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Here’s what you need to know before markets open.
1. Global stocks rise on speculation Trump’s health is improving. President Donald Trump is expected to leave hospital as soon as Monday, prompting a rally in US futures and a bounce back in the oil price.
2. Nancy Pelosi says progress is being made on more US stimulus, and tells airlines ‘don’t fire people’. “You know that relief is on the way,” the House Speaker told executives in the US airline industry.
3. A Wall Street expert says a trend with a 30-year track record of wrecking expensive stocks is flashing for big tech – and warns investors to brace for a turnaround within months. The best days are probably behind high-flying tech stocks that seem invincible, according to a research analyst at The Leuthold Group.
4. Morgan Stanley’s wealth-management CIO says tech stocks won’t provide a ‘port in the storm’ of market volatility – and gives her best recommendations for where else investors can go, both short and long term. According to Lisa Shalett, volatility could remain high for two to three more months – and Big Tech isn’t immune.
5. Morgan Stanley says buy these 16 stocks to cheaply invest in next-generation technologies and reap the future profits they generate. The pandemic will speed up a tech-enabled productivity boom, and investors don’t have to buy tech stocks to benefit, the bank said.
6. Investors must brace for a turbulent October in the stock market – but they should hold on for a strong 4th-quarter finish, a senior Wall Street strategist says.”The third quarter is usually weak, but when it is really strong, like it was in 2020, this says the rally isn’t over yet,” LPL’s Ryan Detrick said.
7. A COVID-19 vaccine will trigger a stock-market rotation into these 7 sectors, Goldman Sachs financial adviser says. “Certain value sectors like food and beverages exhibit very high positive correlation with rising vaccine probabilities,” Goldman Sachs’ Erin Riley said.
8. Big data company Palantir is now officially a public company – and it’s one of nearly a dozen major tech firms that can trace its roots to PayPal. The PayPal Mafia, as its early employees came to be known, were directly responsible for Tesla, SpaceX, LinkedIn, Yelp, and more.
9. Global stocks are up. Germany’s DAX rose 0.6%, Britain’s FTSE 100 rose 0.6%, and the Euro Stoxx 50 rose 0.5%. In Asia, markets in China were closed for a holiday, Hong Kong’s Hang Seng rose 1.3%, and Japan’s Nikkei rose 1.2% at the close. In the US, futures on the Dow Jones, the S&P 500, and the Nasdaq 100 rose between 0.5% and 0.9%.
10. On the data docket. IHS Markit’s Purchasing Managers’ Index is scheduled for release. Both the US 3-month and 6-month bill auctions are due.
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