10 things you need to know before the opening bell

Here is what you need to know.

  1. The global-market rebound continues as US-China trade talks press on. The S&P 500 was set to open up 0.7% after Japan’s Nikkei (+0.87%) led the gains in Asia and Britain’s FTSE (+0.88%) was out front in Europe.
  2. Beijing’s next stimulus could be buying Chinese stocks.The People’s Bank of China could take a page from the Bank of Japan and begin direct purchases of locally-listed shares, according to Nomura’s Global Markets Research team.
  3. Wall Street is telling clients to get defensive.“Strategically, we recommend investors increase portfolio defensiveness,” a team of Goldman Sachs strategists led by David Kostin told clients Monday. “Cash allocations are at or near the bottom of their 30-year historical distribution for many investors.”
  4. An investor who crushed 99% of his peers last year shares his top picks of 2019. Kyle Weaver, who oversees $US5 billion as lead manager of the Fidelity Advisor Growth Opportunities Fund, says one company is “beating Amazon at its own game.”
  5. Hedge-fund billionaire Seth Klarman could be facing big losses on an ill-timed PG&E bet. PG&E, the embattled California utility that may be reponsible for the most deadly wildfire in California history, cratered more than 22% Monday, and Klarman’s Baupaust hedge fund bought nearly 14.5 million shares during the third-quarter, potentially leading to a loss of nearly $US300 million. It’s unclear if Baupost sold any or all of the position.
  6. ‘Big Short’ investor Steve Eisman joins the chorus of those sounding the alarm on rising corporate debt.Eisman’s concerns center on the major banks having cut the amount of trading capacity they have for BBB-rated debt, which will make it harder for hedge funds and assets managers to sell when the next recession comes, causing them to do so at a big discount, according to the Financial Times.
  7. Ousted Nissan exec Carlos Ghosen appears in court.“I have acted honorably, legally, and with the knowledge and approval of the appropriate executives inside the company,” Ghosen said, according to The Wall Street Journal.
  8. Samsung pins profit plunge on weak China demand.Samsung’s quarterly profit fell 29%, the first drop in two years, as a slowing Chinese economy led to weaker demand, Reuters reports.
  9. Nvidia spikes after unveiling new chips.Shares gained more than 5% Monday after the chipmaker unveiled GeForce RTX 2060, making its new Turing architecture accessible to laptop gamers.
  10. US economic data flows. JOLTS Job Openings will be released at 10 a.m. ET and consumer credit will cross the wires at 3 p.m. ET. The US 10-year yield is unchanged at 2.69%.

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