Some Investors Are Looking For Changes at Exxon: Due to this year’s struggles Exxon is no longer the most valuable US energy company (NextEra [ticker:NEE] which has a larger renewable energy focus is). Additionally, Exxon seems to be struggling to maintain their high dividend payout as they have been forced to take out billions of dollars of debt and have even gone so far as to suspend 401K matching for employees. Last week Sankey Research analyst Paul Sankey gained attention by suggesting that Chevron and Exxon should merge to create a $300 billion dollar company capable of generating $50 billion in annual operating cash flow.
Electric Vehicle Company’s partner with SPACs: Special purpose acquisition companies (SPACs) or “blank check companies” continue bringing electric car companies to the public stock market. Two EV companies have already gone public through SPAC mergers this year and six more are expected soon. The main pitfall? None of the EV companies that will be going public have generated a single dollar of revenue. This fact forces investors to rely on these companies’ own earning predictions. SPACs' hope is to discover the next Tesla (up 425% YTD).
Wall Street Donors Seem to be Following the Polls: As polls continue to indicating Biden leading over President Trump, the amount of donations to the democrat candidate’s campaign have increased substantially. So far individuals in the financial industry have raised more than $50 million for Biden compared to $10 million for Trump. Some analysts have questioned these actions in light of the fact that Biden has called for raising taxes on wealthy individuals and corporations, but some of Wall Street has become fatigued by the lack of clarity coming from the current administration.
China & US Tensions Continue: China passed a law that will allow the government to restrict the export of “controlled items” which includes military and nuclear products, technologies, services, data, and other items that are important to the national interest. This law is seen a direct response the US restricted exports to China’s largest chip maker (Semiconductor Manufacturing International Corp) and Huawei Technologies Co as well as others.
Reports this week include:
Monday: NAHB Home builders' Index
Tuesday: Housing starts
Thursday: Existing home sales, Index of leading economic indicators
Friday: Markit Manufacturing PMI
US Futures
S&P 3491.75+0.85%
DOW 28,611+0.71%
NASDAQ 11,929.25 +1.10%
World Markets
FTSE 5911.87 -0.13%
NIKKEI 23,671.93+1.11%
Hang Seng 24,542.26
+0.64%
Treasuries
3 Mo 0.11%
10YR 0.744%
30 YR 1.52%
Currencies
Euro $1.177
Pound $1.299
Yen $105.359
Commodities
Gold 1916.14 +0.52%
WTI Crude 40.62-0.64%
Silver 24.90+2.03%
Upcoming Earnings Calls
Monday - HAL, IBM
Tuesday - NFLX, UTX, LMT, PG
Wednesday - TSLA, VZ, ABT, AN, NTRS
Thursday - AAL KO, INTC, DGX
Friday - AMX
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