- Lawrence Lewitinn at Talking Numbers5 hrs ago
Netflix is jumping into one of Europe’s largest markets in a big way. But according to one technician, investors who buy into this hot stock now could lose their berets.
The streaming video giant is now offering its streaming video service in France, Western Europe’s second-largest market. They have also cut a deal with Bouygues Telecom, the country’s third-largest telecom company, putting Netflix in set-top boxes.
This isn’t Netflix’s first foray into the global markets. It’s already available in over 40 countries , and it ended the second quarter with 13.8 million out of its 50 million subscribers hailing from outside the United States.
Besides France, Netflix will also add Germany, Austria, Switzerland, Belgium, and Luxembourg to its list of countries this month.
However, will Netflix’s global plans mean anything for shareholders?
- Lawrence Lewitinn at Talking Numbers9 hrs ago
The greenback may get even greener.
The U.S. dollar index just completed its ninth straight week of gains. The index—which measures the dollar against a basket of other currencies—is in the midst of its longest streak of weekly advances since 1997. In the last two months, the index is up 4.8 percent, an unheard of move in the world of currency.
And according to one highly regarded technician, the gains could just be starting.
“A lot of investors have forgotten that in a bull market, you tend to see your economy strengthen, the dollar strengthen and equities go with it,” said Craig Johnson, senior technical analyst at Piper Jaffray. “We have just reversed a five-year downtrend. I don’t think that’s insignificant by any means.”
Driving the dollar strength is an influx of capital from Europe, where economic conditions are more uncertain, said Johnson. “It’s going to continue to go higher,” he said. “This trend reversal in the dollar is only going to continue to get stronger.”
- Amanda Diaz at Talking Numbers3 days ago
They say you can’t know where you’re going until you know where you’ve been. And that seems to hold true with the S&P 500, at least according to one technical analyst.
“As market technicians we often use history as a guide to understanding the current market environment,” said Piper Jaffray’s Craig Johnson, who used a chart of the S&P 500 from 1933 to 1965 to predict another 20 percent upside in the markets by the end of 2015.
“When I look at the chart, it tells me that we are in a new secular bull market,” Johnson said. “When we define secular bull market, it’s a market like we saw from 1952 to 1966 and a market we had seen from 1982 to 1999.”
He pointed out three similarities to the market in the 1950s versus the present.
“As you can see in the charts, the broader market has been in a secular consolidation range for more than 10 years. Second, similarly to the bear market in the 1940s, the bear market that began in 2000 had two well-defined peaks before breaking out to new highs. Third, interest rates in the U.S. in the 1940 to 1950 period were near historical lows (similar to today).”
- Amanda Diaz at Talking Numbers3 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 Numbers4 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 Numbers4 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 Numbers5 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 Numbers5 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 Numbers6 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.”