- Amanda Diaz at Talking Numbers2 days ago
McDonald’s has the “McRib.” Wendy’s has the “Pretzel Bun.” And now Burger King has the “Black Burger.”
Burger King in Japan is taking charbroiled quite literally this fall, launching the ‘Kuro Burger’ (“kuro” means black in Japanese”) on Sept. 19. The specialty menu item, which was first introduced in 2012, will be available for a limited time and features a black bun, charcoal cheese and black sauce.
(Watch: Burger King's black burger)
Burger aside, investors have had quite the appetite for Burger King shares lately. The stock has rallied more than 17 percent in the past 30 days, outperforming rivals McDonald’s and Wendy’s.
So if the Black Burger can make its way stateside, could the new menu item push shares even higher?
“This is definitely an interesting and innovative concept,” said Chantico Global’s Gina Sanchez.
- Amanda Diaz at Talking Numbers3 days ago
Crude oil rebounded from a multimonth low Thursday after the International Energy Agency cut its oil demand forecast for the third month in a row.
“The recent slowdown in demand growth is nothing short of remarkable,” the IEA said in its closely watched monthly oil market report. “While demand growth is still expected to gain momentum, the expected pace of recovery is now looking more subdued.”
In other words, the world is unexpectedly consuming less oil, and that could have big implications for the global economy.
But should investors worry?
“Oil’s price action Thursday is quite encouraging considering that the commodity hit a new low in early trading,” said Riskreversal.com’s Enis Taner. “However, in the long run, the price weakness in the face of geopolitical issues in the Middle East and Russia is evidence of lackluster demand overall.”
- Maxwell Meyers at Talking Numbers3 days ago
The Bond King doesn’t appear to be too keen on bonds these days, or at least those issued by the U.S. government.
Pimco’s Bill Gross reduced his exposure to government-related bonds in his $222 billion Pimco Total Return Fund in August, while slightly increasing the amount of corporate bonds in his fund, according data posted on Pimco’s website.
Gross’ timing may have been off, but the move appears to be working out. Initially, U.S. bonds enjoyed a strong rally in August, but they’ve since been selling off sharply in September on expectations that the Fed may raise rates sooner than expected. So should you follow the Bond King out of bonds?
According to some traders, the answer is yes.
“We expect the Fed to raise rates in the second quarter of next year,” said Chad Morganlander of Stifel’s Washington Crossing Advisors. “And the ten year should move way run advance of that,” added Morganlander, who also said he expects the yield on the 10- year bond to approach 3 percent by next year. Morganlander advised investors to buy bonds with shorter maturities and higher credit ratings.
- Alex Rosenberg at Talking Numbers4 days ago
Investors who have gorged on shares of McDonald’s aren’t feeling so good. And according to both technical and fundamental indicators, it could get even worse for the fast - food giant.
McDonald’s saw its stock plunge this week, touching a 52-week low after McDonald’s reported a 3.7 percent decline in global same-store sales in August. The worst drop in a decade, the number reflected a massive drop in Asia/Pacific sales on the back of a serious meat safety scandal in China.
But the weakness wasn’t contained to Asia. In the U.S., McDonald’s same-store sales dropped 2.8 percent.
Currently the only component of the Dow Jones Industrial Average that’s negative for the past year, McDonald’s has dropped 10 percent over the past four months. But Steven Pytlar of Prime Executions says that it hasn’t bottomed out quite yet.
“The buyers are leaving this market, and sellers are taking control. People are looking for a way out,” he said. “It looks like it could continue to head lower.”
He said that the stock has broken its level of support, which indicates that no bottom is in sight.
- Alex Rosenberg at Talking Numbers4 days ago
This week, Treasury yields have finally begun to move higher. But does that spell big trouble for stocks?
The bond trade was supposed to be the biggest lay-up on Wall Street this year. As the Federal Reserve tapered down its quantitative easing program and started to look toward raising rates, nearly everyone expected Treasury yields to rise. Instead, the key 10-year Treasury yield has only fallen lower, from 3 percent at the beginning of the year to below 2.4 percent.
Many have viewed the historically low yields as a big driver for stocks, given that they make equities more attractive relative to bonds.
This week, however, rates have begun to move higher. And that’s causing some to worry about the prognosis for the great American rally.
“We certainly do expect rates to move higher, and as it relates to equities, this is a negative for equities in the short term,” said Erin Gibbs, equity chief investment officer at S&P Capital IQ.
- Amanda Diaz at Talking Numbers4 days ago
Apple’s deployment of its new digital wallet, or mobile payment service, is still a month away, but it’s already having negative implications on competitors.
EBay shares took a hit Wednesday after Piper Jaffray downgraded the e-commerce site to “neutral” from “overweight” and lowered their price target to $55 per share. The firm cited Apple’s new platform as the reason, saying it could disrupt eBay’s core PayPal business.
“We believe the unknown competitive threat of Apple Pay will further weigh on eBay’s multiple over the next three to six months,” wrote the firm’s senior research analyst Gene Munster. “We expect that investors will begin to question PayPal's longer-term role in offline payments and may question the staying power of online payments.”
- Amanda Diaz at Talking Numbers5 days ago
Apple wowed the world Tuesday with a slew of new products and updates.
From the new iPhone 6, to the tech giant’s first smartwatch, CEO Tim Cook captured the attention of investors and consumers alike.
But while all eyes seemed to be on the new product pipeline, Apple’s stock saw some volatile swings. Shares soared more than 2 percent after the iPhone 6 announcement, and then dropped sharply before closing nearly a half of a percent lower after pricing was announced.
So, will the whipsaw action in the stock continue, and where could Apple be headed longer term?
“Opinions are like iPhone’s today, everyone has one. I prefer the charts,” joked Auerbach Grayson’s Richard Ross. “From a purely technical standpoint, I’d be a seller of Apple on today’s news.”
- Maxwell Meyers at Talking Numbers5 days ago
As if this record-setting rally needed another superlative, a new statistic is now making the rounds on Wall Street and getting traders to scratch their heads in disbelief.
According to Jonathan Krinsky, chief market technician at MKM Partners, the S&P 500 has gone 14 consecutive days without a move of 0.50 percent on a closing basis, the longest streak since 1995. To find a longer streak, you have to look to 1969, which saw 20 consecutive trading days without such a move. Back then, Nixon was president, “Butch Cassidy and the Sundance Kid” was the top film at the box office, and the Beatles gave the last public performance in London.
Note, the streak was broken by Tuesday's 0.65 percent decline, but the market moves have still been very muted of late. So what does this lack of volatility all mean for a market that hasn’t seen a correction of 10 percent or more since 2011?
Well, if history is any indication, perhaps more gains.
“The takeaway is this result to more upside,” Krinsky said. “At least a couple percent higher.”
- Alex Rosenberg at Talking Numbers5 days ago
The greenback has been looking even greener recently. The U.S. Dollar Index, which tracks the performance of the dollar against a basket of other currencies, has risen 7 percent over the past four months, taking the index to a one-year high. That means that each dollar can now buy a greater amount of foreign currency units (and by extension, foreign goods) than it could previously.
And according to Ari Wald, head of technical analysis at Oppenheimer, the dollar’s rally may just be getting started.
He points out that in 1997, the Dollar Index (also known as the DXY) saw a strong breakout above its trendline, and proceeded to run much higher over the next few years. Wald also says that with the index once again bumping up against a trendline after a long period of stagnation, history may repeat itself.
- Amanda Diaz at Talking Numbers5 days ago
Want to know what’s working this year? Airline stocks.
A once un-investable sector, shares of Delta, JetBlue, United, American and Southwest are all widely outperforming the broader market on a year-to-date basis.
So, will the smooth ride continue for these stocks?
“The [airline] industry has been in a secular reversal, said Oppenheimer’s head of technical analysis, Ari Wald. “This is a very long-term reversal higher, following a decade of losses from [the year] 2000 to a couple of years ago.”
Between union issues, higher oil and a volatile economy, airline stocks have been a turbulent investment for the past couple of decades. Bankruptcies were a yearly occurrence. But a series of industry changes has altered that picture. Through a series of concessions, labor has become cheaper, and commodity prices have stayed low this year.
Those positive factors are reflected in the sector’s charts, according to Wald, and there is one name in particular that he thinks could really take off.