The global economy has faltered, but has plateaued and will get better next year, on a combination of an expected reduction in trade tariffs and the lagged impact of interest-rate cuts. As a result, stocks keep grinding higher and notching records—on Monday, the S&P 500 SPX, -0.24% registered its 23rd such peak of 2019.
No surprise, then, that Davis isn’t terribly optimistic about financial markets, citing heightened policy uncertainties, late-cycle risks and stretched valuations. “Our near-term outlook for global equity markets remains guarded, and the chance of a large drawdown for equities and other high-beta [more volatile] assets remains elevated and significantly higher than it would be in a normal market environment,” Davis says in the call of the day.
Medicines Co. MDCO, +18.52% rose in premarket trade as Bloomberg News reported the maker of cholesterol drugs may get a takeover bid from Novartis NVS, -0.23%. At the Dubai air show, a Kazakhstan carrier signed a letter of intent to buy 30 737 Max jets from Boeing BA, +0.52%, and the Wall Street Journal reported that 20 more planes were ordered by an unspecified buyer.
Housing starts data for October was nearly in line with forecast. New York Fed President John Williams will speak at a capital markets conference.U.S. stock futures ES00, -0.07% YM00, -0.27% pointed to a stronger start, though the Home Depot miss took them off their highest levels of the session. Read Market Snapshot.