +3.7 bps to yield 0.714%

US personal income fell more than expected in August, the Bureau of Economic Analysis reported Thursday morning, in the agency’s first report after federal enhanced unemployment benefits expired at the end of July.

Personal income fell 2.7% month over month, versus a 2.5% decline expected. In July, income had risen at a 0.5% rate.

Spending, however, at least temporarily held up. August personal spending rose by 1.0%, or faster than teh 0.8% rate expected. Still, this was a deceleration from the 1.5% spending rate in July.

Ahead of what is expected to be a wave of corporate layoffs in October, jobless claims fell in the latest week. Initial claims rose to 837,000, below consensus forecasts of 850,000 and below the critical 1 million mark that’s formed the beach head of the data series during the COVID-19 era. Most importantly, the closely watched continuing claims figure also dipped under 12 million, which was better than expected.

However, a separate report showed consumer spending rose in August at a 1% clip — coinciding with the expiry of additional jobless benefits and slower than the prior month’s 1.5% rate.

Traders appear to be taking the news in stride, with stock futures still pointing to a higher open, but off earlier highs.

Drive on: Ford (F) announced a leadership shuffle early Thursday as CEO Jim Farley takes the helm of the storied auto giant. As part of the changes, Ford is replacing CFO Tim Stone with John Lawler, with the former leaving the company for ASAPP Inc., an artificial-intelligence software company.

In a statement announcing the changes, Farley said that:

During the past three years, under (former CEO) Jim Hackett’s leadership, we have made meaningful progress and opened the door to becoming a vibrant, profitably growing company. Now it’s time to charge through that door.

We are going to compete like a challenger – allocate capital to higher growth and return opportunities to create value – and earn customers for life through great products and a rewarding ownership experience.

Here were the main moves in markets, as of 7:21 a.m. ET:

  • S&P 500 futures (ES=F): 3,381.5, up 29.5 points or 0.88%

  • Dow futures (YM=F): 27,891.00, up 227 points or 0.82%

  • Nasdaq futures (NQ=F): 11,550.25, up 143 points or 1.25%

  • Crude (CL=F): -$0.54 (-1.34%) to $39.68 a barrel

  • Gold (GC=F): +$6.10 (+0.32%) to $1,901.60 per ounce

  • 10-year Treasury (^TNX): +2.2 bps to yield 0.699%

Here were the main moves in equity markets, as of 6:11 p.m. ET Wednesday:

  • S&P 500 futures (ES=F): 3,352.75, up 0.75 points or 0.02%

  • Dow futures (YM=F): 27,688.00, up 24 points or 0.09%

  • Nasdaq futures (NQ=F): 11,405.75, down 1.5 points or 0.01%

NEW YORK, NEW YORK - MARCH 18: Traders work on the floor of the New York Stock Exchange (NYSE) on March 18, 2020 in New York City. The Dow fell more than 1,200 points today as COVID-19 fears continue to roil world markets. (Photo by Spencer Platt/Getty Images)

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Author: Emily McCormick·ReporterOctober 1, 2020, 4:39 PM

3 Investing Strategies to Survive a Stock Market Bubble

3 Investing Strategies to Survive a Stock Market Bubble

You’ve seen the speculation: Some analysts are worried that the stock market might be in a bubble. Does that mean it’s time to panic? In a word, no. It’s impossible to determine definitively if the market is in a bubble, or if said bubble will pop. That’s why your strategy today should be appropriate whether the market crashes next week or continues to show gains. If you’re truly worried about future volatility, try these three investing strategies that will serve both ends.

Dive into your holdings and assess your risk level. You may have risk associated with individual assets or with the composition of your portfolio. With respect to specific assets, smaller, less experienced companies are generally riskier than middle market companies, which are riskier than large caps. In the fixed income space, U.S. Treasuries are the safest, followed by municipal bonds and then corporate bonds. Shifting some of your wealth from, say, a small cap fund into a large-cap dividend fund can add stability ahead of turbulent times.

Man wearing suit reviews digital chart on tablet.

Image source: Getty Images.

In terms of your portfolio composition, avoid being too exposed to any one company, sector, or asset class. If you have mutual funds or exchange-traded funds, take the extra step of reviewing the positions within those funds. Many funds today are heavily weighted in Facebook, Amazon, Apple, Alphabet, and Netflix, for example. These are big companies that have shown resilience so far in 2020. But they’re also all in the technology sector. Make sure you are comfortable with how much you’re invested in these and any other individual companies, across all your funds.

Also reassess how you’re invested in equities versus bonds and cash. The old Rule of 110 can add some perspective here. The rule advises to subtract your age from 110 to determine what percentage of stocks should be in your portfolio. If you are 50, for example, that implies a composition of 60% stocks and 40% bonds and cash. You can adjust that number based on your risk tolerance. In our example, you’d increase your equities over 60% if you can handle more volatility, or decrease them if you can’t.

The bursting of a stock market bubble stings most when you need to liquidate your investments. Selling at a market low point locks in losses and takes you out of the running for any recovery gains. And, as we’ve learned in 2020, those recovery gains can be pretty remarkable.

You can minimize the chances of having to liquidate at a loss by proactively addressing your future cash needs. Think through your financial roadmap for the next five to 10 years. If there are big purchases on the horizon, consider liquidating now and setting aside the proceeds. The good news here is that you likely have some gains available to take. That’s one positive aspect of the bubble dynamic — analysts only worry about bubbles when share prices are on the rise, and rising share prices always present the opportunity to realize gains.

You can also diversify into assets that will be less affected by a market crash. Real estate and gold are two examples. The easiest way to buy either is with an exchange-traded fund or ETF like iShares Core U.S. REIT ETF (NYSEMKT:USRT) for real estate and iShares Gold Trust (NYSEMKT:IAU), which is backed by physical gold. Note that with real estate, an ETF will show more volatility than actual property — but that’s often a reasonable trade-off given the convenience and lower cost of being an ETF shareholder rather than a landlord.

Real estate is an effective hedge against market volatility because property values are far more stable than equity share prices. Gold, on the other hand, tends to move opposite of the market. That’s an important point to consider when deciding how much gold exposure you want. Gold has been strong recently, but if the market stabilizes without a correction, gold’s value may moderate. For that reason, it’s wise to limit gold to 5% or less of your portfolio.

It’s never a good idea to make drastic moves ahead of a stock market correction that may or may not happen. But if you are worried about how you might fare through a round of market volatility, you could make smaller changes to moderate the risk in your portfolio. Try shifting some of your wealth into lower-volatility assets, increasing your cash stores, and adding exposure to investments that have a low or negative correlation to the financial markets.


Author: Catherine Brock

Stock Market News for Sep 30, 2020

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