Twin Engines Giving Stock Market Some Lift
The stock market staged a rebound rally on Friday, which apparently isn’t done yet. That rally is set to resume at today’s opening bell, as clearly indicated by the futures market. Currently, the S&P futures are up 30 points and are trading 1.1% above fair value. The Nasdaq 100 futures are up 102 points and are trading 1.3% above fair value. The Dow Jones Industrial Average futures are up 279 points and are trading 1.2% above fair value.
Deere Oh Deere
On Friday, agricultural equipment-maker Deere lowered its annual earnings outlook for the second time this year, while reporting quarterly results that stumbled short of investors’ expectations.
August 19, 2019
Technical Analysis (Gold, Dollar, Oil and more) Heading into Monday’s Open: August 19, 2019
What’s on Tap Weekly Calendar: August 19, 2019 – August 23, 2019
Weekly Calendar: August 19, 2019 – August 23, 2019 – Monday August 19th: Economic Calendar: No Major Economic Data Released;Earnings Calendar: Earnings Before the Open: EL,Earnings After the Close: NOVA
Considerations of Cash
Weekly Corporate Highlights: August 19, 2019 – August 23, 2019
Staying on top of corporate events is critical for any investment firm. Here are the selected events from Wall Street Horizon impacting the most widely held securities scheduled for this week. August 19, 2019 – August 23, 2019
UK Sparks: Mitie Group Sells Catering Arm For Up To £85m
Outsourcing company Mitie Group has confirmed that it is selling its catering and hospitality arm to specialist caterer CH&CO for up to £85m in cash. The disposal of Mitie Catering will be accompanied by the formation of a new strategic partnership between Mitie and CH&CO, ensuring that the Gather & Gather catering offer remains exclusive to Mitie clients.
Huawei Still Under The Microscope
Another Way To Play Declining Interest Rates
With Treasury yields on a seemingly unabated decline in the U.S. and market participants expecting more interest rate cuts by the Federal Reserve, there is plenty of chatter about investment strategies for a low rate environment. At the industry level, one of the prime beneficiaries of lower interest rates are homebuilders stocks.
Cloudflare Is Going Public – Here Is Where The Web Infrastructure Company Is Planning Growth
US Market Volatility and Sleepless Summertime Nights
The summer of 2019 has given equity investors a lot of things to worry about. Yet, Franklin Equity Group’s Grant Bowers says the health of the US equity bull market shouldn’t be one of them—at least not now. He discusses the biggest growth driver for both the US and global economy and explains why he likes the long-term prospects for select companies in the health care and technology sectors.
Obscure Berkshire Hathaway Filing Reveals What Warren Buffett Thinks About Kraft Heinz
Macy’s Deflates, and Now It’s Even More Undervalued
Macy’s (M) share price dropped after the company reported second-quarter results and reduced its outlook for the rest of the year. We view the shares as attractive at current levels and believe the retailer won’t cut its current annual dividend of $1.51, which is yielding 9.3%. As we forecast Macy’s 2019 free cash flow at more than $1 billion, we think its annual dividend cost of less than $500 million is manageable.
UK Sparks: Ultra Electronics Wins US Navy Contract; EN+ Earnings Slump
The US Navy awarded Ultra Electronics and its joint venture partner Sparton DeLeon Springs a contract worth up to $1.04bn to manufacture sonobuoys for at least five years. Ultra Electronics CEO Simon Pryce said the “important” contract reflects the US focus on anti-submarine warfare. A sonobuoy is a portable electronic sensor that can detect underwater sounds.
Eliminating that Factor Home Bias
Street Fight: Analysts Diverge On CBS, Viacom After Companies Announce Merger
On Tuesday, CBS (CBS) and Viacom (VIAB) finally announced they have entered into a definitive agreement to combine in an all-stock merger, creating a company with over $28B in revenue. Following the news, Bernstein downgraded CBS to Underperform, while BMO Capital and Macquarie moved to the sidelines on CBS and Viacom, respectively.
Recession, Really? Not Based on Today’s Economic Data
Defense Offense: KTOS STNG HDS
Corporate Earnings vs an Inverted Yield Curve
UK Sparks: Betting Group GVC Announces £12.3m Loss After Merger Charges
GVC Holdings, the sports betting and gaming group that owns Ladbrokes Coral, made a pre-tax loss of £12.3m in the first six months of this year. The loss, which compares to a pre-tax profit of £114m in the same period of last year, came after £224m of charges, mostly for the “amortisation of acquired intangibles” relating to the integration of the Ladbrokes Coral Group.
Ready For A Retracement As 10-2 Spread Inverts
Based on the trading action in the futures market, there is no mistaking that the cash market is going to start today’s session on a decidedly lower note. Currently, the S&P futures are down 41 points and are trading 1.2% below fair value. The indications aren’t any better for the other indices.
Merger, She Wrote
Television moguls Viacom and CBS – home of NCIS, The Late Show, and Murder, She Wrote – had a satisfying conclusion to their lengthy run on Tuesday: a merger. If you thought Leonard and Penny had a long road, that’s nothing compared to these two: CBS and Viacom actually parted ways 13 years ago, but after years of failed negotiations, they finally got back together.
UK Sparks: FirstGroup Joint Venture Wins HS2 Rail Franchise
A joint venture of FirstGroup with Italian rail operator Trenitalia has been awarded a franchise to run Britain’s West Coast and new High Speed 2 train services. The 70%-30% joint venture will take on the franchise from December 8. In a first phase to March 2026, First Trenitalia will operate existing InterCity West Coast services while acting as a “shadow operator” for the HS2 programme.
Six Common Misconceptions About Factor-Based Strategies
It’s a Small, Small World
Global equity markets have been experiencing heightened volatility over the last few weeks. In my opinion, there are quite a few intertwined issues at work here. First, China’s economy has a large export component, accounting for nearly 50% of all GDP. China has made the domestic economy a focus, to reduce its dependence on exports over the last decade.