Elizabeth Holmes, founder of blood-testing startup Theranos, has been thoroughly disgraced in the public eye. Falsifying the blood-testing products and bilking investors out of millions of dollars while creating a cult of personality isn't easy.
 | | Good morning. Elizabeth Holmes, founder of blood-testing startup Theranos, has been thoroughly disgraced in the public eye. Falsifying the blood-testing products and bilking investors out of millions of dollars while creating a cult of personality isn't easy. But at least the market moves swiftly once it finds out about fraud.
Uncle Sam is a different story. A federal judge finally ruled that Holmes, indicted on federal wire fraud charges in June 2018, will finally go to trial—on August 4, 2020. That's only 13 months away, but for the government, that's about as fast as a speedy trial can get these days in our litigious society. | | |
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| | |  | DOW 26,717.43 | +0.44% | | | | S&P 2,964.33 | +0.77% | | | | NASDAQ 8,091.16 | +1.06% | | | | | *As of market close | | | • | Stocks rallied on Monday, with the S&P 500 hitting a new all-time high intraday, on word of a trade war "truce" over the weekend.. | | | | • | Oil prices held steady as OPEC members agreed to another nine months of production cuts, and gold fell under $1,400. | | | |
| | | Trade War Truce Sends Stocks Soaring | | 
| | Stocks rally and gold declines heavily on proposed truce. | | The Dow and S&P 500 Index hit record all-time highs during early trading on Monday. Stocks were fueled by reports over the weekend meeting between presidents Trump and Xi at the G20 meetings.
The two leaders announced a truce in the current trade war, with a more detailed proposal to come in the near future.
As a result, most sectors rallied.
» FULL STORY | | | | |
| | OPEC Nations Extend Production Cuts Through March 2020 | |  | | Production set at current levels to keep prices up. | | At a group meeting in Vienna over the weekend, members of oil cartel OPEC agreed to extend their current production cuts through March 2020. This is at the long end of the 6-9 month extension in cuts that had been proposed last week.
Non-OPEC members will also have to sign off on the deal by Wednesday, but key players Saudi Arabia, and non-member Russia is on board with the cuts.
» FULL STORY | | | | |
| | | | Insider Activity: Beacon Roofing Supply (BECN) |  | | Major fund holder adds 4.6 million shares. | | CD&R Investment Associates, already a 10 percent owner, has been adding to its stake in Beacon Roofing Supply (BECN).
Typically, when large investment funds increase their stake, it's because they see the same value as other insiders. However, funds can also acquire board seats and otherwise push a company to make changes it might not otherwise—to the benefit of shareholders.
» FULL STORY | | | | |
| | Unusual Options Activity: Bank of America (BAC) | |  | | Traders betting on rally after Fed approves capital plans. | | Shares of Bank of America (BAC) could move up to 23 percent higher between now and February.
That's based on a surge in volume on the February 21st 2020 $36 calls. Over 1,400 contracts traded on Monday, about a 12-fold increase in the existing open interest on the bank.
Shares are currently around $29.50, so this out-of-the-money trade needs the big percentage move to lock in a profit by the expiration in February.
» FULL STORY | | | | |
| | | • | While markets celebrated the trade war truce, China continues to crackdown on internet freedom, targeting podcast and music apps. | | | | | • | Also in trade war news: Japan will restrict some smartphone materials and chips to South Korea. | | | | | • | Bond ETFs pass $1 trillion in assets for the first time, still seen as a 'huge growth area' for markets. | | | | | • | The bond market is so hot right now that even 100-year bonds are selling without too much of a risk premium. | | | | | • | Warren Buffett donates $3.6 billion in Berkshire stock to five foundations. | | | | | • | Adidas, responding to consumer demand, is making a recyclable shoe after 10 years of research and development. | | | | | • | Colgate, rolling out a recyclable toothpaste tube, only took five years to develop. | | | | | • | In real estate, the suburbs are getting popular again thanks to rising urban costs. | | | | | • | In corporate developments, cosmetics giant Coty takes a $3 billion write-down on P&G Brands. | | | | | • | In earnings, Constellation Brands rallies on earnings beat. | | |
| | | | TOP | | | SWKS | 6.005% | | | | QRVO | 5.96% | | | | WYNN | 5.855% | | | | MCHP | 5.421% | | | | WDC | 4.416% | | | | BOTTOM | | | COTY | 13.508% | | | | LHX | 5.806% | | | | MAC | 3.135% | | | | RCL | 2.591% | | | | CNC | 2.079% | | | | |
| | |  | | Both Trump and XI were playing for time - Trump's demands about opening up China to US agri-goods is simple play for an electoral boost. XI needed the promise of no further tariffs and a Huawei rethink as a sign he's got concessions. Neither side has much to gain politically from pushing swift agreement, (economically is a very different matter, both China and US will still suffer), meaning trade doubts drag on and remain a major market concern through rest of year. | - Bill Blain, on why the trade war truce will likely collapse soon  | |
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