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AI Is NVIDIA’s to Lose, Says Jefferies, Upping PT


AI Is NVIDIA’s to Lose, Says Jefferies, Upping PT

By Donna Fuscaldo | October 23, 2017 — 12:38 PM EDT

Graphics chip maker NVIDIA Corp. (NVDA) has more room to climb even if it’s one of the best-performing stocks of this year and it has artificial intelligence to thank for more of a surge in the stock.

That’s according to Wall Street investment firm Jefferies, which reiterated its buy rating on shares Monday and lifted its price target to $230 from $180 a share. In a research report, Jefferies analyst Mark Lipacis said the company’s Volta chip is becoming popular for AI applications, which bodes well for the company and its stock. In fact, the analyst thinks the strength of demand for Volta will result in “upside surprises over the next 18-24 months,” the analyst wrote in a research note to clients covered by CNBC. NVIDIA launched the Volta chip in May.

At $230 a share, Jefferies thinks the stock could gain an additional nearly 17%. So far this year it is up more than 88%. Recently NVIDIA was trading down 0.03% or $0.06 to $196.84 a share. As CNBC pointed out, the stock is way higher than the S&P 500, which as of Friday was up 20%. (See also: Bill Gates Responds to Musk’s AI Concerns.)

Garnering Dominance

The way Lipacis sees it, the AI market is NVIDIA’s to lose, with the company likely to control 80% of the share over the long haul. He likened the chipmaker’s prospects in AI to Apple Inc. (AAPL) and Microsoft Corp. (MSFT) in the PC and smartphone markets. Both were able to garner dominant positions in those marketplaces that continues to today. The analyst thinks NVIDIA will have EPS of $4.12 for fiscal 2019, which is higher than the $4.00 a share Wall Street is looking for. Lipacis is the latest in a laundry list of Wall Street analysts that have been getting increasingly bullish on the graphics chip company and its stock. (See also: Goldman Gets Even More Bullish on NVIDIA.)

Just last week Mizuho USA hiked its price target to $220 a share from $180 a share owning to the strength of cryptocurrency and PC gaming. In a research note to clients, Mizuho analyst Vijay Rakesh said shares NVIDIA will continue to benefit from “strong underlying trends in cryptocurrency and gaming” that are ahead of even the company’s expectations.

“We believe NVDA continues to see strong GPU [graphics processing unit] trends in cryptocurrency and gaming. GPU pricing remains up post-launch (of its new graphics chip) given shortage and strong demand,” wrote the analyst. NVIDIA has been benefiting all year from a diversification strategy that finds itself playing in fast-growing markets including AI, cryptocurrency, the data center and self-driving vehicles.


Published at Mon, 23 Oct 2017 16:38:00 +0000

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How to invest without losing money

by stevepb from Pixabay

 How to invest without losing money


When it comes to investing, realize that risk and reward tend to move in opposite directions. If you take more risks, you run a larger chance of losing your money, but you often have a higher upside.

It’s possible to invest without losing money. In the current market, where interest rates are very low, any investment guaranteed to not lose money will have a very small return.

For most people thinking about investing, the goal is to minimize the potential for losses while maximizing how much you might make. Exactly how you do that — and where you put your money — depends a lot on what type of investor you are, and what your goals are.

There is no one answer

A 67-year-old looking to live off his or her investments has different needs from a 22-year-old planning to work about 45 or so years. In addition, someone with a lot of excess income has different needs from someone struggling to make ends meet.

Whether you’re starting small, even with a few dollars each week, you’ll want to have a diverse portfolio. That means owning not only stocks, but also bonds, cash, and even alternatives such as shares in a real estate investment trust (REIT).

Even within your stock portfolio, you’ll want to diversify. That means owning shares of companies in multiple industries, as well as shares in operations of multiple sizes. By not having all your eggs in one basket, you give yourself protection against outside forces. For example, an event that hurts oil stocks — perhaps a breakthrough in electric-car technology — may benefit shares in parts of the technology sector.

How to be safe

The safest way to invest without losing money is buying cash equivalents. Money markets, Treasuries, certificates of deposit (CDs), and corporate bonds offer generally stable returns with very limited risk, and in some cases no risk at all. The problem is that safety comes with a price.

CDs, to examine one cash equivalent, constitute an agreement in which you give your money to a financial institution for a period of time in exchange for a set interest rate. Perhaps you will receive 2% for a 12-month CD and slightly more for longer periods. These are safe investments, but they also have no upside beyond whatever interest rate you’re being paid.

Is the stock market safe?

Investing in individual stocks comes with risks. A company can lose value, or it can even go bankrupt. In the long run, however, the market itself has steadily gone up.

Investing for the the short term comes with risk. Any company, even a very good one with a long history, can experience a big drop in share price, sometimes for reasons it doesn’t control.

In the long run, however, those blips don’t matter. Over 10 years, 20 years, or even longer, the market rises. Either build a diverse portfolio with which, over time, even your mistakes will be covered up, or buy index funds that track a particular market segment, or even an entire exchange.

Most importantly, perhaps, when you buy individual companies, follow the classic saying “buy what you know.” That means, don’t chase trends or follow tips from someone else if you don’t understand what you’re buying.

Start with the companies you love — the ones with which you happily do business. You don’t need to know the ins and outs of a company’s financials, but it’s also smart to read up before buying. See what the company says about its plans and prospects while also looking at whether outside analysts agree with those statements.

Time is your friend

If you have money you expect to need in the next 12 months, keep it in cash, ideally in an account with no fees that pays interest, even though the amount paid will be tiny. Even that seemingly safe investment runs the risk that your cash will lose buying power because of inflation, but in that scenario, you’ve lost value but haven’t technically lost money.

The reality is that there’s no entirely safe way to invest that offers attractive returns. Instead, there are ways to manage how much risk you have and mitigate any short-term volatility by having a long-range outlook.

Investing in the stock market gives the average person the best chance of achieving significant long-term gains. Having a diversified portfolio is important, but the real secret ingredient is time.

Manage your portfolio, tend to it, add stocks, and even sell shares if something fundamentally changes at a company you once believed in. Don’t, however, worry about whether your portfolio or shares in a company you own experience a downturn in the short term. Be involved and informed, but be patient. History shows that over time, your patience will pay off.


Published at Mon, 23 Oct 2017 15:02:59 +0000

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Premarket: 7 things to know before the bell


Premarket: 7 things to know before the bell


premarket monday
Click chart for more in-depth data.

1. Japan election landslide: Investors are cheering a clear election victory by the ruling coalition of Japanese Prime Minister Shinzo Abe.

The Nikkei stock index added 1%. Abe said Monday that his Liberal Democratic Party had won an outright majority in parliament.

Japan’s benchmark index has more than doubled since Abe came to power in 2012 and implemented his “Abenomics” economic reform program.

The reforms, coupled with major action by the country’s central bank, have helped push down the value of the yen.

The Nikkei and yen often move in opposite directions because the index is heavy on exporters that benefit from a cheaper currency.

2. Chaos in Catalonia: The euro dropped against most major currencies as Catalonia spiraled deeper into political crisis. Spain’s benchmark stock index opened 0.7% lower.

Spanish Prime Minister Mariano Rajoy announced on Saturday that he plans to dissolve the Catalan parliament and remove the region’s elected leaders.

Catalan leaders insist they will reject any attempt by Madrid to impose direct rule.

3. Europe’s populist threat: Billionaire tycoon Andrej Babis won a general election in the Czech Republic by a significant margin on Saturday.

His success is the latest example of electoral gains by populist forces opposed to further European Union integration. Populists have also performed well in recent German and Austrian elections.

The blue chip PX index in Prague opened 0.4% lower and the Czech koruna was down against most major currencies.

4. Global market overview:U.S. stock futures were flat.

European markets opened mostly down, while Asian stocks ended the session mixed.

The Dow Jones industrial average rallied 2% last week and closed at a new record on Friday.

The S&P 500 and the Nasdaq also ended the week at all-time highs.

Before the Bell newsletter: Key market news. In your inbox. Subscribe now!

5. Stock market movers: General Electric(GE) shares were lower premarket after it reported earnings last week that revealed its troubles are deeper than investors initially thought.

6. Earnings and economics:Halliburton(HAL), Hasbro(HAS), Kimberly-Clark(KMB) and Philips(PHG) will release earnings before the open, while Knoll(KNL), Logitech Intl SA(LOGI) and Whirlpool(WHR) will follow after the close.


7. Coming this week:

Monday — Hasbro
Tuesday — AT&T, GM, Chipotle, Lockheed Martin, Caterpillar and McDonald’s earnings
Wednesday — Coca-Cola, Walgreens, Boeing and Visa earnings; ECNY luncheon with Wilbur Ross
Thursday — Mattel, Twitter, Alphabet, Microsoft, Intel, Comcast, Ford, Southwest, American Airlines, Hershey, Xerox and Amazon earnings; ECB rate decision
Friday — ExxonMobil, Chevron and Merck earnings; U.S. Q3 GDP


Published at Mon, 23 Oct 2017 09:07:04 +0000

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Top And Bottom Performing Stocks For Week #43

Finance Photo
By Alexas_Fotos from PixabayTop And Bottom Performing Stocks For Week #43

Top And Bottom Performing Stocks For Week #43


It is Sunday afternoon and that means we get to review the performance of last week’s historical top and bottom stock symbols in the S&P 500. As you may recall these symbols are the result of parsing a database containing over 50 years worth of statistical performance data. The idea is to extract the prospective top ten winners and losers of the coming week purely based on historical statistics. The result is then sorted by liquidity and any symbol that is scheduled to report earnings or pass ex-dividend is being excluded.

How To Trade Along

Although being no guarantor of success, the long and short candidates posted here each week are intended to perform along their respective historical bias. One way of trading along would be to simply create a small one-week portfolio by buying the long candidates and selling the short candidates on Monday morning shortly after the open. There are no official stops or targets and all transactions are reversed Friday afternoon right before the bell.

Results For Week # 41

Alright, so SPLS had to be dropped as it either stopped trading or something else is going on there. Incidentally I spent quite a bit of time adding Nasdaq, AMEX, and NYSE symbols, extending our stock trading universe from 500 to 6765 tickers. This should do wonders in keeping our long/short portfolios nicely balanced going forward, so rejoice!

Long Profits: MSFT=1.7, C=1.97, FITB=1.92, CMCSA=3.36, BMY=-1.33, SBUX=-2.06, MAT=1.46, GLW=1.08, SYMC=0.93

Long Profits Total: 9.03

Short Profits: NEM=2.07, TXN=-1.7, STZ=-1.29, TSS=-0.3, GD=-0.24

Short Profits Total: -1.46

Combined Profits Total: 7.57

The shorts didn’t do too well but the longs once again pulled us ahead of the curve, adding another 7.57 percent. I’m very much starting to enjoy this new addition to our trading arsenal


Published at Sun, 22 Oct 2017 16:00:32 +0000

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Stocks Move Further Into Record Territory


Stocks Move Further Into Record Territory

By Justin Kuepper | October 21, 2017 — 1:35 PM EDT

All of the major U.S. indexes moved higher into record territory over the past week, but the Dow Jones Industrial Average captured headlines by surpassing the 23,000 mark. While the manufacturing sector posted slower-than-expected growth, industrial production and capacity utilization both moved higher. Many investors remain concerned over the market’s valuation, which reached a 25.68x price-to-earnings multiple on Friday. These are the highest levels since the 2008 economic crisis and well above the 15.68x average.

International markets were mixed over the past week. Japan’s Nikkei 225 rose 1.42%; Germany’s DAX 30 moved marginally lower; and Britain’s FTSE 100 fell 0.21%. In Europe, investors have expressed concern over the slow pace of talks between Britain and the European Union ahead of Brexit. In Asia, Japan’s Nikkei 225 matched its longest winning streak ever as investors continue to buy into the country’s robust momentum. (See also: A Smart Way to Access Japanese Stocks.)

The SPDR S&P 500 ETF (ARCA: SPY) rose 0.85% over the past week, but it remains entrenched in overbought territory. After breaking out from upper trendline resistance earlier this month, the index broke out from R2 resistance at $256.34. Traders should watch for some consolidation at these levels or a breakdown below trendline support at around $254.00. Looking at technical indicators, the relative strength index (RSI) continues to trade at significantly overbought levels of 81.22, and the moving average convergence divergence (MACD) could be at risk of a near-term bearish crossover after topping out.

Technical chart showing the performance of the SPDR S&P 500 ETF (SPY)

The SPDR Dow Jones Industrial Average ETF (ARCA: DIA) rose 1.92% over the past week, making it the best performing major index. After rising above R2 resistance at $228.56 earlier this month, the index broke out from upper trendline resistance last week. Traders should watch for some consolidation at these levels before a move higher or a breakdown below trendline support at $230.00. Looking at technical indicators, the RSI remains extremely overbought at 89.24, but the MACD remains in a robust uptrend. (For more, see: How Dow 26,000 Could Come Sooner Than You Think.)

Technical chart showing the performance of the SPDR Dow Jones Industrial Average ETF (DIA)

The PowerShares QQQ Trust (NASDAQ: QQQ) rose 0.25% over the past week, making it the worst performing major index. After rising to R2 resistance at $148.91 earlier this month, the index moved largely sideways last week. Traders should watch for a breakout from these levels to fresh highs or a move lower to R1 resistance at $147.18. Looking at technical indicators, the RSI appears lofty at 65.24, while the MACD could experience a near-term bearish crossover. (See also: Why Big Investors Are Doubling Down on Pricey Tech Stocks.)

Technical chart showing the performance of the PowerShares QQQ Trust (QQQ)

The iShares Russell 2000 Index ETF (ARCA: IWM) rose 0.41% over the past week. After breaking out from trendline resistance late last month, the index trended lower throughout October before rebounding from trendline support. Traders should watch for a move to R1 resistance at $151.66 or a breakdown from trendline support to the pivot point at $144.95. Looking at technical indicators, the RSI appear overbought at 70.40, and the MACD remains in a bearish downtrend dating back to mid-October.

Technical chart showing the performance of the iShares Russell 2000 Index ETF (IWM)

The Bottom Line

The major indexes moved further into record territory last week, but they appear top heavy on a technical level. Next week, traders will be closely watching several key economic events including new home sales on Wednesday as well as GDP and consumer sentiment data on Friday. Traders will also be closely watching any progress in passing tax reforms that could benefit equities, and in particular small caps in the Russell 2000. (For additional reading, check out: Trump’s Tax Reform Plan.)

Note: Charts courtesy of As of the time of writing, the author had no holdings in the securities mentioned.


Published at Sat, 21 Oct 2017 17:35:00 +0000

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How do I find historical prices for stocks?


How do I find historical prices for stocks?


You’ve all heard the expression, “Past performance is not indicative of future results”, by now. While that’s true, looking at a company’s historical stock performance is useful in understanding investors perception of the company and their outlook for its future prospects. Both technical analysts and fundamental analysts evaluate a company’s historical stock price, albeit for different reasons. Technical analysts look at historical prices to find support and resistance levels for stocks and other securities, while fundamental analysts look at historical prices as one factor in determining a company’s valuation and potential for growth. Whatever the reason, our markets page and stock ticker pages on Investopedia are a great place to find this information.

You can find our Markets page on the header of our website. Simply click it to be redirected to that page, which contains charts for the major U.S. stock indeces, news on popular stocks and the Markets, Gainers and Losers, ETFs and other securities including commodities. You can also add stocks or ETFs to your very own ‘Watchlist’, which will enable you to track those securities every day, as many times as you want. You can also sign up to receive e-mail alerts about the securities on your watchlist so you won’t miss any news or developments that could impact its price. By typing in the ticker of the stock or ETF you are interested in on our search box or on the markets page, you will be directed to a quote page for that security with great information including key financial metrics, news, historical options data, and historical charts, of course. Simply plug in the timeline you are interested in, and a chart with performance metrics will load right up. It’s easy and it’s free.

There are many other places to find historical stock quotes, to be sure. There are thousands of websites and mobile apps that will provide both real-time and historical quotes as well as financial metrics across all categories. Sites like and are among the most popular, as well Yahoo! Finance. They key is knowing what to look for and what you want to do with that information. If you are interested in starting your investing career, take a look at our Stocks Basics Tutorial for helpful information that will put you on the path to becoming a smart investors.


Published at Thu, 19 Oct 2017 21:45:00 +0000

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Bearish Engulfing Could Jeopardize Amazon Rally


Bearish Engulfing Could Jeopardize Amazon Rally

By Justin Kuepper | October 19, 2017 — 10:52 AM EDT, Inc. (AMZN​) shares fell 1.2% on Wednesday after rallying about 8.5% from $940.00 to $1,020 per share since late September. Despite the stock rising more than 30% since January, many analysts remain strongly bullish on Amazon. Wells Fargo analysts assigned a lofty $1,400 per share price target on Amazon shares, saying that the company is well positioned to apply artificial intelligence across multiple verticals and continues to benefit from cloud services.

Over the past several months, Amazon has dramatically increased its spending to enter several new vertical markets. The acquisition of Whole Foods marked its entry into the grocery market; a $4.5 billion annual budget is focused on producing and acquiring programming; and the company is actively mulling the launch of a new delivery service next year to reduce its reliance on FedEx Corporation (FDX) and United Parcel Service, Inc. (UPS). (See also: Amazon Tests Delivery Service – Targets FedEx, UPS.)

Technical chart showing the performance of, Inc. (AMZN) stock

From a technical standpoint, the stock experienced a bearish engulfing on Wednesday, which could indicate that its recent rally is coming to an end. The relative strength index (RSI) moderated to 58.31 – only moderately overbought – and the moving average convergence divergence (MACD) remains in a bullish uptrend dating back to early October. As a result, traders should consider a bearish short-term bias and a bullish medium-term bias on the stock.

Traders should watch for a prolonged move lower to the 50-day moving average at $972.32 or a longer-term move lower to lower trendline support near the 200-day moving average at $928.85. If the stock manages to recover from Wednesday’s losses, traders should watch for a retest of trendline resistance at $1,020.00. Traders may want to consider waiting for a lower entry point at these levels, but short selling could be risky given the strong uptrend. (For more, see: Amazon to Keep Holiday Seasonal Hiring Flat.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.


Published at Thu, 19 Oct 2017 14:52:00 +0000

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Remembering the worst day in Wall Street history

Remembering the worst day in Wall Street history

It was a day so terrible, it will forever be known as Black Monday.

On October 19, 1987, the stock market collapsed. The Dow plunged an astonishing 22.6%, the biggest one-day percentage loss in history. Even bigger than the 1929 stock market crash, just before the Great Depression.

Nothing since Black Monday has come close. Not the selloff after the September 11 terror attacks or the 2008 financial crisis, which almost wiped out the economy.

On that day in 1987, as the cameras rolled on the frenzied floor of the New York Stock Exchange, prices on the ticker tumbled, the panic spread, and the crash worsened. By the closing bell, the Dow stood at 1,738.74, down 508 points.

A crash like that today would equal more than 5,000 points on the Dow.

black monday anniversary front page
The Philadelphia Inquirer after Black Monday in 1987.

What was to blame? Heightened hostilities in the Persian Gulf, fear of higher interest rates, a five-year bull market without a significant correction, and computerized trading that accelerated the selling and fed the frenzy among the human traders.

It was panic, and that’s what separates a crash from just a really bad day on Wall Street. When emotion takes over and trading is no longer calm or orderly, that’s when Black Mondays are born.

Could it happen again? A panic is always theoretically possible. But a 22% Dow drop? Less likely. At least not in one day.

After the Black Monday free fall, the New York Stock Exchange installed what are known as circuit breakers, designed to stop trading when stocks dive too far too fast. It’s a forced timeout to give investors a chance to calm down and interrupt a panic.

Today, if stocks dived even 7%, trading would be suspended for 15 minutes. A decline of 20% would shut down trading for the rest of the day.

After the 1987 crash, the selling ricocheted around the world. But out of the ashes of Black Monday came the green shoots of what would be the longest and strongest bull market in American history.

Now, 30 years later, the Dow is charging through milestones at a blistering pace. Just this year, the Dow has cracked 20,000, 21,000, 22,000 and 23,000, and the rally since 2009 is the second longest and strongest on record.


Published at Thu, 19 Oct 2017 14:52:04 +0000

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World stocks stumble after all-time high, kiwi takes a dive

Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, July 3, 2017. REUTERS/Staff/Remote


World stocks stumble after all-time high, kiwi takes a dive

LONDON (Reuters) – World stocks set a fresh record high before stalling in Europe on Thursday, as the longest winning streak for Japanese stocks since 1998 and the first close above 23,000 for Wall Street’s Dow index helped to offset nerves in Spain.

Traders were marking 30 years to the day since the 1987 Black Monday stock market crash but there couldn’t have been a greater contrast as equity markets have continued to clock up milestone after milestone.

The Nikkei enjoyed its 13th straight daily rise, helping the MSCI index of global stock markets .MIWD00000PUS – now up 17.6 percent for the year – add to its long list of record highs.

It wasn’t all one-way traffic, though.

European shares took their biggest tumble in almost two months after a new batch of third-quarter results brought some disappointments, notably from Anglo-Dutch consumer goods titan Unilever, French advertising group Publicis and Germany’s Kion.

They then took another lurch lower as signals emerged from Spain that Madrid was gearing up to invoke a never-before-used clause to re-impose central rule over the restive region of Catalonia.

The euro EUR=EBS trimmed gains that had taken it to a three-day high against the dollar, while Spanish bond ES10YT=TWEB markets gave up their early morning gains.

“Everyone is watching this with great interest but it just looks like a standoff,” said Saxo Bank FX strategist John Hardy, saying the situation was something of a ‘catch-22’ for Catalonia.

A declaration of independence would see it lose its prized autonomy ,while calling a regional election could mobilize Catalan voters who would prefer to stay part of Spain.

“But the market is not expressing any real fear over this and I think that is justified,” Hardy added.

The other big currency market move came from the New Zealand dollar. It was sent skidding to its lowest since May after the left-leaning Labour Party won the support of the minor nationalist New Zealand First party to form a ruling coalition.

It ended weeks of political guessing games but fanned concerns that the Labour Party’s hardline policies on immigrants and foreign ownership could hurt investor sentiment.

The New Zealand dollar NZD=D4 slid as much as 1.4 percent to $0.7047, which as well as the 4-1/2 month low was also the biggest percentage decline since November 2016.


Among the other headlines, China’s economic growth cooled slightly to 6.8 percent in the third quarter from a year earlier, from the second quarter’s 6.9 percent.

A modest loss of momentum had been expected as the government reins in the heated property market and cracks down on riskier lending.

Other data showed that China’s industrial output rose a stronger-than-expected 6.6 percent in September, while retail sales also outperformed. Property sales fell though for the first time in over two years.

The Chinese yuan and stocks eased, with Shanghai .SSEC falling 0.4 percent.

“The GDP reading could weigh negatively on both mainland stocks and currency markets as traders may position for further weakness into year-end, suspecting financial curbs will continue to have a negative impact on growth in China,” said Stephen Innes, head of Asia-Pacific trading at OANDA in Singapore.

The dollar index against a basket of six major currencies was broadly steady at 93.340 .DXY.

The index ended a four-session winning run overnight on lacklustre U.S. data but briefly resumed its climb after the 10-year Treasury yield US10YT=RR spiked 4 basis points with safe-haven bond prices falling on better investor risk appetite.

The dollar was little changed at 112.940 yen JPY= after climbing 0.6 percent overnight. The euro nudged up 0.15 percent to $1.1802 EUR=.

The term of current Fed Chair Janet Yellen’s expires in February and investors are keen to see whom U.S. President Donald Trump will pick as her replacement. The White House said Trump would announce his decision in the “coming days”.

In commodities, Brent crude oil futures LCOc1 dropped 1.2 percent to $57.43 a barrel and U.S. WTI CLc1 dropped 1.5 percent.

Brent had risen to a three-week high of $58.54 a barrel on Wednesday on worries about tensions in Iraq and Iran, but lost steam after a surprising drop in U.S. refining rates and an unexpected build in fuel stocks signaled slower demand in the world’s top oil consumer.

Reporting by Marc Jones; Editing by Gareth Jones


Published at Thu, 19 Oct 2017 09:01:43 +0000

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Mnuchin to Congress: Cut taxes or market will dive

“There’s no question in my mind if we don’t get it done you’re going to see a reversal of a significant amount of these gains,” Mnuchin told Politico on Wednesday.

Mnuchin’s warning — a highly unusual one for a sitting treasury secretary — suggests he fears a drop of at least thousands of Dow points. The average has spiked almost 5,000 points since last fall’s election, a rally that President Trump often celebrates as evidence of his success.

Trump’s treasury secretary told Politico that the stock market has “baked into it reasonably high expectations of us getting tax cuts and tax reform done.” He predicted the market will go “up higher” if Congress succeeds on taxes.

It’s true that Trump’s economic agenda, including promises for “massive” tax cuts and deep deregulation, sent the stock market soaring in the weeks and months after the election.

But the market’s entire post-election rally is not based solelyon the anticipation of tax cuts or tax reform. Stocks have been supported by strong corporate profits, improved economic growth and extremely low interest rates.

If all markets cared about were tax cuts, then stocks should have plunged this spring and summer when Trump’s political stumbles threatened his agenda. Instead, investors dialed back their bets on tax cuts by selling “high tax” stocks that should benefit from tax reform. And the broader market kept going higher.

Lately, hopes of tax reform have returned, lifting potential tax cut winners like high-tax payers and small-cap stocks.

dow trump election stocks 1017

Sam Stovall, chief investment strategist at CFRA Research, said tax cut hopes have “boosted investor confidence,” but they didn’t alter the fundamentals that markets trade on: earnings estimates. Those projections haven’t budged because details on the tax deal aren’t available yet, Stovall said.

Only 32% of investors polled by E*Trade believe “President Trump and the current administration” is a leading factor behind the extended bull market in stocks. The survey respondents said that the top three drivers for stocks are: improving U.S. economy (61%), strong earnings (45%) and strong performance in certain sectors (40%).

Those positives are why Stovall isn’t worried about Congress setting off a market crash.

“Should tax cuts not materialize, a pullback or mild correction may ensue, but I don’t think it would trigger a new bear,” Stovall said.

Mnuchin’s comments raised eyebrows because normally the U.S. treasury secretary is counted on to instill financial and economic confidence, not sow doubt.

“That is fundamentally irresponsible. He has no understanding of the role of treasury secretary,” said Robert Shapiro, who served as a Commerce Department economic official under President Clinton and later advised Hillary Clinton.

“Part of the job of the treasury secretary is to maintain the stability of U.S. markets. Every other treasury secretary has recognized this. Apparently, it’s eluded Mr. Mnuchin,” said Shapiro, who is a senior fellow at Georgetown’s McDonough School of Business.

One parallel in recent history of a treasury secretary linking the health of the market to a single piece of legislation is Hank Paulson’s support for the TARP bailout in 2008. The former treasury secretary famously begged Speaker of the House Nancy Pelosi not to blow up the Wall Street rescue. The Dow plunged 777 points after the House of Representatives initially rejected the bailout.

Of course, that was a totally different time as the U.S. was grappling with the scariest financial crisis since the Great Depression. Now, big banks are healthy, unemployment is very low and markets are on the upswing — raising the question of how much the economy really needs tax cuts right now.

Besides, just because the notoriously-fickle market expects something, doesn’t mean it’s the best policy for the moment.

“To pinpoint or lever policy initiatives to the direction the stock market will take seems a little short-term oriented,” said Mark Luchini, chief market strategist at Janney Capital.

Ironically, Luchini said it’s possible the economic expansion is extended if there is no tax deal because it would keep the Federal Reserve from fearing the economy is overheating.


Published at Wed, 18 Oct 2017 16:03:42 +0000

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Johnson & Johnson Stock Extends Breakout After Solid Q3

Johnson & Johnson Stock Extends Breakout After Solid Q3

By Justin Kuepper | October 18, 2017 — 10:25 AM EDT

Johnson & Johnson (JNJ​) shares jumped nearly 3.5% on Tuesday after the company posted better-than-expected third quarter financial results. Revenue rose 10.3% to $19.65 billion – beating consensus estimates by $370 million – while earnings per share of $1.90 beat consensus estimates by 10 cents per share. Management also increased revenue guidance for the full year to $76.1 billion to $76.5 billion, calling for earnings per share of $7.25 to $7.30.

RBC analysts raised their price target on Johnson & Johnson shares to $147.00 from $144.00, saying that the third quarter results show a stable recovery in the company’s pharmaceutical business. That said, the company’s 23x price-to-earnings ratio (TTM) is high by historical standards and could cap upside potential. On a macro level, the stock is trading up more than 22% this year, which is in line with the Health Care Select Sector SPDR ETF’s (XLV) roughly 21% gains. (See also: Why Johnson & Johnson’s Stock Could Rise 10%.)

Technical chart showing the performance of Johnson & Johnson (JNJ) stock

From a technical standpoint, the stock broke out from trendline resistance at $136.00 earlier this month, quickly retested those levels early this week and then broke out sharply higher on Tuesday following the company’s third quarter financial results. The relative strength index (RSI) soared to overbought levels of 76.39, but the moving average convergence divergence (MACD) remains in a strong bullish uptrend that supports a bullish bias.

Traders should watch for some consolidation above R2 resistance at $138.36 following Tuesday’s significant move higher and an overbought RSI reading. A breakdown from these support levels could lead to a retest of trendline support at $136.00, but a more likely scenario is a short period of consolidation before an ongoing move higher. Traders should maintain a medium-term bullish bias following the favorable financial results. (For more, see: Buy J&J on Q3 ‘Turning Point’: Wells Fargo.)

Chart courtesy of The author holds no position in the stock(s) mentioned except through passively managed index funds.


Published at Wed, 18 Oct 2017 14:25:00 +0000

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Bulls Take Aim at Financials

The Wall Street bull is seen in the financial district in New York, U.S., March 7, 2017. REUTERS/Brendan McDermid

Bulls Take Aim at Financials

By Casey Murphy | October 17, 2017 — 9:55 AM EDT

The earnings out of the financial sector so far this season have been predominantly positive. Strong uptrends across most of the charts suggest that this is a sector that most bulls will continue to watch. In this article, we take a closer look at the charts and try to determine which companies could be best poised for a move higher over the weeks and months ahead. (For further reading, check out: Top 4 Financial Stocks for 2017.)

Financial Select Sector SPDR Fund (XLF)

One of the most common exchange-traded products (ETPs) used by retail traders for gaining exposure to the financial sector is the Financial Select Sector SPDR Fund. In case you aren’t familiar, XLF comprises 67 holdings from segments such as financial services, insurance, banks, capital markets, mortgage and real estate investment trusts, and consumer finance. With a gross expense ratio of 0.14% and total net assets of $28 billion, it is one of the most heavily traded assets in the public markets.

Taking a look at the chart, you can see that the price recently surpassed the key resistance shown by the horizontal trendline​. The breakout is a technical buy sign and suggests that traders will maintain a bullish outlook until the price closes below the trendline, the 50-day or the 200-day moving averages, depending on risk tolerance. (For more on this topic, check out: What Are the Most Common ETFs That Track the Banking Sector?)

Technical chart showing the performance of the Financial Select Sector SPDR Fund (XLF)

Berkshire Hathaway Inc. (BRK.B)

With a weighting of 11.31%, Berkshire Hathaway Class B is the largest holding of XLF. While the company is a favorite among long-term value investors, it is also becoming more popular among the active trading community due to its strong uptrend and well defined breakout points.

More specifically, taking a look at the chart below, you can see that the company’s stock has been trading along a well defined trendline over the past 12 months, and the recent uptake in momentum (combined with the subsequent close above the horizontal trendline) is a clear technical buy signal. Long-term traders will likely maintain a bullish outlook on the shares until the price closes below the 200-day moving average, which is currently trading at $171.02. (For more, check out: How Warren Buffett Made Berkshire Hathaway.)

Technical chart showing the performance of Berkshire Hathaway Inc. (BRK.B) stock

JPMorgan Chase & Co. (JPM)

When it comes to investing in financials, one of the strongest performers and the most well known is JPMorgan Chase. Taking a look at the chart below, you can see that the company’s stock is trading within an extremely strong uptrend, and the price closing above the dotted resistance suggests that the bulls are readying to push the price even higher. Most traders will likely keep a bullish outlook on the stock until the price closes below either the 50-day or 200-day moving averages, depending on risk tolerance. (For more, check out: J.P. Morgan: Famous or Infamous.)

Technical chart showing the performance of JPMorgan Chase & Co. (JPM) stock

The Bottom Line

Strong uptrends across the financial sector suggest that this is one of the best areas to allocate capital over the next couple of months and possibly into 2018. Recent closes above major resistance levels are creating well defined trading opportunities, and most traders will likely look to protect their positions by placing stops below nearby moving averages. (For more, see: This ETF Suggests Now Is the Time to Buy Financials.)

Charts courtesy of At the time of writing, Casey Murphy did not own a position in any of the assets mentioned.


Published at Tue, 17 Oct 2017 13:55:00 +0000

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Facebook Stock Could Hit $200 After Earnings


Facebook Stock Could Hit $200 After Earnings

By Alan Farley | October 16, 2017 — 4:19 PM EDT

Political crosswinds have buffeted Facebook, Inc. (FB) in recent months, with fake Russian accounts, hate speech and unruly algorithms decaying trust in the social media Goliath while drawing D.C.’s unwelcome attention. COO Sheryl Sandberg just wrapped up a quick visit to the capital, meeting with dozens of lawmakers to exercise damage control while Congressional committees are set to review 3,000 Russia-linked advertisements.

Market players have largely ignored the whirlwind since a late September swoon dropped Facebook stock nearly 7% in three sessions. The bounce into October has now recouped those losses, lifting back to the July high, which also marks the all-time high. Strong October volume confirms committed buying interest, setting the stage for a healthy trend advance toward $200 following the company’s Nov. 1 earnings release. (See also: Facebook Breaks Out, Could Rise 16% to $200.)

FB Weekly Chart (2012 – 2017)

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Facebook shares dropped like a rock after peaking at $45 during a heavily subscribed May 2012 initial public offering, closing the inaugural session at $38. Selling pressure picked up while sentiment soured into late summer, finally ending in August at an all-time low in the upper teens, ahead of a two-step recovery wave that mounted the IPO opening print in the low $40s one year later.

The stock broke out in the fourth quarter of 2013, lifting into a powerful uptrend that eased into a rising channel in March 2014. Channel support narrowly aligned at the 200-day exponential moving average (EMA), with that level generating multiple tests into an August 2015 breakdown. The stock bounced strongly in the second half of that session, leaving behind a fat finger reversal that has carved a long-term trading floor in the upper $70s. (For more, see: Facebook Is All Grown Up.)

An extended test at channel support in the fourth quarter of 2016 found equal buying interest, yielding a strong bounce that reached channel resistance in March 2017. The stock pressed against that level for three months and broke out, signaling impressive relative strength that has generated new support near $160. As a result, that level should offer a low-risk buying opportunity the next time that aggressive sellers take control.

FB Daily Chart (2016 – 2017)

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Price action since November 2016 has carved a triple bottom, followed by a powerful uptick that has generated two impulsive buying waves and two reactive trading ranges. This price structure suggests that the stock is now engaged in the fourth wave of an Elliott five-wave rally pattern that will yield a climactic advance, ending the uptrend. The third wave carved a 31-point rally, while the first wave added 42 points, predicting a shorter-than-usual fifth wave advance, suggesting that round number resistance at $200 will act as a formidable barrier. (See also: 4 Reasons These Giant Tech Stocks May Be Unstoppable.)

The stock posted a series of lower lows off July’s all-time high while carving horizontal resistance near $175. In turn, this raises the odds for a final downturn prior to a breakout, filling in the bullish pattern with a higher low. August price action suggests that the sell-off will find support in the mid-$160s, because a bounce would then draw the right shoulder of an inverse head and shoulders breakout pattern.

On-balance volume (OBV) confirms many years of institutional sponsorship, in line with the stock’s elite status as a member of the FANG quartet. The buying trajectory eased in the fourth quarter of 2015, while the subsequently shallow slope has continued to gain ground. The indicator hit a new high at the end of July and again last week, generating a bullish divergence that predicts price will follow with an intermediate breakout. (For more, see: FAANG Stocks May Lead Market in Last Quarter.)

The Bottom Line

Facebook buyers have ignored recent headlines and lifted the stock back to range resistance in the mid-$170s. Volume measurements have matched bullish price action, raising the odds for a breakout that reaches $200. However, current price structure looks inadequate to support a trend advance at this time, suggesting a final decline that posts a higher low in the $160s. (For additional reading, check out: Facebook: 7 Secrets You Don’t Know.)


Published at Mon, 16 Oct 2017 20:19:00 +0000

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Top 3 Healthcare Penny Stocks for 2017


Top 3 Healthcare Penny Stocks for 2017

By Kevin Johnston | Updated October 13, 2017 — 7:05 PM EDT

The healthcare industry can be precarious for stocks of large companies, much less penny stocks. Nevertheless, smaller companies that capture a niche can grow much faster than large caps. That higher reward potential comes with higher risk. Of course, small-cap healthcare companies can be nudged out of the market by big competitors, and they can simply become unable to service debt when products and services don’t sell quickly enough. All of this makes the small-cap healthcare stalwarts on this list more attractive.

None of these are new companies – they have developed products and found the marketing outlets that are needed to sustain them. Because of the higher risk, investors should continuously perform due diligence. It is important to watch for product failures, closing markets or excessive competition moving in. To learn more about trading penny stocks, Investopedia Academy has a day trading course online.

Let’s look at how our top three picks break down. All figures are current as of Oct. 13, 2017. (For a quick primer on healthcare stocks, check out: Investing in the Healthcare Sector.)

Curis, Inc. (CRIS)

Curis (CRIS) is engaged in biotechnology with a focus on developing drugs that treat cancers. It does significant amounts of research and collaborates with other drug makers in testing and developing drugs. Therefore, it must put drugs through trials and obtain approvals, which means that the stock can fluctuate depending on the outcome for any given drug. Profits have been less than robust while the company focuses on research. However, management says it is now ready to bring many drugs to market that will produce profits going forward.

Volatility for this stock is high, but that can be a good thing for investors who want to build a position by buying at support levels. The 50-day moving average is below the 200-day moving average, so cautious investors may want to wait until the 50-day line is back on top before buying into this stock. The company has been paring its income losses, according to the earnings report for the period ended June 30, 2017. Curis has been increasing its research and development expenditures, which has negatively affected the bottom line. Investing in this stock must be based on whether investors see promise in the company’s drug pipeline. (See also: Invest in Cancer Research With These 3 Stocks.)

China Pharma Holdings, Inc. (CPHI)

China Pharma Holdings develops and markets a broad range of products in China, targeting hospitals and retailers. The drugs are focused on cardiovascular applications, brain diseases and infectious diseases. When the Chinese company reports results, it tends to have the majority of its assets as receivables, and investors should keep in mind that many companies do not collect all of their receivables.

The stock dropped dramatically in May 2017, rebounded, then pulled back again. It is in a sideways pattern now, perhaps forming a new base. Investors should note that the 50-day moving average has crossed below the 200-day moving average, which suggests that the stock could have more downside. However, these moving averages are trailing indicators. (See also: Pharma Majors to Benefit From China Drug Inclusion.)

For the period ended March 31, 2017, the company reported that it had reduced its losses. Operating income was negative but had rebounded dramatically from the previous quarter. Yearly revenues decreased by 23.5%. Revenues and income were also down in the period ended June 30, 2017. Investors who buy this stock are hoping for the release of effective and popular drugs. As with all penny drug stocks, buyers of China Pharma Holdings shares must be willing to wait out long periods of volatility while hoping for profitability to return.

It is important to remember that China monitors and controls companies closely, so any investor in this stock is also obtaining exposure to the geopolitical influences that could affect the stock. (For more, see: China on a Record High International Healthcare Acquisition Spree.)

  • Average Volume: 141,112
  • Market Cap: $6.973 million
  • P/E Ratio (TTM): -0.83
  • EPS (TTM): -$0.19

Repligen Corporation (RGEN)

Antibodies dominate the product line for Repligen. The company sells worldwide and has been in business since 1981. Quarterly revenues have been rising, and operating income is slightly up for the past four quarters.

The stock price broke through resistance at around $34 per share in April 2017 and then climbed steadily, but it saw a decline at the end of September, plummeting over 14% in one session on Sept. 26. However, Repligen’s revenues have been rising for the past four quarters, and the company’s longevity offers stability. It would be very unlikely that this company would disappear given its strong product line and marketing effectiveness. (See also: How to Pick Winning Penny Stocks.)

  • Average Volume: 346,663
  • Market Cap: $1.66 billion
  • P/E Ratio (TTM): 75.34
  • EPS (TTM): $0.51

The Bottom Line

Penny healthcare stocks are high risk. Trials of drugs can produce negative results, and the market may not readily accept a new drug. On the other hand, a successful drug can cause a penny stock to soar and give investors profits they would not expect from more expensive stocks. It is wise to limit the percentage of your portfolio that you keep in penny healthcare stocks – these are speculative plays. (See also: Understanding Penny Stocks’ Risks and Rewards.)


Published at Fri, 13 Oct 2017 23:05:00 +0000

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Top 5 Copper Stocks for 2017


Top 5 Copper Stocks for 2017

By Kevin Johnston | Updated October 13, 2017 — 8:55 PM EDT

Copper prices have been rising, and this bodes well for copper stocks. In fact, copper has risen to over $3 per pound. This means that there is incentive for copper companies to increase production to take advantage of the better prices.

Copper stocks have been beaten down for a long time, but 2017 has given them some relief. That is no reason to pick just any copper stock – it is a reason to perform due diligence and make some choices that will have the most reasonable prospects for success. (For a primer on investing in this metal, check out: Commodities: Copper.)

We have chosen five copper stocks that should do well for the remainder of 2017 based on their resilience through the down times. All figures are current as of Oct. 13, 2017. Here is how the five stocks break down.

Southern Copper Corporation (SCCO​)

The stock of Southern Copper broke sharply higher in November 2016 and formed a new base to consolidate its gains. It broke out of that base in August 2017 and is moving upward. Its 1.34% dividend could grow if the company continues to prosper from rising copper prices. Furthermore, Southern Copper’s quarterly income and total revenues have been climbing. (See also: Copper Enters First Bull Market in 4 Years.)

Freeport-McMoRan Inc. (FCX)

As the world’s largest copper miner, Freeport-McMoRan suffered greatly during the copper price decline, but it stands to prosper as copper rises. The company is simply in the best position worldwide to increase production and take advantage of profitable copper prices. Freeport-McMoRan could move into a position where it can resume its dividend. The stock has been moving sideways in 2017 and has formed a cup and handle pattern. (For more, see: Freeport to Divest Majority Stake in Indonesia Unit.)

  • Average Volume: 19,117,049
  • Market Cap: $21.35 billion
  • P/E Ratio (TTM): 20.80
  • EPS (TTM): $0.71
  • Dividend and Yield: 0.00 (0.00%)

BHP Billiton Limited (BHP)

BHP Billiton has a widely diversified mining operation, but it makes the list of copper stocks to watch because it owns BH Copper. The stock climbed steadily starting in mid-June 2017, although it gave back some of those gains in September. The 4.16% dividend is attractive. (See also: Beyond Gold: Top Picks in Industrial Metals.)

  • Average Volume: 2,394,72
  • Market Cap: $114.47 billion
  • P/E Ratio (TTM): 19.11
  • EPS (TTM): $2.21
  • Dividend and Yield: $1.72 (4.16%)

Anglo American plc (AAUKF/AAL.L)

This company mines for a variety of metals, including copper. The chart on Anglo American shows a steady and orderly rise throughout most of 2016, but the stock was in a base through the first part of 2017. It broke out of that base in June and has been climbing, despite a slight downturn in September. The company has been in business since 1917, so this is a reliable pick for those who want exposure to miners in general and copper in particular. (For more, see: Billionaire’s Anglo American Bet Excites Investors.)

  • Average Volume (AAL.L): 6,119,063
  • Market Cap: GBp 1.879 trillion
  • P/E Ratio (TTM): 5.01
  • EPS (TTM): GBp 293.3
  • Dividend and Yield: GBp 0.48 (2.59%)

Rio Tinto plc (RIO)

Rio Tinto pays a 4.56% dividend. Production levels have been rising, and the stock has been in an uptrend for more than a year. The company mines other metals besides copper, which helps stabilize the stock price because Rio Tinto is not dependent on the price of any single metal for profitability. (See also: Is Rio Tinto a Great Stock for Value Investors?)

  • Average Volume: 2,988,561
  • Market Cap: $85.36 billion
  • P/E Ratio (TTM): 14.58
  • EPS (TTM): $3.43
  • Dividend and Yield: $2.20 (4.56%)

The Bottom Line

It should be noted that Codelco, a very large Chilean copper miner, did not make this list because it is state owned and therefore is subject to non-market influences that could affect its value. The five copper stocks on our list are all miners, so they are likely to directly profit from rising copper prices and do not depend on secondary income sources such as futures contracts. All five are large enough that they have assets they could sell should a sudden downturn in copper hit.

All five also have extensive copper reserves in place that they can put on the market any time they choose. This will help them take advantage of any sudden spikes in the price of copper. The reserves can also be sold if any of the companies want to raise cash for a new opportunity. Investors in copper must watch two indicators at once: 1) the financial health of the company; and 2) the trend in copper prices worldwide. Going long on any of these stocks will require a regular reading of reports on supply and demand for copper. (See also: What Factors Affect the Price of Copper?)


Published at Sat, 14 Oct 2017 00:55:00 +0000

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Asia shares at 10-year high ahead of U.S. data, China Congress


Asia shares at 10-year high ahead of U.S. data, China Congress

TOKYO (Reuters) – Asian stocks edged to a 10-year high on Friday thanks to expectations of brisk global growth, although investors held off chasing shares higher ahead of U.S. economic data and next week’s Chinese Communist Party Congress.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.15 percent, having gained 3.6 percent so far this month. Japan’s Nikkei edged up 0.2 percent to another 21-year high.

Wall Street shares dipped slightly on Thursday, pulled down by a fall in AT&T after the telecoms company reported subscriber losses in its cable TV business.

But MSCI’s broadest gauge of the world stock exchanges covering 47 markets also stood at record levels, extending its gains so far this year to 17 percent.

China’s trade data showed both growth in exports and imports accelerated in September, with imports beating expectations, adding to the evidence of recent resilience in China’s economy.

“It is hard to think the current ‘goldilocks economy’ will suddenly change,” said Nobuyuki Kashihara, head of research group at Asset Management One, referring to an economy that is neither too hot, or too cold, but just right.

“Stock prices will continue to rise in line with growth in corporate earnings globally.”

On top of a broad consensus that the global economy is in its best shape in recent years, expectations that U.S. President Donald Trump would push through a tax cut also encouraged investors.

“While we don’t know the details of the tax reforms, the announcement of a plan to make the biggest tax overhaul in three decades triggered a fresh wave of reflation trade,” said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

In currencies, the dollar lost some steam in recent days as U.S. bond yields appeared to have peaked for now, with minutes from the last U.S. Federal Reserve meeting showing policymakers remained divided on U.S. inflation prospects.

The next big test for the dollar is U.S. consumer inflation figures due later in the day.

“The data will likely be disrupted by the hurricanes. But if inflation is picking up, that is still positive for the dollar,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.

On top of the near-term inflation readings, investors are also looking to who Trump will nominate as successor to Fed Chair Janet Yellen, whose term expires next February.

White House Chief of Staff John Kelly said on Thursday that Trump was “some time away” from making a decision, while another official said Trump had met with Stanford University economist John Taylor to discuss the job.

Another main focus is China’s 19th Communist Party Congress that begins on Oct 18, where President Xi Jinping is expected to lay out new policy initiatives and consolidate his power for a second five-year term.

”Specific economic policies won’t be laid out at this

meeting, but official statements and who ascends to

power will set the tone for the third Plenary Session … in March 2018, which will give more specifics about China’s economic agenda for the next five years,” said analysts at RBC Capital Markets.

The euro traded at $1.1849, slipping from Thursday’s high of $1.1880 but has kept weekly gain of almost 1 percent, though the currency remains dogged by the crisis around the Catalonian independence movement’s campaign to split from Spain.

The yen was little moved at 112.10 yen per dollar, though at that level, it is on course for a slight gain on the week, which would be its first in five weeks.

Bitcoin soared more than 4 percent after Thursday’s 13 percent gain to hit a record high of $5,846, a gain of 450 percent on the year.

The Chief Financial Officer of JPMorgan Chase & Co said the firm is open minded on the potential use cases in future for digital currencies, appearing to dial back comments last month from his boss, Chief Executive Officer Jamie Dimon, that bitcoin was a “fraud”.

Copper prices held firm after hitting a one-month high on Thursday as optimism over the demand outlook from major consumer China fueled buying.

London copper futures were at $6,862 a tonne early on Friday.

Oil prices edged up on Friday as both U.S. crude production and inventories declined. U.S. crude ticked up 0.5 percent to $50.87 a barrel. Brent crude rose 0.4 percent to $56.49 per barrel.

Reporting by Hideyuki Sano; Editing by Simon Cameron-Moore


Published at Fri, 13 Oct 2017 03:42:47 +0000

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Top 4 Alternative Energy Stocks as of October 2017


Top 4 Alternative Energy Stocks as of October 2017

By Kevin Johnston | Updated October 12, 2017 — 6:45 PM EDT

With concerns about climate change and the state of the environment continuing to draw headlines, there is no doubt that the markets are also paying attention to clean and renewable energy resources. As oil prices rise from their recent lows, traditional energy companies will no doubt dominate the energy sector, but alternative energy is here to stay. The alternative energy companies on this list have the potential to make investors some money in 2017.

The stock charts on each of these companies show positive developments that could create upward momentum for the remainder of the year. All figures are current as of Oct. 12, 2017. (See also: Why You Should Invest in Green Energy Right Now.)

NRG Yield, Inc. (NYLD)

NRG Yield is not a pure alternative energy play, but it does own and operate renewable energy assets. The company was founded in 2012. This stock has been forming an upward price channel since February 2017. The shares are up over 20% year to date, and the company has consistently beat earnings estimates in recent quarters. Based in Princeton, New Jersey, NRG Yield is a subsidiary of NRG Energy, Inc. (NRG).

Pattern Energy Group Inc. (PEGI)

This San Francisco-based company owns wind energy projects. It makes its living selling energy to local utility companies. Projects are in the United States, Canada and Chile. The stock was rising throughout most of 2017, but it saw declines in August and again in late September. At current levels, the stock offers an attractive dividend yield of 6.82%. (For more, see: Clean or Green Technology Investing.)

  • Average Volume: 670,260
  • Market Cap: $2.15 billion
  • P/E Ratio (TTM): 71.22
  • EPS (TTM): $0.34
  • Dividend and Yield: $1.68 (6.82%)

Atlantica Yield PLC (ABY)

Atlantica owns renewable energy generation assets. It generates power through solar and wind technology. Revenues have shown solid gains for four straight years, and operating income has grown dramatically during that period. Buyers stepped in during early 2017 and bought shares, giving the stock a high-volume breakout. At the same time, the 50-day moving average crossed above the 200-day moving average. This is called a “golden cross” and is considered bullish by investors. While the price action has been volatile throughout the year, the stock has consistently found support at around $19, and its dividend yield of over 5% could be appealing to income investors. (See also: Atlantica Yield Posts Narrower-than-Expected Q1 Loss.)

  • Average Volume: 461,716
  • Market Cap: $2.08 billion
  • P/E Ratio (TTM): 67.10
  • EPS (TTM): $0.31
  • Dividend and Yield: $1.04 (5.05%)

Covanta Holding Corporation (CVA)

Covanta Holding provides waste services to cities in the United States and Canada. The company has developed assets that convert waste to energy. CVA owns 45 plants that are involved in converting waste, and the company sells metal that is a byproduct of the waste-conversion process. Daily volatility for this stock can be high, so this is one to buy only for those who are willing to ride out some dramatic moves in the stock price. Similar to several other stocks on this list, Covanta may be enticing to those investors seeking dividend yield.

  • Average Volume: 1,115,878
  • Market Cap: $2.01 billion
  • P/E Ratio (TTM): -73.33
  • EPS (TTM): -$0.21
  • Dividend and Yield: $1.00 (6.60%)

The Bottom Line

Alternative energy is mainstream enough now that investors can find companies that are extremely viable. Our list has one penny stock, but all the companies have a track record of securing contracts for their products and services. Nevertheless, the companies are relatively small compared with the giants of the energy sector, so they are subject to being nudged out of the competition. Owning alternative energy stocks means staying abreast of news in the field. (For more on alternative energy, check out: Top 5 Alternative Energy ETFs.)


Published at Thu, 12 Oct 2017 22:45:00 +0000

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Bull market is 103 months old. Trump owns 11 of them


Is it too late to buy stocks?
Is it too late to buy stocks?

President Trump’s victory last November set off a massive party on Wall Street that is still going strong today.

The Dow has spiked an incredible 4,500 points since the election. As CNNMoney has reported frequently, that 25% surge is based in part on Trump’s promises to slash taxes and regulation.

Trump, who warned of a “big, fat, ugly bubble” before he took office, brags about the red-hot market now that he’s in charge. He did it again on Wednesday, cheering the “virtually unprecedented Stock Market growth since the election.”

The market’s cheerleader-in-chief never mentions that he inherited a bull market — one that began long before “Make America Great Again” hats started showing up on the campaign trail.

The bull market in stocks started in March 2009, near the end of the Great Recession. This market upswing is now 103 months old, making it the second-longest on record.

Trump can claim credit for 11 months at most, if you start counting after the election. The other 92 months of upward trajectory took place under President Obama.

bull market sp 500 1011

Taken as a whole, the Obama-Trump bull market is historic as well. The S&P 500 has soared 277% since bottoming in March 2009 thanks to the improving economy andextremely-low interest rates. That’s good for No. 2 among all bull markets, according to Bespoke Investment Group.

Of course, the vast majority of those gains occurred under Obama. The stock market more than tripled during Obama’s eight years in office as the U.S. economy recovered from the recession.

Nonetheless, Trump often points to record highs on Wall Street as a barometer of his success. “Stock Market hit an ALL-TIME high!” Trump tweeted on October 5.

He’s right that the Dow has never been higher. In fact, the Dow has notched 65 records since Trump’s election. The S&P 500 isn’t far behind with 52 records. Both have benefited from Trump’s promises of tax cuts as well as strength in corporate profits and the domestic and global economies.

dow trump election stocks 1011

No matter the cause, record highs were a regular occurrence during Obama’s second term — even as Trump was bashing the economic track record of the 44th U.S. president. In fact, the S&P 500 hit 127 all-time highs under Obama, according to Ryan Detrick of LPL Financial.

All-time highs were even more frequent during the economic booms of the 1980s and 1990s. The S&P 500 hit record highs 268 times under President Clinton and 154 times under President Reagan, according to LPL. (Trump has easily surpassed the nine S&P 500 records under President George W. Bush.)

None of those presidents talked up the day-to-day movements of the stock market like Trump has. That’s not just because Twitter didn’t exist during most of those presidencies.

The risk is that taking too much credit for the notoriously-fickle stock market will make it more difficult to avoid criticism when stocks eventually retreat.


Published at Wed, 11 Oct 2017 20:20:46 +0000

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Chase Stock Could Hit Triple Digits After Earnings


Chase Stock Could Hit Triple Digits After Earnings

By Alan Farley | October 11, 2017 — 11:37 AM EDT

JPMorgan Chase & Co. (JPM) fires the opening shot of third quarter earnings season on Thursday morning, with the commercial banking giant expected to report earnings per share of $1.66 on revenue of $24.9 billion. CEO Jamie Dimon is likely to offer an optimistic fiscal year outlook, driven by expectations for corporate taxcuts and a December interest rate hike that would increase sector profitability.

Commercial banks are attracting steady interest following a September slide that shook out many 2016 breakout buyers. Trading at an all-time high and just a few points below the psychological $100 level, JPMorgan Chase now shares its long-term leadership role with a newly resurgent Citigroup Inc. (Citigroup Inc). A solid quarterly report could lift JPMorgan Chase stock above that magic $100 number, setting off a long-term test that might not end until 2018. (For a refresher, check out: The Industry Handbook: The Banking Industry.)

JPM Long-Term Chart (1991 – 2017)

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The stock hit an all-time low at $3.21 in 1990 and turned higher in an uptrend that stalled in the mid-teens in 1993. It cleared that resistance level two years later and took off in a powerful trend advance that topped out at $67.20 at the height of the internet bubble in the first quarter of 2000. The subsequent decline generated severe technical damage, knocking the price down to mid-1990s support in the teens.

A bounce into the $40s stalled in 2004, generating a broad sideways pattern ahead of a 2006 breakout that lifted the stock within 14 points of the 2000 high in July 2007. That marked the bull market top, ahead of a historic plunge that ended at a 13-year low in March 2009. Even so, the company fared better than its banking rivals, maintaining a strong balance sheet that underpinned a recovery into the upper $40s in the fourth quarter of 2009. (See also: JPMorgan Chase & Co.: The Big Bank.)

That resistance level stalled progress for the next three years, giving way to a 2013 breakout that reached the 2000 high in 2015. The stock then sold off, entering an intermediate correction that completed the last leg of a multi-decade breakout pattern that was set into motion after the November 2016 election. The stock has rallied nearly 30 points since that time and could add substantially to gains in the coming years.

JPM Short-Term Chart (2015 – 2017)

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The 2015 correction carved the outline of an ascending triangle, while the late 2016 breakout stalled at $94 on March 1, 2017, easing into a cup and handle pattern that broke to the upside on Oct. 2. The stock is now trading just two points above new support, exposing a failed breakout if traders sell Thursday’s news. However, it is more likely that sidelined players jump on board after the release because corporate tax cuts could super-charge an already strong U.S. economy. (For more, see: Trump Tax Plan ‘As Good as It Gets’ for US Banks.)

The bullish tone will remain intact as long as a decline holds the trendline​ of rising lows since June. That support is now situated near $90, in between the 50- and 200-day exponential moving averages(EMAs). The June and September pullbacks ended between those moving averages, generating fractal behavior that could come into play once again. That decline may also offer a low-risk buying opportunity.

On-balance volume (OBV) posted three rally peaks in two years and entered a 2015 distribution wave that ended in the second quarter of 2016. The indicator surged to a six-year high in March 2017 and turned lower, while the most recent uptick has failed to reach the prior high, generating a notable bearish divergence that signals inadequate institutional sponsorship. This deficit may need a correction before it can be worked out of the system. (To learn more, see: Uncover Market Sentiment With On-Balance Volume .)

The Bottom Line

JPMorgan Chase shares could hit the triple digits after a strong earnings report this week, but immediate upside appears limited because that level often generates months of sideway action. Meanwhile, a bearish reaction could test recent gains, with the stock needing to hold the $90 level to avoid a deeper slide into late 2016 breakout support. (For additional reading, check out: Why BofA May Outperform JPMorgan, Citigroup.)


Published at Wed, 11 Oct 2017 15:37:00 +0000

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Asian shares hit decade highs, Catalan fears ease


Asian shares hit decade highs, Catalan fears ease

SYDNEY (Reuters) – Asian shares jumped to the highest in a decade on Wednesday as Wall Street scaled all-time highs, while the dollar loitered around two-week lows on worries President Donald Trump’s tax plan could stall.

The euro traded around a 10-day peak after Catalonia’s leader suspended plans to leave Spain, easing near-term concerns about euro zone stability.

The MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.5 percent to 546.38, a level not seen since December 2007.

Australian stocks jumped to 1-1/2 month highs while South Korea’s KOSPI added 0.6 percent to within a whisker of record peaks.

Japan’s Nikkei edged closer to a 21-month top, even as scandal-hit Kobe Steel extended losses.

Sentiment was boosted after the International Monetary Fund upgraded its global economic growth forecast for 2017 and 2018, driven by a pickup in trade, investment, and consumer confidence.

“A risk-on mood has set in and money is flowing out of bond funds into equities funds,” said Hugh Dive, chief investment officer at Atlas Funds Management.

“One of the biggest drivers of global equities is the United States and some of the macro data coming out from there has been quite positive. There is also this view that China is traveling much better than many people had expected.”

The three major Wall Street indices set record highs again, with Dow up 0.3 percent, the S&P 500 adding 0.2 percent and the Nasdaq inching 0.1 percent higher.

In currency markets, the dollar held around a two-week trough as U.S. President Donald Trump’s escalating war of words with Senator Bob Corker raised concerns about the administration’s ability to pass promised reforms.

The dollar index steadied at 93.314 against a basket of currencies, around the lowest level since Sept.29.


The greenback was also under pressure amid ongoing uncertainty over the next Federal Reserve Chairman, with the predictions market site, PredictIt, favoring Fed governor Jerome Powell as the most likely candidate.

While Powell is regarded as more hawkish than incumbent Janet Yellen, whose term expires in February, analysts say he might be less aggressive in winding back stimulus than Kevin Warsh, another possible candidate for the role.

Investors will keep an eye on the minutes of the Fed’s September meeting due later in the day, which might help bolster views of a December rate hike.

The euro held around $1.1803, not far from Tuesday’s high of $1.1825, after Catalonian President Carles Puigdemont called for talks with Madrid to discuss the region’s future.

The gesture tempered fears of immediate unrest in a major euro zone economy and cheered investors. Madrid’s IBEX 35 Index futures added 1.1 percent, after the cash IBEX stock index closed down 0.9 percent on Tuesday.

“Markets were on edge, and no doubt so was he,” said David Plank, head of Australian economics at ANZ Banking Group, referring to Puigdemont’s address at Catalonia’s parliament.

“But the declaration for independence did not come, at least not explicitly,” Plank said. “This issue remains extremely fluid. But one thing is clear – this is not going to go away quickly or quietly.”

In commodities, U.S. crude rose 12 cents to $51.04 per barrel and Brent added 7 cents to $56.68 on signs of tighter near-term supply.

Gold prices came off their highest in two weeks, with spot gold at $1,287.61 an ounce.

Reporting by Swati Pandey; Editing by Sam Holmes


Published at Wed, 11 Oct 2017 03:58:55 +0000

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