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Category: topSource: redinewsMay 1st, 2021

Workday (WDAY) Crossed Above the 20-Day Moving Average: What That Means for Investors

Should investors be excited or worried when a stock crosses above the 20-day simple moving average? Workday (WDAY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, WDAY broke through the 20-day moving average, which suggests a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.Over the past four weeks, WDAY has gained 9.9%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.Looking at WDAY's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 27 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.Investors may want to watch WDAY for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Workday, Inc. (WDAY): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Pinduoduo Inc. Sponsored ADR (PDD) Crossed Above the 20-Day Moving Average: What That Means for Investors

Should investors be excited or worried when a stock crosses above the 20-day simple moving average? After reaching an important support level, Pinduoduo Inc. Sponsored ADR (PDD) could be a good stock pick from a technical perspective. PDD surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.PDD has rallied 30.3% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests PDD could be on the verge of another move higher.Looking at PDD's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PDD for more gains in the near future. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pinduoduo Inc. Sponsored ADR (PDD): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

After Golden Cross, Pure Storage (PSTG)"s Technical Outlook is Bright

Should investors be excited or worried when a stock's 50 -day simple moving average crosses above the 200-day simple moving average? After reaching an important support level, Pure Storage, Inc. (PSTG) could be a good stock pick from a technical perspective. PSTG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.A successful golden cross event has three stages. It first begins when a stock's price on the decline bottoms out. Then, its shorter moving average crosses above its longer moving average, triggering a positive trend reversal. The third and final phase occurs when the stock maintains its upward momentum.A golden cross is the opposite of a death cross, another technical event that indicates bearish price movement may be on the horizon.PSTG has rallied 34% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates PSTG could be poised for a breakout.Looking at PSTG's earnings expectations, investors will be even more convinced of the bullish uptrend. For the current quarter, there have been 10 changes higher compared to none lower over the past 60 days, and the Zacks Consensus Estimate has moved up as well.Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on PSTG for more gains in the near future. Breakout Biotech Stocks with Triple-Digit Profit Potential The biotech sector is projected to surge beyond $2.4 trillion by 2028 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Recommendations from previous editions of this report have produced gains of +205%, +258% and +477%. The stocks in this report could perform even better.See these 7 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pure Storage, Inc. (PSTG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

The sell-off sparked by the Evergrande crisis has shaken retail investors" buy-the-dip mentality, JPMorgan says

"The outflow happened on a down day and is thus inconsistent with the buy-the-dip behavior," JPMorgan said. A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2020. Andrew Kelly/Reuters Retail investors' confidence in the buy-the-dip trade was jolted after Monday's stock market sell-off, JPMorgan said in a note.The Evergrande debt crisis sparked $11 billion in outflows from equity ETFs on Monday."The outflow happened on a down day and is thus inconsistent with the buy-the-dip behavior," JPMorgan said.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.The Evergrande-induced stock market decline earlier this week jolted confidence in the buy-the-dip trade, JPMorgan said in a note on Wednesday.The bank highlighted $11 billion in outflows from equity ETFs on Monday, which happened on a day where stocks were down as much as 3%. "The outflow happened on a down day and is thus inconsistent with the buy-the-dip behavior," JPMorgan said.Monday's sharp outflow was one of the largest this year when excluding days with quarter-end option and futures expiry dates, according to the bank. And while momentum traders could have played a significant role in the near 5% stock market correction due to a break-down in certain indicators, retail investors also played a role, JPMorgan said.Retail investors' net inflows into equities peaked at around $16 billion in July, before falling to $15 billion in August and declining even further so far in September, JPMorgan said, citing internal research. "We would need to see more significant inflows into equity ETFs today and the following days to be able to say that retail investors' impulse into equities and their previous buy-the-dip behavior remains intact," the note said. Confidence among retail investors likely surged in recent days given the solid rebound in stocks since Monday's decline. Despite a decisive breakdown below the technical 50-day moving average earlier in the week, the S&P 500 recaptured that level on Thursday, jumping more than 1%. Now the index is now less than 1% away from reclaiming all of the losses stemming from Monday's decline. JPMorgan Read the original article on Business Insider.....»»

Category: worldSource: nyt30 min. ago

Posco (PKX) Recently Broke Out Above the 50-Day Moving Average

When a stock breaks out above the 50-Day simple moving average, good things could be on the horizon. How should investors react? After reaching an important support level, Posco (PKX) could be a good stock pick from a technical perspective. PKX surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.Over the past four weeks, PKX has gained 7.5%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.The bullish case only gets stronger once investors take into account PKX's positive earnings estimate revisions. There have been 1 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.Investors may want to watch PKX for more gains in the near future given the company's key technical level and positive earnings estimate revisions. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report POSCO (PKX): Get Free Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 1 min. ago

Entravision Communications (EVC) Recently Broke Out Above the 20-Day Moving Average

When a stock breaks out above the 20-day simple moving average, good things could be on the horizon. How should investors react? After reaching an important support level, Entravision Communications (EVC) could be a good stock pick from a technical perspective. EVC surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Over the past four weeks, EVC has gained 5.7%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.The bullish case solidifies once investors consider EVC's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.Investors may want to watch EVC for more gains in the near future given the company's key technical level and positive earnings estimate revisions. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Entravision Communications Corporation (EVC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 1 min. ago

Korn/Ferry (KFY) Crossed Above the 20-Day Moving Average: What That Means for Investors

Good things could be on the horizon when a stock surpasses the 20-day simple moving average. How should investors react? Korn/Ferry (KFY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, KFY crossed above the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Over the past four weeks, KFY has gained 5%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.Once investors consider KFY's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 2 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on KFY for more gains in the near future. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KornFerry International (KFY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacks2 hr. 1 min. ago

Pure Storage (PSTG) Crossed Above the 20-Day Moving Average: What That Means for Investors

Good things could be on the horizon when a stock surpasses the 20-day simple moving average. How should investors react? Pure Storage (PSTG) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, PSTG crossed above the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Over the past four weeks, PSTG has gained 26%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.Once investors consider PSTG's positive earnings estimate revisions, the bullish case only solidifies. No earnings estimate has been lowered in the past two months, compared to 10 raised estimates, for the current fiscal year, and the consensus estimate has increased as well.With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PSTG for more gains in the near future. More Stock News: This Is Bigger than the iPhone! It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market. Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.Click here for the 4 trades >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pure Storage, Inc. (PSTG): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacks2 hr. 1 min. ago

Futures Rise On Taper, Evergrande Optimism

Futures Rise On Taper, Evergrande Optimism US index futures jumped overnight even as the Fed confirmed that a November tapering was now guaranteed and would be completed by mid-2022 with one rate hike now on deck, while maintaining the possibility to extend stimulus if necessitated by the economy. Sentiment got an additional boost from a strong showing of Evergrande stock - which closed up 17% - during the Chinese session, which peaked just after Bloomberg reported that China told Evergrande to avoid a near-term dollar bond default and which suggested that the "government wants to avoid an imminent collapse of the developer" however that quickly reversed when the WSJ reported, just one hour later, that China was making preparations for Evergrande's demise, and although that hammered stocks, the report explicitly noted that a worst-case scenario for Evergrande would mean a partial or full nationalization as "local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion." In other words, both reports are bullish: either foreign creditors are made whole (no default) as per BBG or the situation deteriorates and Evergrande is nationalized ("SOEs step in") as per WSJ. According to Bloomberg, confidence is building that markets can ride out a pullback in Fed stimulus, unlike 2013 when the taper tantrum triggered large losses in bonds and equities. "Investors are betting that the economic and profit recovery will be strong enough to outweigh a reduction in asset purchases, while ultra-low rates will continue to support riskier assets even as concerns linger about contagion from China’s real-estate woes." That's one view: the other is that the Fed has so broken the market's discounting ability we won't know just how bad tapering will get until it actually begins. “The Fed has got to be pleased that their communication on the longer way to tapering has avoided the dreaded fear of the tantrum,” Jeffrey Rosenberg, senior portfolio manager for systematic fixed income at BlackRock Inc., said on Bloomberg Television. “This is a very good outcome for the Fed in terms of signaling their intent to give the market information well ahead of the tapering decision.” Then there is the question of Evergrande: “With regards to Evergrande, all those people who are waiting for a Lehman moment in China will probably have to wait another turn,” said Ken Peng, an investment strategist at Citi Private Bank Asia Pacific. “So I wouldn’t treat this as completely bad, but there are definitely a lot of risks on the horizon.” In any case, today's action is a continuation of the best day in two months for both the Dow and the S&P which staged a strong recovery from two-month lows hit earlier in the week, and as of 745am ET, S&P 500 E-minis were up 25.25 points, or 0.6%, Dow E-minis were up 202 points, or 0.59%, while Nasdaq 100 E-minis were up 92.0 points, or 0.60%. In the premarket, electric vehicle startup Lucid Group rose 3.1% in U.S. premarket trading. PAVmed (PVM US) jumps 11% after its Lucid Diagnostics unit announced plans to list on the Global Market of the Nasdaq Stock Market.  Here are some of the biggest movers today: U.S.-listed Chinese stocks rise in premarket trading as fears of contagion from China Evergrande Group’s debt crisis ease. Blackberry (BB US) shares rise 8.7% in premarket after co.’s 2Q adjusted revenue beat the average of analysts’ estimates Eargo (EAR US) falls 57% in Thursday premarket after the hearing aid company revealed it was the target of a Justice Department criminal probe and withdrew its forecasts for the year Amplitude Healthcare Acquisition (AMHC US) doubled in U.S. premarket trading after the SPAC’s shareholders approved the previously announced business combination with Jasper Therapeutics Steelcase (SCS US) fell 4.8% Wednesday postmarket after the office products company reported revenue for the second quarter that missed the average analyst estimate Vertex Energy Inc. (VTNR US) gained 2.1% premarket after saying the planned acquisition of a refinery in Mobile, Alabama from Royal DutVTNR US Equitych Shell Plc is on schedule Synlogic (SYBX US) shares declined 9.7% premarket after it launched a stock offering launched without disclosing a size HB Fuller (FUL US) climbed 2.7% in postmarket trading after third quarter sales beat even the highest analyst estimate Europe's Stoxx 600 index rose 0.9%, lifted by carmakers, tech stocks and utilities, which helped it recover losses sparked earlier in the week by concerns about Evergrande and China’s crackdown on its property sector. The gauge held its gain after surveys of purchasing managers showed business activity in the euro area lost momentum and slowed broadly in September after demand peaked over the summer and supply-chain bottlenecks hurt services and manufacturers. Euro Area Composite PMI (September, Flash): 56.1, consensus 58.5, last 59.0. Euro Area Manufacturing PMI (September, Flash): 58.7, consensus 60.3, last 61.4. Euro Area Services PMI (September, Flash): 56.3, consensus 58.5, last 59.0. Germany Composite PMI (September, Flash): 55.3, consensus 59.2, last 60.0. France Composite PMI (September, Flash): 55.1, consensus 55.7, last 55.9. UK Composite PMI (September, Flash): 54.1, consensus 54.6, last 54.8. Commenting on Europe's PMIs, Goldman said that the Euro area composite PMI declined by 2.9pt to 56.1 in September, well below consensus expectations. The softening was broad-based across countries but primarily led by Germany. The peripheral composite flash PMI also weakened significantly in September but remain very high by historical standards (-2.4pt to 57.5). Across sectors, the September composite decline was also broad-based, with manufacturing output softening (-3.3pt to 55.6) to a similar extent as services (-2.7pt to 56.3). Supply-side issues and upward cost and price pressures continued to be widely reported. Expectations of future output growth declined by less than spot output on the back of delta variant worries and supply issues, remaining far above historically average levels. Earlier in the session, Asian stocks rose for the first time in four sessions, as Hong Kong helped lead a rally on hopes that troubled property firm China Evergrande Group will make progress on debt repayment. The MSCI Asia Pacific Index climbed as much as 0.5%, with Tencent and Meituan providing the biggest boosts. The Hang Seng jumped as much as 2.5%, led by real estate stocks as Evergrande surged more than 30%. Hong Kong shares later pared their gains. Asian markets were also cheered by gains in U.S. stocks overnight even as the Federal Reserve said it may begin scaling back stimulus this year. A $17 billion net liquidity injection from the People’s Bank of China also provided a lift, while the Fed and Bank of Japan downplayed Evergrande risks in comments accompanying policy decisions Wednesday. Evergrande’s stock closed 18% higher in Hong Kong, in a delayed reaction to news a unit of the developer had negotiated interest payments on yuan notes. A coupon payment on its 2022 dollar bond is due on Thursday “Investors are perhaps reassessing the tail risk of a disorderly fallout from Evergrande’s credit issues,” said Chetan Seth, a strategist at Nomura. “However, I am not sure if the fundamental issue around its sustainable deleveraging has been addressed. I suspect markets will likely remain quite volatile until we have some definite direction from authorities on the eventual resolution of Evergrande’s debt problems.” Stocks rose in most markets, with Australia, Taiwan, Singapore and India also among the day’s big winners. South Korea’s benchmark was the lone decliner, while Japan was closed for a holiday In rates, Treasuries were off session lows, with the 10Y trading a 1.34%, but remained under pressure in early U.S. session led by intermediate sectors, where 5Y yield touched highest since July 2. Wednesday’s dramatic yield-curve flattening move unleashed by Fed communications continued, compressing 5s30s spread to 93.8bp, lowest since May 2020. UK 10-year yield climbed 3.4bp to session high 0.833% following BOE rate decision (7-2 vote to keep bond-buying target unchanged); bunds outperformed slightly. Peripheral spreads tighten with long-end Italy outperforming. In FX, the Bloomberg Dollar Spot Index reversed an earlier gain and dropped 0.3% as the dollar weakened against all of its Group-of-10 peers apart from the yen amid a more positive sentiment. CAD, NOK and SEK are the strongest performers in G-10, JPY the laggard.  The euro and the pound briefly pared gains after weaker-than-forecast German and British PMIs. The pound rebounded from an eight-month low amid a return of global risk appetite as investors assessed whether the Bank of England will follow the Federal Reserve’s hawkish tone later Thursday. The yield differential between 10-year German and Italian debt narrowed to its tightest since April. Norway’s krone advanced after Norges Bank raised its policy rate in line with expectations and signaled a faster pace of tightening over the coming years. The franc whipsawed as the Swiss National Bank kept its policy rate and deposit rate at record lows, as expected, and reiterated its pledge to wage currency market interventions. The yen fell as a unit of China Evergrande said it had reached an agreement with bond holders over an interest payment, reducing demand for haven assets. Turkey’s lira slumped toa record low against the dollar after the central bank unexpectedly cut interest rates. In commodities, crude futures drifted lower after a rangebound Asia session. WTI was 0.25% lower, trading near $72; Brent dips into the red, so far holding above $76. Spot gold adds $3.5, gentle reversing Asia’s losses to trade near $1,771/oz. Base metals are well bid with LME aluminum leading gains. Bitcoin steadied just below $44,000. Looking at the day ahead, we get the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Market Snapshot S&P 500 futures up 0.7% to 4,413.75 STOXX Europe 600 up 1.1% to 468.32 MXAP up 0.5% to 200.57 MXAPJ up 0.9% to 645.76 Nikkei down 0.7% to 29,639.40 Topix down 1.0% to 2,043.55 Hang Seng Index up 1.2% to 24,510.98 Shanghai Composite up 0.4% to 3,642.22 Sensex up 1.4% to 59,728.37 Australia S&P/ASX 200 up 1.0% to 7,370.22 Kospi down 0.4% to 3,127.58 German 10Y yield fell 5.6 bps to -0.306% Euro up 0.4% to $1.1728 Brent Futures up 0.3% to $76.39/bbl Gold spot up 0.0% to $1,768.25 U.S. Dollar Index down 0.33% to 93.16 Top Overnight News from Bloomberg Financial regulators in Beijing issued a broad set of instructions to China Evergrande Group, telling the embattled developer to focus on completing unfinished properties and repaying individual investors while avoiding a near-term default on dollar bonds China’s central bank net-injected the most short- term liquidity in eight months into the financial system, with markets roiled by concerns over China Evergrande Group’s debt crisis Europe’s worst energy crisis in decades could drag deep into the cold months as Russia is unlikely to boost shipments until at least November Business activity in the euro area “markedly” lost momentum in September after demand peaked over the summer and supply chain bottlenecks hurt both services and manufacturers. Surveys of purchasing managers by IHS Markit showed growth in both sectors slowing more than expected, bringing overall activity to a five-month low. Input costs, meanwhile, surged to the highest in 21 years, according to the report The U.K. private sector had its weakest month since the height of the winter lockdown and inflation pressures escalated in September, adding to evidence that the recovery is running into significant headwinds, IHS Markit said The U.K.’s record- breaking debut green bond sale has given debt chief Robert Stheeman conviction on the benefits of an environmental borrowing program. The 10 billion-pound ($13.7 billion) deal this week was the biggest-ever ethical bond sale and the country is already planning another offering next month A more detailed look at global markets courtesy of Newsquaw Asian equity markets traded mostly positive as the region took its cue from the gains in US with the improved global sentiment spurred by some easing of Evergrande concerns and with stocks also unfazed by the marginally more hawkish than anticipated FOMC announcement (detailed above). ASX 200 (+1.0%) was underpinned by outperformance in the commodity-related sectors and strength in defensives, which have more than atoned for the losses in tech and financials, as well as helped markets overlook the record daily COVID-19 infections in Victoria state. Hang Seng (+0.7%) and Shanghai Comp. (+0.6%) were also positive after another respectable liquidity operation by the PBoC and with some relief in Evergrande shares which saw early gains of more than 30% after recent reports suggested a potential restructuring by China’s government and with the Co. Chairman noting that the top priority is to help wealth investors redeem their products, although the majority of the Evergrande gains were then pared and unit China Evergrande New Energy Vehicle fully retraced the initial double-digit advances. KOSPI (-0.5%) was the laggard as it played catch up to the recent losses on its first trading day of the week and amid concerns that COVID cases could surge following the holiday period, while Japanese markets were closed in observance of the Autumnal Equinox Day. China Pumps $17 Billion Into System Amid Evergrande Concerns China Stocks From Property to Tech Jump on Evergrande Respite Philippines Holds Key Rate to Spur Growth Amid Higher Prices Taiwan’s Trade Deal Application Sets Up Showdown With China Top Asian News European equities (Stoxx 600 +0.9%) trade on the front-foot and have extended gains since the cash open with the Stoxx 600 now higher on the week after Monday’s heavy losses. From a macro perspective, price action in Europe has been undeterred by a slowdown in Eurozone PMIs which saw the composite metric slip to 56.1 from 59.0 (exp. 58.5) with IHS Markit noting “an unwelcome combination of sharply slower economic growth and steeply rising prices.” Instead, stocks in the region have taken the cue from a firmer US and Asia-Pac handover with performance in Chinese markets aided by further liquidity injections by the PBoC. Some positivity has also been observed on the Evergrande front amid mounting expectations of a potential restructuring at the company. That said, at the time of writing, it remains unclear what the company’s intentions are for repaying its USD 83.5mln onshore coupon payment. Note, ING highlights that “missing that payment today would still leave a 30-day grace period before this is registered as a default”. The most recent reports via WSJ indicate that Chinese authorities are asking local governments to begin preparations for the potential downfall of Evergrande; however, the article highlights that this is a last resort and Beijing is reluctant to step in. Nonetheless, this article has taken the shine off the mornings risk appetite, though we do remain firmer on the session. Stateside, as the dust settles on yesterday’s FOMC announcement, futures are firmer with outperformance in the RTY (+0.8% vs. ES +0.7%). Sectors in Europe are higher across the board with outperformance in Tech and Autos with the latter aided by gains in Faurecia (+4.6%) who sit at the top of the Stoxx 600 after making an unsurprising cut to its guidance, which will at least provide some clarity on the Co.’s near-term future; in sympathy, Valeo (+6.6) is also a notable gainer in the region. To the downside, Entain (+2.6%) sit at the foot of the Stoxx 600 after recent strong gains with the latest newsflow surrounding the Co. noting that MGM Resorts is considering different methods to acquire control of the BetMGM online gambling business JV, following the DraftKings offer for Entain, according to sources. The agreement between Entain and MGM gives MGM the ability to block any deal with competing businesses; MGM officials believe this grants the leverage to take full control of BetMGM without spending much. Top European News BOE Confronts Rising Prices, Slower Growth: Decision Guide La Banque Postale Eyes Retail, Asset Management M&A in Europe Activist Bluebell Raises Pressure on Glaxo CEO Walmsley Norway Delivers Rate Lift-Off With Next Hike Set for December In FX, not much bang for the Buck even though the FOMC matched the most hawkish market expectations and Fed chair Powell arguably went further by concluding in the post-meeting press conference that substantial progress on the lagging labour front is all but done. Hence, assuming the economy remains on course, tapering could start as soon as November and be completed my the middle of 2022, though he continued to play down tightening prospects irrespective of the more hawkish trajectory implied by the latest SEP dot plots that are now skewed towards at least one hike next year and a cumulative seven over the forecast horizon. However, the Greenback only managed to grind out marginally higher highs overnight, with the index reaching 93.526 vs 93.517 at best yesterday before retreating quite sharply and quickly to 93.138 in advance of jobless claims and Markit’s flash PMIs. CAD/NZD/AUD - The Loonie is leading the comeback charge in major circles and only partially assisted by WTI keeping a firm bid mostly beyond Usd 72/brl, and Usd/Cad may remain contained within 1.2796-50 ahead of Canadian retail sales given decent option expiry interest nearby and protecting the downside (1 bn between 1.2650-65 and 2.7 bn from 1.2620-00). Meanwhile, the Kiwi has secured a firmer grip on the 0.7000 handle to test 0.7050 pre-NZ trade and the Aussie is looking much more comfortable beyond 0.7250 amidst signs of improvement in the flash PMIs, albeit with the services and composite headline indices still some way short of the 50.0 mark. NOK/GBP/EUR/CHF - All firmer, and the Norwegian Crown outperforming following confirmation of the start of rate normalisation by the Norges Bank that also underscored another 25 bp hike in December and further tightening via a loftier rate path. Eur/Nok encountered some support around 10.1000 for a while, but is now below, while the Pound has rebounded against the Dollar and Euro in the run up to the BoE at midday. Cable is back up around 1.3770 and Eur/Gbp circa 0.8580 as Eur/Usd hovers in the low 1.1700 area eyeing multiple and a couple of huge option expiries (at the 1.1700 strike in 4.1 bn, 1.1730 in 1 bn, 1.1745-55 totalling 2.7 bn and 1.8 bn from 1.1790-1.1800). Note, Eurozone and UK flash PMIs did not live up to their name, but hardly impacted. Elsewhere, the Franc is lagging either side of 0.9250 vs the Buck and 1.0835 against the Euro on the back of a dovish SNB Quarterly Review that retained a high Chf valuation and necessity to maintain NIRP, with only minor change in the ordering of the language surrounding intervention. JPY - The Yen is struggling to keep its head afloat of 110.00 vs the Greenback as Treasury yields rebound and risk sentiment remains bullish pre-Japanese CPI and in thinner trading conditions due to the Autumn Equinox holiday. In commodities, WTI and Brent have been choppy throughout the morning in-spite of the broadly constructive risk appetite. Benchmarks spent much of the morning in proximity to the unchanged mark but the most recent Evergrande developments, via WSJ, have dampened sentiment and sent WTI and Brent back into negative territory for the session and printing incremental fresh lows at the time of publication. Back to crude, newsflow has once again centred around energy ministry commentary with Iraq making clear that oil exports will continue to increase. Elsewhere, gas remains at the forefront of focus particularly in the UK/Europe but developments today have been somewhat incremental. On the subject, Citi writes that Asia and Europe Nat. Gas prices could reach USD 100/MMBtu of USD 580/BOE in the winter, under their tail-risk scenario. For metals, its very much a case of more of the same with base-metals supportive, albeit off-best given Evergrande, after a robust APAC session post-FOMC. Given the gas issues, desks highlight that some companies are being forced to suspend/reduce production of items such as steel in Asian/European markets, a narrative that could become pertinent for broader prices if the situation continues. Elsewhere, spot gold and silver are both modestly firmer but remain well within the range of yesterday’s session and are yet to recovery from the pressure seen in wake of the FOMC. US Event Calendar 8:30am: Sept. Initial Jobless Claims, est. 320,000, prior 332,000; Continuing Claims, est. 2.6m, prior 2.67m 8:30am: Aug. Chicago Fed Nat Activity Index, est. 0.50, prior 0.53 9:45am: Sept. Markit US Composite PMI, prior 55.4 9:45am: Sept. Markit US Services PMI, est. 54.9, prior 55.1 9:45am: Sept. Markit US Manufacturing PMI, est. 61.0, prior 61.1 11am: Sept. Kansas City Fed Manf. Activity, est. 25, prior 29 12pm: 2Q US Household Change in Net Wor, prior $5t DB's Jim Reid concludes the overnight wrap My wife was at a parents event at school last night so I had to read three lots of bedtime stories just as the Fed were announcing their policy decision. Peppa Pig, Biff and Kipper, and somebody called Wonder Kid were interspersed with Powell’s press conference live on my phone. It’s fair to say the kids weren’t that impressed by the dot plot and just wanted to join them up. The twins (just turned 4) got their first reading book homework this week and it was a bit sad that one of them was deemed ready to have one with words whereas the other one only pictures. The latter was very upset and cried that his brother had words and he didn’t. That should create even more competitive tension! Back to the dots and yesterday’s Fed meeting was on the hawkish side in terms of the dots and also in terms of Powell’s confidence that the taper could be complete by mid-2022. Powell said that the Fed could begin tapering bond purchases as soon as the November FOMC meeting, in line with our US economists’ forecasts. He left some room for uncertainty, saying they would taper only “If the economy continues to progress broadly in line with expectations, and also the overall situation is appropriate for this.” However he made clear that “the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of interest rate liftoff.” The quarterly “dot plot” showed that the 18 FOMC officials were split on whether to start raising rates next year or not. In June, the median dot indicated no rate increases until 2023, but now 6 members see a 25bps raise next year and 3 members see two such hikes. Their inflation forecasts were also revised up and DB’s Matt Luzzetti writes in his FOMC review (link here) that “If inflation is at or below the Fed's current forecast next year of 2.3% core PCE, liftoff is likely to come in 2023, consistent with our view. However, if inflation proves to be higher with inflation expectations continuing to rise, the first rate increase could well migrate into 2022.” Markets took the overall meeting very much in its stride with the biggest impact probably being a yield curve flattening even if US 10yr Treasury yields traded in just over a 4bp range yesterday and finishing -2.2bps lower at 1.301%. The 5y30y curve flattened -6.7bps to 95.6bps, its flattest level since August 2020, while the 2y10y curve was -4.2bps flatter. So the market seems to believe the more hawkish the Fed gets the more likely they’ll control inflation and/or choke the recovery. The puzzle is that even if the dots are correct, real Fed funds should still be negative and very accommodative historically for all of the forecasting period. As such the market has a very dim view of the ability of the economy to withstand rate hikes or alternatively that the QE technicals are overpowering everything at the moment. In equities, the S&P 500 was up nearly +1.0% 15 minutes prior to the Fed, and then rallied a further 0.5% in the immediate aftermath before a late dip look it back to +0.95%. The late dip meant that the S&P still has not seen a 1% up day since July 23. The index’s rise was driven by cyclicals in particular with energy (+3.17%), semiconductors (-2.20%), and banks (+2.13%) leading the way. Asian markets are mostly trading higher this morning with the Hang Seng (+0.69%), Shanghai Comp (+0.58%), ASX (+1.03%) and India’s Nifty (+0.81%) all up. The Kospi (-0.36%) is trading lower though and is still catching up from the early week holidays. Japan’s markets are closed for a holiday today. Futures on the S&P 500 are up +0.25% while those on the Stoxx 50 are up +0.49%. There is no new news on the Evergrande debt crisis however markets participants are likely to pay attention to whether the group is able to make interest rate payment on its 5 year dollar note today after the group had said yesterday that it resolved a domestic bond coupon by negotiations which was also due today. As we highlighted in our CoTD flash poll conducted earlier this week, market participants are not too worried about a wider fallout from the Evergrande crisis and even the Hang Seng Properties index is up +3.93% this morning and is largely back at the levels before the big Monday sell-off of -6.69%. Overnight we have received flash PMIs for Australia which improved as parts of the country have eased the coronavirus restrictions. The services reading came in at 44.9 (vs. 42.9 last month) and the manufacturing print was even stronger at 57.3 (vs. 52.0 last month). Japan’s flash PMIs will be out tomorrow due to today’s holiday. Ahead of the Fed, markets had continued to rebound from their declines earlier in the week, with Europe’s STOXX 600 gaining +0.99% to narrowly put the index in positive territory for the week. This continues the theme of a relative outperformance among European equities compared to the US, with the STOXX 600 having outpaced the S&P 500 for 5 consecutive sessions now, though obviously by a slim margin yesterday. Sovereign bonds in Europe also posted gains, with yields on 10yr bunds (-0.7bps), OATs (-1.0bps) and BTPs (-3.2bps) all moving lower. Furthermore, there was another tightening in peripheral spreads, with the gap in Italian 10yr yields over bunds falling to 98.8bps yesterday, less than half a basis point away from its tightest level since early April. Moving to fiscal and with Democrats seemingly unable to pass the $3.5 trillion Biden budget plan by Monday, when the House is set to vote on the bipartisan infrastructure bill, Republican leadership is calling on their members to vote against the bipartisan bill in hopes of delaying the process further. While the there is still a high likelihood the measure will eventually get passed, time is becoming a factor. Congress now has just over a week to get a government funding bill through both chambers of congress as well as raise the debt ceiling by next month. Republicans have told Democrats to do the latter in a partisan manner and include it in the reconciliation process which could mean that a significant portion of the Biden economic agenda – mostly encapsulated in the $3.5 trillion over 10 year budget – may have to be cut down to get the entire Democratic caucus on board. Looking ahead, an event to watch out for today will be the Bank of England’s policy decision at 12:00 London time, where our economists write (link here) that they expect no change in the policy settings. However, they do expect a reaffirmation of the BoE’s updated forward guidance that some tightening will be needed over the next few years to keep inflation in check, even if it’s too early to expect a further hawkish pivot at this stage. Staying on the UK, two further energy suppliers (Avro Energy and Green Supplier) ceased trading yesterday amidst the surge in gas prices, with the two supplying 2.9% of domestic customers between them. We have actually seen a modest fall in European natural gas prices over the last couple of days, with the benchmark future down -4.81% since its close on Monday, although it’s worth noting that still leaves them up +75.90% since the start of August alone. There wasn’t much data to speak of yesterday, though US existing home sales fell to an annualised rate of 5.88 in August (vs. 5.89m expected). Separately, the European Commission’s advance consumer confidence reading for the Euro Area unexpectedly rose to -4.0 in September (vs. -5.9 expected). To the day ahead now, the data highlights include the September flash PMIs from around the world, while in the US there’s the weekly initial jobless claims, the Chicago Fed’s national activity index for August, and the Kansas City fed’s manufacturing activity index for September. From central banks, there’ll be a monetary policy decision from the Bank of England, while the ECB will be publishing their Economic Bulletin and the ECB’s Elderson will also speak. From emerging markets, there’ll also be monetary policy decisions from the Central Bank of Turkey and the South African Reserve Bank. Finally in Germany, there’s an election debate with the lead candidates from the Bundestag parties. Tyler Durden Thu, 09/23/2021 - 08:13.....»»

Category: blogSource: zerohedge2 hr. 1 min. ago

Covenant Logistics (CVLG) Moves 11.5% Higher: Will This Strength Last?

Covenant Logistics (CVLG) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might help the stock continue moving higher in the near term. Covenant Logistics (CVLG) shares soared 11.5% in the last trading session to close at $27.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 5.9% gain over the past four weeks.The gain on Sep 21 was the third consecutive day of stock price increase for this trucking company.  Optimism surrounding the trucking industry is a positive for the stock. The industry's pricing power in 2022 was instrumental in prompting an analyst at Cowen to escalate the company's target price.This truckload transportation services provider is expected to post quarterly earnings of $1 per share in its upcoming report, which represents a year-over-year change of +78.6%. Revenues are expected to be $258.6 million, up 22.7% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Covenant Logistics, the consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CVLG going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Covenant Logistics Group, Inc. (CVLG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Uber Technologies (UBER) Just Overtook the 50-Day Moving Average

When a stock breaks out above the 50-Day simple moving average, good things could be on the horizon. How should investors react? After reaching an important support level, Uber Technologies (UBER) could be a good stock pick from a technical perspective. UBER surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.The 50-day simple moving average is a widely used technical indicator that helps determine support or resistance levels for different types of securities. It's one of three major moving averages, but takes precedent because it's the first sign of an up or down trend.UBER could be on the verge of another rally after moving 10.4% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.Looking at UBER's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 11 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on UBER for more gains in the near future. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Uber Technologies, Inc. (UBER): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

ASML (ASML) Crossed Above the 20-Day Moving Average: What That Means for Investors

Good things could be on the horizon when a stock surpasses the 20-day simple moving average. How should investors react? From a technical perspective, ASML (ASML) is looking like an interesting pick, as it just reached a key level of support. ASML recently overtook the 20-day moving average, and this suggests a short-term bullish trend.A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Over the past four weeks, ASML has gained 6.1%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.The bullish case solidifies once investors consider ASML's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 1 higher, while the consensus estimate has increased too.Investors may want to watch ASML for more gains in the near future given the company's key technical level and positive earnings estimate revisions. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ASML Holding N.V. (ASML): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Uber Technologies (UBER) Crossed Above the 20-Day Moving Average: What That Means for Investors

Good things could be on the horizon when a stock surpasses the 20-day simple moving average. How should investors react? Uber Technologies (UBER) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, UBER broke through the 20-day moving average, which suggests a short-term bullish trend.The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Over the past four weeks, UBER has gained 10.4%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.The bullish case only gets stronger once investors take into account UBER's positive earnings estimate revisions. There have been 11 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on UBER for more gains in the near future. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Uber Technologies, Inc. (UBER): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

Uber (UBER) Moves 11.5% Higher: Will This Strength Last?

Uber (UBER) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near term. Uber Technologies (UBER) shares soared 11.5% in the last trading session to close at $44.36. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3% loss over the past four weeks.The stock surged following its bullish outlook for the third quarter of 2021, which hints at the company delivering adjusted EBITDA profits earlier than its previous expectation. Per a SEC filing, the company now expects adjusted EBITDA between negative $25 million and positive $25 million in the third quarter, compared with its previous expectation of “better than a loss of $100 million”. The company had earlier expected to achieve adjusted EBITDA profits in the fourth quarter of 2021.This ride-hailing company is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of +30.7%. Revenues are expected to be $4.4 billion, up 40.8% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For Uber, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on UBER going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Uber Technologies, Inc. (UBER): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 22nd, 2021

Bitcoin successfully tests key support level near $40,000 but crypto positioning remains risk-off

Once the current pullback in bitcoin matures, Katie Stockton expects the recent peak near $53,000 to serve as a "minor hurdle to all-time-highs." Bitcoin Nurphoto / Getty Images A deterioration in short-term momentum for bitcoin led to a 13% sell-off in the past week.But bitcoin managed to successfully test a key technical support level near $39,900 on Tuesday.Cryptocurrencies still remain in risk-off mode as bitcoin continues to outperform ether on a relative basis.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.A sell-off in bitcoin on Tuesday tested a key technical support level for the cryptocurrency, but there could still be more downside ahead based off of deteriorating momentum indicators.Bitcoin has dropped 13% over the past week, with much of the decline coinciding with the $300 billion Evergrande debt crisis in China. But bitcoin managed to bounce higher off the $39,900 level late Tuesday night, a key horizontal support level monitored by technical analyst Katie Stockton of Fairlead Strategies.Despite successfully testing support on Tuesday, bitcoin isn't out of the woods yet according to Stockton. Bitcoin's RSI indicator, which helps identify oversold and overbought levels, remains in a downtrend but has not yet hit oversold levels. Meanwhile, a continued decline in the MACD (moving average convergence divergence) indicator, which measures momentum, is accelerating.For now, the bias in the short-term is bearish for bitcoin, and a weekly "sell" signal in the MACD indicator would be enough to turn the intermediate-term bias for bitcoin to bearish from bullish, Stockton highlighted in a note on Monday.But Stockton still sees long-term upside ahead for the cryptocurrency as "the long-term uptrend still has a hold on bitcoin." Stockton said that once the current pullback matures, the recent peak near $53,000 will serve as a "minor hurdle to all-time-highs" near $65,000, representing potential upside of 54% from current levels.Bitcoin isn't the only cryptocurrency experiencing a current period of weakness. Ether is also down sharply from its recent highs, and the relative outperformance of bitcoin over ether in the past week suggests that the cryptocurrency space remains in risk-off mode, according to Stockton. Stockcharts.com Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 22nd, 2021

Bear of the Day: Americas CarMart (CRMT)

Wait for the next catalyst or this auto dealer. America’s Car-Mart (CRMT) is a Zacks Rank #5 (Strong Sell) that operates automotive dealerships and is one of the largest auto retailers in the United States.The stock has benefitted all year as the used car market was hot due to higher prices on short supply. However, that dynamic might be hurting the industry now. After the company reported earnings, the stock has pulled back significantly and is now off 33% from 2021 highs.More about CRMTAmerica’s Car-Mart was founded in 1981 and is headquartered in Rogers, Arkansas. As of April 30, 2021, it operated 151 dealerships in the South-Central United States. CRMT employs 2000 people and has a market cap of $800 million.  The Company operates its dealerships primarily in small cities and rural locations throughout the South-Central United States. They focus on customers that may not qualify for traditional used car financing because of bad credit history.The stock has a Zacks Style Score of “B” in Value. However, the stock is rated “F” in both Growth and Momentum.Q1 Earnings In August, the company reported a Q1 EPS beat of half a percent. Revenue came in above expectations and same store revenue growth was up 46.7% v 5.5% last year.At first glance the numbers look fine, but while the market was expecting the number that was reported, investors were used to the company blowing out numbers. For the quarter reported in May, the company saw a 130% EPS beat, so when EPS came in as expected, investors were a bit disappointed.  Additionally, the company saw margins compressed more than expected. This is due to the tight used car market as inventory’s remain low.Stock CrashesWhile the sales numbers aren’t bad, investors are worried about the used car market. What used to be a tailwind in rising prices is now a headwind in low supply. The stock dropped from $160, to $130 in one day, a drop of almost 20%. EstimatesOver the last 60 days, analysts have consistently taken down their numbers. For the current quarter, estimates have fallen 7%, from $3.68 to $3.41. For the current year, numbers have fallen by 6%.The Technicals Before earnings, CRMT had a great looking chart. However, the stock saw no support at the 200-day moving average. While the stock is down only slightly from the post-earnings lows, there seems to be no life. Investors likely have to wait for the next catalyst to get some movement either way.For those that might want to buy the dip, the $90 level is the 61.8% Fib retracement drawn from the COVID lows to all-time highs.In SummaryCRMT has had a major setback with investors, causing the stock to fall in similar fashion to the COVID crash. Until the supply/demand dynamic of the used car market normalizes, investors are best looking somewhere else.For those interested in the auto retail space, AutoNation (AN) might be a better bet. This company is seeing estimates trend higher for the current year and is a Zacks Rank #1 (Strong Buy).   Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Americas CarMart, Inc. (CRMT): Free Stock Analysis Report To read this article on Zacks.com click here......»»

Category: topSource: zacksSep 22nd, 2021

The stock market"s fear gauge could signal more weakness ahead if it closes above this key level, according to technical analyst Katie Stockton

"We'd be concerned if the VIX closes above 25 for two consecutive days because that would hold bearish implications for the inversely correlated S&P 500." A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., March 3, 2020. Andrew Kelly/Reuters The stock market could have more downside ahead after Monday's Evergrande-induced meltdown, according to technical analyst Katie Stockton of Fairlead Strategies.Stockton has her eyes on the stock market's fear gauge to sense if more downside is likely.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.The stock market could still have further downside ahead if the Volatility Index closes above the key 25 level for the second day in a row, according to a Tuesday note from technical analyst Katie Stockton of Fairlead Strategies.Stockton is keeping an eye on the market's fear gauge as investors assess the damage from a potential default of China's second largest property developer, Evergrande.The potential insolvency risk for Evergrande sent the S&P 500 down as much as 3% yesterday after it became clear that the company may be unable to meet its upcoming debt payments of $83 million on Thursday. Now many market participants are wondering if Evergrande's $300 billion in liabilities could represent a systemic risk to markets.According to Stockton, the S&P 500's decisive close below its 50-day moving average on Monday means secondary support at 4,238 is in play, representing potential downside of 3% form current levels. "The 5% pullback is differentiated negatively from other dips below the 50-day moving average in that the indicators have seen notable deterioration. The daily MACD indicator is in negative territory and the weekly stochastics have fallen from overbought territory, increasing risk of downside follow-through," Stockton explained.Monday's price action is comparable to the March 4 low, in which the S&P 500 fell decisively below its 50-day moving average. But that price action was reversed on March 5, when the S&P 500 jumped back above its rising 50-day moving average."Should we see the same from the S&P 500 today, that would indicate that the pullback has matured already. Otherwise, we would brace for a breach of the cloud and test of secondary support," Stockton said.Despite Tuesday's relief rally of about 0.5%, the S&P 500 still remains 1.5% below its 50-day moving average.Stockton is watching the 25 level on the VIX to sense if more downside is likely."We would be concerned if the VIX closes above 25 for two consecutive days because that would hold bearish implications for the inversely correlated S&P 500," Stockton concluded.As of Tuesday afternoon, the VIX traded at 23.57 and hit an intraday high of 25.60. Stockcharts.com Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 21st, 2021

4 reasons why the market will see a full rebound from the Evergrande sell-off as early as this week, according to Fundstrat"s Tom Lee

The stock market sell-off could be reversed as soon as this week with several factors driving a rebound, Fundstrat said. Spencer Platt/Getty Images The Evergrande-induced stock market sell-off on Monday could be reversed as soon as this week, according to Fundstrat's Tom Lee.Lee pointed to technicals, contained treasury yields, and retail sentiment as to reasons why stocks will quickly bounce back.These are the 4 reasons why stocks are set to rip higher in the wake of the Evergrande debt crisis, according to Fundstrat.Sign up here for our daily newsletter, 10 Things Before the Opening Bell.Investors should take advantage of Monday's stock market decline caused by the Evergrande debt crisis and buy the dip, according to Fundstrat's Tom Lee.The S&P 500 fell as much as 3% on Monday after it became clear that Evergrande, China's second-largest property developer, could default on certain debts. The company has more than $300 billion in liabilities and its wide array of assets, including unfinished apartment complexes in virtually empty cities, may not cover the difference of what it owes to lenders and investors.But Lee said in a note on Tuesday that the stock market sell-off could be reversed as soon as this week with several factors coming into play, including a key technical level, a contained dip in treasury yields, and retail sentiment extremes.These are the 4 reasons why stocks are set to rip higher in the wake of the Evergrande debt crisis, according to Fundstrat.1. "US Treasuries didn't get the memo.""On the day of the Lehman Brothers event, the 10-year yields collapsed 50 basis points. The US Treasury market bears watching because this is the ultimate safety trade. Even gold hardly got bought [on Monday]. And the 10-year fell a mere 6 basis points yesterday, which as the chart shows, looks like daily volatility," Lee said. Fundstrat 2. "Monday's selling was amplified by retail panic.""Retail investors have been raising cash for six of the last seven weeks. Since the start of the pandemic, we have not seen this persistent level of liquidation. At the extreme, retail investors getting cautious is a contrarian signal," Lee said. The AAII sentiment also showed a large jump in negative sentiment, Lee highlighted. Fundstrat 3. "S&P 500 at a key technical level.""The slide in the S&P 500 Monday caused it to slip below the 50-day moving average, but as shown below, turned around at the 100-day moving average. Technicals often become key levels, reflecting both the cumulative position of investors and also because many investors focus on technicals. The 100-day moving average seems to be a place where the intraday reversal took place, and since March 2020, it has been a key level," Lee said. Fundstrat 4. "VIX surge shows a level of fear seen at market turning points.""The nearly 40% surge in the VIX took it to a key trendline. This [trendline] has been approached/breached four times since March 2020," Lee explained. The past two times the level has been reached, the S&P 500 found key support and began to rally. Fundstrat "Again, we do not want to sound too definitive, but does Evergrande risk tipping the world into a recession? If this was the case, the US Treasury 10-year would be seeing a stronger bid, in our view," Lee concluded.Read the original article on Business Insider.....»»

Category: topSource: businessinsiderSep 21st, 2021

Traders are Buying the Dip

After yesterday???s sell off, investors are looking at support levels as a buying guide. The S&P 500 saw one of its worst days of the year Monday, falling 1.7%. The last hour saw a 50-point rally as traders bought the dip, so the day had a much better feel than earlier in the afternoon.The recent selling has accelerated due to concerns over Evergrande, a large real estate company in China. The company will likely default this week and if they do, we could see some contagion in global markets.  While American companies have very little direct exposure, the fear with an event like this is exposure to the exposed.While the late day rally provided some nice relief, the long-term trend line and 50-day moving average are broken. Traders are now eyeing the important levels where they can buy the dip.Let’s go over some areas inthe the S&P 500 that you should be eyeing if we get anymore aggressive selling:Mondays Low- The low printed in the S&P 500 on Monday was 4305. This will be an important spot to hold over the next few sessions4255 SPX- The 161.8% Fibonacci extension drawn from August lows to September highs is just above the 4250 level in the S&P. If this area holds, we could see a bounce back to the 50-day MA, giving to bulls one last chance to take us to all-time highs in 2021.4100 SPX-The 200-day moving average currently resides just over the 4100 level and would be the next stop. The 200-day hasn’t been tested since June of 2020, so this is a long time coming. Traders will be anticipating a bounce off this support level.3650 SPX- Morgan Stanley is calling for a possible 20% correction. If this plays out, the 200-day wouldn’t hold and we would fall to the 3650 area in the S&P.S&P Futures Trading Levels for TodayThe S&P futures currently sit at 4380, about 15 handles off overnight highs.    Support levels for the day will be 4372 and 4351.Upside resistance is the overnight high at 4396 and 4410.The current S&P trading environment has been sideways, but is now trending lower after yesterday.  Three Stocks to Watch AMZN- Amazon tested its 200-day moving average yesterday and bounced aggressively. Losing that $3300 support level would be a negative for stocks and the Nasdaq. Those waiting for a dip, can target $3050.AAPL- Apple has fallen 15 points off its highs and seems to have its sights set on the 200-day at $134. Investors might want to look at the $136 area, which is the 61.8% retracement level from May lows to recent highs.Apple Inc. Price and EPS Surprise Apple Inc. price-eps-surprise | Apple Inc. QuoteUBER– The ride share company is up over 4% after the company guided pre-market. Uber narrowed its Q3 gross bookings outlook to the middle of the expected range. They raised Q3 EBITDA and achieved positive EBITDA in July and August. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Apple Inc. (AAPL): Free Stock Analysis Report Uber Technologies, Inc. (UBER): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021

Big Tech Takes the Reins

Big Tech Takes the Reins Hey everybody, Dave Bartosiak filling in for Jim “The Count of Montequinto” Giaquinto. He should be back with you folks for tomorrow’s debrief. A tale of two markets today as big tech tried to keep things rolling in positive territory. Despite yesterday’s Fed announcement about moving up the timetable for rate hikes, financials were bogged down. Worse still, Basic Materials and Energy stocks got rocked to the tune of 3% and 2.9% respectively, wreaking havoc on the small caps. The Russell 2000 gave up 27.23 points or 1.18% at 2,287.45. The Dow Jones Industrial Average fared a bit better, but still lost 210.22 points or 62 bps at 33,823.46. The S&P 500 nearly hung onto positive territory, shedding just 1.86 points or 4 bps at 4,221.85. The NASDAQ Composite bucked the broad negative trend, instead gaining 121.67 points or 87 bps at 14,161.35. Chart of the Day NVIDIA (NVDA) The worldwide microchip shortage has been well documented. Supply chain disruptions and product shortages are all the rave nowadays. This hiccup is hitting huge industries like the auto business. That is not stopping tech stocks like NVIDIA from rocking and rolling. Today’s $33.88 move in the stock was good for 4.76% at $746.29. I wanted to point this chart out for two main reasons. First, just so all of us can admire the massive 20 million share day for the $746 stock. That’s nearly $15 billion in nominal value trading hands in a single stock today. The second part is the textbook moves off the 200-day moving average, shown here in red on the chart. Early March, the stock had one terrible day where it sold off past the 200-day but quickly rebounded the next day. This key level was support later than month and again in May. Buying stocks with solid earnings history when they come down to the 200-day moving average is always a good idea. Today’s Portfolio Highlights: Insider Trader: Tracey took some risk off the table today, cutting one position in half while ousting three others. With oil coming under pressure, threatening to dip back under $70, she trimmed her Matador (MTDR) position. Recognizing what she called a “mini-breakdown” in oil prices, she decided on limiting exposure. If you are a long-term bull in the sector, there is still plenty of hope. “If you're a longer term energy investor of 6 months to a year, I still expect the energy stocks to continue to rally in the second half of the year, in spite of the big gains they've already had. But I wouldn't be surprised to see them take a break here. They've been the hottest industry for the past month.” The ousted names were UnitedHealth (UNH), Fastenal (FAST) and NuSkin (NUS). Both UNH and FAST were only half positions to begin with today. Surprise Trader: Things are really winding down in Surprise Trader with earnings season about a month away. For now, there are a few names which trickle in from time-to-time. Most of the holdings in the current portfolio will be done away with over the coming weeks, setting up the portfolio for a fresh, clean slate heading into next quarter’s earnings season. Today, I dumped both Guess (GES) and H&R Block (HRB) after disappointing moves following earnings. The key here is to let winners run and dump the losers fast, before they go from bad to worse. Winnebago (WGO) was added. These RVs continue to stay hot as dealers cannot keep inventory on the lot. It is a good problem to have and there does not seem to be a let-up in the demand, according to rival Thor. Seemed like a decent risk/reward. Tech Innovators: Selling off holdings seemed to be a theme today as Brian took it upon himself to divest in Tech Innovators. Both Canadian Solar (CSIQ) and Progress Software (PRGS) were sold for nearly the same reason, unfavorable Zacks Ranks. CSIQ had come down to a Zacks Rank #5 (Strong Sell) while PRGS is now a Zacks Rank #4 (Sell). He did replace one of those names with the addition of Xperi (XPER). This Zacks Rank #1 (Strong Buy) is associated with 3D printing, although Brian was quick to point out the connected car and pay TV services that are also offered by the company. He cites a great earnings history among his chief reasons for adding the name. That is all we have for you today. Jim will be back at the helm tomorrow I believe. Have a great night,   Dave   Recommendations from Zacks' Private Portfolios: Believe it or not, this article is not available on the Zacks.com website. The commentary is a partial overview of the daily activity from Zacks' private recommendation services. If you would like to follow our Buy and Sell signals in real time, we've made a special arrangement for readers of this website. Starting today you can see all the recommendations from all of Zacks' portfolios absolutely free for 7 days. Our services cover everything from value stocks and momentum trades to insider buying and positive earnings surprises (which we've predicted with an astonishing 80%+ accuracy). Click here to "test drive" Zacks Ultimate for FREE >>  Zacks Investment Research.....»»

Category: topSource: zacksSep 21st, 2021