Wall Street is undecided about trying for another rally on Friday, according to early trading in futures. That\u2019s in keeping with the struggle it has been of late, with the S&P 500
\n SPX
\n down six of the last eight sessions amid August\u2019s bearish tendencies.<\/p>\n
Some technical factors are causing concern. The Nasdaq 100 Over the same short period, the yield on the 10-year Treasury So, what\u2019s an investor to do amid such uncertainty? Well, buy the companies that help traders to trade it, reckons VGI Partners, the Australia-based fund manager. In it\u2019s semi-annual investor letter, covering performance to the end of June, VGI highlighted the top ten long investments in its Global Investments fund , three of which provide, to varying degrees, what may be termed the plumbing of the financial markets.<\/p>\n With a weighting of 7% is the London Stock Exchange Deutsche B\u00f6rse represents about 8% of the portfolio and is deemed atractive says VGI because it provides trading, clearing, pre\/post-trading and data and analytic services in four key operating segments: Trading & Clearing, Fund Services, Security Services and Data & Analytics.<\/p>\n <\/p>\n DB is a \u201cwell-diversified exchange group whose activities touch on most aspects of European capital markets, offering a blend of transactional and non-transactional revenue exposure,\u201d VGI adds.<\/p>\n But top holding is CME Group VGI particularly likes CME\u2019s \u201ceffective monopoly\u201d of trading in interest rate derivatives. \u201cDemand for interest rate derivatives is driven by volatility in interest rate markets, whose effect is compounded by the number of bonds held by those looking to manage interest rate risk and, by extension, market liquidity,\u201d the fund manger notes. And the chart below illustrates this strong relationship. <\/p>\n <\/p>\n VGI expects the growth in the size of the U.S. Treasury market, particularly in relation to privately held US treasuries as the Fed undergoes a balance sheet unwind, to provide important support to a CME\u2019s interest rate derivatives business. CME should also benefit \u2014 as are other exchanges \u2014 from a boost to net interest income from the collateral balances it holds. <\/p>\n \u201cWe believe that CME\u2019s assets are critical pieces of market infrastructure and will be recognized as such in the future,\u201d VGI concludes.<\/p>\n <\/p>\n U.S. stock-index futures YM00, NQ00, Try your hand at the Barron\u2019s crossword puzzle and sudoku games, now running daily along with a weekly digital jigsaw based on the week\u2019s cover story. To see all puzzles,\u00a0click here.<\/strong><\/p>\n Economic data on Friday, include the July producer price index report, due at 8:30 a.m., and the August consumer sentiment reading at 10 a.m.. Both times Eastern.<\/p>\n UBS Group The pound Country Garden shares Shares of Cano Health Inc.\u00a0 Countries must unite to stave off the threat of a deep-sea resource grab.<\/p>\n Diamonds are on sale. They won\u2019t be forever.<\/p>\n Regulators open floodgates for driverless taxis in San Francisco, whether they\u2019re wanted or not.<\/p>\n Just a reminder from Christopher Wood, global head of equity strategy at Jefferies, of why some investors are getting twitchy about the recent rally in oil pries because of how it may clobber the happy narrative that major central banks can soon stop raising interest rates. <\/p>\n <\/p>\n \u201cThe correlation between the Brent crude oil price and the five-year forward inflation expectation rate has been 0.88 since 2011,\u201d says Wood. \u201cThis is potentially an awkward development in the context of the prevailing narrative that both the Federal Reserve and the ECB are all but done in this tightening cycle even if the official mantra in both cases remains \u2018data dependent\u2019.\u201d<\/p>\n Here were the most active stock-market tickers on MarketWatch as of 6 a.m. Eastern.<\/p>\n A nice new home for Jeff.<\/p>\n Eight legs, nasty bite, big embarrassment.<\/p>\n The theoretical physicists are at it again: something may exist.<\/p>\n
\n NDX
\n is in danger of decisively falling back below its 50-day moving average support trend. Apple
\n AAPL,
\n
\n did so a week ago, and now its relative strength index, a gauge of momentum, has swiftly dropped to 30, signaling the stock may soon enter short-term oversold territory.<\/p>\n
\n BX:TMUBMUSD10Y
\n has twitched within a range of roughly 4% to 4.2% as investors try to get a handle on varying inflation and economic growth readings.<\/p>\n
\n LSEG,
\n
\n which VGI is keen to point out has transformed from a traditional exchange into a data and analytics group. After its purchase of data group Refinitiv in 2021, the LSE now generates only 3% of revenues from its legacy cash equities exchange.<\/p>\n
\n CME,
\n
\n with a 9% weighting. CME operates futures and derivatives exchanges, including the Chicago Mercantile Exchange, the New York Mercantile Exchange, the Chicago Board of Trade, and the Dow Jones Index Services.<\/p>\nMarkets<\/h2>\n
\n ES00,
\n
\n
\n
\n are little changed as benchmark Treasury yields
\n BX:TMUBMUSD10Y
\n dip. The dollar
\n DXY
\n is lower, while oil prices
\n CL.1,
\n
\n slip and gold
\n GC00,
\n
\n gains.<\/p>\nThe buzz<\/h2>\n
\n UBS,
\n
\n has terminated a 9 billion Swiss franc ($10.27 billion) loss-protection agreement and a CHF100 billion public-liquidity backstop guaranteed by the Swiss government that were put in place at the time of its takeover of troubled rival Credit Suisse.<\/p>\n
\n GBPUSD,
\n
\n rose back above $1.27 after data showed the U.K. economy grew 0.5% in June, more than twice the 0.2% expected.<\/p>\n
\n 2007,
\n
\n fell nearly 6% to below HK$1 for the first time as China\u2019s biggest homebuilder warned of a loss and suffered another ratings downgrade of its debt.<\/p>\n
\n CANO,
\n
\n are down more than 50% in Friday\u2019s premarket after the primary-care provider and health-management platform said there was \u201csubstantial doubt\u201d about its ability to keep operating.<\/p>\nBest of the web<\/h2>\n
The chart<\/h2>\n
Top tickers<\/h2>\n
\n
\n \n Ticker<\/p>\n<\/td>\n \n Security name<\/p>\n<\/td>\n<\/tr>\n \n \n TSLA,
\n \n Tesla<\/p>\n<\/td>\n<\/tr>\n \n \n MULN,
\n \n Mullen Automotive<\/p>\n<\/td>\n<\/tr>\n \n \n AMC,
\n \n AMC Entertainment<\/p>\n<\/td>\n<\/tr>\n \n \n NIO,
\n \n Nio<\/p>\n<\/td>\n<\/tr>\n \n \n WE,
\n \n WeWork<\/p>\n<\/td>\n<\/tr>\n \n \n NVDA,
\n \n Nvidia<\/p>\n<\/td>\n<\/tr>\n \n \n GME,
\n \n GameStop<\/p>\n<\/td>\n<\/tr>\n \n \n TTOO,
\n \n T2 Biosystems<\/p>\n<\/td>\n<\/tr>\n \n \n AAPL,
\n \n Apple<\/p>\n<\/td>\n<\/tr>\n \n \n NKLA,
\n \n Nikola<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Random reads<\/h2>\n