Wednesday, June 10, 2020

Market update: The Fed keeps interest rates unchanged (10 June 20)

The Federal Reserve kept the target range for the fed funds rate unchanged at 0.00-0.25%, and its dot plot signaled rates will remain near zero through at least 2022
The Fed's economic projections called for a 6.5% contraction in 2020 GDP, followed by 5.0% growth in 2021. Core PCE inflation is expected to remain below the Fed's 2.0% target through 2020. 

After the release of the policy directive, the S&P 500 erased prior losses and gained as much as 0.5%, but stocks quickly retraced those gains during Fed Chair Powell's press conference. Mr. Powell didn't say anything particularly new, reiterating the Fed's commitment to supporting the economy, but he did subtly urge Congress to do more. 

In the Treasury market, longer-dated maturities saw greater demand following the FOMC statement. The 2-yr yield declined three basis points to 0.17%, and the 10-yr yield declined eight basis points to 0.75%. The U.S. Dollar Index declined 0.3% to 96.02. WTI crude gained 1.6%, or $0.62, to $39.54/bbl.

Nasdaq Composite +11.7% YTD
S&P 500 -1.3% YTD
Dow Jones Industrial Average -5.4% YTD
Russell 2000 -12.1% YTD

Monday, June 8, 2020

Market update: The S&P 500 turns positive for the year (8 June 2020)

The S&P 500 turned positive for the year and the Nasdaq Composite closed at a new all-time high.
  • Nasdaq Composite +10.6%
  • S&P 500 +0.1%
  • Dow Jones Industrial Average -3.4%
  • Russell 2000 -7.9% 

Saturday, June 6, 2020

Electric cars: Jaguar I-Pace

The sexy Jaguar I-Pace is not only one of the most award-winning SUVs ever, following Tesla's recipe of addictive performance blended with a stylish design, but it'd be desirable whether or not it had a powerful electrified powertrain. 
MSRP: From $69,850
Range: 234 mi battery-only
MPGe: 80 city / 72 highway
Horsepower: 394 hp

Now, owning an I-Pace just got even more appealing thanks to some massive dealer discounts of over $20,000 in some cases.

According to Electrek, for instance, an I-Pace that initially carried a price of $73,745 at a North Miami dealer is now selling for around $53,000, which is remarkable value for the electric crossover and matches the starting price of Tesla's smaller SUV, the Model Y. The discounts come after 18,000 I-Paces were sold globally in 2019, far below that of Tesla's numbers.

Customers interested in leasing the I-Pace are in luck as well, with a Tampa-based Jaguar dealership offering a $499/month deal with no down payment. The discounts on offer address one of the few downsides to the I-Pace - its high price, something which the CEO of Jaguar Land Rover addressed last year.

In most other aspects, Jaguar's electric SUV is a hit. It looks stunning inside and out, it's plenty fast thanks to nearly 400 horsepower, and it feels more luxurious inside than a Tesla.

Wednesday, May 6, 2020

Electric cars : News

  • June 2020: Volkswagen (OTCPK:VWAGY) is scheduled to start taking binding orders for its "first edition" ID.3 electric car at a list price of €40K ($45.5K). The German automaker expects to start making some European deliveries in September and sending out full-featured ID.3s by the end of the year as the company's broad goal to be a mass EV producer accelerates. EV buzz is picking up in general after Tesla (NASDAQ:TSLA) crossed the $1,000 per share threshold and Nikola (NASDAQ:NKLA) soared in its public debut. Investors also have been putting a charge into EV-related stocks like Electrameccanica Vehicles (NASDAQ:SOLO), Arcimoto (NASDAQ:FUV), Workhorse Group (NASDAQ:WKHS), Kandi Technologies (NASDAQ:KNDI) and Nio (NYSE:NIO), Aptiv (NYSE:APTV), Delphi Technologies (NYSE:DLPH) and to name a few. Of course, chipmakers like Nvidia (NASDAQ:NVDA), Maxim Integrated Products (NASDAQ:MXIM), NXP Semiconductors (NASDAQ:NXPI) and TE Connectivity (NYSE:TEL) also benefit from the increased focus on EVs.
  • September 2019: Michigan-based Rivian Automotive landed an order from Amazon to purchase as many as 100,000 electric delivery vans over the next decade, with the first ones showing up on the road in 2021.
  • Jan 7, 2019 Shanghai:  Tesla (TSLA) broke ground on its Chinese Gigafactory where it plans to mass-produce Model 3 and Model Y electric vehicles. "We think with the resources here we can build the Shanghai Gigafactory in record time and we’re looking forward to hopefully having some initial production of the Model 3 towards the end of this year and achieving volume production next year," Elon Musk stated at the event. The local Gigafactory is the first wholly-owned car plant in China operated by a foreign company. 
  • Jan 2018: Tesla (TSLA) has started to roll out its all-electric Model 3 vehicles, while Volvo last year announced plans to phase out gas-only cars and launch new electric and hybrid vehicles in 2019.
  • Dec 2017:  Panasonic is considering jointly developing batteries for electric vehicles with Toyota (NYSE:TM), a move that would cement its position as the world's leading producer of automotive batteries. Panasonic (OTCPK:PCRFF) already supplies lithium-ion assemblies for Toyota's hybrid vehicles, but has also carved out a name for itself as the major battery supplier to Tesla (TSLA).
  • July 2017:  Toyota (NYSE:TM) is working on an electric car with improved driving range and a fast-charging battery. The Japanese automaker is expected to build the new EV on a new platform and use solid-state batteries that can be recharged in minutes. The new model could arrive as early as 2022.  Other automakers such as BMW are also working on developing all-solid-state batteries, eyeing mass production in the next 10 years.
  • March 2015:  Mercedes is launching its first plug-in hybrid-electric midsize sedan, the C350e, in U.S. dealerships in September 2015, according to reports. Chatter on the street suggests that the German auto-making powerhouse plans to deeply undercut Tesla stickers, with a price around $42,000 before $5,250 worth of federal and state incentives. The 85 kWh Tesla starts at twice that level. And the brash young automaker will not have a competitive product until at least 2017. Mercedes can undercut the pricing because it has a lot more experience at mass production and sourcing; will make the car in low-cost Alabama instead of high-cost California; and it can subsidize the vehicle with its other vehicles, just to gain market share. The market for electrics is growing dramatically; this is just the start.

Thursday, April 23, 2020

Gold-mining stocks gaining strength?

Gold-mining stocks may have just begun to gain strength as the precious metal climbs. The ratio between the VanEck Vectors Gold Miners exchange-traded fund and the SPDR 500 ETF jumped 28% for the year through Wednesday, according to data compiled by Bloomberg.

The mining ETF set a seven-year high Wednesday and closed at $32.51. It’s headed to $40 “in the next three to four months, and quite possibly much sooner,” Michael Purves, Tallbacken Capital Advisors LLC’s chief executive officer, wrote Wednesday in a report. Jonathan Krinsky, chief market technician at Bay Crest Partners LLC, set a $42 target Wednesday.

Wednesday, March 18, 2020

Market update: trading halted for the 4th time in 8 days (18 March 2020)

At 1:12 ET, the Level 1 circuit breaker was triggered with a 7.0% decline in the S&P 500. Trading was halted for 15 minutes. This is the 4th time trading was halted in the past 8 days.

 A cross-market trading halt can be triggered at three circuit breaker thresholds that measure a decrease against the prior day's closing price of the S&P 500 Index -- 7% (Level 1), 13% (Level 2), and 20% (Level 3) (NYSE, NYSE American and NYSE Arca Rule 7.12).

  • Nasdaq Composite: -22.1% 
  •  S&P 500: -25.8% 
  •  Dow Jones Industrial Average: -30.3% 
  •  Russell 2000: -40.6%

Wednesday, March 11, 2020

Natural gas has bottomed out

One of this week's few winners is natural gas, which has finally bottomed out after making multi-year lows.  
Natural gas is a byproduct of shale oil. With the sharp drop in crude oil prices, the supply of natural gas will be reduced as many of the high-leveraged shale oil players go offline.
BTW, natural gas has replaced coal to a large extent in electricity production.