Friday May, 22, 2020: $318.89 +$2.05 +0.65%
May 22, 2020 2:32:02 GMT -8
artman1033 and playultimate like this
Post by Dave on May 22, 2020 2:32:02 GMT -8
Good morning. It’s Friday. The pre-market is red, -$2.20 at this moment and falling. Let’s see what the day holds.
Big tech has a big problem in D.C.
Premarket: Apple is red
I see a gap around $309 from a few days ago, will it get filled?
Big tech has a big problem in D.C.
Wedbush's Dan Ives warns that an anti-trust storm cloud is building in the Beltway that may be more than just talk.
"While fundamentally FAANG stalwarts have navigated these stormy waters better than many had feared, with Amazon in particular a clear beneficiary of this current lockdown, the anti-trust storm clouds appear to be building in the Beltway against Big Tech looking ahead into the rest of 2020," he writes.
"We believe that a broad movement to break up companies solely because they are large will be difficult to prove as we witnessed with Microsoft in the late 1990’s, however with the strong getting stronger (Amazon) during this COVID-19 lockdown, momentum is building in the Beltway on this hot button anti-trust issue," he adds.
While Wedbush stays bullish on the FAANG names, it also believes acquisitions will be a slippery slope as the regulatory scrutiny of any M&A deal (Facebook/Giphy, Google/Fitbit) with a much lower threshold that will likely markedly slow down deal flow in the near term.
Related stocks: Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet (GOOG, GOOGL), Netflix (NASDAQ:NFLX).
"While fundamentally FAANG stalwarts have navigated these stormy waters better than many had feared, with Amazon in particular a clear beneficiary of this current lockdown, the anti-trust storm clouds appear to be building in the Beltway against Big Tech looking ahead into the rest of 2020," he writes.
"We believe that a broad movement to break up companies solely because they are large will be difficult to prove as we witnessed with Microsoft in the late 1990’s, however with the strong getting stronger (Amazon) during this COVID-19 lockdown, momentum is building in the Beltway on this hot button anti-trust issue," he adds.
While Wedbush stays bullish on the FAANG names, it also believes acquisitions will be a slippery slope as the regulatory scrutiny of any M&A deal (Facebook/Giphy, Google/Fitbit) with a much lower threshold that will likely markedly slow down deal flow in the near term.
Related stocks: Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Alphabet (GOOG, GOOGL), Netflix (NASDAQ:NFLX).
Premarket: Apple is red
Bloomberg’s “Stocks Drop With U.S. Futures on Hong Kong Worries” posted early Friday morning:
Stocks slipped and U.S. equity futures retreated on Friday as investors braced for tensions between Washington and Beijing to escalate after China announced plans to impose a national security law on Hong Kong. Treasuries climbed with the dollar while oil snapped a six-day winning steak.
Food and insurance companies led the Stoxx Europe 600 Index lower while contracts on the three main American equity gauges all pointed to losses on Wall Street. The risk-off tone took hold in Asia, where Hong Kong’s benchmark stock index plunged more than 5%. The yuan dipped as China’s National People’s Congress abandoned its decades-long practice of setting an annual target for economic growth amid uncertainty unleashed by the coronavirus pandemic.
The prospect of fresh turmoil in Hong Kong following sweeping national security legislation introduced by China comes as the relationship between the world’s two biggest economies appears to be souring. The S&P 500 closed lower on Thursday, with signs mounting that President Donald Trump will make his tough stance on China a key element of his re-election bid. Beijing responded to accusations from Trump, warning that it will safeguard its sovereignty, security and interests, and threatened countermeasures.
It all risks choking the rally that took global equities up about 30% from the March lows, spurred by stimulus measures and optimism for a swift economic recovery from the virus.
My take: They call it a rally, I call it a recovery.
Stocks slipped and U.S. equity futures retreated on Friday as investors braced for tensions between Washington and Beijing to escalate after China announced plans to impose a national security law on Hong Kong. Treasuries climbed with the dollar while oil snapped a six-day winning steak.
Food and insurance companies led the Stoxx Europe 600 Index lower while contracts on the three main American equity gauges all pointed to losses on Wall Street. The risk-off tone took hold in Asia, where Hong Kong’s benchmark stock index plunged more than 5%. The yuan dipped as China’s National People’s Congress abandoned its decades-long practice of setting an annual target for economic growth amid uncertainty unleashed by the coronavirus pandemic.
The prospect of fresh turmoil in Hong Kong following sweeping national security legislation introduced by China comes as the relationship between the world’s two biggest economies appears to be souring. The S&P 500 closed lower on Thursday, with signs mounting that President Donald Trump will make his tough stance on China a key element of his re-election bid. Beijing responded to accusations from Trump, warning that it will safeguard its sovereignty, security and interests, and threatened countermeasures.
It all risks choking the rally that took global equities up about 30% from the March lows, spurred by stimulus measures and optimism for a swift economic recovery from the virus.
My take: They call it a rally, I call it a recovery.
I see a gap around $309 from a few days ago, will it get filled?