(Bloomberg) — U.S. stocks climbed toward an all-time high as a rally in technology companies tempered a slide in banks. Treasuries rose.
The S&P 500 took aim at its February closing record, buoyed fresh Chinese stimulus overnight. The index twice popped above the high last week before fading. The Nasdaq 100 outperformed as a jump in Tesla Inc. and strong results from online retailer JD.com Inc. powered gains in tech shares. Big banks slid after Warren Buffett’s Berkshire Hathaway Inc. pared stakes in many of the industry’s top names.
The relentless rally in stocks has pushed the S&P 500 up more than 50% from its March lows amid large stimulus injections and better-than-expected economic and earnings data. Goldman Sachs Group Inc.’s David Kostin boosted his year-end price target for the gauge to 3,600 from 3,000, citing the firm’s above-consensus U.S. growth expectations keyed off positive news on the vaccine front. He joined the likes of Yardeni Research founder Ed Yardeni and RBC Capital Markets’ Lori Calvasina who’ve raised their forecasts in recent weeks.
Yet chances for a deal in Congress on a new, comprehensive stimulus package before September diminish with each passing day, leaving the U.S. economy limping and many businesses and millions of consumers coming up short. Democrats and Republicans are focused on their party presidential nominating conventions this week and next. Meanwhile, the almost daily drumbeat of tensions between the U.S. and China shows little sign of letting up, while touching on everything from the coronavirus to trade to defense issues to monetary policy.
On the economic front, a gauge of builder sentiment jumped to 78, a six-point gain from July that pushed it to the highest level since 1998, according to the National Association of Home Builders/Wells Fargo Market Index. The August number was better than the median analyst estimate of 74 and matched an all-time record in 35 years of the survey.
“Don’t bet against this bull market just yet,” Ryan Detrick, chief market strategist at LPL Financial LLC, said in a blog post about U.S. stocks. This year marked the 10th time that the S&P 500 peaked with a 100-day gain of more than 25% since the index debuted in 1957, according to data compiled by Bloomberg. After the earlier highs, the S&P 500 rose an average of 8.8% in the next 12 months. The index advanced all but once, in 1987-88.
Here are some key events coming up:
Earnings include Walmart Inc. and Home Depot Inc. on Tuesday. Target Corp. and Nvidia Corp. report on Wednesday. Results from Alibaba Group Holding Ltd. (20) and Qantas Airways Ltd. are due Thursday.Minutes of the latest FOMC meeting are due Wednesday.The EIA’s crude oil inventory report comes out Wednesday.The Joint Ministerial Monitoring Committee — the panel that reviews the OPEC+ agreement — is due to meet on Wednesday.U.S. jobless claims for the week ended Aug. 15 are due Thursday.China’s loan prime rate is due Thursday.Euro-area PMIs will be released on Friday.
These are some of the main moves in markets:
The S&P 500 increased 0.3% as of 9:35 a.m. New York time.The Stoxx Europe 600 Index climbed 0.3%.The MSCI Asia Pacific Index advanced 0.1%.
The Bloomberg Dollar Spot Index decreased 0.2%.The euro advanced 0.1% to $1.1859.The Japanese yen appreciated 0.4% to 106.17 per dollar.
The yield on 10-year Treasuries decreased three basis points to 0.68%.Germany’s 10-year yield declined two basis points to -0.44%.Britain’s 10-year yield declined two basis points to 0.226%.
The Bloomberg Commodity Index climbed 1.2%.West Texas Intermediate crude was unchanged at $42.01 a barrel.Gold increased 1.4% to $1,976.70 an ounce.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more articles like this, please visit us at bloomberg.com” data-reactid=”34″>For more articles like this, please visit us at bloomberg.com
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Subscribe now to stay ahead with the most trusted business news source.” data-reactid=”35″>Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
Global banks hit by new corruption allegations. Why authorities are unlikely to act this time – MarketWatch
Shares of European banks fell sharply on Monday, after the release by BuzzFeed and the International Consortium of Investigative Journalists of thousands of documents seemingly showing that some $2,000 billion worth of illicit funds were moved and laundered through the U.S. financial system over two decades.
– The papers show that five global banks — JPMorgan
HSBC, Standard Chartered Bank, Deutsche Bank
and Bank of New York Mellon — kept doing business with “oligarchs, criminals and terrorists” even after being fined by U.S. authorities for earlier failures to clamp down on dirty money. The banks themselves said they could not comment on specific transactions due to bank secrecy laws. Their statements can be found here.
– The reports are based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the U.S. Department of Treasury.
– Shares in British-Asian giant lender HSBC
and the U.K.’s Standard Chartered
fell 6% and 5%, respectively, marking 20-year lows in London mid trading. HSBC said in a statement that “all of the information provided (…) is historical.”
The outlook: The report, based mostly on past behavior already fined and sanctioned by U.S. authorities, is unlikely to trigger new punishments by governments or regulators. Especially not in a moment in the deepest of the coronavirus recession, when authorities are trying to convince and subsidize banks so they can keep lending to businesses and households. And even if legal grounds did exist in a few cases for authorities to act, regulators everywhere are likely to decide that punishment by markets is enough for now.
HSBC shares plunge to 25-year low on banks report, China fears – Aljazeera.com
HSBC Holdings Plc slumped below its financial crisis low set more than a decade ago as pressures mount on several fronts including a potential threat to its expansion plans in China.
The London-based bank’s Hong Kong shares on Monday slid below their closing low for March 2009, hitting as low as HK$29.60, as they extended this year’s plunge to about 50%. Echoing a decline in London on Friday, its Hong Kong shares are trading at the lowest since 1995.
Europe’s largest bank is a possible candidate for China’s “unreliable entity list” that aims to punish firms, organizations or individuals that damage national security, the Communist Party’s Global Times newspaper reported Saturday. A day later, HSBC was among global banks named in a report by the International Consortium of Investigative Journalists on lenders that “kept profiting from powerful and dangerous players” in the past two decades even after the U.S. imposed penalties on the institutions.
“If the company is listed as a unreliable company by China, which looks certain since it’s a Global Times article, the bank will be facing lots of difficulties to do business in China,” Banny Lam, head of research at CEB International Investment Corp., said by phone Monday. “They may have trouble expanding the mainland business, after investing so much there over the past few years.”
The bank has rankled China over its participation in the American investigation of Huawei Technologies Co. Penalties include restrictions on trade, investments and visas on companies, countries, groups or persons that appear on the list.
HSBC declined to comment on the Global Times article. In a statement Monday in response to the ICIJ report it said that “starting in 2012, HSBC embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions. HSBC is a much safer institution than it was in 2012.”
Standard Chartered Plc, which was also mentioned in the ICIJ report, declined as much as 3.8% in Hong Kong. “We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programs,” the bank said Monday in a statement.
HSBC now risks being caught in deepening turmoil after a swirl of trouble over the past year amid political unrest and an economic slump in its biggest market, Hong Kong. It also faces difficulties in navigating low interest rates and surging loan losses sparked by the global pandemic.
HSBC Chief Executive Officer Noel Quinn, who took over as the bank’s permanent head in March, last month issued a stark warning about tough times ahead while reporting that first-half profit halved and predicting loan losses could swell to $13 billion this year. Quinn said the bank would attempt to hasten a shakeup of its global operations, accelerating a further pivot into Asia as its European operations lose money.
Struggling to boost returns, the lender has come under fire both in the West and in China as it attempts to steer through political tension. HSBC was lambasted in the U.S. and the U.K. over its support for China’s new security legislation on Hong Kong.
A jump in income from its markets business has failed to make up for broader shortcomings, unlike at some Wall Street and European competitors. HSBC stock has fallen more steeply than most big rivals this year, with Citigroup Inc. and JPMorgan Chase & Co. posting declines of 44% and 29%, respectively.
To make matters worse, HSBC sparked anger in Hong Kong earlier this year, alienating some of its most loyal investors, after scrapping its dividend in response to the pandemic. The bank is the worst performer on the benchmark Hang Seng index so far this year.
Alberta could lead Canada in wind and solar power by 2025 – CBC.ca
Growth in Alberta’s renewable energy sector should continue its upward trend, experts say, with one forecast anticipating a surge of projects that could have the province poised to be the Canadian leader in utility-scale wind and solar capacity as soon as 2025.
Rystad Energy tracks utility-scale wind and solar assets with at least one MWac (megawatt alternating current) in capacity. It forecasts that 83 percent of the combined, utility-scale wind and solar capacity built in Canada over the next five years will be in Alberta. That wouldn’t include smaller renewable development, like residential rooftop solar.
With the forecast growth, Rystad analyst Felix Tan expects Alberta will have the largest combined total of utility-scale wind and solar capacity in the country by the middle of the decade, overtaking Ontario.
“Alberta is sort of playing catch up,” Tan said in an interview from New York.
“We have seen a lot of capacity build out over the past two, three, four years in places like Ontario, in B.C. and Quebec.”
According to the data Rystad tracks, Alberta’s current renewable capacity includes 0.1 gigawatt (GW) of solar and 1.8 GW of wind. By 2025, it expects that to grow to 1.8 GW of solar and 6.5 GW of wind.
Rystad forecasts Ontario will have about 1.8 GW solar, 5.8 GW wind in 2025.
Tan said Alberta’s commitment to stop burning coal to generate electricity by 2030 “opens the door” for wind and solar to play a larger role.
He also said the province’s deregulated electricity market creates a favourable environment for solar and wind development.
The market allows corporate buyers to enter into contracts with wind and solar generators directly — something a growing number of companies are expected to seek as they look to green their operations.
Blake Shaffer, an assistant professor in the department of economics and school of public policy at the University of Calgary, isn’t anticipating as much growth as Rystad projects, but he agrees with the forecast’s direction.
“We’re going to continue to add renewables in this province,” said Shaffer, whose work focuses on electricity markets, climate policy and energy transitions.
“Whether or not we surpass Ontario in that timeframe, I can’t say definitively right now. But certainly it’s going to grow. And it’s simply a function that the cost of building renewables has just gotten so cheap.”
Like Tan, he also sees the benefit of Alberta’s competitive market structure for electricity.
Shaffer said Texas, a place with a long history in oil and gas, has become a growth centre for renewables in the United States. He believes Alberta will also become a growth leader in renewable energy.
“That’s not because of an intrinsic love for renewables,” he said.
“It’s simply that we have the best resource in terms of what we call capacity factor — so the frequency with which the wind blows here is high, which makes the unit cost low.”
He said Alberta’s solar resources are second only to Saskatchewan.
A number of multimillion-dollar wind and solar projects are planned for Alberta in the next few years.
Edmonton International Airport and Alpin Sun announced this summer they are working on an agreement that will see the company develop Airport City Solar, a 254-hectare solar farm on the west side of the airport lands.
The massive Travers Solar project in Vulcan County is also in works.
The $750-million project, led by Calgary’s Greengate Power, will consist of 1.5 million solar panels and generate about 800 million kWh a year, enough to power more than 100,000 homes.
CEO Dan Balaban said if things go to plan, they hope to begin construction later this year.
“It’ll be by far the largest [solar project] in Canada,” he said. “And I think there’s certainly the potential for more mega renewable energy projects in this country and in this province as time goes on.”
Balaban said the discussion around energy shouldn’t be framed as oil and gas versus renewable energy.
“I think we should be developing our oil and gas resources and our renewable energy resources,” he said. “We have a phenomenal opportunity in this province if we can all work together.”
Review: Craig Johnson mystery involving art creates art, too – St. Albert Today
No new laws required to hold social media accountable for illegal content – Canada NewsWire
Wolff comes up short in first U.S. Open – pgatour.com
Silver investment demand jumped 12% in 2019
Iran anticipates renewed protests amid social media shutdown
Richmond BBQ spot speaks out about coronavirus rumours Vancouver Is Awesome
- Sports23 hours ago
Watch: Frustrated Danny Lee 6-putts from 4 feet then withdraws from U.S. Open – Golf Channel
- Real eState21 hours ago
LACKIE: There are signs of a softening real-estate market – Toronto Sun
- Politics15 hours ago
Mitch McConnell is the apex predator of U.S. politics – The Washington Post
- Health20 hours ago
23 of 29 new COVID-19 cases announced in Manitoba on Sunday are in Winnipeg
- Business21 hours ago
Iconic Ranchman's Cookhouse & Dancehall building up for lease – Calgary Herald
- Tech6 hours ago
Sony promises more PS5 pre-order stock for retailers – GamesIndustry.biz
- Sports19 hours ago
2020 Tour de France stage 21 highlights – Video – Cyclingnews.com
- Investment16 hours ago
Openspace Ventures Welcomes New Team Members and Announces First Investment from OSV+ – Stockhouse