What we’re reading (10/6)
“Dow Swings 600 Points After Trump Rejects Stimulus Plan” (CNN). “Stocks took a dive Tuesday afternoon after President Donald Trump said he ordered an end to stimulus negotiations until after the November election. The Dow (INDU) swung more than 600 points following the announcement and closed down 1.3%, or 376 points. The S&P 500 (SPX) tumbled 1.4%, and the Nasdaq Composite (COMP) finished down 1.6%. ‘I have instructed my representatives to stop negotiating until after the election when, immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business,’ Trump tweeted.”
“Despite Trump’s Move, Markets Are Still Expecting Stimulus And A Sizable One If Democrats Sweet” (CNBC). “Whoever wins the presidential election is likely to seek an infrastructure program next year, but if Democrats win the presidency and Congress, the program could be bigger and come faster.”
“GE Says It Has Received A ‘Wells Notice’ From SEC Relating To Accounting Investigation” (Wall Street Journal). “Federal securities regulators have warned General Electric Co. of a civil-enforcement action over…the company’s accounting for reserves related to an insurance business it has been trying to wind down for years. A Wells notice is a letter saying the SEC staff is recommending that the commission bring an enforcement action against the recipient and offers an opportunity to argue why the action shouldn’t be taken. It often serves to cap investigations that can drag on for years, as the final step before formal litigation begins.”
“A Quant Who Won Big In The 2008 Crisis Is Back With A 45% Gains” (Bloomberg). “The pandemic roller coaster is reviving the fortunes of a long-suffering quant trader who last won big in 2008. After shedding assets amid lackluster returns through much of the decade’s stock bull run, Roy Niederhoffer’s Diversified Fund has gained 45% this year through September—set for its best year since a 57% return notched in the global financial crisis. With a systematic program riding wild swings across futures markets, the virus mayhem is giving bragging rights to the 27-year-old fund which has long struggled in one-way bull regimes. Just last year, it lost 27%.”
“Luxury Real-Estate Market Surges In The Hamptons” (Forbes). “Nobody knew what was in store at the onset of the Covid-19 pandemic in March, but when schools and offices shut down and the threat of the virus in New York City was greater than ever, many wealthy families beelined to their Hamptons homes. Always a sought-after destination between Memorial Day Weekend and Labor Day Weekend, the Hamptons is relatively quiet in March and April and is nearly vacant in the winter months. With Covid-19 still a looming threat, many city dwellers are taking advantage of the seclusion in the Hamptons and renting in the off-season this winter and even up to a year.”
