Spring fever brings hope for U.S. earnings - News and Current Events | futures io social day trading
futures io futures trading


Spring fever brings hope for U.S. earnings
Updated: Views / Replies:188 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Spring fever brings hope for U.S. earnings

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Spring fever brings hope for U.S. earnings

Earnings season shifts into high gear next week, and with nearly one-third of S&P 500 names set to post results, investors hope the news provides a catalyst to buy stocks and leave the market's recent weakness in the dust.

Several behemoths, including Apple, the largest U.S. company by market value, as well as Microsoft, McDonald's (MCD.N) and AT&T (T.N), are due to report earnings.

They'll be accompanied by highfliers like Netflix and Facebook, giving the first real cross-section of the state of corporate America as temperatures rise across the country and investors hope to put the cold weather behind them. Strategists will also be looking for clues on how badly China's slowdown hits U.S. corporate results.

The first batch of earnings came out as equities were working their way through a selloff led by trading-crowd favorites like Netflix and the biotech stocks. With the late-week recovery, the hope is that the recent volatility has ebbed. If poor results dominate next week's action, that could reignite the selling.

"We are still off our highs, but we still remain in an uptrend so it would not surprise me to see sideways action," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

"If we were to have a set of earnings releases that were well off expectations to the downside, that could create hesitation in the market."

A few themes will dominate in the coming week: The outlook for China, the rotation to slower-growing stocks, and results from high-flying trading favorites.

S&P 500 companies' first-quarter earnings are projected to have increased 1.7 percent from a year ago, Thomson Reuters data showed. The forecast is down sharply from the start of the year, when profit growth was estimated at 6.5 percent, but has climbed from a low of 0.6 percent reached on Wednesday.

That jump occurred despite notable disappointments from IBM Corp (IBM.N) and Google Inc (GOOGL.O). Even with those two lackluster reports, equities still mostly rallied on Thursday.

The benchmark S&P index rose 2.7 percent for the holiday-shortened week, helping the index recapture nearly all of the declines suffered in the previous week. The U.S. stock market will be closed for Good Friday.

THE CHINA CHALLENGE

Investors eyeing the impact of China's troubles on corporate America's bottom line will have a few spots to pick from, including Apple (AAPL.O), Qualcomm (QCOM.O) and Yum Brands

(YUM.N).

There have been warning signs, with IBM saying this week that its disappointing quarterly revenue was due to worsening sales in the world's second-largest economy and other emerging markets. Earlier in the week, China reported growth came in at its slowest pace in 18 months.

Qualcomm's (QCOM.O) revenue for its fiscal year ended September 29, 2013, showed China accounted for nearly half of the company's revenue. Options activity in Qualcomm has been defensive in nature, with investors paying more money to hedge against a fall than a rise in the stock's price.

But strategists at Goldman Sachs see this as a buying opportunity, believing the options data shows investors are overly concerned about the quarter.

Apple Inc (AAPL.O) also derives 13 percent of its sales from China, according to Thomson Reuters data. The company was once a favorite among momentum investors looking to capitalize on swift price gains, but the stock dropped sharply from all-time highs reached in late 2012. It has been mostly stuck in a range for the last year.

StarMine expects Apple to exceed earnings estimates by 1 percent. Notably, Apple has not benefited from a rotation into older tech stocks like Microsoft has. Its shares are down 6.1 percent on the year.

BIG MO? UH, NO

Along with Facebook Inc (FB.O) and Netflix Inc (NFLX.O), momentum names such as Gilead Sciences Inc (GILD.O), Biogen Idec Inc (BIIB.O) and Illumina Inc (ILMN.O) are set to post results.

Investors are gearing up for wild swings in those names next week. Trading in Facebook options expiring next Friday suggest investors expect about a 12 percent move in the stock's price by the end of next week. Weekly options are often used in advance of a major event like earnings. Similarly, Netflix options also suggest a 12 percent move.

After a spectacular performance in 2013, the selloff in many of these stocks over the past few weeks has contributed to the market's volatility. Whether they affect the broader market may determine how well stocks trade next week.

The Nasdaq biotech index .NBI is down nearly 19 percent from its closing high on February 25 while the Global X Social Media Index ETF (SOCL.O) is down 18 percent from its March 6 high. However, both have bounced off drops of more than 20 percent that had sent each into bear market territory.

With the nervousness created by the declines in the momentum names, investors have rotated into more defensive names.

"What happens at some point is (momentum names) become disassociated from the market at large. People see this happening, they become scared, and they start selling other companies as well," said Stephen Massocca, managing director at Wedbush Equity Management LLC in San Francisco.

"It gets to a point where that stops happening and the rest of the market - outside of these crazy names - is not that overvalued."

Some of those names, including Dow components Microsoft (MSFT.O), DuPont (DD.N) and Travelers (TRV.N), are among those identified by Credit Suisse quantitative analysts as potential "contrarian" picks as they're among the least loved by Wall Street analysts.

All three are also considered undervalued by StarMine's measure of intrinsic value that looks at the long-term growth expectations for these names. Microsoft, for example, is the third-best performer in the Dow this year, having gained 7 percent for the year.

(Wall St Week Ahead appears on Thursday because the market will be closed for Good Friday. Questions or comments on this column can be sent via email to: charles.mikolajczak(at)thomsonreuters.com)

Wall Street Week Ahead: Spring fever brings hope for U.S. earnings | Reuters

Reply With Quote

Reply



futures io > > > > Spring fever brings hope for U.S. earnings

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
big Band Fever (www.bigbandfever.com/) Inversehelix Trading Reviews and Vendors 3 February 3rd, 2014 09:33 AM
Oops! Earnings Season Brings Plenty of Excuses Quick Summary News and Current Events 0 January 7th, 2013 09:40 PM
Traders Hope for Signals From Fed as Earnings Woes Mount Quick Summary News and Current Events 0 July 11th, 2012 12:00 AM
Is It Spring Fever for US and Global Economy? Quick Summary News and Current Events 0 March 18th, 2012 07:10 PM
Internet IPO Fever Calms Down with Pandora Listing Quick Summary News and Current Events 0 June 16th, 2011 01:00 AM


All times are GMT -4. The time now is 09:40 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-17 in 0.08 seconds with 19 queries on phoenix via your IP 54.226.34.209