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Showing posts from June, 2019

US stocks are projected to reach record highs as Fed signals rate cut

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     The Feds signal a rate cut around early July causing the pre-market Nasdaq future, S&P 500 future, and Dow Jones future to rise showing an expected overall rise in US stocks today.      A decrease in interest rates will allow companies to make loans and invest the money towards expanding themselves which would help stimulate economic growth in the US. When companies expand, they get a increase in revenue and profit which would help boost their stocks because of higher earnings.      The positive outlook of a decrease in interest rates make investors feel confident about the market performing well.

It might be the time to buy JPMorgan before it banks up

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      JPMorgan Chase & Co.(JPM) is one of the biggest banks in the world with a a market cap of $360.223 billion and is the biggest bank in America. They have a high profit margin of 31.41% showing that they are very profitable and that they have the potential to continue to expand from the high profit.       JPMorgan has the highest P/E ratio compared to other top banks showing that investors expect them to have a higher growth than the others, but they aren't valued as overpriced because they are below the P/E ratio average of around 13.51.  JPMorgan also has a high dividend yield with only Wells Fargo having a higher one showing that JPMorgan has a greater return than Bank of America and Citigroup. However JPMorgan has a better return even though they don't have the highest dividend yield considering they have a higher and more stable profit margin compared to Wells Fargo which would allow them to be consistent on paying out th...

Amazon's failure leads to Grubhub's boost

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    Amazon INC(AMZN) is one of the top companies in the world with a market cap of $795.18 billion. Amazon has spend the last decade expanding themselves to all kinds of departments. Amazon started out as an online book store, but has expanded into cloud service, an on-demand content provider, into grocery sector by acquiring Whole Foods, and more.      Grubhub(GRUB) is a food delivering service which serves in more than 2,200 U.S. cities and London and is one of the largest food delivering services. Grubhub competes with other meal-delivery services such as DoorDash, Uber Eats, and Postmates and they all account for 93% of sales of the U.S..     Amazon opened Amazon Restaurants which is a food delivering service similar to Grubhub and DoorDash, but it wasn't a success so Amazon decided to close it on Tuesday. Amazon investors aren't worried about this news because this is a small failure compared to their large amounts of success so Amaz...

Is it the right time to buy Intel...or not?

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    To buy Intel, or not to buy Intel: that is the question. You can find Intel chips everywhere; probably in your Mac, PC, phone or laptop. Don't be surprised because Intel dominates most of the CPU market share of over 75%.      Now lets get back on topic and focus on the whether you should buy or not buy Intel. Intel stock(INTC) has been suffering a lot for the past few weeks from the trade war with China and even a new CPU released by AMD that could beat the tough Intel's Core i9-9980XE. Even though Intel dominates the CPU market and has more sales than their competitors, which would be good for their shares; however, they are experiencing rough times.      Intel's trade with Huawei accounts for 1% of its revenue, but the trade ban on Huawei a few weeks ago negatively impacted Intel causing its shares to fall. Intel is having talks with the Trump Administration and Huawei about reversing the ban which would help boost Inte...

Oil tanker in Gulf of Oman gets attacked causing oil stocks to rise but will stocks continue to rise today?

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    The oil tanker in the Gulf of Oman was attacked yesterday which caused the oil market to rise helping boost oil stocks. The response to the attack had positive results on the oil market, but will they still have a positive effect today.      I think that they will not have as much of an effect on oil stocks as they did yesterday because the market overreacted too much causing the high increase. The attack will only have a small effect on oil stocks today because it wasn't a major event and investors aren't worried that this event will happen anytime soon because the nations are trying to get to the cause and prevent this from happening again. This kind of news mostly have short term effects instead of long term effects because it doesn't have a large scale effect on the oil industry or companies. I feel that the stocks will rise a little bit today, but not too much.

Stocks are on the rise as the US drops planned tariffs on Mexico

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        Trump was planning to put tariffs with Mexico because of the influx of migrants reaching the southwestern border of the United States. However, a agreement has been made between the United States and Mexico causing Trump to drop the plans of imposing tariffs. The agreement requires Mexico to try to reduce the amount of migrants coming to the border and in return the United States will not impose tariffs.          Tariffs on Mexico would have caused prices on goods on rise in the United States and would cause some damage onto the US economy and companies because the US imports and exports lots of products with Mexico. The stock market would've taken a hit too if tariffs would be put into place.          The relief of no tariffs between the US and Mexico and trade optimism helped the stocks in the United States rise. Investors are relived about there being no tariffs so they have more confidence in the stock m...

Bonds look attractive as Investors expect the Feds to cut interest rates

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              Investors expect the Feds to lower interest rates as a response to the trade war with China. Lower interest rates would stimulate stock market growth after the US stock market suffered losses from tariffs so the Feds would most likely decrease the interest rates to combat the effects of the tariffs and to help the stock market bounce back from their losses.                Lower interest rates would also mean that buying bonds right now would cause their value to increase because of their high interest payments compared to the lower interest rate payments in the future from lower interest rates. If the the Feds were going to increase interest rates, then bonds with lower interest rates would have lower values than the bonds from the soon-to-be higher interest rates because the lower interest rate bonds have less return than the higher interest rate bonds.        ...