US Stock Market Overview – Stocks Rebound Despite Soft ISM Services ReportTrump says he is upbeat on trade talks with China
US stocks whipsawed initially moving higher and then tumbling lower following a softer than expected ISM non-manufacturing report. Stocks began to rise in the afternoon after President Trump said that he was upbeat about next week’s meeting with Chinese trade officials. President Trump also lashed out at the demonstration and said that China should start an investigation of the Bidens. When Trump was asked if he had sought Chinese President Xi Jinping’s help, Mr. Trump said, no but its something he is thinking about. It appears that President Trump is dangling a carrot to President Xi that if he investigates the Biden’s there is a path to a trade deal. All sectors were higher led by energy, utilities were the worst-performing sector in an up-tape.
US yields tumbled placing the change of a rate cut at 90% at the next federal reserve meeting. The US 2-year yield hit a fresh 2-year low, ahead of Friday’s US employment report. A softer than expected number could mean that the US consumer might stop support US growth. The VIX volatility index attempted to rally, but turned as the stock moved higher in the afternoon, declining 5%,
US ISM Falls Short of Expectations
The Institute of Supply Management reported on Thursday the ISM services report came in at 52.6, compared with an expected reading of 55.3. It was the weakest reading since August 2016. New orders plunged to 53.7, 6.6 points lower than the August reading, while employment slipped from 53.1 to 50.4, its worst February 2014. Prices increased to 60 from 58.2.
MGM Resorts Settles
MGM Resorts International said it has reached an agreement to pay up to $800 million to settle claims related to the 2017 mass shooting at its Mandalay Bay Casino Las Vegas. The casino company said on Thursday it reached a settlement agreement representing all plaintiffs in the litigation stemming from the shooting that left 59 people dead. MGM said the total settlement amount is expected to be between $735 million and $800 million.
Amazon and Disney Fight over Streaming
Amazon.com Inc. and Walt Disney cannot come to terms for carrying the entertainment giant’s apps in Amazon’s Fire TV devices. Amazon is pushing for the right to sell a substantial percentage of the ad space on Disney apps, and Disney has so far resisted. If an agreement is not reached, Disney could be removed from the Fire App.