Samsung Lands $6.6B Contract: Samsung has beat out Nokia and Ericsson among others to develop a 5G network infrastructure for Verizon. Huawei Technologies, Ltd was not in the running for the contract.
Hedge Funds Reallocate: Goldman Sachs analysts studied 815 large hedge funds and found that over the past quarter they had increased their positions in both financials and industrials which now represent an average of 7.2% and 9.4% of their portfolios, respectively. Healthcare remains the highest concentrated sector among the analyzed hedge funds with a 21% average portfolio weighting .
Covid Struggles Continue: The Centers for Disease Control and Prevention told states to prepare vaccination programs for early November, providing some hope for cities like Chicago and New York which currently have projected deficits of $1.2 Billion and $9 Billion over the next two years.
Investors Decipher Buffet: Warren Buffet’s Berkshire Hathaway (BRKA) took investment positions in five Japanese trading companies for a total cost of $6.25billion. This is an unusual investment for the Oracle of Omaha who rarely participates in Japanese stocks, but many view it as a value play since the five companies look inexpensive based on earnings, dividend yield, and price to book ratios.
Brexit is Back: In response to reports that Boris Johnson’s government was considering passing legislation to override parts of the Brexit Withdrawal Agreement that they signed last January the EU threatened that there would be no trade deal if the British government pursued such actions.
S&P500 & Tesla: Last Friday evening S&P Global announced that Teradyne (TER), Etsy (ETSY), and Catalent (CTLT) would join the S&P500 while H&R Block (HRB), Coty (COTY), and Kohl’s (KSS) would be leaving. Given the fact, that many investors had expected Tesla (TSLA) to be added to the index, some traders now think there will be continued volatility in the stock. For perspective, there have been recent days where 10% of the entire market cap of the car company was traded during trading hours
Reports this week include:
Tuesday: NFIB Small Business Index
Thursday: Jobless Claims, PPI
Friday: CPI
US Futures
S&P 3396.75 -0.61%
DOW 28,077 +0.01%
NASDAQ 11,285-2.28%
World Markets
FTSE 5919.66 -0.30%
NIKKEI 23,274.13+0.80%
Hang Seng 24,624.34
+0.14%
Treasuries
3 Mo 0.11%
10YR 0.721%
30 YR 1.38%
Currencies
Euro $1.179
Pound $1.305
Yen $106.358
Commodities
Gold 1926.10 -0.42%
WTI Crude 38.27 -3.77%
Silver 26.93 +0.83%
Upcoming Earnings Calls
Tuesday - WORK, LULU, COUP, HQY
Wednesday - AEO, GME
Thursday - PTON, CHWY, KR
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