Movers & Shakers: Aug. 8, 2019
What’s driving the market: China trade tensions or Fed?
Walser Wealth Management CEO Rebecca Walser on President Trump’s comments on the Federal Reserve and the U.S. trade tensions with China.
Stock market rebound continues amid a dramatic week of plummets and gains. The top three equity markets are all pointing higher on Thursday, a day after Wall Street clawed back from major losses as the Dow Jones Industrial Average rebounded from a drop of over 500 points. Despite escalating tensions between the U.S.-China and more yuan tweaking by the Chinese, investors appear to be refocusing on U.S. metrics including M&A. Symantec shares are up over 12 percent in the pre-market on reports Broadcom is nearing a $10 billion deal to buy its enterprise unit.
Equinox, Soul Cycle face boycotts over billionaire owner’s decision to host a swanky Hamptons fundraiser for Trump. Stephen Ross, the owner of the NFL Miami Dolphins, is hosting the event, which costs $250,000 per ticket to attend, at his mansion in the upscale New York vacation destination. Ross is also the chairman and majority owner of Related Companies, which owns upscale fitness firms Equinox and Soul Cycle. Celebrities and others have vowed to boycott the clubs. In a statement, Equinox and Soul Cycle said they have nothing to do with the political event and do not support it.
Walmart CEO responds to El Paso shooting but sidesteps directly addressing calls for the retailer to stop selling firearms. CEO Doug McMillon said the world’s largest retailer will be “thoughtful and deliberate” in its response to the attack that left 22 people dead and will “act in a way that reflects the best values and ideals of our company.” Following the shooting, Walmart said its policy on gun sales has not changed. The Bentonville, Arkansas-based firm does not sell assault-style weapons and requires purchasers to be at least 21 years old.
Jeffrey Epstein allegedly stole $46 million from the CEO of Victoria’s Secret-parent company. Leslie Wexner, the CEO of L Brands Inc, claims he uncovered the misappropriated funds after he cut ties with the Epstein, a millionaire hedge fund manager who is facing charges for sexually abusing young girls. He previously pleaded not guilty and is currently being held in federal custody without bail.
Saudi’s hit the phones for help as oil slides into a bear market. Saudi Arabian officials are scrambling to blunt a drop in oil prices and are “considering all options,” Bloomberg reported. The world’s largest oil exporter previously cut production below the required level set by the Organization of Petroleum Exporting Countries. Since April, prices for Brent crude oil dropped more than 20 percent as tensions between the U.S. and China escalate.