Stocks and Securities
A plunging Turkish lira sent shock waves through global equity markets on Friday, causing concerns over the financial health of lenders with heavy exposure to the economically-struggling country. The S&P 500 lost 0.7%, dropping into the red for the week (-0.3%), and the Nasdaq (-0.7%) and the Dow (-0.8%) suffered similar declines.
Monday (August 13)
- Morning: CNNE JKS SYY TSG
- Afternoon: AG HUYA SWCH TDW VERI VIPS YY
Notables: Sysco (NYSE:SYY)
The lira was down nearly 16% against the U.S. dollar at Wall Street’s closing bell, weighed down by continued tensions between the U.S. and Turkey, which made no progress during talks this week regarding the detainment of American pastor Andrew Brunson, who is accused of supporting a group blamed for an attempted coup in 2016.
Second quarter earnings season is wrapping up with 91% of the S&P 500 having reported quarterly results. Second quarter EPS are up 25% with sales up 10%. Expectations were for 20% EPS growth with sales up 8.4% heading in to the reporting season – that is roughly in-line with the modest upside we typically see relative to Wall Street estimates. Third quarter EPS are expected to grow 20% with sales up 7.2%, roughly in-line with estimates one month ago. Estimates for the following quarter normally get pared down bit based on conservative guidance. For the year, EPS are expected to grow 20.6% with sales up 8%, marginally higher than one month ago.
On the oil front, U.S. West Texas Intermediate (WTI) and international benchmark Brent crude oil futures went on a wild ride last week before closing lower. At one point last week, the U.S. futures contract was down about 2.40 percent before clawing back nearly half of that loss.
October WTI settled the week at $66.94, down $0.41 or -0.61% and October Brent futures finished at $72.81, down $0.40 or -0.55%. Bullish investors are holding out hope that the Iranian sanctions have not been fully priced into Brent, leaving room for a significant run-up in prices after November 1 when the full effect of the sanctions begin to take place.
Between now and then, the U.S. will use tactics to try to convince all nations to comply with its sanctions. With several major buyers of Iranian crude oil still not complying with the U.S. orders, there is still uncertainty as to how much oil will be removed from the market. Currently, analysts expect the drop-off in Iranian crude exports to range between 500,000 barrels per day (bpd) and 1.3 million bpd.
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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. Our hot streak continued last week. It would be an understatement to call last week’s ending nothing short of a blood bath. However, we still provided our readers with notables such as UGAZ (+20%) and TMF (+5%).
Below is our today’s list of cryptocurrency and stocks to buy or to invest in:
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