Morning 8-24

Powell to Speak Thursday at the Annual Jackson Hole Conference @8:10 

Risk On! 

  SINGAPORE, Aug 24 (Reuters) – The enormous rally in tech stocks has further to run, according to analysts at investment bank J.P. Morgan, who recommend staying invested across the sector for its growth potential.  Stocks across the industry, from hardware to software, have outperformed the market by miles this year as the COVID-19 crisis accelerates reliance on the internet for commerce. 

“In contrast to the dot-com bubble, the current rally has been supported by strong earnings delivery,” J.P. Morgan’s equity strategists said in a note on Monday, saying they are sticking with an “overweight” recommendation on the sector. 

“In addition to resilient earnings growth, tech has healthy balance sheets and strong cash flow generation, again in contrast to the 2000 episode.” 

 Choppy trade in Spoos until European cash Equites opened  then  strong bids materialized as European bourses outperform US  Spos+.9% Nasdaq +1%,Dax +2.7%,Stoxx +2.5% Mib +2.1% it isn’t  optimism on the Virus  as travel and leisure stocks are unchanged  in Stoxx 600  oil and  gas, Chemicals and tech  leading Europe higher. Yesterday’s Announcement from trump regarding Plasma treatment isn’t much of a game changer, as it already has been used on patients, There also was/is a rumor that Trump could fast track a vaccine that AstraZeneca is working but “ASTRAZENECA: WE HAS HELD NO DISCUSSIONS WITH THE US GOVT. ABOUT EMERGENCY AUTHORIZATION FOR THE COVID-19 VACCINE IT IS MANUFACTURING”  so there is that.  Helping tech Stocks is reassurance from the White house that “any  ban on We chat wont be as broad as feared”-BBG   Tencent(we chat owner)  Closed +5.8% and Kosdaq (South Korea Nasdaq) +2.48% Can’t stop big tech.

Markets:

 Dollar on the offer =Good for Risk, Metals higher oil and Nat gas with a small Bid. 1 tropical storm and 1 hurricane expected to make landfall on Gulf coast between tonight and Wednesday.  Some oil and gas rigs evacuated  reason for some of the bid in  energy related products, Watch for refinery closing and possible flooding post landfall….Gold  +.7%,Silver +1.6%,Platinum +1.6%  Grains Bid Corn +.95%,Cotton +1.2% Soy +.8%  Corn futures are a penny or two higher to start the week and soybeans are up 3 to 4 cents, with traders again noting reduced crop prospects in Iowa and the forecast for heat and dryness near-term. Pro Farmer’s corn and soybean yield estimates are record-high, but still well below USDA’s August estimates… Bonds sideways as are bunds    Powell on Thursday likely to keep market action subdued till then.. Economic Calendar a bit light this week

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