Hello Steemians interested in the financial markets, I bring you this Mid-Week Stock Market report.
Stock Market Advisory
August 10th, 2018
Corporate Earnings Overshadow Tariff Clashes
The earnings season is somehow easing investors’ worries over the continuing tension between Washington and Beijing. According to FactSet data, the companies from the S&P 500 that have reported quarterly results produced earnings growth of 24% and sales gains of 9.8%. That is the reason why U.S. stocks remained buoyant and kept the bears away.
The Nasdaq Composite Index registered its longest stretch of uninterrupted gains since March 12 as it gained 4.66 points (+0.1%) on mid-week. With the recent advances, the tech-heavy benchmark is within 50 points off its record close set on July 25.
The S&P 500 Index is coming from a four-day winning streak before ending the run to close -0.75% lower. The broader index is less than 0.5% from its all-time high hit on January 26. Meanwhile, the four straight days of gain by the Dow Jones Industrial Average was halted as the blue-chip index shed -45.16 points (-0.18%) to finish Wednesday’s session at 25,583.75.
$16.0 Billion Worth of New Tariffs
Beginning on August 23, the U.S. will collect 25% tariffs on another $16 billion in Chinese goods. On Tuesday, the U.S. Trade Representative (USTR) office published a final tariff list targeting 279 imported product lines. But the latest list will hit semiconductors from China even if many of the basic chips in these products originate from South Korea, Taiwan or the U.S.
The Semiconductor Industry Association (SIA) expressed disappointment at USTR’s decision to keep the sector on the tariff list. The 25% tariffs will also apply to a broad range of Chinese electronics, plastics, chemicals and railway equipment.
China responded on Wednesday with an equivalent amount if tariffs on U.S. autos and energy products. But Beijing warned that should the trade dispute further escalate, it might target prominent American companies like Apple Inc. (AAPL).
Hot Stock Picks with Strong Earnings Potential
Mosaic Co. (MOS) $31.54 as of 08/08/2018 (+22.92% YTD)
Mosaic Company is a Fortune 500 company and the largest U.S. producer of potash and phosphate fertilizer. The Plymouth, Minnesota-based company is the top performer in the fertilizers industry.
Mosaic presented posted revenues of $2.21 billion for the quarter ended June 2018 which bested the $1.75 billion revenue a year ago. The company has beaten analysts’ revenue estimates three times over the last four quarters.
Since the beginning of 2018, MOS added about 18.7% versus the S&P 500's gain of 6.2%. The forecast for the stock is a potential +39.5% increase to $44.00 from Wednesday’s closing price of $31.54.
Amazon.com Inc. (AMZN) $1.886.52 as of 08/08/2018(__+61.31% __YTD)
If you want a stock that’s certain to reward, purchasing AMZN is a no-brainer. Amazon is operating in 8 out of the 10 industries that represent market opportunities whose value exceeds $1 trillion globally. The next price target is $2,300.00 or a +21.9% increase as it prepares to exploit 2 more industries.
According to D.A. Davidson analysts, the e-commerce giant will soon enter the gas stations and travel – two industries left to conquer. The company is into apparel, B2B e-commerce, consumer Internet of Things, grocery, pharmacy, professional services, restaurants, and stores.
Your partner in success,
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