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The Market Sum | Insight after the bell

By Caleb Silver, Editor in Chief

Monday's Headlines

1. Markets Mixed Amid Trade Uncertainty

2. The Dow Tops a New Record High

3. Boeing Plans to Return 737 Max Jets in December

4. WeWork Considers T-Mobile's CEO to Rescue Company

5. Investing Themes for the Next Decade

Markets Closed

Dow
27,691.49 +0.04%

S&P
3,087.01 -0.20%

Nasdaq
8,464.28 -0.13%

VIX
12.69 5.14%

Bitcoin
$8,773.18 -3.23%

US 10-Yr Yield
1.94 +0.52%

Image: Getty Images

Markets Today

Asian and European markets fell earlier today as trade uncertainty prevailed and the riots in Hong Kong turned violent. In the U.S., markets were mixed. However, the DJIA staged a comeback and closed at yet a new record high as Boeing, a Dow component, announced that it would be returning the MAX 737 Jet into service as early as next month. Gold prices fell to a 3-month low, and the U.S. bond market was closed for Veterans Day.

Headlines:

Singles Day, Alibaba's annual 24-hour shopping festival, saw consumers spend a record $31 billion (and counting) across various platforms, topping last year's $30.8 billion figure. The biggest e-commerce event in the world is being closely watched as a barometer of consumer sentiment while China's economy faces a slowdown. While Alibaba recorded $7.8 million in sales on its first Singles Day back in 2009, today it took shoppers less than 30 minutes to spend $10 billion.
Iran says it has found 53 million barrels in new oil reserves. Iranian President Hassan Rouhani announced the discovery of a new oilfield in the south-western province of Khuzestan. Iran already has proven oil reserves of more than 150 million barrels, giving it the world's fourth-largest proven deposits of crude oil and the world's second-largest deposits of natural gas. The country is currently under U.S. sanctions which prevent it from selling oil abroad.
Saudi Aramco unveiled an initial IPO prospectus over the weekend. The offering period will be from Nov. 17 to Dec. 4. after which the shares will be priced. Key details, like how much of the company will be sold, are missing from the 600 pages long document.
President Trump will address the New York Economic Club on Tuesday. Investors and strategists will be looking for more detail on why he says he did not agree to simultaneous tariff reductions with the Chinese, as they stated last week.
WeWork is reportedly considering offering T-Mobile's John Legere a position as CEO. The WSJ reports that Softbank, which is WeWork's majority owner, is preparing to offer Legere the job to turn around the beleaguered workspace sharing company as early as this January. Legere has been trying to win approval of T-Mobile's merger with Sprint, and stands to earn a huge windfall if the deal goes through.

photo courtesy T-Mobile

Boeing to Resume MAX Deliveries in December

Boeing announced today that it could resume MAX deliveries as soon as December, and commercial service could begin as early as January. In order for the aerospace giant to meet that timetable five key milestones need to be met. These include software testing, flight simulations, and various approvals by the FAA.

The MAX has been grounded since mid-March after two fatal crashes killed 346 people. Last Friday, Southwest Airlines and American Airlines pulled the planes from their schedules until early March. The grounding of the MAX has cost airlines hundreds of millions of dollars in lost revenue due to flight cancellations, which they expect Boeing to cover. In July, Boeing took a $4.9 billion charge against earnings in anticipation of paying back its airline customers, although official tallies have yet to be determined.

Shares of Boeing climbed 4% on today's news, but are still down more than 13% since March 11, 2019 the day after an Ethiopian Airlines flight on a MAX 737 crashed, killing all 157 aboard.

chart courtesy YCHARTS

The Future of Finance and Investing

With only 50 days left in the decade, we've been doing a lot of work and research on what the next 20 years of finance and investing will look like. It's remarkable that just 13 years ago, smartphones weren't around, investing apps had not been invented, and we had yet to experience a financial crisis that shook our economy to its foundation.

The financial industry has always been an innovation leader, from the early days of the stock exchange at the Buttonwood Tree on Wall Street to today's robo-advisors, finance has always been future first. To that end, we are building a content experience with interviews, guest columns, and articles with some of the smartest people we know in the industry across investing, stock exchanges, fintech, financial advice, cryptocurrency and other topics.

If you are also fascinated with the future, spend a little time in the Investing 2020 special to see where we are going and how to position yourself for the ride.

With that in mind, Bank of America's Investment Research team released this infographic today on the financial terms and themes that will define the next decade. It's a great visual representation of how global politics, climate change, income inequality, technology, and economic theories will all come together to define the financial narratives of the next decade. Quiz yourself to see how many of these terms you are familiar with. If you need to brush up, I know a pretty good website that can help you out.

source: Bank of America Research

More News:

Blackstone Group Warns of the Mother of All Bubbles

Why Corporate America Is Bullish on the Economy

Top Financial Stocks for November 2019

(chart courtesy YCHARTS)

Pharmacy firm Walgreens Boots Alliance jumped 5.1% today after private equity firm KKR formally approached them about a buyout today. Boeing rose 4.6% after saying it expects to resume deliveries of the 737 Max Jet. Deliveries had stopped after safety oversights led to the deaths of over 300 people in 2 crashes in late 2018 and early 2019. For more see above.

Consumer products maker Newell brands, owner of the Rubbermaid brand of containers, fell 4.2% today. Casino and hotel company Wynn Resorts fell 3.8%. Energy firms CenterPoint Energy and Cabot Oil & Gas fell 3.8% and 3.4%.

Word of the Day

VA Loan
A VA loan is a mortgage loan available through a program established by the United States Department of Veterans Affairs. VA loans assist service members, veterans and eligible surviving spouses to become homeowners. The VA sets the qualifying standards, dictates the terms of the mortgages offered and guarantees a portion of the loan. VA home loans are provided by private lenders, such as banks and mortgage companies.