State Street (STT) Offering Possible 8.93% Return Over the Next 21 Calendar Days

State Street's most recent trend suggests a bearish bias. One trading opportunity on State Street is a Bear Call Spread using a strike $62.50 short call and a strike $67.50 long call offers a potential 8.93% return on risk over the next 21 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $62.50 by expiration. The full premium credit of $0.41 would be kept by the premium seller. The risk of $4.59 would be incurred if the stock rose above the $67.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for State Street is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for State Street is bearish.

The RSI indicator is at 74.88 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

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LATEST NEWS for State Street

Charles River Awarded Best Multi-Asset Trading System for Second Consecutive Year
Wed, 25 Sep 2019 21:55:00 +0000
Charles River Development, a State Street Company and provider of the Charles River Investment Management Solution , has been awarded “Multi-asset Trading System of the Year” for the second consecutive year by FOW and Global Investor Group.

Trump Understands What Markets Truly Care About
Wed, 25 Sep 2019 20:23:07 +0000
(Bloomberg Opinion) — Some 24 hours after he sent equities tumbling by using a United Nations address to bash China — accusing it of manipulating its currency and stealing intellectual property just days before planned high-level trade talks — President Donald Trump was at it again. Only this time, he made sure to say the words that would ease concern that all hope was lost when it came to striking a trade deal. In fact, Trump said, a deal could happen “sooner than you think.”The S&P 500 Index promptly erased its losses to surge to its biggest gain in two weeks. But what about talk of impeachment? Investors know that is largely a sideshow better suited for discussion around the office water cooler. Even if the House were to impeach, it’s unlikely the Republican-controlled Senate would vote for removal. The real play, as seen in the move in equities, is betting that the politics in Washington pressure Trump to rapidly de-escalate the trade war by reaching some sort of agreement that he can claim as a victory. A strong stock market would be a powerful weapon for Trump as he attempts to fend off attacks from Democrats, and movement on the trade front would be just the thing to spark animal spirits. The latest monthly survey of global fund managers by Bank of America Merrill Lynch, released last week, showed just how important the trade issue is to markets. It found that the U.S.-China trade war topped the list of investor concerns, with 40% saying it was the biggest risk facing markets. “Markets are way more interested in a trade deal with China,” said Jamie Cox, managing partner for Harris Financial Group. “Now that the Congress is deadlocked into impeachment, the president can close a deal with China to boost the global economy into 2020, just in time for ballots to be cast.”Although the S&P 500 Index is only a few points away from a record high, it’s up less than 4% since late January 2018 when the U.S. said it would impose tariffs on China. There’s definitely a lot of room for investor sentiment to improve. The State Street Global Markets monthly index released Wednesday showed investors remain less confident in the outlook for equities than even during the financial crisis. And its index covering the Americas is lower than those for Europe and Asia. Unlike survey-based gauges, this one is derived from actual trades and covers 15% of the world’s tradeable assets.REPO RUCKUS When the repo market started going a bit haywire last week, with the rate on overnight general collateral repurchase agreements jumping to 10%, the general sense was that the developments were relatively benign and could easily be fixed by the Federal Reserve stepping into the market, just as it had regularly before the financial crisis to provide whatever liquidity was needed. Well, the Fed did just that, but now it looks as if the central bank will have to stay in the market for a bit longer after doubling the maximum size of Thursday’s 14-day term repo operation to $60 billion and increasing the maximum size of the overnight repo operation for Thursday to $100 billion from $75 billion. The implication is that the longer the Fed needs to provide liquidity, the more it seems that the problems in this all-important market are more than just technical. Of course, this market is always skewed around the end of every quarter as banks scramble for cash, so we should know this time next week whether there’s some real problems.A DOLLAR MYSTERYThe U.S. currency soared on Wednesday, with the Bloomberg Dollar Spot Index rising as much as 0.66% in its biggest gain since August 2018. The knee-jerk response is to say this a byproduct of a flight to safety as impeachment talk in the U.S heats up. The problem with that narrative is that it was a general “risk on” day in markets, with equities and credit markets strengthening and U.S. Treasuries and gold dropping along with other traditional “haven” currencies such as the yen and Swiss franc. So, what exactly is going on? One explanation is that the move in the greenback is somehow tied to what is happening in the repo market, reflecting the quarter-end dash for dollars. Another is that maybe traders are doubting whether the Fed will continue to lower interest rates. Chicago Fed President Charles Evans — one of the central bank’s more dovish policy makers — said Wednesday that he doesn’t see the need to cut rates again because two recent reductions should be enough to lift inflation above the central bank’s 2% target. “We’re pretty well positioned now to see how things play out from here,” Evans said. That should explain the big drop in Treasuries and gold.GOLD TARNISHEDGold fell more than 2%, its biggest slide in almost three weeks. Perhaps Trump’s comments on trade and China sparked the initial decline, but bullion’s decline really picked up steam after Evans’s remarks. The reason they hit gold so hard is because the precious metal pays no interest, making it less attractive relative to fixed-income assets in an environment where the Fed may be done easing. And if the Fed is done easing, there’s going to be a lot of disappointed traders who have piled into gold, pushing the tally of outstanding futures contracts to a record Tuesday, according to Bloomberg News’s Justina Vasquez. To be sure, the downside for gold is probably limited as the impeachment inquiry of Trump adds another layer of uncertainty to a long list of concerns that have boosted haven demand for bullion, according to George Gero, a managing director at RBC Wealth Management. Gold has been one of the better-performing financial assets in recent months, rising almost 17% since the end of May to more than $1,500 an ounce.HELLO? IS ANYBODY THERE?Mexico’s Finance Ministry apparently stood up investors and analysts who dialed into a routine call to get details on a $5.4 billion peso-denominated government bond sale. Rather than hearing from the officials, callers were left listening to music before the Finance Ministry sent an email two hours later to reschedule, according to Bloomberg News’s Justin Villamil. A ministry official said that the call failed for technical reasons and that everyone on its side was ready to discuss the bond deal. The episode might otherwise be a humorous footnote, but it’s a particularly sensitive time in Mexico’s bond market. The Central Bank of Mexico is famously hawkish, but the latest inflation data may force it to lower interest rates, Bloomberg News reports. Consumer prices rose an annual 2.99% in early September, the national statistics agency said Tuesday, the smallest increase in three years. That comes after the economy barely avoided sliding into recession in the second quarter.TEA LEAVESThe recent string of strong reports on the U.S. housing market will end on Thursday with perhaps the most important one of all: pending home sales. Data over the past week on housing starts, existing home sales and new home sales have all exceeded economists’ forecasts by a wide margin. But they all reflect activity that has been in the works for months, as anyone who has bought or built a home can attest to the relatively lengthy process from beginning to end. But on Thursday, the National Association of Realtors will release its index of pending home sales for August. The median estimate of economist surveyed by Bloomberg is for an increase of 1%, which would follow a 2.5% drop in July that was the biggest since early 2018. In last month’s report, Lawrence Yun, NAR’s chief economist, said in a statement that “super-low mortgage rates have not yet consistently pulled buyers back into the market.” That’s troubling because mortgage rates were only marginally lower in August compared with July, and if they didn’t lure buyers in July, what’s to believe they did in August — a month when stocks tumbled and the University of Michigan’s consumer sentiment index plunged the most since 2012?DON’T MISS  Why I’m Worried About the Repo Market: Narayana Kocherlakota Impeachment May Be Just What the Stock Market Needs: Conor Sen Are Draghi’s ECB Comrades Seeking Revenge?: Ferdinando Guigliano A Dirty Word Is Driving Economic Change in Japan: Daniel Moss Carbon Taxes Won’t Do Enough to Slow Global Warming: Noah SmithTo contact the author of this story: Robert Burgess at bburgess@bloomberg.netTo contact the editor responsible for this story: Daniel Niemi at dniemi1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

State Street Corporation Announces Date for Release of Third-Quarter 2019 Financial Results and Conference Call Webcast
Tue, 24 Sep 2019 20:15:00 +0000
State Street Corporation plans to release its third-quarter 2019 financial results on Friday, October 18, 2019. The results will be reviewed via webcast and teleconference at 10:00 a.m.

Charles River Announces New Appointment to Strengthen Wealth Management Practice
Tue, 24 Sep 2019 11:00:00 +0000
Charles River Development, a State Street Company, today announced that Randy Bullard has been appointed global head of Wealth Management.

Stock Bulls Are Now the Ultimate Contrarians
Mon, 23 Sep 2019 20:47:05 +0000
(Bloomberg Opinion) — The S&P 500 Index spent most of Monday higher, thanks in part to a couple of second-tier reports on manufacturing that showed  the U.S. economy may not be getting any worse. But with equities already up about 20% for the year and price-to-earnings ratios more in line with a roaring economy than one in slowdown mode, the latest data is hardly enough to quell the feeling that the market may be due for a reckoning.  Such a view would make sense if not for one thing, which may come as a surprise to some: Stock investors are actually a lot more downbeat than the indexes indicate, and that can only be seen as a bullish signal. Some $1.1 trillion shifted out of equities and into bonds and money market funds during the last year, marking the biggest asset-class rotation in history, according to research from quantitative strategists at Sanford C. Bernstein. “If history is a guide then such periods of outflows tend to see somewhat better equity returns over the following six months,” analysts including global head of quantitative strategy Inigo Fraser-Jenkins wrote in a report dated Sept. 23. It’s true: Assets in money market funds have surged by $363.3 billion this year to $3.40 trillion, already making 2019 the biggest year for inflows since 2008, when huge losses in equities, credit and other markets following Lehman Brothers Holdings Inc.’s bankruptcy sent investors fleeing to cash. The State Street Global Markets monthly index shows investors are less confident in the outlook for equities than during the financial crisis. The abundance of pessimism shows that anybody who wanted to reduce their exposure to equities has already done so, limiting the downside. The rebounds from the sell-offs in May and August provide evidence of that. It also suggests that it would probably only take a small amount of optimism on the economy or earnings to get a big chunk of that cash that’s currently sitting on the sidelines to flow back into the market.“This clear lack of demand” for equities “throws cold water on theories of excess exuberance for stocks,” Bloomberg Intelligence equity strategists Gina Martin Adams and Michael Casper, wrote in a research note Monday. The stock market’s “primary vulnerability would be an unlikely spike in interest rates that constrains profit and buybacks.”BANKS SPEND BIG ON BONDSBond traders weren’t impressed with the economic data, as the yield on the benchmark 10-year U.S. Treasury ended flat on the day. At one point Monday, the yield was as low as 1.66%, down from a six-week of high of 1.90% on Sept. 13. Bankers also don’t seem impressed with the data in recent weeks showing the economy may be firming. That is seen in their weekly holdings of super-safe government and agency-related debt, both on an absolute basis and relative to their commercial and industrial loans. Weekly Federal Reserve data released late Friday showed that banks continue to scoop up bonds, owning a total of $2.965 trillion, up about $300 million for the year. Their outstanding commercial and industrial loans, though, have fallen for three straight weeks, to $2.35 trillion. The gap between the two has never been greater, and in most years before the financial crisis, loans exceeded bond holdings. As for the slowdown in loan growth, it may not be due entirely to banks retrenching. Minutes of the Fed’s late July monetary policy meeting noted how banks were, on net, easing standards and terms on commercial and industrial loans, with many citing aggressive competition as the reason for doing so. This suggests that borrowers are pulling back.LIQUIDITY CONCERNS ARE OVERBLOWNLast week’s turmoil in the repo market seems to be rapidly fading. Money market rates held steady on Monday, while a daily Fed operation aimed at keeping funding markets on an even keel was undersubscribed for the first time since Tuesday, according to Bloomberg News’s Alexandra Harris. Given the repo market’s reputation as the essential “plumbing” for financial markets, the recent events sparked concern that some type of liquidity crisis is looming. After all, a sudden shortage of available safe collateral assets such as Treasuries that are used for lending and borrowing in the repo market had been a primary source for the liquidity crisis during the Great Recession as well as in 2011 during the euro zone sovereign debt crisis. But this time, there is little evidence that the ructions in repo are suggesting that anything is systemically wrong in the financial markets. The Bank of America Merrill Lynch Liquidity Risk Indicator has been above zero – a level that indicates less stress in the financial system – since early June, and is in line with the average over the past five years. “The question isn’t what happens over the next three to six days, it’s what happens over the next three to six months,” Gennadiy Goldberg, senior U.S. rates strategist at TD Securities, told Bloomberg News.INDIA STOCKS SOARAnyone who doubts that fiscal stimulus isn’t the cure for what ails slowing global economic growth need look no further than India. After falling on Thursday to its lowest level since early March, the nation’s the benchmark S&P BSE Sensex has strung together its biggest two-day gain since 2009 by rising 8.30%. The spark for the rally was a decision by the government to unveil a $20 billion plan that entails cutting tax rates on businesses to one of the lowest levels in Asia, a move intended to supplement the central bank’s interest-rate reductions and help bolster economic growth from a six-year-low, according to Bloomberg News. Developed-market governments have largely been hesitant to embark on deficit spending to boost their economies despite rumbling from central banks that monetary policy has largely done all that it can, with interest rates in many places near or below zero. The flip side is that such fiscal stimulus tends to weigh on the bond market, boosting borrowing costs. And on Monday, two Indian state-owned lenders withdrew rupee-denominated debt sales amid fears of additional government borrowing to pay for the fiscal spending. The average yield on top-rated 10-year corporate bonds jumped 15 basis points Friday to 7.94%, the biggest one-day gain since January, data compiled by Bloomberg show. The surge mirrored a spike in sovereign bond yields.WHAT OIL RISK? I WANT YIELD This time last week there was a general sense of fear in global markets, as oil futures soared by the most on record following an aerial attack that cut off almost six million barrels of Saudi Arabian daily production. Now, the oil market has calmed down enough that Abu Dhabi went ahead and sold $10 billion of bonds in its first international offering in two years. The offering is a clear bet  by the oil-rich Middle Eastern nation that investors will look past the rising geopolitical risk in the Middle East for an opportunity to grab what is likely to be debt from a quality issuer at attractive relative yields. Its credit ratings are among the highest in the Middle East and Africa, and the cost to insure its debt against default is the lowest in the region, according to Bloomberg News. The new securities will likely be rated Aa2 by Moody’s Investors Service and AA by S&P Global Ratings and Fitch Ratings. “With a fortress-like balance sheet, they can afford to come to market at minimal or no concession,” Patrick Wacker, a fund manager for emerging-market fixed income at UOB Asset Management Ltd. in Singapore, told Bloomberg News.TEA LEAVESU.S. economic data last week showed the big drop in mortgage rates that resulted from the plunge in U.S. Treasury yields is having a positive effect on the housing market. Housing starts in August rose at the fastest pace since mid-2007. Existing home sales rose to the highest in more than a year. Good news, no doubt. But on Tuesday, we will find out whether any of this is doing much to real estate values. The Federal Housing Finance Agency is forecast to say that its house price index rose 0.3% in July, less than the 0.5% average monthly gain the past five years. Also on Tuesday, the S&P CoreLogic Case-Shiller National Home Price index is estimated to show a 2.10% increase in July from a year earlier, marking the 16th straight month during which gains have slowed. The muted action in prices is actually a good sign for the economy, as it shows consumers may be – for once – showing some disciple, which should help soften the blow when the next economic downturn arrives.DON’T MISS U.S. Data's Beating Forecasts. Hold the Applause: Robert Burgess When Fed Fixes Repo Markets, Don’t Call It QE: Brian Chappatta The World's Oil Security Blanket Has Been Torched: Julian Lee National Health Care Might Be Good for Capitalism: Noah Smith India Sends Up the Money Helicopter With Tax Cut: Andy MukherjeeTo contact the author of this story: Robert Burgess at bburgess@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Robert Burgess is an editor for Bloomberg Opinion. He is the former global executive editor in charge of financial markets for Bloomberg News. As managing editor, he led the company’s news coverage of credit markets during the global financial crisis.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

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