Stocks seem to be recovering their footing, as investors bet that trade-war fears could fizzle out like the latest “Bachelor” romance.
“The declines that we saw at the end of last week failed to continue, even though trade tensions remain high,” says BK Asset Management’s Kathy Lien.
“It remains to be seen how far Republicans will go in resisting the president,” she adds, after House GOP boss Paul Ryan and President Trump agreed to disagree on tariffs.
Meanwhile, everyone agrees that Amazon.com
is a juggernaut, and it was just a month ago that health-care stocks
tumbled as Jeff Bezos menaced that sector with a couple of buddies.
The asset-management industry also should be quaking in its boots because of what Bezos & Co. could do, suggests our call of the day, which comes from Jirisan Capital founder Gerald Hwang.
His take arrives alongside this week’s news that Amazon is thinking about offering a checking-account-like product.
“Asset management is the type of utility business that Amazon could easily disintermediate, for both its own benefit and the benefit of average investors worldwide,” writes Hwang, a former portfolio manager at index-funds pioneer Vanguard.
“If you thought the overbuilt status of bricks-and-mortar retailing provided the kindling to the Amazon explosion in retail, the abundance of asset managers (especially active asset managers) provides the uranium for an apocalypse that could be much worse,” he says.
He’s referring, of course, to those well-paid stock pickers who are often blasted for underperforming their benchmarks.
Surveys suggest Amazon is considered a trustworthy business, and Bezos might be gazing east for inspiration, Hwang adds.
“Take a look at Alibaba
, which is a Chinese incarnation of Amazon + eBay + PayPal + Mastercard + UPS + … Fidelity,” he says.
Imagine an online marketplace for funds that’s replete with Alexa’s chitchat, carefully tailored recommendations and Amazon’s own private-label ETFs.
“I have no personal knowledge of a fund-management skunkworks at Amazon, but as an Amazon shareholder, I’d be disappointed if they don’t already have one,” Hwang says.
Go here to read his full take, titled “How Amazon can blow up asset management.”
Key market gauges
Futures for the Dow
, S&P 500
are higher, after the Dow
and Nasdaq Composite
and Asia have scored gains. Oil
are advancing as the dollar index
has been changing hands at around $10,900.
See the Market Snapshot column for the latest action.
A TD Ameritrade index that aims to “measure what investors are actually doing” just showed its biggest-ever monthly drop, suggesting the retail crowd ran from stocks during February’s selloff.
Some traders with a contrarian bent are encouraged by the TD IMX gauge’s move, saying the “surprisingly large amount of fear” bodes well for equities.
North and South Korea plan to hold a border summit next month, as Pyongyang says it will dump its nuclear weapons if it gets security guarantees.
Goldman Sachs commodities guru Jeff Currie says Trump’s tariff plan will be “leaving the broader economy at a disadvantage.”
was losing in a hostile takeover battle with Broadcom
— and then the government stepped in.
is “pressing the pause button” on that plan to replace bonuses with a lottery after it enraged the airline’s employees.
Several companies are seeing a CEO depart: 3M
, recent tech IPO Tintri
, chicken-and-biscuits chain Bojangles’
, in-flight Wi-Fi provider Gogo
and Kobe Steel
looks set for an earnings-driven drop, and some notable names are on the earnings docket before the open: Target
, Dollar Tree
and Jack Daniel’s parent Brown-Forman
Read more: Why Target is poised for sales growth in 2018
“The Bachelor” news: One of the most controversial season finales in that TV franchise’s history has a Minnesota lawmaker drafting a bill:
If this gets a thousand retweets I’ll author a bill banning Arie from Minnesota. #TheBachelor #PriorLakeLakers
— Rep. Drew Christensen (@RepChristensen) March 6, 2018
On the data front, a report on factory orders is due after the opening bell.
Check out: MarketWatch’s Economic Calendar
The Nordstrom family is part of a push to take the department-store chain private, but Nordstrom’s
board has rejected the proposal.
“I’m going to end up cooperating with them.” — former Trump campaign aide Sam Nunberg appears to have flipped from defiant to compliant, in another twist in the probe into Russian election meddling.
Nunberg earlier had refused to comply with a subpoena from Special Counsel Robert Mueller, saying “it would be really, really funny if they wanted to arrest me.”
9 years old — That will be the age of the bull market for U.S. stocks come Friday, note LPL Financial’s John Lynch and Ryan Detrick.
“We would not be surprised if the current bull market celebrates its record tenth birthday next year,” they say.
The S&P 500 is up 302% from the low hit on March 9, 2009.
Paul Allen just found the USS Lexington, a sunken WWII carrier.
Geneva Motor Show news: Carmakers back away from “booth babes.”
The woman found poisoned alongside a Russian spy is his daughter.
Facebook tries a “breaking news” label and regrets a survey question.
A cheaper MacBook Air from Apple would make perfect sense.
Trump’s name comes off a hotel in Panama as a big standoff ends.
Elon Musk’s Space X successfully launched its largest-ever satellite.
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