• Breaking News

    Monday, October 8, 2018

    Stocks - Global stocks lower as investors continue to digest the impact of higher interest rates

    Stocks - Global stocks lower as investors continue to digest the impact of higher interest rates


    Global stocks lower as investors continue to digest the impact of higher interest rates

    Posted: 08 Oct 2018 05:04 AM PDT

    US Stocks

    • Global stocks are declining this morning as investors continue to digest the impact of higher interest rates on stocks
    • US stocks index futures are pointing to a drop in US stocks on the open in NY with the Dow Jones minis -0.35%, S&P500 minis -0.26% and Nasdaq 100 minis –0.37%
    • US Secretary of States had a "testy" start to a state visit to Beijing – the US Secretary of State claimed a "fundamental disagreement" with his Chinese counterpart, Foreign Minister Wang Yi, who accused the US of escalating trade disputes, interfering in Taiwan and meddling in domestic Chinese affairs
    • The VIX is moving up this morning and is currently at 16.39 after closing at 14.82 last week
    • Petrobras (PBR) October 19 OTM Calls, XLF October 19 OTM Calls, General Electric (GE) November 16 OTM Puts, QQQ October 12 & October 19 OTM Puts, and SPY October 19 & November 16 OTM Puts are the most heavily traded options contracts in the US pre-market
    • US 10-Year Treasury Bonds are flat with yields little changed to 3.2328%
    • The US Treasury 2s-10s Spread has little changed to 0.35%
    • WTI Crude is currently little changed 0.01% to USD$74.34/bbl with the Brent-WTI spread down USD$-1.51 to USD$8.6/bbl
    • Gold is currently down -0.8% to USD$1194.03/oz
    • Global oil prices are dropping to start the week following rumors the US government may soften its sanctions on exports of Iranian crude oil
    • Indian gold imports are estimated to have doubled Y/Y in September

    Stocks Trending in the News

    • Airbus (AIR) will appoint Guillaume Faury as its new CEO today. Airbus will combine the role of CEO and head of commercial aircraft, the position he holds today. The change will happen in April when the present CEO will step down. Airbus is trading 0.25% higher at 104.24 euros. Airbus is rated 'Neutral' in our European Large-Cap Global Top Picks
    • Baker Hughes (BHGE) has agreed to acquire 5% Abnoc Drilling, which values the Abu Dhabi National Oil Co at USD$11bn. This is the first direct equity investment by a foreign firm in an Abu Dhabi oil services company. The deal will help Abnoc Drilling expand drilling support by 40% by 2025. Baker Hughes is rated 'Top Short' in our US Large-Cap Global Top Picks
    • Glencore (GLEN LN) could take itself private according to a report by Bernstein today. Glencore was a private company for most of its history until going public in 2011. Glencore management could take the company public and the idea as brought up given the weak share price. Glencore share are trading 0.42% higher at 326.20 pence. Glencore is rated 'Unattractive' in both our European Large-Cap and United Kingdom All-Large Cap Global Top Picks
    • Kimberly-Clark (KMB) was downgraded today at Goldman Sachs to neutral from buy. Goldman Sachs said its call that the company's organic sales momentum would sustain its rise did not pan out as expected and led to the Kimberly-Clark downgrade. Kimberly-Clark is rated "Neutral' in our US Large-Cap Global Top Picks and 'Attractive' in our US Consumer Staples Global Top Picks
    • Lloyds Bank (LLOY LN) and Schroders Asset Management (SDR LN) are in talks "with a view to working closely together in parts of the wealth sector". The ultimate goal is to win the investment mandate for the Lloyds owned Scottish Widows. The moves are part of Lloyds efforts to expand its non-banking income. Lloyds is trading 0.80% lower at 58.46 pence while Schroders is trading 0.40% higher at 3012 pence. Lloyds Bank is rated 'Neutral' in our United Kingdom Global Top Picks and Schroders is rated 'Neutral' in our United Kingdom Global Top Picks
    • Tencent (700 HK) will invest USD$200mm in Brazilian bank Nu Bank. This round of financing values the bank at USD$4bn and the market awaits further detail from Tencent. Tencent closed 2% lower at HKD$299. Tencent is rated 'Attractive' in our China All-Cap Global Top Picks
    • Wirecard (WDI GR) is trading 7.3% lower at 174.6 euros as the short position in the stock continues to grow. There is a short position equal to 1.3% of all outstanding Wirecard shares presently. Wirecard is rated "Top Buy' in our European Large-Cap Global Top Picks

    European Stocks

    • European stocks are dropping to start the week, with investor sentiment impaired by the jump in US treasury yields, the sell-off across Chinese & Hong Kong markets, slower German economic growth, and Italy's defiant stand over its fiscal deficit.
    • The Italian coalition government's contentious relationship with the EU remains in focus after Italian Deputy Prime Minister Matteo Salivini suggested Europe's real enemy is EU President Jean-Claude Juncker and bureaucracy in Brussels that imposes budget restrictions and open boarders
    • The Euro Stoxx 600 is currently down -0.78%, the FTSE 100 has declined -0.58%, the DAX has fallen -0.75%, and the CAC 40 is lower by -0.82%
    • Investor sentiment for European stocks is negative with the advance/decline ratio for the Euro Stoxx 600 currently at 0.26x
    • Real Estate (+0.62%), Utilities (+0.18%), and Travel & Leisure (+0.16%) stocks are the top performers in the Euro Stoxx 600 today
    • Oil & Gas (-1.6%), Banks (-1.56%), and Automobiles & Parts (-1.26%) stocks are the worst performers in the Euro Stoxx 600 today
    • 22 stocks in the Euro Stoxx 600 are at 4-week highs while 197 stocks are at 4-week lows
    • 8 stocks in the Euro Stoxx 600 are overbought while 77 stocks are oversold according to the 16-day RSI Measure
    • VSTOXX, the European stocks equivalent of the VIX, is little changed this morning and is currently at 17.51 after closing at 16.68 yesterday
    • EUR€ is currently down -0.469% against the USD$ to 1.147
    • GBP£ is currently down -0.663% against the USD$ to 1.3033
    • CHF is currently little changed against the USD$ at 1.0067
    • German 10-Year Bunds are higher with yields down -4.4 basis points to 0.529%
    • UK 10-Year GILTs are higher with yields down -3.2 basis points to 1.69%

    Asian Stocks

    • Asian stocks started the week in the red, with the MSCI Asia ex Japan index now at a 17-month low
    • The decline in Chinese stocks, the first trading session in a week, was the biggest drop since about 2 years
    • The Hang Seng ended down -1.39%, the Hang Seng China Enterprise declined -1.3%, and the CSI 300 was -4.3%
    • Japanese markets were closed for the Health-Sports Day holiday
    • The Hang Seng is back at early September lows, which were the lowest reading on the Hang Seng since June/July 2017
    • The People's Bank of China (PBOC) cut its reserve ratio for banks to 1.0% -- the cut in the reserve ratio is expected to make USD$175bn in capital available for investment thought almost ½ is exptedt ed to be used to repay maturing medium-term funding
    • Investor sentiment for Hong Kong stocks finished negative with the advance/decline ratio for the Hang Seng closing at 0.16x
    • 2 stocks in the Hang Seng hit 4-week highs while 12 stocks reached 4-week lows
    • 0 stocks in the Hang Seng closed overbought while 3 stocks closed oversold according to the 16-day RSI Measure
    submitted by /u/QuantalyticsResearch
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    What are you guys eyeing this dip?

    Posted: 08 Oct 2018 10:48 AM PDT

    I'm going to wait and watch these next few days to see where they'll hit support levels. But I'm specifically looking at buying AMZN, SQ, and TSLA. What other stocks have dipped that you guys are watching to potentially get a discount on?

    submitted by /u/taiwansteez
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    WTF SQ!

    Posted: 08 Oct 2018 08:25 AM PDT

    Why are people selling it like crazy? Is this Machine trading going on- automatic sales?

    There doesn't seem any news either.

    submitted by /u/Waitwhonow
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    Markets are down - what should I invest in?

    Posted: 08 Oct 2018 11:20 AM PDT

    So I was fortunate enough to pull everything out of the market before the last few days of downs. Pure luck - I just wanted to reshuffle. However now that everything is down, what would be good companies to dump my money into for the best returns over the next few week/months?

    submitted by /u/TheUncleverestDev
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    Should I sell this stock

    Posted: 08 Oct 2018 09:55 AM PDT

    I bought the stock CTRV a while ago. They did that 1 to 8 reverse stock split. and now I have 47 stocks valued at $26.69. I have lost $563.78. I have herd the saying it's not a loss until you sell it...because it could go back up. If it drops to $0 losing roughly $30 more isn't a big deal. But I own those stocks in a roth IRA. Im wondering if I should buy more of it to try and mitigate my loss or what I should do.

    submitted by /u/MeS0Pr0
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    Week of October 8th Swing Watchlist

    Posted: 07 Oct 2018 10:05 PM PDT

    Overall Market Sentiment:

    • Keeping it simple and watching to see if 50MA holds for QQQs and SPY over the next few sessions
    • Seems like both indices are near support levels that will hold for the time being (maybe dead cat ish bounce)
    • Will stay majority cash
    • Advance/Decline Line: In an area where it has not been for a while
    • % of Stocks above 40 Day MA: Nearing some extreme levels, could have a bit more to go before it might be time to dollar cost average in long term accounts

    Long Setups:

    (Unfortunately I don't short yet so this is all I've got even though limiting new positions would be advisable):

    I'd stick to strong sectors (I.e Energy)

    • $PBF
      • Inside candles, near ATH, RS with Sector
    • $NOV
      • Weekly Pivot
      • Watch for remount of 50MA and maintaining it for a few sessions
    • $KMI
      • Weeks of consolidation, with price tightening again above 9EMA, ideal would like to see 50MA curl up as well

    Defensive Names:

    • $CHD
    • $MCK
    • $PCG
    • $KO

    Telecom Names:

    • $VZ
    • $T
    • $S

    This post is just to get opinions from others. Do your own research before you enter any trade.

    submitted by /u/OakChase234
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    Wynn - hold or cut losses

    Posted: 08 Oct 2018 10:43 AM PDT

    I bough Wynn around 160$ before the scandal when the Outlook was positive. I have been looking money since.

    I am loosing around a 1000 USD right now. My cost basis is around 2600 USD.

    Is it worth holding on to. The stock keeps getting beat up every week now.

    submitted by /u/indiansamurai
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    RiteAid/$RAD

    Posted: 08 Oct 2018 11:52 AM PDT

    RiteAid is nearing a 52 week low right before we head into the holiday season. I bought a position at $1.155 on Friday. Today we've dropped to $1.14, but I am still seeing potential for a rebound into the $1.25-1.30 range. What are your thoughts on this position?

    Interesting take from YF: https://finance.yahoo.com/news/did-rite-aid-stock-just-141700686.html

    Would you buy $RAD at "rock bottom" ? Or did I just lose $7 in commission LOL

    submitted by /u/holyguacamole823
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    Visa vs. MasterCard?

    Posted: 07 Oct 2018 11:17 PM PDT

    Both seem like great, safe stocks. Which one should I invest in?

    submitted by /u/user1494
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    Thoughts on Transocean/$RIG

    Posted: 08 Oct 2018 10:11 AM PDT

    I got into this stock at $11 about a month ago and have seen a nice uptrend since then.

    I'm thinking offshore drilling is set to rise even more given rising oil prices and the pending Iran sanctions. Long term I'm confident that OSD isn't going anywhere. What do you all think?

    submitted by /u/shadedDay
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    This chart looks promising but their income is throwing me off...

    Posted: 08 Oct 2018 01:55 PM PDT

    Total Noob here,

    while screening I ran across Great Lakes Dredge & Dock Corporation.The chart looked quite promising as it basically was a rising wedge from the beginning of the year until now. But when looking at the numbers it was showing that their income was -39M. And for this years quarter it was about -800k aswell. So why does the share price keep rising even though the company is literally losing money. Is it just an overblown bubble of hopes that is eventually going to burst, as it is recovering from a low?

    submitted by /u/meatcrop
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    Alibaba hit new 5-year low. What do I do?

    Posted: 08 Oct 2018 07:09 AM PDT

    So I have a small position in Alibaba. I bought in a little while back, and with currency exchange fee's my average cost is $173 USD (I set a buy a $169 but the fees put me over the top).

    Thankfully, I'm only playing with about around $3,500, so even if it goes to $0 i'll be okay. I don't plan on averaging down.

    Today Alibaba hit a new 5-year low, and there's no sign of a reversal in this downward trend. The trade war needs to end for this stock to start moving back up.

    I can wait 20 years if I have to. That said, there's a lot of negativity surrounding this stock, and the talk of their shady accounting is just another part of this that makes me uncomfortable.

    So do I hold this one for the foreseeable future, or sell it for a loss and put the money somewhere where it will actually grow?

    Thanks!

    submitted by /u/LuxGang
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    Beside book value, is there a "bottom" for stocks?

    Posted: 08 Oct 2018 11:56 AM PDT

    People keep saying to buy cheap stocks relative to its fair value. However, the way I see it, if the general market sells off, then those cheap stocks also sell off(sometimes even harder than the market). So in a way, the security is always priced correctly relative to the risks associated with it, and there is no "bottom" for it? Thanks

    submitted by /u/dohdat
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    Should I wait to buy in for Super Micro?

    Posted: 08 Oct 2018 11:24 AM PDT

    I feel that the stock should recover because the company didn't pay people to solder in chips,and I don't know of a company that offers server mobos the way Super Micro does.

    submitted by /u/flying_panini_press
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    SQ thoughts

    Posted: 08 Oct 2018 10:19 AM PDT

    Bought in at 95...

    Are investors scared of their lending services? Down 10% today alone. So far I'm royally fucked. Was this company over valued or am I just stressing too hard right now? Sorry for the shitposting

    submitted by /u/hujili
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    $BZUN: Sell or Wait?

    Posted: 08 Oct 2018 10:11 AM PDT

    Should I sell $BZUN at this time? If I do, I will loose $500. Or should I wait and sell in the future?

    submitted by /u/jma206
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    r/Stocks Daily Discussion Monday - Oct 08, 2018

    Posted: 08 Oct 2018 04:08 AM PDT

    These daily discussions run from Monday to Friday and Friday's will stay up till Monday.

    Some helpful links:

    If you have a basic question, for example "what is EPS," then google "investopedia EPS" and click the investopedia article on it; do this for everything until you have a more in depth question or just want to share what you learned.

    Please discuss your portfolios in the Rate My Portfolio sticky. or see past portfolio discussions with this link.

    See past daily discussions here. And use this link to see past stock options discussions here.

    submitted by /u/AutoModerator
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    Is this insider information?

    Posted: 08 Oct 2018 09:27 AM PDT

    Friend's company has a medical device that's going through testing phase. If it passed all tests, the product will be out in the market and presumably stock will go up.

    Now is this a good reason to buy a company that I don't know much about? Also, would this be considered as insider information, which I know happens during m&a but just want to make sure?

    submitted by /u/monkeyunited
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    What is your risky small cap biotech stock you follow and why?

    Posted: 08 Oct 2018 09:18 AM PDT

    I have been keeping an eye on CVSI, BRTX, and ENDV

    submitted by /u/hossmanTK
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    Sne stock

    Posted: 08 Oct 2018 09:03 AM PDT

    What the hell with the release of venom and record breaking income for that movie why is the stock still going down ?

    submitted by /u/adraxium
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    Shopify still a good buy?

    Posted: 08 Oct 2018 08:57 AM PDT

    Down this week to ~$134, I still see a good future for this company unless there's some news I haven't yet heard about. Thinking about buying in now.

    submitted by /u/hellotoarms
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    Blood Bath Part 2: The Reddening

    Posted: 08 Oct 2018 08:44 AM PDT

    How's everyone doing everyone was pretty convinced this wasn't a blood bath but do you still feel like that or is everyone getting a little bit more nervous

    submitted by /u/audihead
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    Entering the stock market

    Posted: 08 Oct 2018 08:37 AM PDT

    So I have a question for anyone willing to help. The last few months I've been thinking about the idea of getting into stock trading to grow my savings. I currently have a mutual fund that my parents started for me back when I was just a kid with about $9500 in it. I started a new job in April, and it's the first salaried position I've had. Since now my income doesn't fluctuate I feel more confident putting money aside knowing I'll make the same last week as I will this week. I went to the financial planner my family has been using for year to discuss my options about adding money every month to this mutual fund but frankly the guy was a douche who didn't seem like he wanted to put in the work, saying unless an account had 100k he wouldn't bother. And yes I told him he was in charge of my account, the one with the 9500 in it. Between that and the fact I moved away from the area I grew up in I've had enough of him and want to change some things with the account. I'd like some opinions on what you'd think the best route would be. I was thinking about taking half of the money I had in the mutual fund and investing in stocks, moving the account to a local financial planner since I'm 3 hours from where my current one is (not that it matters distance wise really, I just don't like the guy), or keeping the account with the current amount and put money aside for a few months and use that to open another investing account. I'd appreciate any input, I'll be going back to school to get a bachelors and eventually an MBA, so I want to save as much as possible so I don't have to take out as much in student loans.

    submitted by /u/martorano10
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    Royal DSM: A Well Valued Growth Stock

    Posted: 08 Oct 2018 02:39 AM PDT

    Hello everyone!

    Last week my eye fell on Royal DSM because of its high growth in profitability last few years. I started a small research and now I want to share the company with this community.

    Here is a small research I made myself.

    On its own site DSM describes itself as follows:

    Royal DSM is a purpose-led global science-based company in Nutrition, Health and Sustainable Living. DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders. DSM delivers innovative business solutions for human nutrition, animal nutrition, personal care and aroma, medical devices, green products and applications, and new mobility and connectivity. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 23,000 employees. The company is listed on Euronext Amsterdam.

    DSM is listed on the Dutch AEX index and is worth 15 billion dollars. Which means it is one of the larger Dutch company's. DSM is a company which is creating a lot of growth and value now and in the future.

    Looking at the stock price of DSM, you can see it is historically expensive priced. Looking at the value and growth the price is a lot more attractive. The P/E is only 7.3 and the price/book is 2,08. The growth and value of DSM is compared to its competitors equal or stronger, which makes it a decent stock pick.

    Is DSM a good buy?

    DSM is definitely a good stock worth your attention. I recommend doing more research before buying the stock, but overal it looks a decent investment.

    submitted by /u/Friendmann
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