|Bid||176.75 x 800|
|Ask||176.76 x 1100|
|Day's Range||175.48 - 178.25|
|52 Week Range||146.33 - 187.53|
|PE Ratio (TTM)||9.99|
|Beta (3Y Monthly)||1.19|
|Expense Ratio (net)||0.20%|
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves.
For the ninth consecutive month, the so-called FAANG and BAT stocks—the US stocks Facebook (FB), Apple (AAPL), Amazon (AMZN), Netflix (NFLX), and Google (GOOGL) and China’s Baidu (BIDU), Alibaba (BABA), and Tencent (TCEHY)—remained the most crowded trades. These trades were determined the most crowded by 32% of professional investors, down from 36% last month.
We’ve seen how ServiceNow (NOW) has generated impressive returns over the last few years. The stock fell 3% in 2016 and then rose 69% in 2017. Since the start of 2018, it has risen ~48%. Although the stock has risen 57% in the last 12 months, ServiceNow has undergone several corrections in the past year and has bounced back quickly.
Lam Research reported and guided last night, and it was another stinker:-3% EPS growth last quarter and a guide for -18% EPS growth this quarter. Overall EPS is supposed to drop 14% next year to just over $15. So why is the stock up 6%+ today? Back in July, we recommended that members of Market Realist Pro avoid or short the stock at $190. And I have recommended shorting it back in April on Market Realist. Why? We saw the exact same pattern play out in 2011 and 2012. A deceleration early in the year, followed by capitulation after the report in October of 2011. Stocks are excellent at anticipation and their entire function is to discount future earnings and earnings growth. So always look out on the horizon. It was absurd in June to say “Oh great – they are growing EPS at 87%”. Because there was a see of red after that. From July 30th to the bottom a few days ago, LRCX dropped 23%+ while the QQQ’s only dropped 4.5%. Yikes.
BAML (Bank of America Merrill Lynch) conducted a survey that polled 231 global investors with $646 billion in total assets under management from October 5–11. The sell-off and concerns of peaking growth in the US might have tempted investors to shift into emerging markets (EEM). The emerging market currencies were in a free fall with many countries like Argentina, Turkey, India, Indonesia, and Brazil bearing the brunt.
This year started on a lukewarm note for gold and gold miners, and things started worsening after April. Gold prices have failed to draw a bid in 2018 despite many market uncertainties, including trade war tensions, the emerging market (EEM) currency crisis, and other geopolitical concerns.
What a rebound in the stock market! The PowerShares QQQ ETF (NASDAQ:QQQ) surged 2.6%, the Dow Jones jumped almost 500 points and for once, small caps led the rally rather than the decline. That sets up a ton of must-see stock charts and top stock trades for tomorrow.Top Must-See Stock Charts #1: Adobe (ADBE)
Amazon.com Inc. ( AMZN), one of the market’s high fliers, rattled investors last week by falling nearly 16% off its record high at the sell-off's steepest point, followed by a weak rebound. The decision to remove Alibaba also reflects increasing uncertainty over China’s macro environment.
The market continues to try and bounce back from its route the last couple of weeks. All three indices, (QQQ)(SPY)(DIA) are up about a percent so far this morning, but all three are down solidly from almost 4% for the Dow to almost 7% for the Nasdaq. Jittery investors want to know if the rally can hold up. Let’s look under the hood at some of the movers including BLK, GWW, MS, GS, UNH, JNJ, DPZ, and ADBE. Blackrock (BLK) continues its slide down about 4% today ($408) and now over 25% from its peak ($550) in June. Larry Fink said they saw people dumping investments even before the downturn. This name has a huge earnings cliff that may get worse. The NTM earnings multiple is still 16x while it dropped to close to 10x in 2011. Morgan Stanley (MS) had a sold quarter and is up 3%+, but wow, look at the earnings cliff. It goes from 33% earnings growth this year to 7% (that will probably go up) next year. Luckily it is only 9x 2019 earnings. It is pretty cheap and could likely bounce for a bit, but don’t get too excited about next year.
Ericsson (ERIC) stock has returned 43% in the last 12 months, -3% in the last month, and 4.7% in the last five trading days. In comparison, the SPDR S&P 500 ETF (SPY) and the PowerShares QQQ Trust, Series 1 ETF (QQQ) have returned 4.8% and 12.5%, respectively, in 2018. Of the 12 analysts tracking Ericsson, four have recommended a “buy,” six have recommended a “hold,” and two have recommended a “sell” for the stock.
Weaker-than-expected Retail Sales numbers for September, with a headline of +0.1% growth, was well beneath the +0.7% analysts had been looking for.
U.S. stock futures declined again on Monday as Saudi Arabia faced growing pressure from the U.S. Future contracts on the S&P 500 index, Dow Jones Industrial Average and Nasdaq were all in the red, indicating that investors remain cautious about U.S. stocks after last week’s sharp sell-off. President Donald Trump’s feud with Saudi Arabia over a missing journalist poses one of the biggest risks to stock market sentiment at the beginning of the week.
Rising interest rates tend to draw capital from equities to bonds, and these trends are reinforced by a flight to safety. The RSI appears very oversold at 16.95, but the MACD remains in a long bearish downtrend.
Gold, Miners Have Surged on the Market Rout—What’s the Upside? The Commodity Futures Trading Commission reports the positions of major players in the futures market in its COT (Commitment of Traders) report. It’s released every Friday and shows the open interest recorded on the previous Tuesday.
Today, October 12, the broader market is bouncing back after falling for six consecutive sessions. As of October 11, the S&P 500 index (SPY) has fallen 6.4% MTD (month-to-date). The Dow Jones Industrial Average (DIA) and the Nasdaq Composite index (QQQ) have fallen 5.3% and 8.7%, respectively.
One of the primary reasons advisors recommend clients hold a mix of equity and fixed income assets in portfolios is diversification. A potential benefit of that increased diversification is reduced correlations, meaning bonds and equities do not often move in the same direction. When equity-based exchange traded funds, such as the Invesco QQQ Trust (QQQ) , SPDR Dow Jones Industrial Average ETF (DIA) and SPDR S&P 500 ETF (SPY) decline, fixed income funds should provide some buffer against those pullbacks.
US equity markets continued their selling spree yesterday. Rising Treasury yields have been blamed for the equity market sell-off. To be sure, the US Federal Reserve has already raised rates three times this year and looks set for another rate hike later this year.
Both stocks and bonds moved down sharply Wednesday, continuing a phenomenon that emerged in the short-lived correction at the beginning of 2018. The Dow lost more than 800 points.
If you looked away for half a minute today, you may have missed a 200 point swing in the DJIA in either direction. The Nasdaq officially fell into a correction … the first of the major U.S. markets to do so.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Jen Rogers to discuss the latest market moves.