Lifshitz Law Firm, P.C. Announces Investigation of STAY, FFG, MX, and PEBO

Insider Monkey
10 Best Stocks That Will Gain From Biden’s Job and Infrastructure Plan
In this article we will take a look at the 10 best stocks that will gain from Biden’s job and infrastructure plan. You can skip our detailed analysis of the US job and infrastructure plan’s outlook for 2021 and some of the major growth catalysts for the stocks that will benefit from it, and go […]
1d ago
Reuters
South Korean battery makers agree $1.8 billion settlement, aiding Biden's EV push
South Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over electric-vehicle (EV) battery technology, avoiding a potential setback for U.S. EV ambitions. The settlement after marathon talks by affiliates of two of South Korea's biggest conglomerates was announced just hours before a Sunday night deadline for President Joe Biden's administration to decide whether to take the rare step of reversing a U.S. International Trade Commission decision (ITC). In a statement, Biden called the settlement "a win for American workers and the American auto industry.... We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain".
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Bloomberg
Record Alibaba Fine Shows China’s Big Tech Can’t Fight Back
(Bloomberg) -- After China imposed a record antitrust fine on Alibaba Group Holding Ltd., the e-commerce giant did an unusual thing: It thanked regulators.“Alibaba would not have achieved our growth without sound government regulation and service, and the critical oversight, tolerance and support from all of our constituencies have been crucial to our development,” the company said in an open letter. “For this, we are full of gratitude and respect.”It’s a sign of how odd China’s crackdown on the power of big tech has been compared with the rest of the world. Mark Zuckerberg and Tim Cook would likely not express such public gratitude if the U.S. government were to hit Facebook Inc. or Apple Inc. with record antitrust fines.But almost everything about China’s regulatory push is out of the ordinary. Beijing regulators wrapped up their landmark probe in just four months, compared with the years that such investigations take in the U.S. or Europe. They sent a clear message to the country’s largest corporations and their leaders that anti-competitive behavior will have consequences.For Alibaba, the $2.8 billion fine was less severe than many feared and helps lift a cloud of uncertainty hanging over founder Jack Ma’s internet empire. The 18.2 billion yuan penalty was based on just 4% of the internet giant’s 2019 domestic revenue, regulators said. While that’s triple the previous high of almost $1 billion that U.S. chipmaker Qualcomm Inc. handed over in 2015, it’s far less than the maximum 10% allowed under Chinese law.The fine came with a plethora of “rectifications” that Alibaba will have to put in place -- such as curtailing the practice of forcing merchants to choose between Alibaba or a competing platform -- many of which the company had already pledged to establish.Read more: China Fines Alibaba Record $2.8 Billion After Monopoly ProbeAlibaba Chief Executive Officer Daniel Zhang on Saturday declared his company now ready to move on from its ordeal, while China’s Communist Party mouthpiece People’s Daily issued assurances that Beijing wasn’t trying to stifle the sector.The Hangzhou-based firm “has escaped possible outcomes such as a forced breakup or divestment of assets. The penalty will not shake up its business model, either,” said Jet Deng, an antitrust lawyer at the Beijing office of law firm Dentons.Still, neither Zhang nor state media addressed lingering questions around the extent to which Beijing remains intent on reining in its internet and fintech giants, a broad campaign that’s wiped more than $250 billion off Alibaba’s valuation since October. The e-commerce giant’s speedy capitulation also underscores its vulnerability to further regulatory action -- a far cry from just six years ago, when Alibaba openly contested one agency’s censure over counterfeit goods on Taobao and eventually forced the State Administration for Industry and Commerce to backtrack on its allegations.Beyond antitrust, government agencies are said to be scrutinizing other parts of Ma’s empire, including Ant Group Co.’s consumer-lending businesses and Alibaba’s extensive media holdings. And the shock of the crackdown will continue to resonate with peers from Tencent Holdings Ltd. and Baidu Inc. to Meituan, forcing them to tread far more carefully on business expansions and acquisitions for some time to come.What Bloomberg Intelligence SaysChina’s record fine on Alibaba may lift the regulatory overhang that has weighed on the company since the start of an anti-monopoly probe in late December. The 18.2 billion yuan ($2.8 billion) fine, to penalize the anti-competitive practice of merchant exclusivity, is equivalent to 4% of Alibaba’s 2019 domestic sales. Still, the company may have to be conservative with acquisitions and its broader business practices.-- Vey-Sern Ling and Tiffany Tam, analystsClick here for the full research.The investigation into Alibaba was one of the opening salvos in a campaign seemingly designed to curb the power of China’s internet leaders, which kicked off after Ma infamously rebuked “pawn shop” Chinese lenders, regulators who don’t get the internet, and the “old men” of the global banking community. Those comments set in motion an unprecedented regulatory offensive, including scuttling Ant’s $35 billion initial public offering.It remains unclear whether the watchdog or other agencies might demand further action. Regulators are said, for instance, to be concerned about Alibaba’s ability to sway public discourse and want the company to sell some of its media assets, including the South China Morning Post, Hong Kong’s leading English-language newspaper.Read more: China Presses Alibaba to Sell Media Assets, Including SCMPChina’s top financial regulators now see Tencent as the next target for increased supervision, Bloomberg News has reported. And the central bank is said to be leading discussions around establishing a joint venture with local technology giants to oversee the lucrative data they collect from hundreds of millions of consumers, which would be a significant escalation in regulators’ attempts to tighten their grip over the country’s internet sector.“The high fine puts the regulator in the media spotlight and sends a strong signal to the tech sector that such types of exclusionary conduct will no longer be tolerated,” said Angela Zhang, author of “Chinese Antitrust Exceptionalism” and director of the Centre for Chinese Law at the University of Hong Kong. “It’s a stone that kills two birds.”For now, it appears investors are just glad it wasn’t worse. In its statement, the State Administration for Market Regulation concluded Alibaba had used data and algorithms “to maintain and strengthen its own market power and obtain improper competitive advantage.” Its practice of imposing a “pick one from two” choice on merchants “shuts out and restricts competition” in the domestic online retail market, according to the statement.The firm will be required to implement “comprehensive rectifications,” including strengthening internal controls, upholding fair competition and protecting businesses on its platform and consumers’ rights, the regulator said. It will need to submit reports on self-regulation to the authority for three consecutive years.Alibaba said it will hold a conference call Monday morning Hong Kong time to address the antitrust watchdog’s decree. The company will have to make adjustments but can now “start over,” Zhang wrote in a memo to Alibaba’s employees Saturday.“We believe market concerns over the anti-monopoly investigation on BABA are addressed by SAMR’s recent decision and penalties,” Jefferies analysts wrote in a research note entitled “A New Starting Point.”Indeed, The People’s Daily said in its commentary Saturday that the punishment was intended merely to “prevent the disorderly expansion of capital.”“It doesn’t mean denying the significant role of platform economy in overall economic and social development, and doesn’t signal a shift of attitude in terms of the country’s support to the platform economy,” the newspaper said. “Regulations are for better development, and ‘reining in’ is also a kind of love.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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Most Asia-Pacific Stock Markets Finish Lower as China PPI Rises More than Expected
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Reuters
S.Korean battery makers agree $1.8 billion settlement, aiding Biden's EV push
WASHINGTON/SEOUL (Reuters) -South Korean battery makers LG Energy Solution and SK Innovation Co agreed on Sunday to settle disputes over electric-vehicle (EV) battery technology, avoiding a potential setback for U.S. EV ambitions. The settlement after marathon talks by affiliates of two of South Korea's biggest conglomerates was announced just hours before a Sunday night deadline for President Joe Biden's administration to decide whether to take the rare step of reversing a U.S. International Trade Commission decision (ITC). In a statement, Biden called the settlement "a win for American workers and the American auto industry.... We need a strong, diversified and resilient U.S.-based electric vehicle battery supply chain".
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Yahoo Finance
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1d ago
Bloomberg
Arm Battle With China CEO Escalates, Complicating SoftBank Sale
(Bloomberg) -- The battle for control of Arm Ltd.’s China business is escalating with new lawsuits aimed at keeping the unit’s controversial chief executive in power, further complicating SoftBank Group Corp.’s efforts to sell the business to Nvidia Corp.The dispute erupted almost a year ago in June after the board voted to oust Arm China Chief Executive Officer Allen Wu for conflicts of interest, but he refused to leave. Now the Chinese unit, which remains under Wu’s control, has filed lawsuits against three senior executives the board designated to replace him, according to people familiar with the matter. The previously unreported suits could take years to resolve, suggesting Wu may remain entrenched.Wu fired the three men -- including co-CEO Phil Tang -- but they were subsequently reinstated by the board. In the new lawsuits, Arm China is suing the trio, demanding they return company property, according to the people.Arm China declined to comment on any ongoing legal cases or possible settlement talks. It did say the three executives had caused “material damages” to the company and they had been terminated for legitimate reasons.Tang didn’t return requests for comment. Arm Ltd. declined to elaborate, saying it won’t comment on pending legal matters.The complex tussle has thrown into question the future of Arm, whose semiconductor technology is the world’s most widely used for smartphones and is increasingly deployed in computers. SoftBank founder Masayoshi Son agreed to sell the British chip designer to Nvidia for $40 billion last year, but the path for completing that transaction is growing increasingly difficult.The China dispute also raises questions about Beijing’s willingness to protect foreign investment in the world’s second-largest economy. Arm Ltd. sold a majority stake in the China unit to a consortium of investors, including Beijing-backed institutions. That has complicated the British firm’s efforts to manage Arm China and Wu, who has support from local authorities in Shenzhen.Both sides appear to be at a stalemate. Wu, a Chinese-born U.S. citizen, pulled back from signing settlement agreements worth tens of millions of dollars if he would leave the company, the people said, asking not to be identified talking about legal matters. At the same time, two minority shareholders in Arm China linked to Wu have filed lawsuits to overturn his June 4 dismissal, they said.SoftBank opened negotiations with him last year and had hoped to reach some sort of resolution, they said. Instead the court battles are deepening and the Japanese company has soured over the increasingly complicated dispute, the people said. SoftBank is now resigned to letting the legal proceedings take their course and there are no current negotiations with Wu, according to one of the people.“We are going through a leadership change in China; it’s taking time to resolve,” said Arm Ltd.’s Chief Executive Officer Simon Segars in an interview with Bloomberg Television recently. “It’s hard. But we are confident that’s going to get resolved.”SoftBank and Nvidia declined to comment on the dispute in China.Arm China said in a statement that Wu’s position “is compliant with legal registration and confirmed by China law and regulations.”Read more: Arm Takes Aim at Intel Chips in Biggest Tech Overhaul in DecadeThe standoff accords a relatively unknown executive outsized influence over one of the industry’s most important pieces of technology, in the world’s biggest internet and semiconductor market. Chinese companies need unfettered access to Arm’s products to push forward with the country’s attempts to make itself more independent in chip technology, an area where it’s largely reliant on imports. Beyond resolving the stalemate, Nvidia and SoftBank also need Beijing’s signoff to seal their deal, and it’s unclear whether Wu’s presence would complicate that.Wu’s hold on Arm China is partially due to local laws which make it difficult to change control of a company unless you’re physically in control of the company stamp and registration documents. He’s refused to give them up and has used company funds to pay for legal fees incurred in his attempt to fight off his dismissal, the people said.Arm China said payment of legal fees “is made in compliance with company policies as well as China laws and regulations.”His ultimate goals appear to be a large cash payoff and immunity from subsequent legal action, according to people who’ve spoken with him. Inside Arm China, which is responsible for selling licenses to its chip designs and fundamental technology in the country, Wu has told local staff he’s not going anywhere. He recently gave employees Chinese New Year cash presents in a red envelope with his surname on it.Arm China said the money came from Wu personally to show his appreciation to colleagues, a tradition at Chinese New Year in the country.Hearings in the case against the three executives are expected to take place in late May, one of the people said. Separately, two minority shareholders in Arm China have sued the Chinese entity in Shenzhen to nullify the board’s decision to oust Wu. These two cases are now being merged and hearings are slated for late April, the people said.Son told investors as recently as February that he expects to close the Arm sale and “I don’t have any Plan B.”Arm, for its part is trying to make sure that its technology remains pervasive in China despite U.S. sanctions intended to curb the supply of American technology to major companies like Huawei Technologies Co. While Arm is a U.K.-based company part of its operations are in the U.S. making its products subject to controls.The Chinese government has not stated its position on the Arm China leadership struggle, but the unit has several government-backed shareholders including sovereign wealth fund China Investment Corp. and the Silk Road Fund.In his interview with Bloomberg Television, Arm Ltd. CEO Segars said that the ten-month standoff hasn’t hurt Arm’s business in China. Lack of travel for face-to-face meetings during the pandemic has prolonged the process of changing leadership in China, he said.“When we announced the deal in September, we said it would take about 18 months,” he said. “We remain confident in that timeline.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
Bloomberg
Whipsawed Bitcoin Investors Eye Coinbase as Steadier Crypto Bet
(Bloomberg) -- For many investors, Coinbase Global Inc.’s trading debut next week will be an entry into the $2 trillion cryptocurrency market.And for those who have already gorged on Bitcoin, the arrival of the largest U.S. cryptocurrency exchange on the Nasdaq Stock Market could be what is needed to settle portfolios roiled by the asset class’s notorious volatility.There are other stocks already tied to the bits and bytes of the various blockchains. Elon Musk’s Tesla Inc. and Michael Saylor’s MicroStrategy Inc. have both notably added billions worth of Bitcoin to their treasuries. But with Coinbase’s public listing, investors will have the choice of an equity tied to cryptocurrencies that is -- so the hope goes -- less likely to suffer persistent cycles of boom and bust.“For a crypto investor that also buys stocks, it has the ability to diversify risks as there is a very profitable exchange platform that trades on another venue (stock exchange) whose flows of buyers and sellers can be less correlated than many crypto prices,” wrote Greg Foss, a veteran credit trader, Bitcoin investor and chief financial officer for Validus Power Corp., in an email reply to questions.Coinbase is planning to go public through a direct listing in which it will not raise any new capital, it said in an S-1 filing. The direct listing allows current shareholders to trade their shares without a lock-up period that is typical in an initial public offering. It was valued at about $90 billion in its final week of trading on Nasdaq’s private market, Bloomberg News reported.Still, because volume and price tend to go hand-in-hand, Coinbase’s transaction revenue, its largest segment, could remain susceptible to cryptocurrency market gyrations.“In a traditional stock portfolio it gives exposure to an exchange platform that generates trading fees on crypto,” wrote Foss. “Those fees increase with volumes and volumes typically increase with prices, so there is a beta trade there.”Coinbase said Tuesday that it expects to report a first-quarter profit of $730 million to $800 million, more than double what it earned in all of 2020. The bumper quarter for the exchange comes amid surging cryptocurrency prices. The Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and six other cryptocurrencies advanced by more than 100% in each of the last two quarters.Coinbase may have further appeal for investors. The exchange could provide an accessible diversified investment into the space, where there’s a proliferation of cryptocurrency tokens and few passive vehicles to spread bets around, according to Gil Luria, head of institutional research at D.A. Davidson & Co.“Coinbase will win regardless of which crypto asset emerges as a winner, and their revenue is tied more to trading volumes, which are often less volatile than asset values,” Luria wrote in an email.But investors looking to add some stability to their cryptocurrency portfolios may want to exercise patience.Kevin Kelly, global head of macro strategy at research firm Delphi Digital, warns that those seeking a lower volatility investment might want to sit out Coinbase’s first week of trading.“I expect to see a lot of volatility next week once COIN begins trading, but eventually I think we’ll see it trade more in line with the direction of the broader crypto market,” Kelly wrote in an email. “However, I view it as a lower beta play on the continued expansion of crypto with less downside risk to crypto asset prices; in other words, COIN is more agnostic to crypto asset prices and may be an attractive opportunity for investors looking to gain exposure to the continued adoption of crypto without taking on similar levels of price volatility.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
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Analysis: Investors keep faith in U.S. value stocks as tech roars back
A rebound in growth and technology stocks has investors gauging whether a months-long rally in the shares of banks, energy companies and other economically sensitive names is running on empty or simply refueling. The Russell 1000 value index started 2021 with its biggest quarterly outperformance relative to its growth counterpart in 20 years, as investors poured money into the shares of battered companies they thought would benefit most from a vaccine-generated reopening of the U.S. economy. The script has flipped since mid-March, with the Russell growth index gaining over 6% compared to a rise of just over 2% for value.
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Daniel Loeb’s $17B Hedge Fund Is Keeping Crypto With Coinbase – And Maybe Even Staking It
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Chinese Assets Appeal Eroded by Dollar Strength, U.S. Rates
(Bloomberg) -- Chinese assets are losing their shine after an impressive start to the year, overshadowed by a stronger dollar, higher U.S. Treasury yields and a domestic campaign to cut financial risk.The nation’s benchmark stock index remains 13% below a 13-year high in early February, following a brutal selloff that wiped out more than $1.3 trillion in market value. The yuan just suffered its worst month in a year in March, erasing all its 2021 gains against the greenback. Chinese sovereign bonds, a sanctuary during the recent global rout, saw foreign investors lower their holdings last month for the first time in more than two years.The sharp reversal of fortunes came as confidence grew in a strong U.S. economic recovery that is reclaiming the allure of dollar assets around the world. The latest underperformance of Chinese markets also resulted from Beijing’s decision to resume a battle on debt that was interrupted by the trade war with Washington and the pandemic.Concerns about inflation and tighter monetary conditions mean appetite for Chinese shares will likely remain subdued, while the country’s government debt market faces the test of a supply glut later this year, investors and analysts say. The yuan could weaken further as the dollar extends its global resurgence.“China’s bull run is being tested,” said Adrian Zuercher, head of global asset allocation of UBS Chief Investment Office. “Volatility will stay elevated in the near term.”Subdued TradingAfter delivering a world-beating rally earlier in the year, Chinese shares have reversed course since February, when it became increasingly clear that policymakers were shifting their priority to taming asset bubbles and reducing financial leverage.The world’s second-largest stock market is $838 billion smaller than at its February peak and trading interest has been waning. Daily average turnover on China’s two stock exchanges was 670 billion yuan ($102 billion) so far this month, the lowest since May, according to data compiled by Bloomberg.UBS’ Zuercher said he expects rising Treasury yields to be a major source of near-term volatility in China’s equity market, as it will continue to exert pressure on valuations of the country’s growth stocks and trigger rotation.Echoing the view, Herald van Der Linde, HSBC Holdings Plc’s head of Asia Pacific equity strategy, said there remains downside risk to Asian equities in the near term and “China is no exception”.Domestically, a central bank unwilling to keep funding conditions too loose, a contrast to its peers in other major economies, has also disappointed stock investors. Apart from its deleveraging campaign, signs of inflationary pressures, as shown in March’s consensus-beating 4.4% jump in China’s producer prices, could prompt Beijing to further dial back its pandemic-induced economic stimulus.“We believe monetary policy might be tightened,” Hanfeng Wang, a strategist at China International Capital Corp., wrote in a note this week, adding that investors should pay attention to policy signals from the next meeting of the Politburo, the Communist Party’s top decision-making body.Bonds PressuredWhile Chinese government bonds outpaced their competitors in the first quarter as their haven status helped them stand out as a bulwark amid the global slump, they are facing a host of challenges in the coming months.In addition to a longer-than-expected phase-in period for the inclusion in FTSE Russell’s World Government Bond Index, a surge in bond supply from local governments and a narrowing China-U.S. yield gap also threaten to reduce the appeal of Chinese debt.Now at 3.21%, yields on China’s benchmark 10-year sovereign notes are expected to rise to 3.5% by the end of this quarter, according to Becky Liu, head of China macro strategy at Standard Chartered Plc.As China’s yield premium over Treasurys thinned, global investors last month trimmed their holdings of Chinese government debt for the first time since February 2019, a trend that is expected to continue for some time. The yield gap fell to 144.8 basis points on March 31, the narrowest since Feb. 24, 2020 when it was 144.2 basis points.Weaker YuanThe dollar’s renewed strength, the tighter yield gap, as well as Beijing’s latest move to boost capital outflows also have prompted analysts, including ING’s, to lower their forecasts on the Chinese currency.After rising nearly 7% against the dollar last year and reaping further gains earlier this year, the yuan suffered its worst selloff in a year last month, arresting a steady advance since May.Read: Yuan Erases Year’s Gains Against Dollar as PBOC Steps Aside“It’s about how views on the U.S. dollar have changed rapidly,” said Zhou Hao, an economist from Commerzbank AG. “People believe the U.S. economy will recover strongly in the next two years and that’s what stocks and bonds have been pricing in.”Zhou said he expects the yuan to weaken to 6.83 per dollar by the end of this year, from around 6.56 Friday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
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S&P 500 Weekly Price Forecast – Stock Markets Have Strong Week
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These grant programs are offering homebuyers more money during COVID
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Bitcoin above $60,000 again on talk of reduced supply
Bitcoin (BTC) is up 116% from the year's low of $27,734 on Jan. 4. It crossed the $60,000 mark for the first time on March 13, hitting a record $61,781.83 on Bitstamp exchange, just after U.S. President Joe Biden signed his $1.9 trillion fiscal stimulus package into law. Justin d'Anethan, sales manager at digital asset company Diginex in Hong Kong, said investors had turned their attention to stock markets and other cryptocurrencies in the past couple of weeks, leaving Bitcoin idling in the upper 50-thousand dollar levels.
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Yahoo Finance
Levi's 'balloon jeans' emerge as the post pandemic hot style
Levi's sees a pickup in its men's business as the pandemic starts to round the corner at long last. Here's what men are buying for their post-pandemic lives.
2d ago
Reuters
Swiss watchdog asked Credit Suisse on Greensill risks - SonntagsZeitung
The head of Switzerland's financial regulator FINMA questioned Credit Suisse over risks in its dealings with now-insolvent finance firm Greensill Capital "months" before the bank was forced to close $10 billion of funds liked to Greensill, Swiss newspaper SonntagsZeitung reported Sunday. Alongside formal discussions on a technical level between the bank and FINMA, the watchdog's head Mark Branson personally discussed the risks with outgoing Credit Suisse Chairman Urs Rohner and Chief Executive Thomas Gottstein during a meeting on an unspecified date, the paper reported, citing information it had obtained. FINMA declined to comment.
2h ago
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Stimulus check update: When will ‘plus-up’ payments arrive? Answers to your COVID relief questions
Americans have tons of questions about their stimulus checks and 2020 taxes. Here’s what you need to know about 2021 COVID-relief payments and more.
32m ago
Bloomberg
Eerie Equity Calm Puts Wall Street on High Alert for Next Spark
(Bloomberg) -- The quietest week in stocks so far in 2021 has Wall Street wondering what will break the calm.Equity trading volume plunged as the S&P 500 marched to an all-time high, with the five-day average across U.S. exchanges dropping to 9.5 billion shares traded -- the lowest since October, according to Bloomberg data. Friday was particularly placid, with just 8.7 billion shares moving, the lowest daily total since Christmas Eve.The lull felt especially abrupt after 13 months of frenzied trading brought the fastest bear market ever and a furious rally not equaled in 90 years. Stuck-at-home traders turned online brokerages into casinos, while vaccine approvals in November sparked more euphoria, spurring investors into stocks they’d shunned for months. Since then, more than $575 billion has poured into the market, exceeding total inflows for the prior 12 years combined, according to Bank of America data.That all changed in April, and theories abound as to what’s behind it. The retail mania has cooled as economic restrictions eased. Stimulus bets got settled. A brief bout of selling sparked higher yields was becalmed by a chorus of Federal Reserve officials. Economic data is starting to help justify valuations. There are just fewer major issues left to drive massive market bets. No matter, say money managers, the tranquility won’t last.“We were going 100 miles an hour and now we’re back within the speed limit,” Arthur Hogan, chief market strategist at National Securities, said by phone. “We’re going to see a resurgence of volumes and volatility because this year is going to be like no other year that people have ever seen in terms of economic growth, earnings growth, inflation, a brand-new framework for the Federal Reserve.”After a 1.4% rally Monday, the S&P 500 ground out three more records to end the week as trading volumes slowed to pre-pandemic averages. The index notched a third straight weekly gain, and the Cboe Volatility Index slipped to its lowest level in 14 months. Fading bets on Fed hikes spurred the biggest weekly drop in 5-year Treasury yields since June.Traders whipsawed by the pandemic tumult are unmoved by the calm and point to signs that more turbulence is to come. Take the VIX. At 17, it’s stubbornly elevated compared to its average of 14.9 in the seven years through 2019. Bets that the summer will bring more market chaos have pushed the spread between the VIX and implied 30-day volatility four months from now to the widest level in almost nine years.Bond markets show similar expectations for fireworks -- short interest in the $14 billion iShares 20+ Year Treasury Bond exchange-traded fund as a percentage of shares outstanding rose to the highest level since 2017 this week, IHS Markit Ltd. data show, even as the ETF rallied.Meanwhile, Wall Street prognosticators think the advance that pushed S&P 500 to dot-com-era valuations is likely exhausted for the year. At an all-time high of 4,128.80, the index closed Friday ahead of the average year-end target of 4,099 from strategists tracked by Bloomberg.Skeptics have cited everything from rising yields to stretched valuation and potential tax hikes as reason for caution. Tobias Levkovich, chief U.S. equity strategist at Citigroup Inc. whose 2021 target sat at 3,800, expects the Fed to start rolling back monetary stimulus later this year and earnings guidance to weaken, posing headwinds for stocks and stoking volatility.“Sentiment is in very worrisome territory as is valuation, yet money flows continue to push indices higher,” Levkovich wrote in a note earlier this week. “Huge fiscal stimulus and supportive central banks have created the notion of there being no need to be risk averse,” he added. “Indeed, all developments are perceived as positive news. Yet, such one-sided views are not usually a good starting point.”Kim Forrest of Bokeh Capital Partners is feeling more optimistic. She expects the kickoff of what’s expected to be the best earnings season since 2018 to breathe life back into the stocks, with big lenders including JPMorgan Chase & Co. and Citigroup Inc. set to report next week. First-quarter profits from S&P 500 firms probably expanded 24%, led by carmakers, banks and retailers, data compiled by Bloomberg Intelligence show.“Unless there’s some other craziness going, like Covid, earnings always drive the market,” said Forrest, the firm’s chief investment officer. “We are heading into earnings season and the bar has been set really low, and I think the first quarter has been pretty good, so that’s encouraging.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
2d ago
CoinDesk
Bitcoin Price Shoots Past $60K, Ether Hits New All-Time High in Early Saturday Trading
The price action comes just ahead of a highly anticipated Nasdaq listing for leading U.S. crypto exchange Coinbase.
1d ago

Symbol	Last Price	Change	% Change
FFG FBL Financial Group, Inc.	55.96	-0.04	-0.07%
MX MagnaChip Semiconductor Corporation	25.83	-0.52	-1.97%
PEBO Peoples Bancorp Inc.	33.60	+0.17	+0.51%
STAY Extended Stay America, Inc.	19.84	+0.07	+0.35%

S&P 500

Dow 30

Nasdaq

Russell 2000

Crude Oil

Gold

Silver

EUR/USD

10-Yr Bond

GBP/USD

USD/JPY

BTC-USD

CMC Crypto 200

FTSE 100

Nikkei 225

Lifshitz Law Firm, P.C. Announces Investigation of STAY, FFG, MX, and PEBO

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