Monday Market Madness 😵 Sanctions Ahoy! 🚧

by | 29 Jan, 2019

 

1. Monday Market Madness

The bears reigned supreme yesterday as a sea of selling washed over US markets in response to a bad earnings report from Caterpillar and even worse guidance from chip-maker, Nvidia. 

The fallout infected the entire market, sending all major US indexes into the red as investors’ concerns about the depth of the China slowdown returned with a bang.

Nvidia shed a whopping 16% after cutting its Q4 revenue estimate by half a billion dollars, while Caterpillar dropped 8.1% after its earnings missed estimates by a considerable distance.

Both companies blamed China for their poor results – a trend which is likely to persist this week as some of the big names produce their earnings.

Investors are running scared at one of the most important junctures for global markets in the last decade as the S&P 500 flits in and out of recovery territory.

This week will be an incredibly important one as positive earnings from the big boys, and good trade talk developments could hold off global growth concerns, but bad news could spark more sell-off action.

Don’t take your eyes off the markets, more madness may be on its way!

 

2. Sanctions Ahoy!

That’s right, the U.S.S. Sanctions has just docked in Venezuela as President Trump ramps up the pressure on acting President Maduro to resign. However, Maduro has shown his intentions to not take the news lying down.

The announcement, while somewhat expected, sent ripples through the oil market this morning (as if we needed more volatility there), driving prices higher from yesterday’s global growth-fuelled sell-off.

The oil market has been wracked by the extreme supply-side push and pull factors that have caused the wild price fluctuations we have all been experiencing over the last few months. And the volatility is not over yet.

The outlook on the oil market still looks shaky at best with the Venezuelan crisis set to increase prices, but record rig production in the US and weaker global demand poised to weigh them down. When will the tug of war end?

Maduro will most likely scramble to try to sell his oil elsewhere at a greater cost. China and India are lining up to benefit from the dramatically reduced prices, but without sufficient revenue for the lifeblood of his regime, the internal pressure for change will start to mount on Maduro. Tick-tock, Mr President.

Today we are watching…

1. Apple(#aapl)

Apple will announce its earnings today amid one of its worst years on record. Slowing growth in China and weaker demand for devices has crippled the tech giant. Investors are skeptical about the chances of an earnings beat, but also wary of a wider fallout in the tech sector in the event of a terrible result. The consensus EPS estimate is $4.17 (+7%) on revenue of $84.04bn (-5%). You don’t want to miss this one!

2. Advanced Micro Devices (#amd)

After Nvidia’s train-wreck guidance announcement yesterday, AMD’s upcoming earnings report today may hold more of the same. Chip-makers across the board have taken a hammering thanks to the cyclical downturn, end of the crypto rush and weaker demand in China. AMD’s consensus EPS estimate is $0.08 (flat) on revenue of $1.44bn (-2.7%), but beware of any sneaky surprises!

 

 

 

 

 

 

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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