There’s just no keeping the U.S. stock market down lately.
The Dow could be ready to celebrate its seventh straight win on Tuesday, while 2,900 is shaping up as the next big conquest for the S&P 500.
But there’s just as much risk for stocks to move in the other direction, especially if investors think the Federal Reserve isn’t good for an interest-rate cut or two this year. And U.S.-China-Mexico trade hot spots seem ready to flare up at a moment’s notice.
If you’re looking for examples of disappointment in the investment game lately, then gold has you covered. The shiny metal slammed the door on a 9-day rally that had stirred hopes of a return to record levels after positive news on the Mexico trade front sent investors back into perceived riskier assets like stocks.
And gold is under pressure again this morning.
That brings us to our call of the day from Saxo Bank’s head of commodity strategy, Ole Hansen, who cautions investors against getting their gold-rally hopes up again too soon. He says the asset’s strong run lately has not only been luring in more individual investors, but big hedge funds too.
Gold’s problem is that it has been banging on a “wall of resistance between $1,350 and $1,390” an ounce for the past several years, and given the latest disappointment, those speculative players could back out, dragging prices down with them, he warned.
The bright side? “If you are a diversified investor whose primary investments are in equities and bonds as well, you are holding gold for a rainy day if there is any adverse movement in core markets,” Hansen says. In December, for example, gold dazzled with a 4% rise while stocks fell apart.
“I think if we do break out of this range we’ve been in since 2014, then that has the potential to become a trigger for an extension to the upside,” said Hansen. But he says it might be tough to see that happen before investors know whether the U.S. will seal a trade deal with China at the Group of 20 meeting later this month.
Read: All the reasons why investors may get a rally in gold prices yet
Last word goes to Michele Schneider, director of trading research and education at MarketGauge.com, who also tells the gold bull parade to cool it.
“The ‘itch’ to buy the bottom plagues many traders,” she says in a blog post for See it Market. “The risk would be minimal while the reward could be highly profitable. That is, of course, if one actually nails the bottom.”
Europe stocks are in the black, while a 2.6% gain for the Shanghai Composite led Asia stocks north.
Read: Mark Mobius says U.S.-China trade fight turning ‘more strategic and critical’
Shares of Beyond Meat the maker of plant-based meat alternatives, are up an eye-popping 500% since the company’s debut on May 1 and in a manner of speaking, are gobbling up the competition. That’s according to Charlie Bilello, director of research at Pension Partners, who tweeted out our chart of the day.
With a market capitalization of $10.1 billion, Beyond Meat is now worth more than several fast-food giants combined – Shake Shack and Wendy’s Co. to name a few – his chart shows:
With a market cap of $10.5 billion, Beyond Meat is now worth more than the market value of Shake Shack, Wendy’s, Jack in the Box, Red Robin, Habit Burger, and Good Times … combined. $BYND pic.twitter.com/27BOi5v6O8
– Charlie Bilello (@charliebilello) June 10, 2019
Read: Beyond Meat is now the most expensive stock to borrow among active short targets
Shutterfly is slipping after private equity group Apollo Global Management said it would buy the online photo publishing group for $51 a share.
Read: Intel buying Barefoot Networks to compete better against Broadcom
Facebook is building a massive solar farm in Texas, its first direct investment in renewable energy.
Cree is down after the chip maker cut its fourth-quarter profit and sales outlook, citing the U.S. government’s ban on business with China’s Huawei Technologies.
Blamed by some for fueling a U.S. addiction, opioid maker Insys has filed for chapter 11 bankruptcy.
A small-business sentiment survey rose for a fourth straight month in May, while producer prices inched up.
$315.5 billion-That’s how much Amazon’s brand value is worth, a 52% jump on a year ago, making the e-commerce company the world’s most valuable, according to the 2019 BrandZ Top 100 Most Valuable Global Brands rankings. Tech companies have dominated the top for a dozen years, but Amazon is now ahead of Apple and Alphabet’s Google whose values gained just 3% and 2% respectively.
Read: Alphabet shareholders could see 50% upside in break-up scenario, says analyst
How hot is San Francisco right now? Even the BART transport system broke down
The power lunch is dead. Here’s what’s replacing it
The slain half brother of North Korean dictator Kim Jong Un may have been a CIA informant
A $450 million da Vinci painting spotted on Saudi Crown Prince Mohammed Bin Salman’s superyacht
A Virginia legislative primary election may have a message about the coming U.S. presidential election
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