The Dollar steadies along with US stocks
New York (Mar 9) US stock markets looked to bounce back from Friday's sell off and have done so modestly in the early going. Various other assets classes have also either reversed course marginally or stabilized within recent trends. The Dollar Index is essentially flat after losing some ground in overnight trade while US Bond prices have stabilized. The US 10-year yield has come off of 2.25% on Friday to 2.20% this morning. Gold prices have gained some ground on the pause in the Dollar rally. WTI crude continues to churn around the $50 mark. The Dow has rallied nearly 100 points while the S&P 500 has rebounded 5 and the NASDAQ comp holds near unchanged.
- General motors confirmed an agreement with holder Wilson and as such will return $5B to investors through share repurchases to begin immediately. GM also reaffirmed EBIT targets for both this year and next helping the shares gain 2.5%.
- Alcoa announced a deal to acquire RTI International Metals for $41/share in cash. AA noted it expected to contribute $1.2 billion in revenues in 2019 and reach profitability of 25% EBITDA margin. Defense and aerospace names are rallying on the news on hopes the deal will allow them to continue to have access to a plentiful advanced metals supplies down the road. Simon Property formally bid $91/share cash and stock for Macerich sending shares up 5% to trade above the asking price.
- Shares of McDonalds have shrugged off another poor monthly sales update. Investors appear to be focusing on the new CEO's plan to reassert focus on MCD as a modern, progressive burger company and potentially simply the menu.
- Biotech names are weighing on the NASDAQ in general after the US Supreme cour refused to hear Gilead's appeal related to Tamiflu patent.
- The Euro rallied as much as 80 pips from recent 11-year lows reaching 1.09 in the US premarket session but as the morning has worn on it is giving the gains back. The ECB officially kicked on QE today helping the German 10-year bund to session highs, while Greece is back in the headlines as Finance Ministers meet in Brussels.