invstr market roundup – 06/02/17
The invstr Market Round-Up
February 6th 2017
Our hot stock this week is Facebook. Despite the recent controversy over a $500m bill for the company and other defendants over it’s Oculus Rift virtual technology equipment, Facebook is still in fantastic shape overall. It’s fourth quarter profits in 2016 were over double what they were in Q4 2015, adding around $3bn in total revenue compared to 2015. Fortune Magazine said Facebook’s growth appears to be unstoppable, and many top market analysts are bullish on its prospects for the future.
Some argue that Facebook stock should be worth more, considering it’s robust business model which is widely popular with consumers. Users provide tons of content that keeps people coming back for more and crucially there is practically no viable competition in the marketplace for what Facebook does best. Until such a competitor appears, it seems unlikely that Facebook will lose its foothold as the premier social network.
Trade Facebook in invstr by searching #fb
LAST WEEK IN THE MARKETS
Last week the Bank of England kept interest rates on hold but upgraded their growth prospects for the UK economy, due to the fact it has outperformed their expectations since the Brexit vote in June 2016. The US Federal Reserve under Janet Yellen also kept rates in the US on hold, but was upbeat about the future of the US economy.
The UK Parliament passed a bill allowing the triggering of Article 50 of the Lisbon Treaty, allowing the government to begin the process of withdrawing the country from the EU.
Donald Trump’s National Security Adviser General Mike Flynn, told the White House Press Corps that the US was putting Iran ‘on notice’ after it conducted ballistic missile tests. This increased uncertainty in the markets as to what would come next in response.
In company news, Deutschebank revealed it lost $2.1bn in Q4 2016, hit by charges from regulators over misconduct and aiding money laundering. Ralph Lauren CEO Stefan Larsson announced on Thursday that he would be quitting the company in May and the share price fell dramatically. Vodafone confirmed it had entered talks over a merger of its Indian operations with Idea Cellular.
Gold had its best day since November, with prices rising as investors looked for safety amidst political and economic turbulence.
Indian stock markets rallied on Wednesday after India’s Finance Minister released a budget aiming to help banks clear up their balance sheets and increase infrastructure spending. The NIFTY50 gained over 2% before the close. It was also confirmed that Apple will be manufacturing the iPhone in India in future.
Japan said it had started putting together a package that could create 700,000 jobs in the US, investing 17 trillion Yen in public and private funds over 10 years, helping infrastructure particularly.
THE WEEK AHEAD IN THE MARKETS
– Full year earnings results from Rio Tinto, Commerzbank, Tullow Oil and more.
– Quarterly earnings results from General Motors, GlaxoSmithKline, Ryanair and more.
– China’s trade balance for January 2017 will be released, as well as the US IEA oil market report looking at production in the global oil market – we may learn whether OPEC nations have been sticking to their promises to cut production.
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