Stocks set for mixed start amid inflation concerns
Asian stocks looked set for a mixed start Tuesday as investors continue to digest the prospect of tightening monetary policy to restrain a surge in inflation stoked partly by energy costs.
Futures rose in Japan and Hong Kong and fell in Australia. The $S&P 500 Index (.SPX.US)$and $NASDAQ 100 Index (.NDX.US)$gained overnight, aided by optimism about corporate earnings. U.S. contracts fluctuated.
JPMorgan's Kolanovic says market still misjudges reflation trade
The recent market jitters over stagflation are "misplaced" and the shift to bargain stocks and economically sensitive companies should continue, according to $JPMorgan (JPM.US)$strategists led by Marko Kolanovic.
The economic expansion is likely to stay above trend levels as major central banks appear to prioritize sustaining the recovery over taming inflation, they wrote in a note to clients.
SEC says brokers enticed by payment for order flow are making trading into a game to lure investors
Wall Street's main regulator released its highly anticipated report on the GameStop mania on Monday. The SEC said online brokerages, enticed to increase revenue through payment for order flow, are turning stock-trading into a game in order to encourage activity from retail investors.
"Payment for order flow and the incentives it creates may cause broker-dealers to find novel ways to increase customer trading, including through the use of digital engagement practices," the agency said.
First bitcoin futures exchange-traded fund starts trading Tuesday
The first U.S. bitcoin futures exchange-traded fund launches on Tuesday, a milestone for the cryptocurrency industry. The ProShares ETF will provide exposure to bitcoin futures contracts — agreements to buy or sell the asset later for an agreed-upon price — rather than bitcoin itself. While there's strong demand for the new asset, financial advisors urge caution before adding bitcoin futures ETFs to portfolios.
Microsoft hits first record since August ahead of results
$Microsoft (MSFT.US)$shares rose to their first all-time high in about two months on Monday, with the software company emerging as the first mega-cap stock to return to record levels after concerns over rising bond yields pressured the group in recent weeks. The stock rose 1% to $307.28, hitting its first intraday record since Aug. 20.
Rent the Runway targets valuation of up to $1.5 nillion in IPO
Rent the Runway Inc. is seeking a valuation of as much as $1.5 billion in its initial public offering next week, in what would cap a comeback for the clothing-rental business.
The New York company is aiming to sell shares at between $18 and $21 apiece for a fully diluted valuation of $1.24 billion to $1.46 billion, it said in a securities filing Monday. The roadshow for company management and their underwriters to pitch the shares to potential investors begins Tuesday and the shares are to start trading on the Nasdaq Stock Market next Wednesday.
State Street profit increases 29% on more assets, market gains
$State Street (STT.US)$posted a better-than-expected quarterly profit, as market gains and new business wins lifted revenue. The custody bank’s shares were up 3% in midafternoon trading.
State Street's net income rose 29% to $714 million, or $1.96 a share, in the third quarter. Analysts polled by FactSet had predicted a $1.92 profit. Revenue climbed to $2.99 billion from $2.78 billion in the year-ago period. Analysts expected $2.96 billion.
No. 1 uranium miner backs physical fund in nod to robust demand
Kazatomprom, the world's largest uranium miner, is backing a new uranium fund that aims to invest in the radioactive metal used to power nuclear reactors.
Shares of uranium companies jumped Monday, lead by and $Cameco (CCJ.US)$, based in Saskatoon, Saskatchewan, rose as much as 8.5% in Toronto trading, while $Lakewood Exploration Inc (LWD.CA)$, Colorado-based Energy Fuels gained 9.1% in New York.
Source: Bloomberg, WSJ, CNBC