The good news is: The secondaries outperformed the blue chips again last week. The Negatives The market is overbought. The Dow Jones Industrial Average (DJIA) has been up for 7 consecutive days and the Russell 2000 (R2K) has been up for 6 consecutive days. Seasonality for the coming week has been, on average, negative. The…
Shares of Acacia Communications (ACIA) and Oclaro (OCLR), both suppliers to ZTE Corp. (ZTCOY), are on the rise after President Donald Trump tweeted that he was working to give the Chinese tech company a “way to get back into business.” ZTE had recently been blocked from buying U.S. components due to sanctions violations. TRUMP SEEKS…
Amid widespread volatility, the Wall Street is back in the green territory for the year. The impressive run in the stocks last week has helped the Dow Jones and the S&P 500 index to attain this level. Meanwhile, gains for the Nasdaq Composite Index expanded, taking the lead this year, climbing 7.2%. Tech Sector Boost…
Economic policy uncertainty as measured by the Baker, Bloom and Davis index is elevated (again) due to trade policy. Figure 1: US Economic Policy Uncertainty index (blue) and centered 7-day moving average (bold red). Source: policyuncertainty.com accessed 14 May 2018, and author’s calculations. Does this uncertainty matter? This article addressing just the Section 232 sanctions suggests the answer is “yes” (I must…
Inflation Specifics Inflation has been increasing modestly this year. Since the inflation most often focused on is the year over year data, it’s important to recognize that there are base effects helping the rate look better than it is. It’s easy to grow on top of the disappointing growth numbers in 2017. The base effects…
Early this month, Qualys (Nasdaq: QLYS), a pioneer and leading provider of cloud-based security and compliance solutions, reported a strong quarter that blew past market expectations. Qualys’ Financials In the recent first-quarter results, Qualys reported revenue of $64.9 million, up 22%. GAAP net income was $9.1 million, or $0.22 per diluted share, compared to $21.9…
You might have heard the expression “sell in May and go away.” This investing strategy says that investors might sell equities in May and repurchase them in October, in order to avoid the poor returns historically experienced in the summer months. Mike Matousek, head trader at U.S. Global Investors, tests this theory against a “buy…
Macy’s, Inc. (M – Free Report) is slated to report first-quarter fiscal 2018 results on May 16, before the opening bell. In the previous quarter, this department store retailer delivered a positive earnings surprise of 4.8%. The company’s bottom-line has also surpassed the Zacks Consensus Estimate in the trailing three out of four quarters. How Are Estimates Faring?…
Each month I will publish my dividend income. I will mainly do this for staying self-motivated and to give you the readers the chance to follow my journey from the beginning on. The dividend income in the first couple of years will be on a very low level but investing in dividend stocks is all…
While Tesla’s stock price is modestly higher this morning, seemingly glued to the $300-ish level, the car-maker’s bonds are leaking lower in price as Elon Musk told employees in a memo that he has been undertaking “a thorough reorganization of our company.” Following a two-hour pitchfest by long-time TSLA uber-bull Ron Baron on this morning’s CNBC, telling investors “we’re going…
