Dow Jones Futures Fall: Apple Hits New Buy Point; 4 Tech Giants In Or Near Buy Zones


Dow Jones futures, along with S&P 500 and Nasdaq 100 futures, were lower early Wednesday after the stock market rally set more record highs. Dow Jones leader Apple hit a new buy point, while Tesla neared all-time highs. Chinese EV leaders Nio and Xpeng Motors dived over 10% each, while Nikola plunged nearly 15%.

Tech giants Advanced Micro Devices, Facebook, PayPal and Taiwan Semiconductor are in or near buy zones.




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The Dow Jones Industrial Average advanced 0.6%, or 185 points. The S&P 500 rallied 1.1%, while the tech-heavy Nasdaq composite moved up 1.3%. The S&P 500 and Nasdaq notched more all-time highs.

Among the Dow Jones leaders, Apple (AAPL) rose 3.1%, while Microsoft (MSFT) advanced 1%.

Dow Jones stock Salesforce.com (CRM) tumbled after reporting earnings and announcing the acquisition of Slack Technologies (WORK) late Tuesday. Meanwhile, Veeva Systems (VEEV) topped Q3 estimates late, but shares fell over 2.5%.

Tesla (TSLA) advanced 3% on S&P 500 addition news and is just shy of Monday’s record high. Chinese EV leaders Nio (NIO) and Xpeng Motors (XPEV) dived despite reporting strong monthly delivery numbers. Meanwhile, Li Auto (LI) is expected to report monthly figures this week as well.

Stocks in or near buy zones in the stock market rally are Advanced Micro Devices (AMD), Facebook (FB), PayPal (PYPL) and Taiwan Semiconductor (TSM).

Apple, Microsoft, PayPal and Tesla are IBD Leaderboard stocks. AMD and Facebook were featured in this week’s Stocks Near A Buy Zone column.

Dow Jones Futures Today

Early Wednesday, Dow Jones futures fell 0.4% vs. fair value, while S&P 500 futures moved down 0.2%. Nasdaq 100 futures traded down 0.1% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, Innovator IBD 50 (FFTY) rose 0.8% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF traded up 1.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) climbed 1.1%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 37.7% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 13.4%, while the DJIA is up 4.5% year to date, through the Dec. 1 close.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29823.52+184.88+0.62
S&P 500(0S&P5)3662.41+40.78+1.13
Nasdaq(0NDQC )12355.11+156.37+1.28
Russell 2000 (IWM)182.63+1.61+0.89
IBD 50 (FFTY)39.82+0.32+0.81
Last Update: 4:48 PM ET 12/1/2020

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 14 million on Tuesday. Total virus-related deaths rose past 276,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 64 million Tuesday, with more than 1.48 million virus-related deaths.

Coronavirus Stock Market Rally

November became a key month for the stock market, after IBD’s The Big Picture noted the market had returned to a new uptrend following a bullish follow-through day on Nov. 4.

Monday’s Big Picture commented, “So, technically speaking, the S&P 500 added a fresh distribution day to its count over the past 25 trading sessions. Yet it’s far more meaningful to compare Monday’s turnover with other full-day trading sessions in recent days.”


Stock Market ETF Strategy And How To Invest


Dow Jones Earnings: Salesforce

Dow Jones stock Salesforce reported better-than-expected Q3 results late Tuesday.

The company also announced the acquisition of Slack Technologies in a deal valued at $27.7 billion. Salesforce will use a combination of cash and stock to pay for the deal: For one share of Slack, Slack shareholders will receive $26.79 a share and .0776 shares of Salesforce.

Salesforce stock tumbled more than 4% in extended trade.

The cloud software company is the No. 2-performing stock on the Dow Jones Industrial Average, advancing 48.4% year to date.

Apple Stock Hits New Buy Point

Dow Jones stock Apple broke out above an aggressive entry at 122.09. Shares rallied 3.1% Tuesday and are just above the early entry. Another aggressive entry exists at 125.49 while the conventional buy point, for now, is 138.08, according to MarketSmith chart analysis.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 66.6% advance through Tuesday.

Stocks In Or Near Buy Zones: AMD, Facebook, PayPal, TSMC

Friday’s IBD Stock Of The Day, Advanced Micro Devices, is in the 5% buy zone above an 88.82 buy point in a double bottom, according to MarketSmith chart analysis. Shares eased less than 0.1% Tuesday. The 5% buy area goes up to 93.26.

According to IBD Stock Checkup, AMD stock boasts a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

FANG stock Facebook continues to trace a cup with handle, which shows a 297.48 buy point. Shares rallied 3.5% to move within 4% of the entry. A key flaw is the stock’s lagging RS line. It remains far from its old highs despite Tuesday’s advance.

PayPal broke out and closed in the 5% buy zone above a 215.93 buy point in a cup base. Shares gained 1.1% Tuesday. The buy zone tops out at 226.73.

Taiwan Semiconductor tried to break out past a new 102.54 buy point Tuesday, but closed about 2% below the entry. Shares briefly cleared a buy point in a rare ascending base.


IBD Live: A New Tool For Daily Stock Market Analysis


Nikola Stock

Nikola plunged for a fourth straight session Tuesday, plunging nearly 15%. The stock closed more than 80% off its 52-week high. This week, the stock is already down 37.8%.

On Monday, Nikola scrapped plans to build the Badger electric pickup truck in a drastically scaled-down partnership deal with General Motors.

Nio, Xpeng Tumble; Li Auto Deliveries On Tap

Early Tuesday, Chinese EV leaders Nio and Xpeng reported monthly delivery numbers. Monthly figures from Li Auto are expected later this week as well.

Nio delivered 5,291 electric vehicles in November, up 109% vs. a year earlier. The Chinese Tesla rival tumbled 10.2%, adding to Monday’s 6.4% skid.

Xpeng Motors delivered 4,224 electric vehicles, up 342% vs. a year earlier. The company’s smart sports sedan, the P7, led the gains. The P7 competes against the made-in-China Tesla Model 3.

Shares dived nearly 11%, following Monday’s 8.6% fall, and are about 30% off their 52-week high.

Li Auto stock fell 3.1% Tuesday, ending more than 25% off its 52-week high. Shares remain well above a 21.96 buy point in a cup with handle.

Tesla Stock

IBD Leaderboard stock Tesla advanced 3% Tuesday after the S&P Dow Jones Indices decided to add the stock to the S&P 500 index in a single step. Tesla stock will join the S&P 500 before the open on Dec. 21.

On Nov. 18, shares broke out above a 466 buy point in an awkward cup with handle and are already more than 20% from the buy point. On Monday, Tesla stock set a record high at 607.80 before reversing lower.

Stock Market Earnings: Veeva Systems

Veeva Systems reported third-quarter results late Tuesday above Wall Street estimates. The company reported adjusted earnings of 78 cents per share on revenue of $377.5 million. Wall Street expected earnings of 68 cents on revenue of $361.9 million.

Shares fell about 2.5% in extended trade. The stock is tracing a short cup base with a 314.09 buy point.

Dow Jones Leaders: Microsoft

Among the top Dow Jones stocks, software giant Microsoft moved up 1% Tuesday. Shares are moving further above the 50-day support level.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 35.7% through the Nov. 30 close.

Stock Market Rally: What To Do Next

Investors should continue to use the stock market’s strength to buy breakouts. Be patient and wait for powerful breakouts instead of chasing extended stocks. If new breakouts work, then add more exposure. But if breakouts start to fail, then you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance. Fair Isaac (FICO) is the most recent addition to the list, added on Nov. 13. Shares are extended after they cleared resistance around 450.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.

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5 Healthy Hacks to Keep Your Nutrition on Point


If there is one thing that always seems to sabotage our healthy eating, it’s time! Yes, everything goes great when we can make nutrition our number 1 priority, but what happens when life gets in the way? Here are a few ways to save time, money and your health.

Drink 8oz. of Water Before Your Feet Hit the Ground

It is estimated that over 75% of Americans are chronically dehydrated. Minor symptoms can include brain fog, bloating and fine lines/wrinkles. However, most of us push past thirst in the morning and go straight for our beloved coffee. Leave an 8oz. glass of water next to your bed and commit to drinking it every morning before your feet even hit the ground. You will start your day with a healthy habit and it is a small but powerful step towards better health.

Switch to Smaller Plates

Whether it is a result of the clean plate club or mindless eating, we feel very committed to our food once it hits our plate. Switch out your dinner plates for the smaller salad plate and you can reduce your total caloric intake by up to 20% without even noticing.

Become Best Friends with Your Freezer

IMHO, the freezer is the most underutilized kitchen tool. Cooking can be time consuming and, honestly, a bit of a pain.  So, if you are going to put effort into cooking you should really get multiple meals out of it. Every time you cook, make enough for at least two meals and freeze half. By the time the holiday season comes around and our motivation and time are at an all-time low you will have a freezer full of premade meals. You can also kick it up a notch and try your hand at one of these 19 Healthy Freezer bag Meals.

Make Your Smoothies Two at a Time

Smoothies will stay good in your refrigerator for up to 3 days so I like to make them two at a time. Now it is important to note that it will separate and look a little gross.  However, if you close your eyes and shake it up you won’t be able to tell the difference!  I like to use these Aquasana Water Bottles for my smoothies.

Learn How to Store Your Fruits & Veggies

The thing about healthy food is that it only works if you eat it! So, if you spend a ton of money at the store of fresh fruit and veggies only to have them go bad, you’re not doing anyone any good. Check out this great infographic from PaleoHacks for proper storage:

The opinions shared in this article are those of the contributor and not Total Gym Direct.



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In the debate about super, the actual point of a retirement income policy is lost | Greg Jericho | Business


The release of the Retirement Income Review’s final report, a 638 page behemoth of analysis has revealed yet again that debate about retirement and superannuation is utterly distorted.

The response to the report has focused mostly around the increase of the superannuation guarantee from 9.5% to 12% and the impact on wages growth. It has also focused on whether we should use superannuation to help people buy a home.

Lost in the debate is the actual point of a retirement income policy – ie retirement income.

As we saw last year with the scare campaigns around dividend imputation tax credits, too often a debate about retirement comes to mean a debate about inheritance.

The first aspect of any debate about our retirements should be to ask whether it works – do people retire with an adequate level of income?

The standard level is that you should be able to retire on 70% of your working income. And the report confirms pervious findings by the Grattan Institute that overwhelmingly people do so:


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What we need to remember is that this is not only because of superannuation but the aged pension.

The Grattan Institute estimated that for all but the wealthiest 30% the pension is a massive chunk of their retirement income:


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And yet after listening to the debate this week you would be forgiven for thinking the question of lifting the super guarantee from 9.5% to 12% is the make or break aspect of the retirement system.

It is not.

It is also not what drives the big difference in retirement incomes.

The most recent survey of household incomes and wealth shows a great disparity of retirement income to the wealthiest 20% of households:


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But while the wealthiest 20% get 24% of their income from superannuation compared to 15% for middle income households, the biggest difference was income from wages and investments:


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But even given this, the fact that wealthier household accrue much more superannuation means increasing the guarantee from 9.5% to 12% is obviously going to benefit them more.

Importantly this benefit is increased because they will lose less of the pension due to the increased super:


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And increasing the guarantee from 9.5% to 12% is a massive cost to the budget because, as the review notes, “the cost of the earnings tax exemption in the retirement phase is likely to grow as the superannuation system matures.”

The report estimates that by 2050 the amount of revenue forgone through superannuation tax exemptions will be greater than the amount spent each year on the aged pension.

This aligns with the estimations by the Grattan Institute that raising the super guarantee to 12% will by 2050 see the government save around 0.52% of GDP in spending on the aged pension, but forgoing around 0.69% of GDP in revenue each year from tax concessions:


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This is the furphy about superannuation as being “self-funded” retirement. It is not – it is very much funded by the government forging revenue – revenue that could be spent on services and benefits that would more help low to middle income households.

Superannuation is also income and the review concludes that “the weight of evidence suggests the majority of increases in the SG come at the expense of growth in wages”.

The work by the Grattan Institute is very robust and confirms what the Reserve Bank has also found, that around “80 per cent of super rises are passed through to workers via lower wage rises during the life of an EBA”.

This does not mean keeping the rate steady will increase wages growth – it won’t, because wages are affected by much more than superannuation. We have six years of evidence to show that keeping the guarantee rate steady does not mean there will be strong wages growth.

And you could argue that the pass through of superannuation in the future will be less than 80%, but clearly it is not going to be zero.

This doesn’t mean the guarantee is bad – it is helping to deliver an adequate retirement income for households.

But it does mean that increasing the rate to 12% requires acknowledging that there is going to be an impact on wages that should at the very least be outweighed by the benefits later on in retirement or could not be achieved in other, better ways.

What the review finds is that people could have both higher working life income and retirement income if they more efficiently drawdown their superannuation balances.

The problem is, as the review found, “when retirees die, most leave the majority of the wealth they had at retirement as a bequest” and that “retirees tend to consume only the income derived from assets and not the assets themselves”.

And that is a major problem.

Retirement policy should be geared towards people’s life in retirement, not about what they may be able to leave for their children or grandchildren to inherit.

Debate about raising the superannuation guarantee is not a debate over the worth of the guarantee itself. But we need to be clearer about what we are arguing about and what the actual objective of the policy is – because progressives who focus on the superannuation guarantee over other areas risk losing sight of the real point.



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F1 2020, Bahrain Grand Prix, driver contracts 2021: Sergio Perez to Red Bull, Racing Point axe a travesty


Within the joy of a first-ever second-place finish, Racing Point owner Lawrence Stroll must have winced last weekend, even if for just a brief moment.

There was Sergio Perez, almost literally on a pedestal, standing in front of the world having finished second at the Turkish Grand Prix.

His appearance on the podium served as a jarring reminder that this talented and experienced F1 driver might not be an F1 driver at all in a few weeks time.

Racing Point doesn’t want him anymore.

Watch the 2020 FIA Formula One World Championship™ on KAYO. Every practice, qualifying session and race LIVE. New to Kayo? Get your free trial now & start streaming instantly >



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Dow Jones Futures Fall As Cororonvirus Drives Stock Market Rally; Qualcomm Near Buy Point; Apple Looks Tired| Investor’s Business Daily


Dow Jones futures rose modestly Sunday night, along with S&P 500 futures and Nasdaq futures. The stock market rally has had a wild two weeks, with record coronavirus cases and upbeat Covid vaccine news swinging sectors back and forth. But in many ways, the market is back where it was, with many tight weekly closes and growth stocks back in favor.




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The Nasdaq composite has actually formed a three-weeks-tight pattern. So have Apple (AAPL) chipmakers Qorvo (QRVO) and Qualcomm (QCOM), along with marijuana stock Innovative Industrial Properties (IIPR).

Meanwhile, Apple stock, Microsoft (MSFT) and Amazon.com (AMZN) are looking tired. The megacaps were big winners during the coronavirus stock market rally from April-September. But lately they have struggled to keep pace with the broader indexes.

Microsoft stock is on IBD Leaderboard, while Apple is on the Leaderboard watchlist. MSFT stock also is on IBD Long-Term Leaders. Amazon stock and Innovative Industrial Properties are on the IBD 50.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value. S&P 500 futures advanced 0.3%. Nasdaq 100 futures climbed 0.3%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Coronavirus Cases

Coronavirus cases worldwide reached 58.98 million. Covid-19 deaths topped 1.39 million.

Coronavirus cases in the U.S. have hit 12.58 million, with deaths above 262,000.

The U.S. topped 200,000 cases for the first time on Friday. Hospitalizations are soaring, overloading many local hospital systems.

Los Angeles County suspended all in-person dining, including outside, as of Wednesday night. That follows a curfew for most of the state, including all of Southern California, from 10 p.m. to 5 a.m.

With states, counties and cities increasingly raising restrictions and social distancing increasing, the economic recovery could begin to stall out.

On Saturday, the FDA approved an Regeneron (REGN) antibody cocktail for treating coronavirus patients. President Trump received the Regeneron treatment when he had Covid-19.

Pfizer (PFE) and BioNTech (BNTX) filed for FDA approval of their coronavirus vaccine. Moderna (MRNA), which released strong interim data  on its Covid vaccine last Monday, will likely follow in days. An FDA advisory panel will meet in early December to discuss coronavirus vaccines, with FDA approval likely soon after.

The Pfizer coronavirus vaccine could win U.K. approval in less than a week, the Telegraph reported, citing government sources.

Stock Market Rally Last Week

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29263.28-219.95-0.75
S&P 500(0S&P5)3557.65-24.22-0.68
Nasdaq(0NDQC )11854.97-49.75-0.42
Russell 2000 (IWM)177.47+0.16+0.09
IBD 50 (FFTY)38.34+0.13+0.34
Last Update: 4:06 PM ET 11/20/2020

The stock market rally had a mixed week for the major indexes. The Dow Jones Industrial Average fell 0.7% in last week’s stock market trading. The S&P 500 index retreated 0.8%. The Nasdaq composite edged up 0.2%.

Growth stocks fared well overall.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.9% last week. So did the iShares Expanded Tech-Software Sector ETF (IGV) and VanEck Vectors Semiconductor ETF (SMH). Microsoft stock is a major IGV holding.

Three-Weeks Tight

A three-weeks tight is when a stock ends the week within 1%-1.5% of the prior week’s close, for two straight weeks. The buy point is 10 cents above the high point of the tight pattern. It’s a chance for add-on buys, but also new positions if the tight pattern is close to a prior base.

Qorvo stock

Qorvo stock fell less than 0.2% last week to 147.39, following a 0.2% rise the prior week. The three-weeks-tight is just above a prior, messy consolidation, consolidating following a jump on earnings. The buy point is 154.53. However, 151.31, just above last week’s high, also could be an early entry.

The relative strength line for Qorvo stock is just below all-time highs. The RS line, which tracks a stock’s performance vs. the S&P 500 index, is the blue line in the charts provided.

Qualcomm Stock

Qualcomm stock rose 1.2% last week to 146.03, ending near weekly lows. That followed 0.5% decline in the prior week. The tight entry is 153.43, according to MarketSmith analysis. Like Qorvo stock, QCOM stock consolidated tightly following a strong gain on earnings.

Both Qualcomm and Qorvo are Apple chipmakers and 5G plays. With 5G wireless taking off and the new 5G iPhone just launched, both chipmakers are in sweet spots.

IIPR Stock

Innovative Industrial Properties stock surged on election results, with more states legalizing marijuana and Joe Biden the apparent winner of the presidential race. Last week, IIPR stock dipped 0.3% to 151.95 after edging up a few cents in the prior week. The buy point is 165.09.

Innovative Industrial Properties is a REIT that owns properties for growing marijuana.

Not-So-Young Growth Stocks

There comes a point in life where you may have a steady workout routine, staying relatively fit, better than most. But when you have do something really strenuous — playing a long, intense basketball game, helping someone move, etc. — you can still do it. However, now you feel the effects for days.

That’s what it can be like for Apple, Microsoft and Amazon stock. These megacaps went on strong runs in 2020, with Microsoft stock outperforming the S&P 500 for years. But at some point these megacaps have to take a rest.


These 5 Stocks Are Flashing Multiple Buy Signals


Apple Stock

Apple stock fell 1.6% last week to 117.34 after rising 0.5% in the prior week. Shares are still above their 50-day moving average. But in the post-election stock market rally, Apple stock hasn’t broken trend lines or other aggressive entries.

On the other hand, AAPL stock is that far away from clearing recent resistance with a 122.09 entry or at 125.49. The official buy point is 138.08.

The RS line for Apple stock went on a strong run from January 2019 and finally peaked on Sept. 1. Since then it’s been going sideways.

Microsoft Stock

Unlike Apple stock, Microsoft actually broke out briefly on Nov. 9, when the Pfizer coronavirus news came out, but then reversed lower to close just below its 50-day line on Nov. 10. Microsoft stock fell 2.8% last week, just below its 50-day line, after a 3.2% drop in the week prior.

Microsoft would seem to be well-positioned in the current volatile market, given its strong growth before and during the coronavirus pandemic.

But the RS line has been trending lower since early July, especially in the last two weeks. Long-Term Leaders like Microsoft can go through those stretches after long periods of outperformance.

Buying off the 50-day/10-week line can be a smart strategy for Long-Term Leaders, but investors might want to wait until MSFT stock clears very short-term resistance, with a 219.21 entry. A new handle has formed with a 228.22 buy point.

Amazon Stock

Amazon stock dipped 0.9% to 3,099.40 last week after a 5.5% tumble in the week before. Shares of the e-commerce and cloud giant have been below the 50-day line most of that stretch.

As with Microsoft stock, the RS line for AMZN stock has been falling since early July.

The official buy point is 3,552.35, though 3,496.34 would work. An early entry for Amazon stock could be 3366.90. An especially aggressive investor could draw a trend line from the latter two points to find an even-lower entry. But would you want to?

Stock Market Rotation

After a violent rotation out of stay-at-home stocks into “real economy” coronavirus vaccine stocks in the prior week, there was a general return to growth and even some pure Covid plays such as Zoom Video (ZM).

So, stock market rotation over? Maybe, but perhaps not for long.

Yes, investors are once again focusing on stay-at-home stocks with record coronavirus cases and restrictions intensifying. But if all goes according to plan, two coronavirus vaccines will be approved in just a few weeks, with perhaps two more by February. While vaccinations will take several months, at some point the pandemic will recede and the economy can fully recover.

As for real economy, coronavirus vaccine stock plays, Boeing (BA) closed well off highs, but still gained 6.7% last week. Fellow Dow Jones stocks Caterpillar (CAT) and JPMorgan Chase (JPM) edged higher after big gains in the prior week.

The ideal situation would be a broad-based stock market rally. Not only would that provide investors with more options to buy, but the market might be less-prone to big sector swings.

But, for now, the swing between stay-at-home stocks and coronavirus vaccine plays may continue for some time. Just as you don’t want to be overly concentrated in a particular group or sector, don’t be too weighted in one particular coronavirus investing theme.

Many stocks are doing great and are well extended. But aside from a few names like Qorvo and Qualcomm stock, there aren’t a lot of good setups right now. However, a few good days could bring more stocks into play, including Apple, Microsoft and even Amazon stock.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Stock Market Rally Rotation Over As Coronavirus Cases Soar? Qualcomm Near Buy Point; Apple Stock Looks Tired


The stock market rally has a wild two weeks, with record coronavirus cases and upbeat Covid vaccine news swinging sectors back and forth. But in many ways, the market is back where it was, with many tight weekly closes and growth stocks back in favor.




X



The Nasdaq composite has actually formed a three-weeks-tight pattern. So have Apple (AAPL) chipmakers Qorvo (QRVO) and Qualcomm (QCOM), along with marijuana stock Innovative Industrial Properties (IIPR).

Meanwhile,  Apple stock, Microsoft (MSFT) and Amazon.com (AMZN) are looking tired. The megacaps were big winners during the coronavirus stock market rally from April-September. But lately they have struggled to keep pace with the broader indexes.

Microsoft stock is on IBD Leaderboard, while Apple is on the Leaderboard watchlist. MSFT stock also is on IBD Long-Term Leaders. Amazon stock and Innovative Industrial Properties are on the IBD 50.


Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live.


Coronavirus Cases

Coronavirus cases worldwide reached 58.49 million. Covid-19 deaths topped 1.38 million.

Coronavirus cases in the U.S. have hit 12.45 million, with deaths above 261,000.

The U.S. topped 200,000 cases for the first time on Friday. Hospitalizations are soaring, overloading many local hospital systems. With states and cities increasingly raising restrictions and social distancing increasing, the economic recovery could begin to stall out.

On Saturday, the FDA approved an Regeneron (REGN) antibody cocktail for treating coronavirus patients. President Trump received the Regeneron treatment when he had Covid-19.

Pfizer (PFE) and BioNTech (BNTX) filed for FDA approval of their coronavirus vaccine. Moderna (MRNA), which released strong interim data  on its Covid vaccine last Monday, will likely follow in days. An FDA advisory panel will meet in early December to discuss coronavirus vaccines, with FDA approval likely soon after.

Stock Market Rally Last Week

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29263.28-219.95-0.75
S&P 500(0S&P5)3557.65-24.22-0.68
Nasdaq(0NDQC )11854.97-49.75-0.42
Russell 2000 (IWM)177.47+0.16+0.09
IBD 50 (FFTY)38.34+0.13+0.34
Last Update: 4:06 PM ET 11/20/2020

The stock market rally had a mixed week for the major indexes. The Dow Jones Industrial Average fell 0.7% in last week’s stock market trading. The S&P 500 index retreated 0.8%. The Nasdaq composite edged up 0.2%.

Growth stocks fared well overall.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) rose 1.9% last week. So did the iShares Expanded Tech-Software Sector ETF (IGV) and VanEck Vectors Semiconductor ETF (SMH). Microsoft stock is a major IGV holding.

Three-Weeks Tight

A three-weeks tight is when a stock ends the week within 1%-1.5% of the prior week’s close, for two straight weeks. The buy point is 10 cents above the high point of the tight pattern. It’s a chance for add-on buys, but also new positions if the tight pattern is close to a prior base.

Qorvo stock

Qorvo stock fell less than 0.2% last week to 147.39, following a 0.2% rise the prior week. The three-weeks-tight is just above a prior, messy consolidation, consolidating following a jump on earnings. The buy point is 154.53. However, 151.31, just above last week’s high, also could be an early entry.

The relative strength line for Qorvo stock is just below all-time highs. The RS line, which tracks a stock’s performance vs. the S&P 500 index, is the blue line in the charts provided.

Qualcomm Stock

Qualcomm stock rose 1.2% last week to 146.03, ending near weekly lows. That followed 0.5% decline in the prior week. The tight entry is 153.43, according to MarketSmith analysis. Like Qorvo stock, QCOM stock consolidated tightly following a strong gain on earnings.

Both Qualcomm and Qorvo are Apple chipmakers and 5G plays. With 5G wireless taking off and the new 5G iPhone just launched, both chipmakers are in sweet spots.

IIPR Stock

Innovative Industrial Properties stock surged on election results, with more states legalizing marijuana and Joe Biden the apparent winner of the presidential race. Last week, IIPR stock dipped 0.3% to 151.95 after edging up a few cents in the prior week. The buy point is 165.09.

Innovative Industrial Properties is a REIT that owns properties for growing marijuana.

Not-So-Young Growth Stocks

There comes a point in life where you may have a steady workout routine, staying relatively fit, better than most. But when you have do something really strenuous — playing a long, intense basketball game, helping someone move, etc. — you can still do it. However, now you feel the effects for days.

That’s what it can be like for Apple, Microsoft and Amazon stock. These megacaps went on strong runs in 2020, with Microsoft stock outperforming the S&P 500 for years. But at some point these megacaps have to take a rest.


These 5 Stocks Are Flashing Multiple Buy Signals


Apple Stock

Apple stock fell 1.6% last week to 117.34 after rising 0.5% in the prior week. Shares are still above their 50-day moving average. But in the post-election stock market rally, Apple stock hasn’t broken trend lines or other aggressive entries.

On the other hand, AAPL stock is that far away from clearing recent resistance with a 122.09 entry or at 125.49. The official buy point is 138.08.

The RS line for Apple stock went on a strong run from January 2019 and finally peaked on Sept. 1. Since then it’s been going sideways.

Microsoft Stock

Unlike Apple stock, Microsoft actually broke out briefly on Nov. 9, when the Pfizer coronavirus news came out, but then reversed lower to close just below its 50-day line on Nov. 10. Microsoft stock fell 2.8% last week, just below its 50-day line, after a 3.2% drop in the week prior.

Microsoft would seem to be well-positioned in the current volatile market, given its strong growth before and during the coronavirus pandemic.

But the RS line has been trending lower since early July, especially in the last two weeks. Long-Term Leaders like Microsoft can go through those stretches after long periods of outperformance.

Buying off the 50-day/10-week line can be a smart strategy for Long-Term Leaders, but investors might want to wait until MSFT stock clears very short-term resistance, with a 219.21 entry. A new handle has formed with a 228.22 buy point.

Amazon Stock

Amazon stock dipped 0.9% to 3,099.40 last week after a 5.5% tumble in the week before. Shares of the e-commerce and cloud giant have been below the 50-day line most of that stretch.

As with Microsoft stock, the RS line for AMZN stock has been falling since early July.

The official buy point is 3,552.35, though 3,496.34 would work. An early entry for Amazon stock could be 3366.90. An especially aggressive investor could draw a trend line from the latter two points to find an even-lower entry. But would you want to?

Stock Market Rotation

After a violent rotation out of stay-at-home stocks into “real economy” coronavirus vaccine stocks in the prior week, there was a general return to growth and even some pure Covid plays such as Zoom Video (ZM).

So, stock market rotation over? Maybe, but perhaps not for long.

Yes, investors are once again focusing on stay-at-home stocks with record coronavirus cases and restrictions intensifying. But if all goes according to plan, two coronavirus vaccines will be approved in just a few weeks, with perhaps two more by February. While vaccinations will take several months, at some point the pandemic will recede and the economy can fully recover.

As for real economy, coronavirus vaccine stock plays, Boeing (BA) closed well off highs, but still gained 6.7% last week. Fellow Dow Jones stocks Caterpillar (CAT) and JPMorgan Chase (JPM) edged higher after big gains in the prior week.

The ideal situation would be a broad-based stock market rally. Not only would that provide investors with more options to buy, but the market might be less-prone to big sector swings.

But, for now, the swing between stay-at-home stocks and coronavirus vaccine plays may continue for some time. Just as you don’t want to be overly concentrated in a particular group or sector, don’t be too weighted in one particular coronavirus investing theme.

Many stocks are doing great and are well extended. But aside from a few names like Qorvo and Qualcomm stock, there aren’t a lot of good setups right now. However, a few good days could bring more stocks into play, including Apple, Microsoft and even Amazon stock.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Nio Erases 8% Dive On Earnings; Tesla Surges Near Buy Point| Investor’s Business Daily


Dow Jones futures, along with Nasdaq 100 futures and S&P 500 futures, traded lower late Tuesday, as the stock market rally eyed record highs. Tesla surged to within striking distance of a new buy point, while Chinese rival Nio plunged as much as 8.9% on earnings late before erasing losses.




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The Dow Jones Industrial Average led major stock indexes lower Tuesday with a 0.6% decline, or 167 points. The S&P 500 fell 0.5%, while the tech-heavy Nasdaq composite moved down 0.2%. All three major stock indexes are close to reaching record highs.

Among the Dow Jones leaders, Apple (AAPL) fell 0.8%, while Microsoft (MSFT) slid 1.3%. Meanwhile, Salesforce.com (CRM) is once again approaching a new buy point amid Tuesday’s 2.5% advance.

IBD Stock Of The Day, Tesla (TSLA), surged 8.2% on its inclusion in the S&P 500 index. Chinese rival Nio (NIO) briefly dived more than 8% on earnings late before erasing losses.

Stocks in or near buy zones in the stock market rally are Chipotle Mexican Grill (CMG) and Facebook (FB).

Chipotle, Microsoft and Tesla are all IBD Leaderboard stocks. Meanwhile, Apple is on the IBD Leaderboard Watchlist.

Dow Jones Futures Today

Late Tuesday, Dow Jones futures fell 0.1% vs. fair value, while S&P 500 futures were down 0.2%. Nasdaq 100 futures lost 0.2% vs. fair value. Remember that trading in Dow Jones futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Among exchange traded funds, Innovator IBD 50 (FFTY) fell less than 0.1% Tuesday. The Nasdaq 100-linked Invesco QQQ Trust (QQQ) ETF traded down 0.3%. Meanwhile, the SPDR S&P 500 ETF (SPY) lost 0.5%.

Amid the coronavirus stock market rally, the tech-heavy Nasdaq is up 32.6% for the year through Tuesday’s close. Meanwhile, the S&P 500 is up 11.7%, while the Dow is up 4.3% year to date, through the Nov. 17 close.

U.S. Stock Market Today Overview

IndexSymbolPriceGain/Loss% Change
Dow Jones(0DJIA)29783.75-166.69-0.56
S&P 500(0S&P5)3609.60-17.31-0.48
Nasdaq(0NDQC )11899.34-24.79-0.21
Russell 2000 (IWM)178.50+0.87+0.49
IBD 50 (FFTY)37.95-0.02-0.05
Last Update: 4:36 PM ET 11/17/2020

Coronavirus Updates

According to the Worldometer data tracker, the cumulative number of confirmed coronavirus cases in the U.S. topped 11.5 million on Tuesday. Total virus-related deaths rose past 252,000.

The cumulative total of worldwide Covid-19 cases confirmed since the start of the outbreak topped 55.5 million Tuesday, with more than 1.33 million virus-related deaths.

Coronavirus Stock Market Rally

According to IBD’s The Big Picture, the stock market is back in a new uptrend after a bullish follow-through day on Nov. 4.

Monday’s Big Picture commented, “IBD’s enterprise software industry group exemplifies how quickly the stock market has cooled on coronavirus plays. The group ranked in the top 15 for much of October, but is now No. 87 for six-month relative performance among 197 industries tracked by IBD.”


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Dow Jones Stocks: Salesforce’s New Buy Point

Last week, Dow Jones leader Salesforce.com briefly broke out past a 270.26 buy point in a double bottom pattern, according to MarketSmith chart analysis, but the stock quickly tumbled below its 50-day line.

Amid recent strength, the stock is back above its 50-day line and is approaching a 271.02 buy point in a double bottom with handle. Shares advanced 2.5% Tuesday.

Salesforce.com is the No. 2 performer on the Dow Jones Industrial Average with a 57.5% year-to-date advance through Tuesday’s close.

According to the IBD Stock Checkup, Salesforce.com stock has a 95 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Stocks In Or Near Buy Zones: Chipotle, Facebook

FANG stock leader Facebook is tracing a cup with handle with a 297.48 buy point, according to MarketSmith chart analysis. Shares are about 7% away from the new entry amid Tuesday’s 1.4% fall.

According to the IBD Stock Checkup, Facebook stock has a 98 out of a perfect 99 IBD Composite Rating. The Composite Rating — an easy way to identify top growth stocks — is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths.

Burrito maker Chipotle is nearing a 1,366.76 buy point in a double bottom. Shares are about 8% away from the new entry, as they struggle to get back above their key 50-day line.

Both stocks are featured in this week’s Stocks Near A Buy Zone column.


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Nio Earnings

Chinese electric-car maker Nio topped third-quarter estimates and gave strong guidance late Tuesday. The company reported a loss of 12 cents a share on revenue of $666.6 million. Vehicle margin expanded to 14.5% from -6.8% a year ago and 9.7% in Q2. Available cash more than doubled from Q2 to $3.3 billion in Q3.

Wall Street expected the electric-SUV maker to lose 15 cents a share on revenue of $628 million.

Nio Stock

On Nov. 13, Nio advanced as much as 248% past a 15.55 buy point in a cup with handle and could be in the midst of a climax run. On that day, Nio rose to a peak of 54.20, gaining as much as 77% from the close of 30.58 in the week ended Oct. 30. Eighteen weeks have passed since the all-electric SUV and sedan maker broke out past 10 a share. The parabolic rise in recent weeks mirrors what is seen during a climax run.

Meanwhile, Nio stock rose as much as 355% above its long-term 200-day moving average, another potential signal the stock may be overheating.

Tesla Stock

Tesla stock surged more than 8% Tuesday on news it would be added to the S&P 500 index on Dec. 21. The IBD Leaderboard stock is rapidly approaching a 466 buy point in an awkward cup with handle.

According to IBD Leaderboard commentary, “The handle’s midpoint of 422.50 is slightly higher than the midpoint of the cup (416.19) itself. That’s good. One risk not to ignore: the new base is late stage, following advances from cup with handle bases and a high, tight flag that also counted as a base. So, the latest pattern has higher risk.”

Tesla was Tuesday’s IBD Stock Of The Day.

Dow Jones Leaders: Apple, Microsoft

Among the top Dow Jones stocks, Apple moved down 0.8% Tuesday, as shares continue their rebound from their 50-day line. Apple stock is tracing a new base with a 138.08 buy point. An early entry exists at 125.49.

The blue-chip giant is the No. 1-performing Dow Jones stock for 2020, with a 62.6% advance through Tuesday.

Software giant Microsoft moved down 1.3% Tuesday, snapping a two-day win streak. Shares are above their 50-day line, as they trade about 8% away from their all-time high.

Year to date, Microsoft is one of the top Dow Jones stocks, advancing 36% through the Nov. 17 close.

Stock Market Rally: What To Do Next

During the recent stock market correction, investors should have built watchlists of potential leaders. Now it’s time to put those watchlists to work.

Investors should use the current stock market strength as a go-ahead to buy new breakouts. Start slowly with new purchases and see how they perform. After raising cash during the recent correction, don’t rush to be fully invested all at once. Try some new buys. If they work, you can add to them; if not, you can back away.

In particular, focus on stocks with strong relative strength. Find them by using the relative strength line. The RS line measures a stock’s price performance vs. the S&P 500. If the stock is outperforming the broader market, then the RS line angles upward. If a stock is performing worse than the broad market, then the line will point lower.

Stocks to watch include IBD Long-Term Leaders, companies with stable earnings growth and price performance.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones futures.

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New Roo Stephenson ready to prove a point


Jaidyn Stephenson is carrying a chip on his shoulder as he prepares for his first AFL season at North Melbourne after a messy exit from Collingwood.

The 21-year-old livewire was one of four Magpies offloaded during last week’s trade period – along with Adam Treloar, Tom Phillips and fellow Kangaroos recruit Atu Bosenavulagi.

Stephenson was hurt by the way he learnt of Collingwood’s wish to move him on, through his manager with no direct contact from club officials, despite two years left to run on his contract.

He has since hired a personal trainer to help him prepare for a big 2021 pre-season campaign at North Melbourne.

“It’s certainly put a little chip on my shoulder and (given me) a lot of motivation to get out there and work hard and put my best foot forward here at North,” Stephenson told reporters on Monday.

“I’m really looking forward to the time that comes when we get to play Collingwood.”

Collingwood coach Nathan Buckley on Monday said in a radio interview Stephenson was made aware during his post-season exit interview that the Magpies were considering trading him.

Stephenson denied that claim, maintaining he was shocked to learn he might be traded through his manager just days out from the start of the trade period.

Stephenson and Buckley have spoken since the trade period to clear the air but remain at odds over the specific details of how the move unfolded.

“I think there’s a difference between ‘what you need to work on’ and being traded,” Stephenson said.

“I didn’t have any indication, that’s how I felt, but the (dialogue) between us obviously wasn’t clear enough both ways.

“But it’s alright, it’s turned out well for me in the end.”

Stephenson said he harbours no ill-feeling towards Buckley and will happily “sit down and have a chat or a beer” with the Magpies coach in future.

The 2018 Rising Star winner, who kicked 76 goals in 54 games for Collingwood, has taken on board his former club’s feedback that he needs to raise his training standards.

He said it has put fire in his belly on arrival at Arden St.

“As young players we’re continually growing and building and we’ve all got things to work on, whether that be on the field or off the field,” Stephenson said.

“I’ve addressed mine and hopefully I can continue to improve on those.

“I’m sure the environment here at North Melbourne will help me to do that.”





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We had a point to prove v Georgia: Jones


Eddie Jones insisted England had settled a score with Georgia after launching the Autumn Nations Cup with a 40-0 victory at Twickenham.

A one-sided clash featured a staggering 19 scrums as England looked to take on the underdogs at the strongest element of their game, and they were rewarded by emerging convincing winners at the set-piece.

It avenged an explosive training session in Oxford in February 2019 when the rival packs came to blows during a live scrummaging session, forcing coaches and backroom staff to intervene.

“We always want to win the forwards battle, especially against Georgia,” said Jones, England’s head coach.

“All the guys remember the session against Georgia in Oxford. It was one of those things when you sit down and talk about scrummaging, Georgia comes to mind.

“Even the backs got involved in that session. They ran from about 40 metres away to have a go, so we wanted to make a point against them that we won’t be stood over, and we did that.

“They were always going to come at us through their scrum so we wanted to take them on there. We got a little bit of an edge there and were able to score enough points to win comfortably.

Jonathan Joseph was enjoying a productive afternoon that included him setting up a try for Elliot Daly, only to limp off in obvious discomfort after injuring his back moments after supplying the scoring pass.

However, Jones is “cautiously optimistic” that he will be available to face Ireland next weekend.

Jamie George emerged as the hero of the day after becoming the first England hooker to score a hat-trick of tries, each one a finish off a driving line-out, but apart from Daly’s try there were few fireworks.

The rain took its toll on the second half, but Georgia’s attack was pedestrian and Jones conceded that the scoreline should have been more emphatic.

“Georgia produced a challenge in the set-piece and our set-piece cohesion was absolutely outstanding,” he said.

“We probably would have liked to have been a bit sharper in terms of our execution with the ball we won. We probably left another 20 points out there but we are pretty happy with the display.

“The conditions were difficult and it’s something we can keep working on and improving.





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Commentary: US dollar could face turning point soon


CAMBRIDGE: With alternative assets such as gold and Bitcoin thriving in the pandemic, some top economists are predicting a sharp fall in the US dollar. This could yet happen.

But so far, despite inconsistent US management of the pandemic, massive deficit spending for economic catastrophe relief, and monetary easing that Federal Reserve Chair Jerome Powell says has “crossed a lot of red lines,” core dollar exchange rates have been eerily calm. Even the ongoing election drama has not had much impact.

Traders and journalists may be getting worked up about the greenback’s daily travails, but for those of us who study longer-term exchange-rate trends, their reactions to date amount to much ado about nothing.

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BUT THE US DOLLAR HAS BEEN SURPRISINGLY STABLE

To be sure, the euro has appreciated by roughly 6 per cent against the dollar so far in 2020, but that is peanuts compared to the wild gyrations that took place after the 2008 financial crisis, when the dollar fluctuated between US$1.58 and US$1.07 to the euro.

Similarly, the yen-dollar exchange rate has hardly moved during the pandemic, but varied between ¥90 and ¥123 to the dollar in the Great Recession.

And a broad dollar exchange-rate index against all US trading partners is currently sitting at roughly its mid-February level.


Monitors display news on 2020 U.S. presidential election and the Japanese yen exchange rate against the U.S. dollar at a foreign exchange trading company in Tokyo, Japan on Nov 4, 2020.(Photo: REUTERS/Kim Kyung-Hoon)

Such stability is surprising, given that exchange-rate volatility normally rises significantly during US recessions. As Ethan Ilzetzki of the London School of Economics, the World Bank’s Carmen Reinhart, and I discuss in recent research, the muted response of core exchange rates has been one of the pandemic’s major macroeconomic puzzles.

FLUCTUATIONS HAVE BEEN SMALL

Economists have known for decades that explaining currency movements is extremely difficult. Nevertheless, the overwhelming presumption is that in an environment of greater global macroeconomic uncertainty than most of us have seen in our lifetimes, exchange rates should be shifting wildly.

But even as a second wave of COVID-19 has stunned Europe, the euro has fallen only by a few percent – a drop in the bucket in terms of asset-price volatility.

Fiscal stimulus talks in the United States are on one day, off the next. And although America’s election uncertainty is moving toward resolution, more huge policy battles lie ahead. So far, though, any exchange-rate response has been relatively small.

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Nobody knows for sure what might be keeping currency movements in check. Possible explanations include common shocks, generous Fed provision of dollar swap lines, and massive government fiscal responses around the world.

But the most plausible reason is the paralysis of conventional monetary policy. All major central banks’ policy interest rates are at or near the effective lower bound (around zero), and leading forecasters believe they will remain there for many years, even in an optimistic growth scenario.

ULTRA-LOW INTEREST RATES KEEPING EXCHANGE RATES STABLE

If not for the near-zero lower bound, most central banks would now be setting interest rates far below zero, say, at minus 3 to 4 per cent.

This suggests that even as the economy improves, it could be a long time before policymakers are willing to “lift off” from zero and raise rates into positive territory.

READ: Commentary: Central banks shouldn’t blindly follow the US Federal Reserve

Interest rates are hardly the only likely driver of exchange rates; other factors, such as trade imbalances and risk, also are important. And, of course, central banks are engaged in various quasi-fiscal activities such as quantitative easing.

But with interest rates basically in a cryogenic freeze, perhaps the single biggest source of uncertainty is gone.

In fact, core exchange-rate volatility was declining long before the pandemic, especially as one central bank after another skirted the zero bound. COVID-19 has since entrenched these ultra-low interest rates.

READ: Commentary: Low interest rates don’t necessarily mean we keep more cash in hand

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MARKETS REMAIN FRAGILE

But the current stasis will not last forever. Controlling for relative inflation rates, the real value of a broad dollar index has been trending up for almost a decade, and at some point will probably partly revert to the mean (as happened in the early 2000s).

The second wave of the virus is currently hitting Europe harder than the US, but this pattern may soon reverse as winter sets in, particularly if America’s post-election interregnum paralyzes both health and macroeconomic policy.

Off the Charts Trumps Stock Market

(Photo: AP)

And although the US still has enormous capacity to provide much-needed disaster relief to hard-hit workers and small businesses, the growing share of US public and corporate debt in global markets suggests longer-term fragilities.

INCONSISTENCIES

Simply put, there is a fundamental inconsistency over the long run between an ever-rising share of US debt in world markets and an ever-falling share of US output in the global economy.

The International Monetary Fund expects the Chinese economy to be 10 per cent larger at the end of 2021 than it was at the end of 2019.

READ: Commentary: The end of the decade – the world is in more debt and it isn’t going away

A parallel problem eventually led to the breakup of the post-war Bretton Woods system of fixed exchange rates, a decade after the Yale economist Robert Triffin first identified it in the early 1960s.

In the short to medium term, the dollar certainly could rise more – especially if further waves of COVID-19 stress financial markets and trigger a flight to safety.

And exchange-rate uncertainty aside, the overwhelming likelihood is that the greenback will still be king in 2030. But it’s worth remembering that economic traumas such as we are now experiencing often prove to be painful turning points.

Kenneth Rogoff, a former chief economist of the International Monetary Fund, is Professor of Economics and Public Policy at Harvard University.



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