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4:00 p.m. ET: Stocks end session higher on China optimism
U.S. stocks broke a 3-day losing streak after comments from Chinese President Xi Jinping and President Donald Trump fueled a mini-rally, and fed hopes that the trade deal could get done.
Here’s where the markets settled Friday:
S&P 500 (^GSPC): +0.22%, or 6.75 points
Dow (^DJI): +0.39%, or 109.33 points
Nasdaq (^IXIC): +0.16%, or 13.67 points
10-year Treasury yield (^TNX): -0.1 at 1.771%
Gold (GC=F): -0.1% to $1,462.10 per ounce
3:30 p.m. ET: Stocks set to snap losing streak
Markets are betting on hopes of a U.S.-China trade accord after President Donald Trump and China’s Xi Jinping made constructive remarks about forging a “Phase One” deal. If these gains hold, the market will have ended a 3-day string of losses.
1:45 p.m. ET: Disney+’s rising tide isn’t washing out Netflix
Disney’s (DIS) brand new streaming service has been live for over a week, and drew in an eye-popping 10 million subscribers in the first day. Amid talk about how the streaming wars would pit competing services against each other, new data from Piper Jaffray has some interesting findings:
“We expect strong continued interest in Disney+, given a sizeable portion of Netflix (NFLX) subscribers appear interested in using the service. Specifically, in our survey of 1,700 domestic Netflix subscribers, we found that 33% said they will subscribe to Disney+, up from 28% in our Sep-19 survey and 27% in our Apr-19 survey”
And perhaps most tellingly, Piper’s data shows that consumers aren’t abandoning one service in favor of the other:
“While we have observed rising interest in Disney+, due to increasing awareness as the service is now live, we have not seen an increase in the percentage of Netflix subscribers who expect to cancel Netflix in favor of Disney+. In particular, our surveys have shown a consistent mid-single digit percentage of Netflix subscribers who intend to cancel Netflix in favor of Disney+.
“We believe that, at any given time, there is some single digit percentage of Netflix subscribers that anticipate cancelling the service in the next few months. In other words, most existing Netflix subscribers appear to be trending towards multiple streaming video subscriptions, especially as many continue to reduce their spend on traditional TV offerings.”
Disney’s stock rose over 1% in Friday trading to stand at $149.18, while Netflix was off 0.7% to $309.33.
12:19 p.m. ET: Ray Dalio to WSJ: I’m not betting against the stock market
On Friday, The Wall Street Journal published an article saying Ray Dalio’s Bridgewater had amassed bearish bets — to the tune of $1 billion— on the stock market falling by early next year. However, the billionaire himself dismissed the premise in a Twitter thread, and a LinkedIn post:
The Wall Street Journal wrote an article that said “Bridgewater Bets Big on Market Drop.” It’s wrong. I want to make clear that we don’t have any such net bet that the stock market will fall.— Ray Dalio (@RayDalio) November 22, 2019
In a statement, Bridgewater explained further, emphasizing that many of its positions hedge against others:
“Though we won’t comment on our specific positions we do want to make two things clear. First, the way we manage money is to have many interrelated positions, often to hedge other positions, and these change often, so that it would be a mistake to look at any one position at any one time to try to deduce the motivation behind that position. Second, we have no positions that are intended to either hedge or bet on any potential political developments in the U.S.”
12:15 p.m. ET: No rest for Tesla’s weary stock — or Cybertruck wisecracks
Tesla’s stock is hugging the day’s lows, off nearly 6% after the company revealed its new electric truck to the world. Reviews of the $40K Cybertruck have been nothing less than stinging, and have breathed life into new memes pinging around social media.
Autoblog writes that “...we're still struggling to believe that the whole thing wasn't one big joke” — while many mocked the Cybertruck’s allegedly “unbreakable” windows that...well, let’s just say the demo didn’t go according to plan:
11:20 a.m. ET: The strength in housing is widespread
In new research, JPMorgan notes how recent gains in the home sector have been felt virtually around the country.
“While real estate may be local, this broad-based firming across regions suggests that the drop in mortgage rates since late last year has played an important role in boosting activity across the nation,” wrote Daniel Silver.
The economist also offered the following to support his thesis:
“...gains in the South and West—where most construction activity generally occurs—have been above those for the nation as a whole. A decline in single-family housing starts in the Northeast stands out on the weak side (Figure 3), but multifamily starts in that region have been particularly robust lately...This divergence between weakness related to single-family units and strength in multifamily units is also evident in the permits data reported for the Northeast. Meanwhile, new home sales and homebuilder sentiment have posted solid gains in the Northeast so far this year.”
10:16 a.m. ET: The good news and bad news about earnings
One hallmark of Q3 earnings were S&P 500 companies that beat analyst expectations 75% of the time, according to Refinitiv. Yet companies are already preparing markets for a letdown in Q4, with negative pre-announcements beating positive ones by a 2.1 ratio. That negative/positive ratio is still below the long term average of 2.7, and prior four quarter average of 2.6.
9:45 a.m. ET: Tesla stock sinks after Cybertruck falls flat
Tesla’s (TSLA) unveiling of its long-awaited electric truck was greeted with scorn by most observers. In early trading, its stock is getting similar treatment from investors, falling by nearly 6% to $334.74.
Yahoo Finance’s own reviewer had this to say:
“The Tesla Cybertruck pickup looked beyond the ‘cyberpunk’ vision [CEO Elon] Musk once said inspired him, in fact it looked downright alien. It has all hard lines, including a triangle-shaped bed with a retractable cover. The Cybertruck looked nothing like anything Tesla, or for that matter any automaker, has ever created. It’s a driveable triangle.”
9:30 a.m. ET: Stocks look to snap losing streak
Stocks opened higher on Friday, hoping to snap a 3-day losing streak, with investors cheered by constructive remarks about the U.S.-China trade war from Chinese President Xi Jinping.
Here’s where the major benchmarks opened the session:
S&P 500 (^GSPC): 5.7 points, or +0.18%
Dow (^DJI): 34.68 points, or +0.12
Nasdaq (^IXIC): 19.06 points, or +0.22%
10-year Treasury yield (^TNX): flat around 1.76%
WTI crude oil prices: (CL=F): -0.24% to $58.44 per barrel
Gold (GC=F): 0.38% at $1,469.10 per ounce
China’s Xi said he wants to come to a “Phase One” agreement with the U.S. so long as any deal is on the “basis of mutual respect and equality,” according to a Bloomberg report. President Donald Trump echoed those sentiments, saying a deal was close.