280.27 -0.13 (-0.05%)
Pre-Market: 6:26AM EDT
|Bid||280.22 x 1800|
|Ask||280.27 x 1000|
|Day's Range||276.07 - 280.82|
|52 Week Range||252.92 - 293.94|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.00|
|Expense Ratio (net)||0.09%|
Both Goldman Sachs and Morgan Stanley reported higher earnings with some help from a strong IPO market, just as both companies prepare to court Uber for a monster public offering.
Live from the floor of the New York Stock Exchange, Yahoo Finance's Jared Blikre joins Alexis Christoforous to discuss the latest market moves.
Fund managers expect the global economy to slowdown in the next year at the highest rate since November 2008, when the economy was already feeling the effects of the financial crisis.
The greenback's gains against emerging market currencies have been steeper. The MSCI Emerging Markets Currency Index, which tracks the performance of 25 emerging market currencies against the U.S. dollar, has declined 5.5 percent.
As we noted in the previous article, copper prices have sagged this year. Resilient mined copper supply and the US-China trade war have taken a toll on copper prices. The global growth outlook has also become murky amid the US-China trade tensions.
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 October sell-off is showing similarities to February's steep decline, suggesting that market players can uncover hidden trading signals through fractal analysis. The market topped out above $210 in February 2015 and entered a narrow range pattern that broke to the downside in August. Support held, generating a second V-shaped pattern that completed a double bottom reversal, marking the end of the intermediate correction.
In the week ending October 5, US crude oil inventories were at their five-year average—the same as the previous week. Oil prices and the inventories spread usually move inversely, as you can see in the following chart. If the inventories spread expands into the positive territory, it might drag oil prices in the coming weeks. The inventories spread is the difference between inventories and their five-year average.
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.
On October 15, the EIA (U.S. Energy Information Administration) released its Drilling Productivity Report. According to the report, US crude oil production from major US shale regions could reach 7.7 MMbpd (million barrels per day) in November—a rise of 24.9% on year-over-year basis.