We are looking at a positive open in the US as of 8:00 am ET, as futures are up this morning, while Europe is off session lows and mixed as Brexit takes center stage. Asia ended the day with all major indexes up — for the week the NIKKEI was up while both the Hang Seng and CSI were down. Oil is flat this morning and is looking at its first back-to-back weekly loss since April. Gold is down on a stronger dollar.
In other news, US markets are up this morning following yesterday’s session where markets dropped into the close of Europe’s session and they just kept falling all afternoon. Right now we are looking at all three major indexes chalking up a loss for the week.
The EU on Thursday urged the UK to abandon its plan to renege on the Brexit Withdrawal Agreement and threatened legal action, but UK Prime Minister Boris Johnson vowed to press ahead with the Internal Market Bill, despite acknowledging that the move violates international law. This standoff is weighing on markets in Europe this morning. On a positive note, the UK signed its first post-Brexit trade deal with Japan today.
Oracle announced better than expected results after the close yesterday and is trading up in the premarket.
Peloton also had fantastic numbers as sales were up 172% quarter on quarter. The stock is up more than 6% this morning.
Goldman Sachs said it has upped global equity allocations to “overweight” for the next three months after the recent market pullback, citing an inflection in earnings growth and catch-up moves by cyclical stocks, which had lagged the summer rally.
In Etfs, yesterday SPY traded 91 million shares, down from Wednesday’s 96 million, while the QQQ traded 69 million — up from Wednesday’s 64 million. Overall market volume was higher on Thursday than on Wednesday.
Energy plays continue to see sellers, with First Trust’s FXN trading another 7 million shares, XLE trading 37 million and IYE 2.2 million, all above average. Also seeing sellers were healthcare (XLV), consumer staples (XLP), financials (XLF) and utilities (XLU). Industrials (XLI) and materials (XLB) saw buyers.
Yesterday was the first day that the NFL, MLB, MLS, NBA, WNBA and NHL were all in action. And with a full slate of games this weekend in the NFL, online gambling stocks have been active. Of course there are ETFs for that, such as Round Hill’s BETZ and VanEck’s BJK.
High yield stayed active yesterday. HYG traded 32 million shares and JNK 11 million. Vanguard’s Total International Bond ETF (BNDX) saw buyers while trading 6.2 million shares, 3x average, and its Total Bond (BND) also saw buyers while trading 5.3 million shares.
VictoryShares launched a new fund yesterday. QQQN, the VictoryShares NASDAQ Next 50 ETF invests in the 50 largest non-financial stocks on the NASDAQ after removing the constituents of the NASDAQ-100.