Stocks and Securities
Similar to Thursday and Friday, Tech continued its decline on Monday. The narrative continues as the sector has been taking a hit ever since Facebook (FB) reported disappointing earnings and guidance. Both S&P 500 and Dow lost 0.6% as the tech heavy Nasdaq Composite lost 1.4%.
U.S. stocks futures, most notably the NASDAQ (-107 or -1.39%), are lower this morning. The Dow and S&P 500 are both set to open lower as well, down -144 (-0.57%) and -16 (0.6%), as we embark on the second week of earnings. Notables for today include, Apple (NASDAQ:AAPL), Baidu (NASDAQ:BIDU), Pandora (NYSE:P), Pfizer (NYSE:PFE), Akamai Technologies (NASDAQ:AKAM), Procter & Gamble (NYSE:PG) and BP (NYSE:BP).
Today the question on everyone’s mind will be Apple (NASDAQ:AAPL) earnings report, will the company follow in the same path of Facebook (FB), Netflix (NFLX) or Twitter (TWTR)? Apple (AAPL) is going into earnings with expectations of revenue of $52.3B, EPS of $2.23 and iPhone shipments of 41.6M units.
Lets Focus on the Big Cat.
Prior to market open on Monday, Caterpillar Inc. (CAT) announced second-quarter 2018 sales and revenues of $14.0 billion, compared with $11.3 billion in the second quarter of 2017, a 24% increase. Second-quarter 2018 profit per share of $2.82 was a second-quarter record. Profit per share was $1.35 in the second quarter of 2017. Adjusted profit per share in the second quarter of 2018 was $2.97, compared with second-quarter 2017 adjusted profit per share of $1.49.
Furthermore, Caterpillar Inc. (CAT) increased its 2018 profit per share outlook to a range of $10.50 – $11.50. This excludes the $400m restructuring costs, thus, Caterpillar Inc. (CAT) expects adjusted profit per share to be in the range of $11.00 to $12.00 – compared to prior profit per share outlook of $9.75 – $10.75. Caterpillar Inc. (CAT) actually went from up 2.8% to down -2.0% as the market began to tumble.
What will the future hold for Caterpillar Inc. (CAT)?
West Texas Intermediate crude (WTI) for September delivery on the New York Mercantile Exchange up 23 cents, or 0.33% or at $68.52 a barrel. September Brent crude flat at $74.29 a barrel.
We continue to remain bullish on our Oil outlook, as most economic data indicates a decline in overall inventories, thus higher oil prices are to be expected in the second half of 2018.
Blockchain and Cryptocurrency
The price of Bitcoin (BTC) stumbled 1.16% to $8066, while Ethereum (ETH) down 3.16% trading at $447.95. Market capitalization decreased from $294 USD to $286B USD which is a 2.7% decrease in just 24 hours. This 24 hour volume of $13.7B is up more than $1.5B compared to yesterday. BTC dominance of 48.3% is up about 1% compared to Yesterday as well.
Read our recent post consisting of Technical Analysis for Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCC), Cardano (ADA), Stellar (XLM), Digibyte (DGB), NEO (NEO), EOS (EOS), and Nucleus.Vision (NCASH).
South Korean Government is working hard to bring about the country’s first cryptocurrency and blockchain legislation. They hope to have legislation in place that will help them recognize the blockchain and smart contracts as legitimate industry. South Korean plans to create vibrant cryptocurrency startup environment in cities such as Busan and Seoul.
In the same token, Indian state of Telangana – one of most forward thinking cities in India – is also looking to incorporate blockchain technology into its administrative services.
These series of development could be the reasoning behind the valuation given by a hedge fund manager – Mark Yusko – who predicted a Bitcoin price of $500,000 by end of 2024.
My view from April is unchanged. The #NetworkEffect of #Bitcoin is powerful and all that matters today is securing ownership of the Network, the daily price is just noise… #BuyAndHODL 🚀 https://t.co/FvnIi4jrX1
— Mark W. Yusko (@MarkYusko) July 26, 2018
Stocks on the Radar
If you have not have the chance to look at our new segment – ETF ALPHA – please take the time to do so. There we have highlighted potential trades from 16 different ETFs. There are some great ETFs to buy in this week’s post. If you are unsure about the benefits of trading ETFs then please read our post here.
We hate to brag but we nailed our ETFs plays for last week. We told our readers to buy BRZU (+8.19%), INDL (+8.73%) and YINN (+6.8%) and to stay away from LABU (-18.01%).
Below is our today’s list of cryptocurrency and stocks to buy or to invest in: