Here is the latest Market News from Forbes Magazine.
China’s Economy: Between a Rock and a Hard Place
The Chinese economy appears to be stuck in an uncomfortable and unsustainable quasi-equilibrium in which growth is just about stopped from falling further through continued central-bank and financial regulator-promoted credit growth and selective fiscal stimulus, funded by local governments borrowing and debt issuance by SOEs and other large corporates. This interruption of the decline in China’s growth rate is achieved through means that increase the likelihood of an eventual larger decline in growth, commonly referred to a “hard landing”. Adding debt to the already over-leveraged balance sheets of local governments and non-financial corporates and adding productive capacity in sectors already plagued by excess capacity are the wrong kind of counter cyclical demand stimulus.
The 93 Global Billionaires In Oil And Energy, 2016
PNC Financial Services Group Named Top Dividend Stock With Insider Buying and 2.73% Yield (PNC)
In this series, we look through the most recent Dividend Channel ”DividendRank” report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider’s view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is PNC Financial Services Group (NYSE: PNC), which saw buying by Director Charles E. Bunch.
Alcoa Shares Rise After Quarterly Earnings Top Expectations
Alcoa reported better than expected second quarter results on Monday, even as its business continues to be challenged by sliding aluminum prices.
Humana Enters Oversold Territory (HUM)
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.
‘Pokémon Go’ Is Not Worth $7 Billion To Nintendo
Selling Nintendo’s intellectual property to smartphone users may be worth big bucks, but the two-day rally is already pricing in huge profits.
How To Stay Safe While Playing ‘Pokémon GO’
S&P 500 Sets New Record As Stock Rally Rolls On
U.S. stocks staged yet another day of a stellar performance as S&P 500 hit an all-time high and Amazon toppled Berkshire Hathaway to become world’s fifth largest company by market value.
Can A “Master Plan” Bring Tesla Back On Track?
Tesla Motors has experienced a series of reversals in recent weeks. A Model S was involved in a fatal crash, killing the driver while on autopilot mode. A second accident of uncertain causes has yet to be investigated. Finally there is the comapny’s controversial offer to acquire “Solar City”, a solar power company where Elon Musk is both the chairman and the largest shareholder. In the midst of this, the company’s CEO Elon Musk appears to be appeasing investors and consumers through a “top secret masterplan”, which he is plans to publish later this week.
How The Booming Online Video Market In China Can Drive Baidu’s Growth
Baidu started its online video business back in 2012 in an attempt to capture the shifting customer demand from television to online video streaming. Baidu’s online video business includes its iQiyi video platform, which has an extensive video content library that includes licensed movies, television series, cartoons, variety shows and other programs. In addition to sourcing licensed content, iQiyi also produces a wide array of original content and provides online community services to facilitate user communication and interaction – similar to what Netflix does in the U.S. and internationally. According to our estimates, the online video division makes up approximately 5% of our $188 price estimate for Baidu’s stock. Our price estimate is roughly 15% higher than the current market price.
Noteworthy Monday Option Activity: WYN, TIF, AGN
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Wyndham Worldwide Corp (NYSE: WYN), where a total volume of 7,606 contracts has been traded thus far today, a contract volume which is representative of approximately 760,600 underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 59.1% of WYN’s average daily trading volume over the past month, of 1.3 million shares. Especially high volume was seen for the $77.50 strike call option expiring August 19, 2016, with 3,691 contracts trading so far today, representing approximately 369,100 underlying shares of WYN. Below is a chart showing WYN’s trailing twelve month trading history, with the $77.50 strike highlighted in orange:
Target Named Top Dividend Stock With Insider Buying and 3.37% Yield (TGT)
In this series, we look through the most recent Dividend Channel ”DividendRank” report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider’s view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is Target Corp (NYSE: TGT), which saw buying by Executive Officer Catherine R. Smith.
American Tower’s Preferred Stock, Series B Crosses Above 5% Yield Territory
In trading on Monday, shares of American Tower Corp’s 5.50% Mandatory Convertible Preferred Stock, Series B (NYSE: AMT.PRB) were yielding above the 5% mark based on its quarterly dividend (annualized to $5.50), with shares changing hands as low as $109.50 on the day. This compares to an average yield of 6.93% in the “Real Estate” preferred stock category, according to Preferred Stock Channel. As of last close, AMT.PRB was trading at a 11.02% premium to its liquidation preference amount, versus the average premium of 4.11% in the “Real Estate” category. It should be noted that the preferred shares are convertible, with a conversion ratio of 8.5911 and 10.3093. Click here to find out the 50 highest yielding preferreds, at PreferredStockChannel.com »
BCE’s Series AE Preferred Shares Crosses Above 5% Yield Territory
In trading on Monday, shares of BCE Inc’s Series AE Preferred Shares (Toronto: BCE-PRE) were yielding above the 5% mark based on its monthly dividend (annualized to $0.675), with shares changing hands as low as $13.47 on the day. As of last close, BCE.PRE was trading at a 46.08% discount to its liquidation preference amount. It should be noted that the preferred shares are convertible.
Notable Monday Option Activity: INTC, YUM, WBA
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Intel Corp (NASD: INTC), where a total volume of 130,777 contracts has been traded thus far today, a contract volume which is representative of approximately 13.1 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 53.8% of INTC’s average daily trading volume over the past month, of 24.3 million shares. Especially high volume was seen for the $33.50 strike call option expiring July 15, 2016, with 20,207 contracts trading so far today, representing approximately 2.0 million underlying shares of INTC. Below is a chart showing INTC’s trailing twelve month trading history, with the $33.50 strike highlighted in orange:
Monday Sector Leaders: Industrial, Financial
The best performing sector as of midday Monday is the Industrial sector, higher by 0.8%. Within the sector, Alliance Data Systems Corp. (NYSE: ADS) and Textron Inc (NYSE: TXT) are two large stocks leading the way, showing a gain of 4.5% and 3.5%, respectively. Among industrial ETFs, one ETF following the sector is the Industrial Select Sector SPDR ETF (AMEX: XLI), which is up 0.7% on the day, and up 9.87% year-to-date. Alliance Data Systems Corp., meanwhile, is down 24.07% year-to-date, and Textron Inc, is down 8.81% year-to-date. TXT makes up approximately 0.7% of the underlying holdings of XLI.
Monday Sector Laggards: Utilities, Energy
Looking at the sectors faring worst as of midday Monday, shares of Utilities companies are underperforming other sectors, showing a 0.1% loss. Within that group, American Water Works Co, Inc. (NYSE: AWK) and Eversource Energy (NYSE: ES) are two of the day’s laggards, showing a loss of 1.0% and 0.6%, respectively. Among utilities ETFs, one ETF following the sector is the Utilities Select Sector SPDR ETF (AMEX: XLU), which is down 0.1% on the day, and up 23.04% year-to-date. American Water Works Co, Inc., meanwhile, is up 39.31% year-to-date, and Eversource Energy is up 17.75% year-to-date. Combined, AWK and ES make up approximately 5.2% of the underlying holdings of XLU.
Noteworthy Monday Option Activity: FAST, AAL, IBM
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Fastenal Co. (NASD: FAST), where a total volume of 12,829 contracts has been traded thus far today, a contract volume which is representative of approximately 1.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 51.3% of FAST’s average daily trading volume over the past month, of 2.5 million shares. Especially high volume was seen for the $47 strike call option expiring July 15, 2016, with 6,362 contracts trading so far today, representing approximately 636,200 underlying shares of FAST. Below is a chart showing FAST’s trailing twelve month trading history, with the $47 strike highlighted in orange:
Noteworthy Monday Option Activity: MCD, LCI, TGT
Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in McDonald’s Corp (NYSE: MCD), where a total of 24,156 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 43% of MCD’s average daily trading volume over the past month of 5.6 million shares. Particularly high volume was seen for the $125 strike call option expiring September 16, 2016, with 11,510 contracts trading so far today, representing approximately 1.2 million underlying shares of MCD. Below is a chart showing MCD’s trailing twelve month trading history, with the $125 strike highlighted in orange:
Earnings Season Starts But What Do Forecasts Look Like?
Alcoa kicks off the unofficial start of earnings season after the bell Monday. And while company results are always important, some analysts might be more interested in what chief executives at AA have to say about the future. For instance, what are the company’s projections for the next quarter and beyond?
Corus Entertainment Inc About To Put More Money In Your Pocket (CJR-B)
On 7/13/16, Corus Entertainment Inc (Toronto: CJR-B) will trade ex-dividend, for its monthly dividend of $0.095, payable on 7/29/16. As a percentage of CJR.B’s recent stock price of $13.99, this dividend works out to approximately 0.68%, so look for shares of Corus Entertainment Inc to trade 0.68% lower — all else being equal — when CJR.B shares open for trading on 7/13/16. Click here to find out which 9 other Canadian stocks going ex-dividend you should know about, at DividendChannel.com »
Pokemon Go Is Giving Nintendo’s Stock A Huge Boost
The Pokemon Go craze is giving Nintendo’s stock a much-needed jolt, as investors catch a glimpse of its potential on mobile.
Will Brexit Ever Actually Happen?
The EU Referendum Act 2015 makes provision for holding an advisory referendum. It is a non-legally binding referendum.
Ex-Dividend Reminder: Watsco, Trinity Industries and IDEX
Looking at the universe of stocks we cover at Dividend Channel, on 7/13/16, Watsco Inc. (NYSE: WSO), Trinity Industries, Inc. (NYSE: TRN), and IDEX Corporation (NYSE: IEX) will all trade ex-dividend for their respective upcoming dividends. Watsco Inc. will pay its quarterly dividend of $0.85 on 7/29/16, Trinity Industries, Inc. will pay its quarterly dividend of $0.11 on 7/29/16, and IDEX Corporation will pay its quarterly dividend of $0.34 on 7/29/16.
Ex-Dividend Reminder: Cracker Barrel Old Country Store, Foot Locker and Yum! Brands
Looking at the universe of stocks we cover at Dividend Channel, on 7/13/16, Cracker Barrel Old Country Store, Inc. (NASD: CBRL), Foot Locker, Inc. (NYSE: FL), and Yum! Brands, Inc. (NYSE: YUM) will all trade ex-dividend for their respective upcoming dividends. Cracker Barrel Old Country Store, Inc. will pay its quarterly dividend of $1.15 on 8/5/16, Foot Locker, Inc. will pay its quarterly dividend of $0.275 on 7/29/16, and Yum! Brands, Inc. will pay its quarterly dividend of $0.46 on 8/5/16.
Cash Dividend On The Way From EOG Resources (EOG)
Looking at the universe of stocks we cover at Dividend Channel, on 7/13/16, EOG Resources, Inc. (NYSE: EOG) will trade ex-dividend, for its quarterly dividend of $0.1675, payable on 7/29/16. As a percentage of EOG’s recent stock price of $82.93, this dividend works out to approximately 0.20%. Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen » or click here to find out which 9 other stocks going ex-dividend you should know about, at DividendChannel.com »
The EU Is In A Legal Battle That Will Define Its Future
I spent considerable time last week discussing Brexit with my good friend George Friedman.
This Stock Has A 11.36% Yield, Sells For Less Than Book, and Insiders Have Been Buying
In this series, we look through the most recent Dividend Channel ”DividendRank” report, and then we cherry pick only those companies that have experienced insider buying within the past six months. The officers and directors of a company tend to have a unique insider’s view of the business, and presumably the only reason an insider would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So when stocks turn up that see insider buying, and are also top ranked, investors are wise to take notice. One such company is Pennymac Mortgage Investment Trust (NYSE: PMT), which saw buying by Director Paul Dufauchard, Preston Jr..
Is VIX Hedging Done Or About To Reload?
I have seen what could potentially be a big shift in the pattern of UVXY and likely other VIX based ETPs.
Notable Monday Option Activity: BHI, EA, TSLA
Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Baker Hughes Inc. (NYSE: BHI), where a total volume of 29,276 contracts has been traded thus far today, a contract volume which is representative of approximately 2.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 92.7% of BHI’s average daily trading volume over the past month, of 3.2 million shares. Particularly high volume was seen for the $45 strike call option expiring July 15, 2016, with 28,059 contracts trading so far today, representing approximately 2.8 million underlying shares of BHI. Below is a chart showing BHI’s trailing twelve month trading history, with the $45 strike highlighted in orange:
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