Wall Street is set to end a strong August and start a historically difficult September
BY THE NUMBERS
US equity futures were mixed last Monday in August. The S&P 500, which closed above 3,500 on Friday for the first time, is poised to close the books on its best August since the 1980s and head into the historically difficult September. The Dow Jones Industrial Average gain on Friday was enough to push it into positive territory for the year. However, the Dow Jones was still 3% off its February 12 highs before Monday’s trading session. (CNBC)
* Fed’s Clarida says rates won’t rise just because unemployment drops (CNBC)
* Leon Cooperman says future stock returns will be “unimpressive for a long time” (CNBC Pro)
* Carlyle’s David Rubenstein: “Still a little nervous” but the market rally has “something to do” (CNBC)
Monday’s Dow Jones reflects changes in the 30 stocks that make up the average and a division of stocks into one of its most influential components. Upon opening, Salesforce, Amgen and Honeywell will be included in the Dow, replacing long-standing components Exxon Mobil, Pfizer and Raytheon. Dow Apple stock rose in pre-market trading as its 4-to-1 split took effect. Tesla, which is not a Dow stock but a Wall Street favorite, saw its shares rise after the electric automaker’s 5-to-1 split. (CNBC)
* History of Apple Stock Divisions Says Investors Shouldn’t Rush to Buy Stocks at Low Prices (CNBC)
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IN THE NEWS TODAY
TikTok has chosen a bidder for its US, New Zealand and Australian companies, and it could announce the deal as early as Tuesday, according to people familiar with the situation. Microsoft (MSFT) in partnership with Walmart (WMT) and Oracle (ORCL) are the two main candidates for the deal. The sale price is expected to be between $ 20 billion and $ 30 billion, CNBC reported last week.
* ByteDance says it will adhere to tougher Chinese export laws as TikTok sale looms (CNBC)
* TikTok denies it is in talks with rival app Triller over potential bid for its US operations (CNBC)
Warren Buffett’s Berkshire Hathaway has acquired stakes in each of the five major Japanese trading companies. Berkshire Hathaway Chairman and CEO said on Sunday, on his 90th birthday, his company had bought just over 5% of positions in Itochu Corp., Marubeni Corp., Mitsubishi Corp., Mitsui & Co . and Sumitomo Corp. Japanese trading companies, known as sogo shosha, are conglomerates that import everything from energy and metals to food and textiles into the resource-poor Japan. (CNBC)
McDonald’s slammed former CEO Steve Easterbrook in a new legal case on Monday, arguing he should have to defend his conduct in court. Over two weeks ago, Easterbrook asked the Delaware court to dismiss the case filed by McDonald’s, which is suing him to recover his severance pay after he said he found out he had sex with three other women. while at McDonald’s. (CNBC)
The total number of coronavirus cases in the United States has approached 6 million, according to data from Johns Hopkins University on Monday morning, with more than 183,000 deaths. Cumulative infections worldwide have exceeded 25.2 million, with more than 846,800 deaths. Daily new cases in the United States tend to drop after peaking earlier this summer. New daily infections around the world have increased and decreased since the end of July. (JHU data)
The head of the Food and Drug Administration is ready to bypass the full federal approval process in order to make a Covid-19 vaccine available as soon as possible, according to an interview with the Financial Times. Insisting that any decision would not be due to pressure from the White House, FDA Commissioner Dr Stephen Hahn told the FT that emergency clearance may be appropriate before clinical trials are completed phase three if the benefits outweigh the risks.
* FDA Expands Emergency Use of Gilead’s Remdesivir in Hospitalized Covid-19 Patients (Reuters)
* Vir Biotechnology and GSK start phase 2/3 study of COVID-19 antibody treatment (press release)
Democrats accused Trump of trying to stoke racial tensions and inciting violence to benefit his re-election campaign after the president praised supporters who clashed with Black Lives Matter protesters in Portland , Oregon. Trump sparked a flurry of tweets and retweets on Sunday, the day after a member of the right-wing group was shot dead in Portland. (PA)
Democratic presidential candidate Joe Biden accused Trump of “stoking the flames of hatred and division.” Trump also announced that he would travel to Kenosha, Wisconsin on Tuesday, where the police shooting of Jacob Blake, a 29-year-old black man, sparked protests. (CNBC)
STOCKS TO MONITOR
BlackRock (BLK) has received approval from Chinese regulators to create a mutual fund unit there, becoming the first global asset manager to receive such approval.
Restaurateur Yum China (YUMC) has started taking orders for a secondary listing in Hong Kong that could raise more than $ 2.5 billion, according to the Wall Street Journal.
JP Morgan Chase analyst Stephen Tusa withdrew his price target on General Electric (GE), citing the lack of visibility over time. The company’s rating on GE remains “neutral,” although the report says the stock’s fair value is likely less than $ 5 per share.
AT&T (T) is exploring options for its DirecTV unit, according to people familiar with the matter who spoke to the Wall Street Journal. Apollo Global Management (APO) would be among the bidders interested in the satellite television operator.
Swiss Nestlé will pay $ 2 billion to acquire full ownership of US biopharmaceutical company Aimmune Therapeutics (AIMT), known for its Palforzia treatment for peanut allergies. Nestlé already had a 25.6% stake in Aimmune and will pay $ 34.50 per share for the remainder over Aimmune’s closing price on Friday of $ 12.60.
Philips (PHG), the Dutch medical equipment maker, said the US government canceled most of an order for 43,000 ventilators and reduced its profit outlook for 2020 as a result. the US House had determined last month that the government had overpaid Philips by at least $ 500 million.
United Airlines (UAL) has said it will eliminate ticket change fees permanently as it tries to bring customers back after the pandemic-induced drop in travel demand. United’s standard domestic ticket change fee was $ 200.