With midday trade underway after the midterm elections, Remy Blaire talks with FINTECH.TV contributor Errol Coleman, live from the trading floor, about where the market stands. Coleman says all eyes are still on volatility. He says volatility rose last night amid uncertainty, and that now that the outcomes have been resolved, volatility has collapsed and fear in the market has declined rapidly. He adds that the market still feels very unstable and that over the next couple of weeks traders will watch whether things stabilize and consumer confidence returns.
Blaire turns to Qualcomm, which has signed a deal with SpaceX to provide cellular infrastructure for the Starlink 5G network and is set to report earnings today after the close. Coleman says Qualcomm is pricing in about a 12.5 point move to the upside or downside, which gives a sense of the volatility to expect over the next 24 to 48 hours. He describes the agreement as a multi-year deal to build Starlink’s mobile terrestrial 5G network.
Coleman also notes the ongoing conversation about a possible merger between Tesla and SpaceX, says he is excited about it, and says the attention is on Elon Musk and these companies right now. He says that once consumers see how the market responds to Qualcomm’s earnings, activity in these markets will most likely pick up.
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Remy Blaire: And with midday trade underway following the midterm elections, let’s go ahead and [unclear: “open next to the media”]. Contributor Errol Coleman joins us live from the trading floor. Hi. Thank you so much for joining us. We are looking at the broader equity market following the midterms. So what activity are you following in midday trade?
Errol Coleman: Yeah, right now it’s still going to be all eyes on volatility, Remy. Again, last night we saw an increase in volatility with all the uncertainty in the market. And uncertainty breeds fear. And this is another reason why we see volatility be elevated whenever there’s an uncertain outcome. And now that these uncertain outcomes have been resolved, we’ve seen that collapse in volatility, that fear in the market has declined rapidly as we get these data points coming out after the election.
So it’s going to be all eyes on volatility. The market still feels very unstable. So into the next couple of weeks, as we get to the end of this week, Remy, we’re going to see if things stabilize a bit here and if that consumer confidence starts heading back into the market.
Remy Blaire: Yeah. And as you mentioned, a lot of moving parts here when it comes to the broader markets. And we’ll also be continuing to watch the other asset classes in addition to the equity markets. But Qualcomm did ink a deal with SpaceX to provide cellular infrastructure for the 5G Starlink network. And the tech company is also set to post earnings today after the close. So what are prediction markets saying about Qualcomm ahead of earnings?
Errol Coleman: Yeah, you know, it’s funny, right? Elon has his hands pretty much in every sector. We’re getting flying cars, right? He has the Wi-Fi, the Starlink. And he’s been making some interesting deals with names like Qualcomm. Qualcomm reports earnings today. [unclear: “by the end of this week”] Qualcomm is pricing in about a 12.5 point move to the upside or downside, just to give us an idea of the volatility we can expect over the next 24 to 48 hours.
But I think this deal is going to be interesting, right? Qualcomm has signed a multi-year agreement with SpaceX to build its Starlink mobile terrestrial 5G network. Now, there’s a lot of conversation about Elon Musk and Tesla merging with SpaceX. Now SpaceX is in more conversations with Qualcomm. So the attention is on Elon and a lot of these companies right now. I’m excited about this merger. Let’s see if this goes through.
And I think once consumers can see how the market is going to respond after Qualcomm’s earnings, [unclear: “the aggression and the volume”] that we see in these markets will most likely pick up. But we’re going to keep our eyes on it.
Remy Blaire: As well as the rest of the week. Thank you so much for weighing in.