They know nothing after a day where the nasdaq climbed. 30 , although we were much higher most of the day, this feels like one of the moments where the bulls are trying to have it both ways on a bunch of key issues. Thats not good. Some things are mutually exclusive. Today was a goodlooking day that was actually quite ugly yes, the inside didnt lock like the outside. And you know i dont think you should judge a book by its cover. I know hope springs eternal. But today we saw too much hope too much hope springing eternal. And some of these hopes simply cant be reconciled. So they wont work in the end. What do i mean you cant have the bank stocks keep going up while the financial tech stocks also go up its either one or the other, because Portfolio Managers only go all in on fintech when theyre scared to own the banks. You shouldnt have a rally in old tech coupled with a rally in new tech that doesnt work. They tend to trade in opposite directions today you had the soft goods stocks runn
Showed that chinas trade exports contracted for the month of august largely because entirely because of the trade war with china and the United States well hear more about that from eunice yoon in a moment. Look at whats happening with the european markets that are open and actively trading a in the point. Right now most of these markets are in the green ftse is the exception down by a quarter of a percentage point. Also f you check out the treasury market here in the United States, youll see the yields that we have been watching oh so closely as we get ready for fed next week and ecb this year, ten year under 1. 6 , 30 at 2. 07 . Some news out this morning saudi arabia now confirming it has removed its Energy Minister from the position over the weekend replacing him with the kings son and that move breaking with long time tradition and convention that members of the royal family are not appointed to that position and comes just days after al falih was removed from his role after chair
The russell up nearly a full percent. The broader markets, though, flat s p just lower dow, just higher joining us for the full hour, stephanie link very good afternoon to you thanks for having me. Markets flat overall, but whats happening underneath . Massive rotation today, and it actually started over the last couple of weeks and a lot of that has to do with a little bit better Economic Data that were getting around the world. Even over the weekend, we got the export import numbers out of china. And even though they were down year over year, the trend is still definitely up. And this comes on the heels of better pmi so i think a lot of it is a little bit better Economic Data. And then its this trade talk seems to be making some sort of progress so the cyclicals are actually the ones that are leading. Its financials, tech, industrials. And within tech, its se semiconductors versus Software Software is actually getting slammed. Is it that the expectations came down too far, too fast,
Underneath we saw a radical devaluation of all sorts of stocks we were forced to reconsider how much well pay for a certain amount of stocks now and certain amount of growth now and how much we will pay in the future or do we sell . Most dramatic example. This morning an activist group Elliott Management took a 3. 2 billion stake in at t, gigantic, and sent a letter to the board of directors stock trading at just under 37 they think they can get it to 60 plus by the end of 2021 if the changes are made that will be huge. At t has been a real lager at t blames ill advised decisions by management, like overpaying for directv what would the failed acquisition of tmobile which ended up jump starting their competitor with a gigantic breakup. With some changes elliott argues at t can be worth a great deal more than its selling for they want the company to distract itself from side businesses cut the fat. Emphasize changes. Stop doing willynilly acquisitions at every turn put it altogether and
Flat that really does obscure a lot of drama up at least 2 s that has been pretty dramatic. Also why the nasdaq has been down so a lot of those profits are coming out of there. The hang seng up by 1 3 4 mentioning those tariffs that china will be taking off those goods. We have more on that front in a moment also an American Chamber of commercesaut u. S. Chamber services have been getting hurt and many of them are moving away more quickly than anticipated redirecting businesses there in the meantime, lets look at what has been happening. For the most part, green arrows. The ftse is up the dax up about. 75 . And cac is up. The trezy market and yields, they have firmed up. The 30year trading almost 2. 2 . 10year at 1. 714 . Twoyear note at 1. 67 breaking deal news, Hong Kong Exchange proposing a 36. 6 billion cash and stock offer for the London Stock Exchange saying it approached the lse with a bid last year, they agreed to buy refinative in a deal peloton says it plans to price shares b