Tesla left out of S&P500, Softbank the 'Nasdaq whale' & Japan GDP

US stock exchanges are closed for Labour Day, Tesla has been left out of the S&P 500, Softbank identified as the ‘Nasdaq Whale’ and Japan reports Q2 GDP.

 

Labour Day in the United States should necessarily mean a quieter day for investors given the lower volumes but it doesn’t always have to be the case.

 

But since Wall Street is offline it means we’ll have to wait another day to see the reaction to the latest news around the tech sector. The S&P 500 index committee leaving out Tesla in favour of Etsy and two others, I would say was the mostly likely result.

 

Still, I think there was a cohort of Tesla bulls who had been hoping to drive up the share price and sell the shares to index funds, who would have to buy once Tesla was in the index- leaving them holding the bag as it were with overpriced shares. That group really has two options come Tuesday, dump the shares or hold out for the next index reshuffle in 3 months.

 

And again, we will have to wait until Tuesday to see if the great tech unwind that began last week ends of picksup steam after website Zerohedge first reported and the Financial Times wrote up a story that Softbank was the so-called ‘Nasdaq whale’ that had been buying huge amounts of call options on big tech, supposedly also driving up the shares prices when dealers hedged.

 

Later in the day and into Tuesday, depending where you are we also have the latest iteration of Japan Q2 GDP. The data is expected to have deteriorated from the preliminary release to show a minus 8.1% contraction q/q from minus 7.8%.

 

Probably more relevant for the Japanese yen though was frontrunner from the PM job and Cabinet Secretary Yoshihide Suga saying he approves of- and would continue if he were PM- the ultra-easy monetary policy of the BOJ’s Kuroda.

 

Good luck trading today and don't forget to subscribe to the MorningFlow newsletter to get these videos delivered to you every weekday morning.

 

 

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