Weekly Market Snapshot: September 11, 2020
Market related news for the week ending September 11, 2020
- Shares of Softbank dropped 7% Monday in Japan after it was revealed the company had been behind an historic “gamma crash up” where the VIX rose as the S&P rose, and stock prices and calls were trapped in an upward spiral that led to ever-higher prices and more call buying.
- Tuesday stocks fell sharply. The Nasdaq dropped 4.1%, and the Dow 2.3%. Tesla fell 21.1% after the stock was not added to the S&P 500 after the bell Friday. Apple dropped 6.7% to give a 14% drop including the two prior sessions – the stock’s worst 3-day period since October 2008.
- Wednesday LVMH announced it was scrapping its $16 billion deal to buy Tiffany.
- Thursday Peloton announced its first profitable quarter. Shares had closed Wednesday at a record $91.17, more than three times their September IPO price.
- Goldman Sachs upgraded its Q3 GDP forecast to 35% Thursday. The stronger August jobs report prompted the change.
- Thursday President Trump told reporters “there will be no extension of the TikTok deadline” and “it’ll either be closed up or they’ll sell it”.
- Citigroup announced Thursday it has appointed Jane Fraser as its next CEO, making her the first woman to lead a major Wall Street bank.
- Century 21 Stores filed for bankruptcy Thursday, with plans to shut down.
- Friday the UK reported that its economy grew 6.6% in July, down from 8.7% in June, but still putting it on track for record growth in the third quarter.
- Tuesday: NFIB Small Business Index for August came in at 100.2, up from July’s 98.8 and slightly higher than expected.
- Wednesday: JOLT Survey for July showed job openings rise to 6.6 million, up from 5.9 million in June.
- Thursday: Initial Jobless Claims for week 9/5 were 884,000, unchanged from the previous week.
- Thursday: Producer Price Index for August came in at 0.3%, slightly higher than expected, after last month’s reading of 0.6%. Year-on-year PPI fell 0.2%, up from the July year-on-year reading of -0.4%.
- Friday: Consumer Price Index for August was 0.4%. 40% of the increase was attributed to the biggest spike in the cost of used cars and trucks in more than 50 years. The year-on-year rate rose to 1.3% from 1.0%.
- Friday: Core CPI for August was 0.4%. The year-on-year rate was 1.7%, up from 1.6% in July.
Looking ahead: Economic news for the week ending September 18, 2020
- Tuesday: Empire State Index for September at 8.30am.
- Tuesday: Industrial Production for August at 9.15am.
- Wednesday: Retail Sales for August at 8.30am.
- Wednesday: NAHB Index for September at 10.00am.
- Wednesday: FOMC announcement at 2.00pm.
- Thursday: Initial Jobless Claims for week 9/12 at 8.30am.
- Thursday: Housing Starts for August at 8.30am.
- Thursday: Building Permits for August at 8.30am.
- Thursday: Philly Fed Manufacturing Index for September at 8.30am.
- Friday: Consumer Sentiment Index (preliminary) for September at 10.00am.
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