Share to Twitter Share to Linkedin Key Takeaways: Tech sector faces increasing pressure from rising Treasury yields Volatility spinning higher as VIX moves above 20 amid debt ceiling fears Crude, natural gas prices keep climbing, raising concerns about impact on company margins Technology stocks came under heavy selling pressure early Tuesday as investors looked at a combination of uncertainty on Capitol Hill coupled with all but certainty that borrowing costs will increase. The yield on the benchmark 10-year note jumped more than 5 basis points to top 1.54%, its highest level since June. In other words, the market is taking a pro-cyclical view, which means better economic growth in the future, higher inflation, and higher bond yields. This tends to help “cyclical” sectors of the market like Energy but hurt “growth” ones like Tech. Rising prices can also mean cost pressure on company margins, so volatility could be expected for a while as we head …
Reservoir Link eyes listing transfer to Main Market
- A + A KUALA LUMPUR (Sept 28): ACE Market-listed Reservoir Link Energy Bhd has proposed to transfer its listing to the Main Market of Bursa Malaysia, given that it has met the profit track record requirements. In a filing with the bourse on Tuesday, the oil and gas well services provider said the proposed transfer is subject to approval from the Securities Commission Malaysia, Bursa Securities, shareholders, and any other relevant authorities. In addition, the company is required to meet a public shareholding spread of at least 25% to be in the hands of at least 1,000 public shareholders holding not less than 100 shares each. The company said it has met the requirements for a transfer to the Main Market, namely aggregate profit after tax (PAT) of at least RM20 million for three to five full financial years, with at least RM6 million in the latest financial year. Reservoir Link added that it has achieved a PAT attributable to owners of the company of RM10.8 …
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Mastercard taps into buy now, pay later market with latest offering
Mastercard rolls out buy now, pay later program - A + A (Sept 28): Mastercard Inc on Tuesday launched a buy now, pay later service, tapping into a market that is threatening to chip away at the dominance of credit cards as a main source of payments. The buy now, pay later sector got a boost during the COVID-19 pandemic as cash-strapped shoppers were attracted to the service due to the ease of making part-payments for products they bought online or at stores, without additional costs or fees. That, in turn, has led to a surge in business at some of the biggest players in the market, including Klarna, Affirm Holdings, Afterpay Ltd and PayPal Holdings Inc, while driving a string of big takeover deals. In August, Square Inc — the payments firm of Twitter Inc co-founder Jack Dorsey — bought Afterpay in a $29 billion deal, while earlier in September, PayPal said it would acquire Japanese BNPL firm Paidy in a $2.7 billion deal. Mastercard said on Tuesday its …
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What’s happening with Evergrande? China’s real-estate debt crisis rattles stock markets
advertisement advertisement advertisement advertisement News that real-estate giant Evergrande Group—once China’s top property developer, now Earth’s most heavily indebted—has reached the brink of collapse is causing what you might call “market jitters” today. Evergrande reportedly told banks that it won’t be able to meet the interest payments due today on its loans, and the Dow has responded by tanking more than 700 points so far , the Nasdaq by sinking by 2% , and the S&P 500 by dropping more than 1.5%, that index’s greatest volatility since May . advertisement Why does a single property developer in China have traders sweating bullets? Because the total debt that Evergrande has amassed ($305 billion, literally 2% of China’s GDP) suggests it may be too big to fail, and could have a ripple effect on the global economy if it did. That’s crippling nervous analysts with PTSD; some are calling this “ China’s Lehman Brothers …
Don’t Wait for a Market Crash: 2 Stocks to Buy Now
Legendary investor Peter Lynch once said: "Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves." In other words, even if a market crash seems imminent, no one actually knows the future, and trying to time the market often results in missed opportunities. From that perspective, it makes more sense to invest on a regular basis, even if it's a small sum of money. In doing so, you build positions through dollar-costing averaging, which helps protect your portfolio from short-term market volatility. With that in mind, Elastic ( NYSE:ESTC ) and Palantir Technologies ( NYSE:PLTR ) look like smart stocks to buy right now. Here's why. Image source: Getty Images. 1. Elastic Elastic is a search company. At the core of its platform is the Elastic Stack, a set of software tools designed to ingest and log data from any source (e.g. software, infrastructure), then help clients search and analyze that …
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Here’s Why Humana Stock May See Higher Levels
Share to Twitter Share to Linkedin We think that Humana stock (NYSE: HUM) currently is a better pick compared to Cigna stock , despite Humana being more expensive of the two. Humana trades at about 0.7x trailing revenues, compared to 0.4x for Cigna. Although both the companies have benefited from the rise in total number of enrollments for Medicare plans over the recent years, Humana’s financial performance has been better during the pandemic, driven by higher Medicare Advantage premium income as well as increased healthcare services revenues. However, there is more to the comparison. Let’s step back to look at the fuller picture of the relative valuation of the two companies by looking at historical revenue growth as well as operating margin growth. Our dashboard Humana vs Cigna : Industry Peers; Which Stock Is A Better Bet? has more details on this. Parts of the analysis are summarized below. 1. Humana’s Recent Revenue Growth Has Been Stronger …
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Up 10% Last Week, Are More Gains In The Cards For Carnival Stock?
Share to Twitter Share to Linkedin Carnival stock (NYSE: CCL), one of the largest U.S. cruise operators, has risen by about 9.5% over the last week (five trading days). This compares to the S&P 500 which was up by just about 1% over the same period. The recent gains come as the cruise line operator published its Q3 business update, indicating that bookings for cruises over the second half of 2022 were trending higher than pre-pandemic levels, giving investors more confidence about the post-Covid prospects for the cruising industry. The company also said that its voyages for Q3 2021 were cash flow positive and noted that the trend was expected to continue. Separately, Covid-19 cases in the U.S. have seen a declining trend in recent weeks after a big surge through the summer due to the highly infectious Delta variant of the virus. This could be making travel stocks such as Carnival, which remains down by about 17% since early June, more attractive to …
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What’s Next For FuelCell Energy Stock After 6% Rise Last Week?
Share to Twitter Share to Linkedin The stock price of FuelCell Energy , a company that designs, manufactures, and operates fuel cell power plants that work on natural gas or biogas, has risen by 6.4% over the last week (five trading days), compared to the S&P 500 which was up 0.6% over the same period. The stock also remains up by about 12% over the last month (about 21 trading days). The recent gains come as FuelCell posted a smaller than anticipated loss for Q3 2021, with its gross margins turning positive after several consecutive quarters in the red. FuelCell also posted better than expected year-over-year sales growth of 43%, driven by more service agreements and licensing revenues as well as stronger power generation sales. Now, is FCEL stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 55% chance of a decline in FCEL stock over the next month (twenty-one trading days). See …
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Bitcoin Falls On China’s Crypto Crackdown. Are These Crypto Stocks Better Picks?
Share to Twitter Share to Linkedin Bitcoin prices have declined by almost 7% since Friday, to levels of around $42,000 a unit although it recovered a bit over the weekend. The cryptocurrency also remains down by about 11% over the past month. The recent volatility comes as China’s central bank announced that all cryptocurrency transactions in the country were illegal. While a ban on crypto trading came into effect in China in 2019, it apparently continued via offshore exchanges. With the latest developments, crypto trading of all forms is likely to be shut down in China, and this likely caused liquidation of cryptos, putting pressure on prices. While China’s crypto crackdown is a setback, it probably doesn’t change the course for the broader adoption of cryptocurrencies, which have the potential to be one of the most disruptive technologies of our time. Investors who want to play the long-term upside in cryptocurrency adoption, without exposing themselves to …
Uber Poised To Turn A Quarterly Profit. Is The Stock A Buy At $47?
Share to Twitter Share to Linkedin Uber stock (NYSE: UBER) rallied by almost 20% over the last week (five trading days), considerably outperforming the broader S&P 500 which declined by around 1% over the same period. The gains come as the company updated its Q3 2021 guidance, noting that it is likely to post its first-ever quarterly adjusted profit. Adjusted earnings before interest, tax, and depreciation are expected to come in between a loss of $25 million and a profit of $25 million for the quarter that will end September 30, versus the company’s previous guidance of a loss of under $100 million. Uber also expects to post an adjusted profit over Q4 2021. Now, although Uber has reported a profit on a GAAP basis in the past driven by one-time gains, an improvement in adjusted earnings metrics indicates that the economics of Uber’s core business is improving. For example, Uber has reduced the deep discounts in recent years, while also pruning costs …
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