Seemingly unrelated areas of the market are trading in the same direction more frequently than normal, a trend that some investors say is contributing to recent volatility and could drive more gyrations in the future.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
PLANNING & INVESTING
Target’s Stock Is Rallying Like It’s 2009: The retailer’s shares have climbed 21{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} so far this month, with the rally picking up pace after it reported another quarter of strong sales. If that holds through the end of the week, Target will end August with its best monthly performance since March 2009, as well as cement its status as the best-performing stock in the S&P 500 for the month.
MARKET TALK
From Dow Jones Newswires
Investors are starting to hedge against interest rate swaps–a hedge against rises in the London interbank offered rate in a floating rate loan–as they face higher costs in the event that Libor turns negative, says Rhona Macpherson, associate director at JCRA. Interest rate caps setting an upper limit for Libor or the inclusion of a Libor floor on the floating leg of an interest rate swap are some of the tools available to hedge against the possibility of negative rates in the U.K. Libor, which is set to expire in 2021, is calculated by asking banks how much it would theoretically cost them to borrow money from other banks.(lorena.ruibal@wsj.com; @lorena_rbal)
The sharp Brexit-related falls in sterling have the potential to make U.K. shares a more attractive investment, as stocks in British companies become “even cheaper” for international buyers, says Adrian Lowcock, head of personal investing at investment platform Willis Owen. A weaker pound also improves profitability as it boosts the bottom line of companies which earn their revenues in foreign currencies and convert them into sterling, he says. The FTSE 100 is last up 0.1{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6}, or 9.17 points, at 7098.75, as the pound loses 0.6{01de1f41f0433b1b992b12aafb3b1fe281a5c9ee7cd5232385403e933e277ce6} against the U.S. dollar and the euro.(lorena.ruibal@wsj.com; @lorena_rbal)
BUSINESS & PRACTICE
Airbnb Muscling Aside Brokers for Hamptons Summer Business: Many renters search online for home-listing sites, seeking shorter stays at upscale Long Island properties.
IMPACT INVESTING
Plastics Backlash May Hobble Oil Companies’ Pivot to Chemicals: Oil-and-gas companies should think twice about ramping up petrochemical production, which is used to make plastic, amid mounting regulations and public pressure on water pollution, MSCI says. The ESG index giant says oil-and-gas companies are expected to pivot to petrochemicals since demand for road transport could peak in 2025, but plastic could prove a so-called stranded asset as alternative, eco-friendly materials become widespread.
TALKING POINTS
Jeffrey Epstein’s Road Through Wall Street Was a Bumpy One: Jeffrey Epstein worked closely with some of the world’s largest investment banks to build a fortune of more than $500 million. But he cut a course through Wall Street that was marked by disagreements, lawsuits and acrimony.
TRAVEL & LIFESTYLE
Nantucket Homeowners Shake Last Call by Building Their Own Bars: The island’s wealthiest property owners are chasing the ultimate home-bar experience with kegerator cooling systems, wine refrigerators and ice machines for cocktails.
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SOURCE: MoneyBeat – Read entire story here.
