US Stock Market Overview – Stocks Rally, the VIX Falls and Softbank Takes Control of WeWork

US stocks moved higher on Monday, with the S&P 500 index recapturing the 3K level. The VIX volatility index moved lower by more than 1% on Monday as the rally in stock prices have put downward pressure on implied volatility. Brexit remains in the spotlight, and will likely continue to add to the volatility of riskier assets. Boeing continued to weigh on the Dow Industrials, as the fallout from the 737 Max pushed the shares down nearly 4%. Sectors in the S&P 500 index were mixed on Monday, led higher by energy shares which finally rebounded despite a decline in crude oil prices. It appears that Softbank will take control of WeWork as the company’s valuation tumbled.

Brexit is in the Limelight

Brexit remains in the spotlight as UK PM Boris Johnson will attempt to push through bills that will allow him to move to a hard Brexit. The Tore government failed to secure a vote on Monday after the speaker of the House of Commons, John Bercow, rejected it on the grounds that it was an effort to repeat a failed vote. The decision sets up a straight up or down vote on Tuesday on whether lawmakers support the deal. The rally in the pound on Monday likely provides a 50-50 shot that Johnson will get his agreement with the EU over the finish line. The EU is seen likely to grant the UK some extension.

SoftBank Takes Control of WeWork

SoftBank appears to be taking control of WeWork. The Japanese company has offered to lend $5 billion to WeWork and accelerate a $1.5 billion equity investment that had been scheduled for next year. SoftBank also would offer to buy more than $1 billion of stock from existing investors and employees, some of the people said.

Boeing Announces that Its Maintaining it Dividend

Boeing announced that it is maintaining its 2.055 per share dividend, despite the shares of the company falling substantially in the wake of revelations about who knew what and when with regard to the 737 Max airplane.