Category: Finance

Goldman Sachs to investors: Fears of a disputed election or delayed outcome are overblown

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Why healthcare stocks may be poised for a breakout year post-election

Ever since 2019, the healthcare sector has been white-knuckling and preparing itself for what may be a volatile and uncertain election year for stocks. But according to UBS, 2020 is shaping up to look a whole lot like 2009 for the sector—which could actually help put some investors’ minds at ease.

Historically, “the market reaction has been largely to sell much of the healthcare sector, lowering valuations until clarity arrives after the election,” UBS’s Americas healthcare analyst Eric Potoker wrote in a note Tuesday. “The market’s current treatment of healthcare stocks falls into that familiar pattern.”

Potoker argues the “most relevant” comparison for how the healthcare sector is shaping up today is the 2008-9 election, when, in early 2009, President Obama “made health reform a legislative priority, and a dark cloud enveloped the sector.” But instead of massive, painful reforms to the sector that hurt healthcare and insurance stocks, he … Read More

Investors send markets higher even as COVID concerns grow

This is the web version of the Bull Sheet, Fortune’s no-BS daily newsletter on the markets. Sign up to receive it in your inbox here.

Good morning, Bull Sheeters. Tuesday’s bounce-back in the U.S. is proving infectious, lifting global markets and U.S. futures today. That’s despite worrying COVID case numbers and the renewed tightening of business restrictions to battle the pandemic. Meanwhile, Nike shares just keep doing it. The sportswear giant scored a mega beat yesterday.

Let’s see where investors are putting their money.

Markets update

Asia

  • The major Asia indexes are mostly clinging to their gains in afternoon trading, with Shanghai up 0.2%.
  • In a surprise announcement, China’s Xi Jinping pledged to go carbon neutral before 2060. If the world’s biggest polluter can go go green it would be a “game changer” for the planet, one former diplomat says.
  • Several indicators show China could be on
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Feds’ ‘stablecoin’ letter may boost crypto ambitions of Facebook, Square

The federal agency that oversees banks issued a letter on Monday that gives financial institutions a green light to hold reserves to support so-called stablecoins—digital currencies similar to Bitcoin that are backed on a one-to-one basis by real world money.

While stablecoins have existed for years, their popularity has soared in recent months both in cryptocurrency circles, and among businesses that have embraced them as an efficient way to settle international transactions.

In its letter, the Office of the Comptroller of the Currency (OCC) stated that U.S. banks can lawfully hold the fiat currency reserves of companies that issue stablecoins, provided those firms comply with federal banking laws.

According to Jeremy Allaire, the CEO of cryptocurrency firm Circle—which has issued a stablecoin called USDC alongside crypto giant Coinbase—the letter will provide legal cover for tech and finance companies that are experimenting with stablecoins.

Allaire pointed in particular to … Read More

Ford, just admit it: You’re a truckmaker now

Ford Motor Co. prides itself on thinking big. The 117-year-old icon’s long-running strategy centers on preserving its status as a universal nameplate serving all the world’s major geographies and offering a wide array of vehicles from subcompacts to luxury SUVs, in a variety of flavors soon to widely encompass electric. 

But it’s a company that’s sliding: After posting $7.4 billion in profit in 2015, Ford’s earnings barely broke even last year, and that was before COVID-19 and its subsequent lockdowns took a sledgehammer to its North American profitability. In the second quarter of this year the company lost nearly $1 billion in the region. Jim Hackett was ousted as CEO shortly after, and a new round of buyouts was announced.

New CEO James Farley, who was promoted from chief of operations, has a monumental challenge on his hands but also has everything he needs to make Ford a success, if … Read More

This stock market metric has never been further out of whack

© 2020 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell My Info | Ad Choices 
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html.
S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions.

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