Trade Deal In Sight? 👀 Apple Haters ‘Out Of Ammo’ 🍏

Table of Contents

 

1. Trade Deal In Sight?

It would seem both sides are finally ready to talk turkey with some conclusive trade talks to come this week. US Treasury Secretary Mnuchin announced that sufficient concessions from China could bring about the end of the bitter tit-for-tat tariff spat. Finally!

Last night Mnuchin said that “everything is on the table” in his meetings today with some of China’s top brass as they discuss structural changes to China’s economic model and more balanced terms of trade.

The tariffs and global slowdown have taken a serious toll on the Chinese economy which has received immense flack for many poor earnings results this season. With China’s domestic growth at its weakest level since 2009, its negotiation position is severely weakened and the scales are definitely tipped in the US’s favour.

However, both sides will hope for a resolution in the crisis as markets remain in an extremely fragile state. A collapse in talks would hurt the chances of forming a lasting truce between two of the most important trading nations, further rattling investor confidence.

Positive developments by the end of the week could send investors flooding back into emerging market assets and quell some of the skepticism about global growth that has been creeping into markets this week. We wait in hope!

 

2. Apple Haters ‘Out Of Ammo’

Mad Money presenter, Jim Kramer, explained Apple’s 5.5% stock price rise after its disappointing earnings as a lack of ammunition left to keep beating Apple down. The appreciation buoyed the tech sector late in the session, setting up an intriguing platform for a host of big name earnings today.

The resounding negativity ahead of Apple’s earnings was silenced when its earnings were not as awful as everyone expected. Kramer argued that the vicious criticism has already played itself out, and with a potential trade deal on the horizon, the stock has nothing but upside.

This sets the scene for an important earnings day which includes, Alibaba, Microsoft, Facebook, Qualcomm and Tesla. Similar to Apple, all of these stocks fell out of favour in October and have faced vicious criticism ever since. But have the tech bears lost their oomph?

Less horrible than expected earnings today could yield equally surprising outcomes for these tech giants who have mostly retreated from their Friday highs over the last two days. Positive results across the board could generate much-needed gains in sagging levels of investor confidence on Wall Street. However, if the tech bears find their oomph again, the sea of red may just get deeper.

Today we are watching…

1. Microsoft (#msft)

The world’s second largest company is poised to be one of the more interesting earnings announcements today. Microsoft’s strong cloud computing business, subscription model and software division could be the X-factors contributing to a positive earnings publication today. Each sector has grown between 33%-76% year on year and looks set for more gains in 2019. The consensus EPS estimate is $1.09% (+13.5%) on revenue of $32.49bn. Let’s see what comes out in the wash!

2. Tesla (#tesla)

Tesla’s earnings report comes amid a cascading share price thanks to extensive layoffs and a number of other red flags. Even though the company is set to post a quarterly profit, expiring tax credits, a possible capital raise and a $920 million mountain of debt are looming over the company. Analysts remain mixed on Tesla which is prone to considerable price swings. So keep your wits about you when taking it on today. The consensus EPS estimate is $2.19 (+172%) on revenue of $7.12bn (116.4%).

 

 

 

 

 

 

 

Share:
More Posts
PGA Tour Enters Investment Talks 💪

As reported on Thursday, both Endeavor Group and Fenway Sports have displayed interest and begun discussions to provide investment in the PGA Tour.

Nike Just Didn’t Do It 📉

Providing one of the biggest earnings reports of the week, $140 billion shoe and clothing retailer Nike posted a significant slip.

Market Recap – September 28th 💰

After the 10-year Treasury yield bond fell off from its 15-year high, investors added some value back into the market, focusing all short-term attention on Friday’s PCE price index reading.

The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.