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Here’s what you need to know before markets open.
1. Global stocks rise as hopes for prompt US fiscal stimulus revive the ‘buy everything’ trade. Global stocks rose on Monday as investors largely pinned hopes on a new US fiscal stimulus deal to get across the line. US stock futures rose as much as 1% even after House Speaker Nancy Pelosi rejected the Trump administration’s latest proposal, or a stripped-down version of the coronavirus relief bill, calling it “grossly inadequate” over the weekend. The dollar index, meanwhile, fell 0.5%.
2. Goldman Sachs says sell the dollar due to the increasing odds of a Biden-led blue wave and progress on COVID-19 vaccine. Investors should sell the dollar, as chances grow for a decisive win by Democrat Joe Biden at next month’s election and as progress continues towards an effective vaccine against COVID-19, Goldman Sachs strategists said on Friday.
3. Warren Buffett phoned Treasury Secretary Hank Paulson with a stimulus idea when the 2008 financial crisis erupted. It may have saved the US economy. Warren Buffett made a late-night call on Saturday, 11 October 2008 that likely spared the US from an even more devastating financial crisis.
4. Billionaire ‘Bond King’ Jeff Gundlach says stocks will crash, predicts a weaker dollar, and questions bitcoin in a new interview. Here are the 10 best quotes. In a RealVision interview filmed on October 1 and released on Friday, the billionaire “Bond King” Jeff Gundlach said stocks would crash within 18 months, predicted that the US dollar would tumble in the long run, and voiced his doubts about bitcoin.
5. A chief investment strategist explains why making short-term bets ahead of the election is a risky strategy. Betting on election outcomes is risky as history makes it clear that the relationship between politics and the stock market is varied and absent of consistency, according to a chief investment strategist at Charles Schwab, Liz Ann Sonders.
6. Earnings coming in. Kuwait Finance House Q3 2020 earnings are Tsudakoma Q3 20 earnings are coming in.
7.On the economic front. Mexico’s YoY and MoM Industrial Output are due.
8. GOLDMAN SACHS: Buy these 15 stocks set to deliver the strongest possible profit growth and subsequent returns through year-end. Wall Street sees a powerful earnings rebound as a sure thing — if sure things still exist — and many experts think it will give stocks an important boost from this point forward. With that in mind, Goldman Sachs Chief US Equity Strategist David Kostin is giving investors some pointers on the stocks that are on track for the most growth today.
9. SPACs have generated a $39 billion frenzy in the US this year. The executive behind their first ETF explains how retail investors can use them to level the playing field with Wall Street titans like Warren Buffett. Special-purpose acquisition companies have made a comeback. According to Goldman Sachs research, US SPACs have raised $39 billion year-to-date, tripling the $13 billion they raised in all of 2019.
10. Bank of America lays out its scenario for how the next big top in stocks will form — and pinpoints the trigger that could cause a meltdown shortly after. 3,600. That’s the level on the S&P 500 that will eventually serve as the high-water mark for the ongoing rally in stocks, according to Bank of America Chief Investment Strategist Michael Hartnett.
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