|Day's Range||1.3600 - 1.4300|
As the Q3 2019 corporate earnings reporting season goes into full swing for the S&P 500 companies, a rising U.S. dollar is creating yet another headwind for profits along with increased costs and faltering demand in the midst of the U.S.-China trade war and a global economic slowdown. The WSJ Dollar Index, which compares the value of the dollar to a basket of 16 other currencies, reached its highest level since 2017 in September, up by nearly 1% so far in 2019 after rising by 4.3% in 2018, The Wall Street Journal reports. At least 16 of them have indicated that the rising dollar took a significant bite out of Q3 2019 profits, including such big names as Delta Air Lines Inc. (DAL), Johnson & Johnson (JNJ), General Mills Inc. (GIS), and Nike Inc. (NKE).
China is pressing international trade regulators to award it $2.4 billion in sanctions against the United States in a tariff dispute that started during the Obama administration. The World Trade Organization ...
U.S. markets and stock ETFs retreated Friday, stumbling after a strong week, on concerns over global growth in response to poor data out of China. On Friday, the Invesco QQQ Trust (NASDAQ: QQQ) was down ...
Tesla (NASDAQ:TSLA) has become the ultimate battleground stock. Both bears and bulls are very emotional when it comes to Tesla stock. Many resort to irrational claims and ideas as they dig their heels in.It's been a vicious environment, and guess what?Source: Ivan Marc / Shutterstock.com Neither side has been right!InvestorPlace - Stock Market News, Stock Advice & Trading TipsTSLA stock is flat over the past 12 months and up about 13% over the last five years. A month ago, that five-year return was approximately 0%.Compare that to the S&P 500 ETF (NYSEARCA:SPY), which is up 8% in the past year and roughly 60% in the past five. * 7 Reasons to Buy Canopy Growth Stock There's a serious disconnect here for both parties. Tesla has neither gone to the moon like bulls thought, nor has it gone to zero like seemingly every perma-bear has pleaded.So what now? Breaking Down Tesla StockFor me, Tesla is one of those "look, don't touch" stocks. Meaning, it's an exciting and entertaining company to follow, but not necessarily a stock I want to put my money in. It has a polarizing CEO and state-of-the-art cars, but it also has a problem generating free cash flow, while that polarizing CEO can run afoul at times.After a capital raise earlier this year, Tesla is well funded. It can finish building out its Gigafactory in Shanghai and pour more funds into expansion and product development. But if it can't generate consistent free cash flow and profits, then what good is TSLA from an investment perspective?Then there's consideration from a valuation perspective. TSLA shares are anything but cheap. At current prices, Tesla stock commands a $46 billion market cap. That's about two times 2019 sales. However, valuing TSLA on cash flow and profits is a bit harder, since they are inconsistent at best and non-existent at worst.In my view, Tesla has more upside than companies like General Motors (NYSE:GM), Ford (NYSE:F) and others. That does not mean it has a superior business model or financials. But even if Tesla does grow into its potential, how much room does its valuation allow the stock to expand?Perhaps one could make an argument that TSLA may command a valuation like Ferrari (NYSE:RACE). But Ferrari is an automaker unlike most others. It does not aim for the masses and has a very passionate customer base. Tesla too has a passionate customer base, but it is aiming for the masses.For Tesla, it really boils down to consistency. It needs to consistently expand (or maintain) margins, its free cash flow and profits.Without consistency in its fundamentals, Tesla, at least to me, is simply a company to cheer for but not one to invest in at this time. Automakers are tough investments to begin with and the volatility in Tesla's financials doesn't help matters. Trading Tesla StockTSLA stock is coiling just beneath $260. On the charts, that lands it just below a critical level over the last seven months but puts it over the 200-day moving average and 61.8% retracement.While the stock fell about 50% from peak to trough, the decline didn't give bears the satisfaction they were looking for. Particularly now that TSLA has bounced back by more than 45%.After the latest rally, both camps seem convinced the next "big move" will be in their favor.If TSLA can move back over $260, it puts the 50% retracement near $278 on the table. Above that and $300 is possible.It's worth pointing out that Tesla stock is over the $240 to $250 zone, which is a critical long-term area as it was range support for a number of years before giving way in April.Should the 200-day, $260 and the 61.8% retracement prove too difficult for TSLA to penetrate, let's see if uptrend support (blue line) and the 50-day moving average can buoy the name. Below that and the 78.6% retracement near $220 is on the table.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post Tesla Stock Looks Like It's on the Verge of Another Breakout appeared first on InvestorPlace.
Ongoing uncertainties are likely to weigh on stock prices long after the U.S. elections in 2020. JPMorgan recommends these strategies for investors.
On Thursday, the Invesco QQQ Trust (QQQ) was up 0.3%, SPDR Dow Jones Industrial Average ETF (DIA) rose 0.1%, and SPDR S&P 500 ETF (SPY) gained 0.3%. For example, Morgan Stanley climbed after the bank beat analysts’ expectations for quarterly profit. Global sentiment also improved after the United Kingdom and the European Union reached a tentative agreement on a new Brexit deal.
Many investors are getting excited about the Brexit deal. Some excitement is warranted because it took years of wrangling for the U.K. and the European Union to reach a deal at the last minute. Northern Ireland’s Democratic Unionist Party does not support the deal.
The traditional weight rule of 60/40 for a retirement portfolio should no longer be relied upon, per some strategists. Hawkish investors can play their theory with some dividend-heavy ETFs.
U.S. markets and stock ETFs faltered Wednesday after weak U.S. economic data and lingering geopolitical risks kept investors from taking further risk-on bets, despite the overall positive earnings results. ...
The SPDR S&P 500 ETF Trust (NYSE: SPY) has rallied 1.4% since President Donald Trump announced the U.S. and China have agreed to Phase I of a trade deal that takes Oct. 15 tariff hikes off the table for now. While investors cheered the news that the trade war will not be escalating, some critics said Friday’s trade news isn’t enough to get the market to new highs. The Phase I deal provided no relief from current trade war tariffs and it contained no provisions that would boost global growth from current levels.
Berkshire Hathaway has been a major market laggard in one of the greatest bull markets, leading a longtime fan of Warren Buffett to dump his holdings.
Stocks were off slightly as investors considered a mixed batch of U.S. economic data, ongoing geopolitical concerns and more corporate earnings. Earlier in the session, the Dow briefly broke into positive territory.
As online brokers slash their fees, more investors are finding their way to exchange-traded funds, and for more reasons, executives of the ETF market share leader told analysts
On Tuesday, the Invesco QQQ Trust (QQQ) was up 1.3%, SPDR Dow Jones Industrial Average ETF (DIA) rose 1.0%, and SPDR S&P 500 ETF (SPY) gained 1.1%. Traders were going into the earnings season with muted expectations after a protracted trade war and economic weakness weighed on the growth outlook.