World Markets rally – Adobe & FedEx earnings in focus

by | Sep 19, 2017

World equity markets keep pushing ahead, hitting new highs and confounding expectations. Geopolitical risks can’t seem to stop the bull run, helped by strong company performances across the world. 

Yesterday key US indices closed at new records. The rally came ahead of tomorrow’s Federal Reserve Meeting, in which the central bank is probably going to keep interest rates the same, but will likely detail how it will start to unwind its balance sheet, which is colossal thanks to the Feds QE (stimulus) programme. 

European markets are weaker at the open except for the FTSE100, but are expected to turn green (positive) by the end of the day as global positive sentiment keeps lifting indices higher. 

Japan joined the rally too. After Monday’s holiday, indices including the TOPIX surged by almost 2% today. Easing geopolitical worries pulled down the value of the Japanese Yen (which is good for Japanese exports and welcomed in Tokyo).

We get 2 key company results from the US today – software business Adobe and courier delivery service FedEx. Adobe has beaten analyst expectations for the last 13 financial results days in a row, but can it do it again today? 

Adobe cloud services continue to drive growth. Revenue has accelerated in 2017 well beyond last years levels, indicating strong forward momentum for the company. Adobe is expected to earn $1.00 per share on $1.81 billion in revenues, representing year-over-year growth rates of +34% and +23.9%. The stock is up +50.2% year-to-date, outperforming the S&P 500 index’s +11.6% gain. Analysts are bullish. 

FedEx stock has looked weaker since mid-July, but is still up +14.8% this year, outperforming rival UPS. Sentiment is generally mixed towards its earnings release today. 

Both of these business report earnings after US markets close. Add these stocks to your watchlist on Invstr and trade them before the market opens for maximum potential profits. Search #adobe and #fedex in-app. 

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