Articles by: cpdiver

  • Stocks Veer Lower As Oil Prices Slump; This Dow Giant Gets An Upgrade

    Stocks opened to quick losses Thursday as overseas action and early earnings news were mixed, and oil prices continued their two-week slide.

    X

    Alcoa (AA) and Ericsson (ERIC) all stepped off early gains following earnings reports. Textron (TXT) and United Rentals (URI) each took a dive. Biotech Endocyte (ECYT) spiked more than 50% on a takeover deal from Novartis (NVS). Invesco (IVZ) bolted higher on news it would buy OppenheimerFunds from Massachussets Mutual Life for $5.7 billion.

    The Dow Jones industrial average dropped 6%, the Nasdaq Composite tumbled 0.7% and the S&P 500 downshifted 0.6% at the starting bell.

    Walgreens (WBA) led the Dow, rising 0.8%, while Nike (NKE) rose on an analyst upgrade and Caterpillar (CAT) tumbled 2.6% to the bottom of the list.  On the Nasdaq 100, Sirius XM (SIRI) swung to an early lead. Activision Blizzard (ATVI) skidded 6% lower.

    Industrial earnings split the S&P 500 in early trade. Praxair (PX) sprung 3% to near the top of the index, just behind Invesco. Sealed Air (SEE) and Textron each fell to deep declines.

    IBD Newsletters
    Get exclusive IBD analysis and action news daily.

    SIGN UP NOW!

    IBD Newsletters
    Get exclusive IBD analysis and action news daily.

    Financial Advisor Update

    How To Invest

    Market Prep

    Tech Report

    Please enter a valid email address

    Please select a newsletter

    GO

    Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use

    x

    Thank You!

    You will now receive IBD Newsletters

    ALL DONE!

    Something Went Wrong!

    Please contact customer service

    CLOSE

    Stock Market Correction Vs. Bear

    The market slipped into a correction on Oct. 10, which means investors should raise cash where feasible and not jump into any new stocks or add to current positions until conditions improve. It’s a good time to study up on the traits of a follow-through day, which typically marks the launch of a new market uptrend. It is also a good time to identify leading stocks building early-stage base patterns, and to begin building a watchlist of stocks that could potentially break out past buy points when the market turns more positive.

    The Dow ended Wednesday down 4.6% from its Oct. 3 high. The S&P 500 was down 4.5%. The Nasdaq had slipped 6% below its Aug. 30 peak. The current mood might at times be “bearish,” and “the bears” are often said to be controlling the market’s action during periods of strong selling, but all of the major indexes remain far from the 20% decline necessary to declare a bear market.

    Alcoa, Ericsson Climb; Nike Gets Digital

    Alcoa leapt 6.7% after reporting quarterly results late Wednesday. Both stocks are trading sharply below second-quarter highs and under critical levels of support.

    Dow stock Nike gained 0.8% after Oppenheimer upgraded the stock to outperform, from perform. The note placed a 90 price target on the stock, citing an “already dominant, legacy global brand’s” adoption of digital marketing. “Digital is allowing NKE to drive sales through more profitable direct channels and minimize markdown risks,” the note said.

    The early gain put Nike stock ahead 1.7% for the week, as it aims to snap a three-week pullback and find support at its 40-week moving average.

    Handset maker Ericsson powered up nearly 4% after beating analyst targets as it battles back from two years of declines. The stock trades just below 10, and is now up 22% since clearing a cup-with-handle base in April.

    M&A: Endocyte, Invesco

    Cancer drug biotech Encyte soared 51% in opening trade. Swizterland’s Novartis agreed to pay $2.1 billion for the Indiana-based radiopharmaceuticals specialist. Novartis also reported better-than-expected Q3 earnings and revenue in line with analyst targets. Endocyte stock was up 264% for the year through Wednesday.

    Invesco, the fourth-largest manager of exchange traded funds, rose 2.6% after announcing it would pay $5.7 billion to acquire OppenheimerFunds from Massachusetts Mutual Life Insurance. Oppenheimer’s high-fee actively managed funds add assets of around $246 billion, increasing Invesco’s assets under management to $1.2 trillion.

    Invesco shares have been in a steep dive since January, ending Wednesday 46% below their January high.

    Oil Prices Down; Philly Fed Tops Forecasts

    Oil prices steepened their early decline, with West Texas Intermediate down 1.6% at $68.66 per barrel, Brent crude off 1.4%. WTI dropped 3% Wednesday following bearish supply data from the Energy Information Administration. It is 10% off its Oct. 1 high and tracking toward a second straight weekly decline.

    First-time unemployment claims fell to 210,000 in the week ended Oct. 13, the Labor Department reported. That was counter to consensus expectations for an uptick, to 215,000, from the prior week’s 214,000 applications.

    Manufacturing growth in the mid-Atlantic region has slowed less than expected in October. The Philadelphia Federal Reserve’s Manufacturing Business Outlook Survey dipped to 22.2, down from September’s 22.9 but above economist targets for 20. Positive readings indicate expansion.

    St. Louis Federal Reserve President James Bullard is speaking in Memphis at 9 a.m. ET. Thursday’s heavy after-hours reporting schedule includes American Express (AXP), PayPal (PYPL), Intuitive Surgical (ISRG) and Atlassian (TEAM), among others.

    China Dives Ahead Of GDP Data

    China’s mainland markets dived, sending the Shanghai Composite 2.9% lower, as weaker oil prices, a diving yuan and concerns over margin-lending levels spooked investors. Hong Kong resisted the undertow and managed a flat finish. In Japan, Tokyo’s Nikkei 225 fell 0.8%. China’s markets remain deep in bear market territory, and skittish ahead of third-quarter GDP data due out Friday.

    European markets were mixed on positive earnings news, a sell-off among Spanish banks and ongoing Brexit worries. The CAC-40 in Paris traded a fraction higher in afternoon trade. Frankfurt’s DAX and the FTSE 100 in London were down 0.2% apiece.

    RELATED: 

    The Big Picture: Market Shaves Early Losses, But Still Challenged

    3 Reasons To Stay In Cash As Bulls, Bears Battle For Stock Market Control

    How Can You Handle This Market? Start With These 3 Steps

    IBD Stock Of The Day Holds Key Support As Other Leaders Buckle

    Top-Rated Tech, Finance Stocks To Report: Action Plan

     

    The post Stocks Veer Lower As Oil Prices Slump; This Dow Giant Gets An Upgrade appeared first on Investor's Business Daily.

    Read more »

  • SAP Posts `Mixed Bag' Of Profit Miss, Raised 2018 Forecasts

    SAP SE (SAP), Europe’s biggest technology company, raised its projections for the year due to accelerating momentum for its cloud business, but third-quarter profit missed analyst estimates.

    X

    SAP shares fell as much as 3.6 percent, despite the company also increasing its operating profit forecast.

    New cloud bookings, a keenly watched metric because it indicates future revenue, rose 37 percent in the third quarter at constant currencies. In the previous period, new bookings had grown slower than overall cloud revenue, disappointing some analysts at the time.

    SAP’s results are a “mixed bag,” Baader Helvea Equity Research analyst Knut Woller said Thursday. While the raised forecast is positive, license revenues, cloud and software and non-IFRS operating profit missed estimates, he said in an e-mailed note.

    IBD Newsletters
    Get exclusive IBD analysis and action news daily.

    SIGN UP NOW!

    IBD Newsletters
    Get exclusive IBD analysis and action news daily.

    Financial Advisor Update

    How To Invest

    Market Prep

    Tech Report

    Please enter a valid email address

    Please select a newsletter

    GO

    Get these newsletters delivered to your inbox & more info about our products & services. Privacy Policy & Terms of Use

    x

    Thank You!

    You will now receive IBD Newsletters

    ALL DONE!

    Something Went Wrong!

    Please contact customer service

    CLOSE

    Chief Executive Officer Bill McDermott is shifting SAP’s focus toward cloud services as it challenges rivals such as Salesforce.com (CRM) and Oracle (ORCL). He told Bloomberg TV this week that the company now generates more revenue from the cloud business model than from on-premise products.

    The company now expects non-IFRS cloud subscriptions and support revenue of as much as 5.25 billion euros ($6.0 billion) this year, up from a previous maximum expectation of 5.2 billion euros.

    SAP Chief Financial Officer Luka Mucic says he “can absolutely not see any signs of deceleration,” as strong cloud growth overshadows decline in on-premise software sales, in an interview with Bloomberg TV.

    Operating profit came in at 1.74 billion euros, lower than the 1.8 billion-euro average estimate. But it raised its outlook for non-IFRS operating profit this year by 25 million euros to as much as 7.525 billion euros.

    “Margins were more stubborn than some (us) have hoped,” said Walter Pritchard, an analyst at Citigroup (C).

    SAP’s flagship S/4 Hana software added customers in the July-September period to reach more than 9,500 total users, up from around 8,900 at the end of June. The software allows businesses to run tasks on their own machines or in a cloud-computing arrangement hosted by SAP or one of its partners.

    The company this year made its biggest in more than three years when it bought Callidus Software Inc. for about $2.4 billion, gaining access to new sales analytics and customer engagement tools. The C/4 Hana platform that deploys these tools saw triple-digit growth in the quarter, winning clients Giorgio Armani SpA and Colgate-Palmolive (CL).

    The post SAP Posts `Mixed Bag' Of Profit Miss, Raised 2018 Forecasts appeared first on Investor's Business Daily.

    Read more »

  • Drone Review: New DJI Phantom 4 RTK Lives up to Expectations

    Drone Review: New DJI Phantom 4 RTK Lives up to Expectations

    COPTRZ, a U.K.-based drone solutions provider, is reporting “exceptional” results from testing of the new DJI Phantom 4 RTK.

    DJI’s latest enterprise platform was recently put through its paces over a two-day testing period by Geocurve, a U.K.-based specialist surveyor. As reported by COPTRZ, the 5-centimeter absolute accuracy stated by DJI was matched in the testing.

    Phil Swart, chief unmanned aerial vehicle (UAV) pilot at Geocurve, gave his opinion following an intensive test of the Phantom 4 RTK:

    “The mapping community has already embraced the Phantom 4 Pro’s improved camera system, and DJI have now taken this one step further with RTK functionality for surveying applications. The results from our tests have us all really excited for a future with fewer ground control points and improved accuracy. The Phantom 4 RTK improves our efficiency on-site and has a knock-on effect in terms of the faster processing times that we can offer our clients.”

    The new Phantom 4 RTK houses a specialist real-time kinematics (RTK) system, along with a new purpose-built flight planning application, explains COPTRZ.

    “We found the new ground station RTK app to be intuitive and simple to use,” continues Swart. “During our tests, we were able to create a mapping flight and get airborne within a few minutes. Those who have used previous DJI GO apps will have no problems adjusting to the Phantom 4 RTK. Overall, we found the platform to be very simple to use whilst delivering great results.”

    phantom-rtk Drone Review: New DJI Phantom 4 RTK Lives up to Expectations

    James Pick, UAV strategist and surveying specialist at COPTRZ, adds, “It’s great
    to see DJI launch a new RTK-enabled drone, and I’m sure this will help further propel the use of drones in the surveying community. The Phantom 4 RTK comes in at a great price point, meaning that surveying firms can acquire a fleet of drones to further improve their efficiencies and offer high-quality data, coupled with fast turn-around times. The Phantom 4 RTK offers more than enough functionality for most surveying jobs and will appeal to both new and experienced aerial surveyors.”

    The post Drone Review: New DJI Phantom 4 RTK Lives up to Expectations appeared first on Unmanned Aerial.

    Read more »