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T3's Take 3: The Scent of Eastern Stimulus Wakes Up the World


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

Jeff Cooper, author of the Daily Market Report, took on several short positions today. He initiated positions in Cynosure Inc (CYNO), Imperva Inc (IMPV), and Kate Spade Inc (KATE). As of the close today, he is up on all three positions.

Click here to learn more about the Daily Market Report

Stimulus in Asia

Japan and China greet investors with some much-appreciated stimulus activity overnight.

Japan's Prime Minister Shinzo Abe stated he would seek to lower the corporate tax rate by at least 3.3% during the next financial year to help boost the economy.

This news pushed the Nikkei to see its biggest one-leap since 2008 with a surge of 7.7%.

Over in China, the government said it will step up on fiscal policy reforms. It also announced that it will speed up major construction projects, increase public-private partnerships (PPP), and standardize municipal government management and reform taxes.

Investor confidence was further helped by the state purchasing shares in mainland markets. The Shanghai Composite closed up 2.3%.

World Equity Markets

The stimulus programs in Japan and China helped to fuel surrounding markets in Asia. Nearly all major emerging markets within the region rallied more than 1%. The Hong Kong Hang Seng rallied 4.10%, the Korean Kopsi rose 2.9%, and Taiwan's Taiex gained 3.6%.

Europe rallied off the gains in Asia. The German DAX finished up 0.31%, while the French CAC jumped 1.44%. Euro-bond yields rose slightly from the rally.

US markets initially followed suit with the S&P 500 opening up 1%. Gains were short-lived though as the index fell into negative territory after early weakness in biotechnology and other risky sectors.

The S&P closed down 1.4%, with the NASDAQ dropping 1.2%.

Job openings data came in better than expected, which the Fed may factor into its rate decision next week.

Oil was also a factor as it fell for the third day.

US crude oil stockpiles rose, inciting worries about the global supply surplus.

The Apple Conference

Apple (AAPL) held its annual Apple's iPhone Event today. CEO Tim Cook introduced a slew of new products including the new iPhone 6S, Apple TV, and iPad Pro products.

The new iPhone 6S line was the center of attention and included upgrades to its camera and finish. 

The Apple TV saw more changes. A new OS named TVOS, was announced, and the company revealed a major initiative for TV apps.

The iPad Pro includes a 12.9" screen and options for a keyboard and pen, allowing it to compete with notebook PC's.

But overall, the event didn't include any major surprises, and most obververs weren't terribly impressed.

Apples shares rallied as much as 1.5% before the conference, but began once it started, which isn't unusual behavior for Apple events.
Apple shares closed down 1.9%.

Thursday's Financial Outlook

US economic data for tomorrow will include the import price index, initial jobless & continuing claims, Bloomberg consumer comfort, Wholesale inventories, EIA natural gas reports, and DOE oil reports.

Overseas economic data will include the Bank of England's rate decision and asset purchase target, and Canada's new housing price index.

Lululemon Athletica (LULU) will release its earnings report before the open tomorrow. Finisar (FNSR), and Restoration Hardware (RH) will release their earnings reports after the close.
No positions in stocks mentioned.
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