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  • Finance 0

    PCE Price Index: October Headline & Core

    The BEA’s Personal Income and Outlays report for October was published this morning by the Bureau of Economic Analysis. The latest Headline PCE price index was up 0.14% month-over-month (MoM) and is up 1.59% year-over-year (YoY). The latest Core PCE index (less Food and Energy) came in at 0.21% MoM and 1.45% YoY. Core PCE remains below the Fed’s 2% target rate. Revisions were made going back to July. The adjacent thumbnail gives us a close-up of the trend in YoY Core PCE since January 2012. The first string of red data points highlights the 12 consecutive months when Core PCE hovered in a narrow range around its interim low. The...
    On November 30, 2017 / By
  • Finance 0

    Kroger (KR) Q3 Earnings & Sales Beat, View Intact, Stock Up

    After witnessing a negative earnings surprise in the second quarter of fiscal 2017,The Kroger Co. (KR – Free Report) made a sharp comeback in the third quarter. The grocery retailer posted earnings of 44 cents a share that beat the Zacks Consensus Estimate of 40 cents and increased 7.3% from the prior-year quarter. As a result, shares are up nearly 10% during pre-market trading hours. Nevertheless, management reiterated its fiscal 2017 adjusted earnings guidance of $2.00-$2.05 per share. The current Zacks Consensus Estimate for fiscal 2017 is pegged at $1.97. Total sales grew 4.5% to $27,749 million from the prior-year quarter and al...
    On November 30, 2017 / By
  • Finance 0

    Workday’s (WDAY) Q3 Earnings Beat Estimates,’18 Guidance Up

    Workday Inc. (WDAY – Free Report) reported third-quarter fiscal 2018 non-GAAP earnings of 24 cents per share, which beat the Zacks Consensus Estimate of 15 cents. The figure was also better than 5 cents reported in the year-ago quarter. The strong growth was primarily attributed to 34.3% jump in revenues, which totaled $555.4 million. The figure surpassed the guidance of $538-$540 million and beat the Zacks Consensus Estimate for revenues of $540 million. The robust top-line performance was driven by solid growth in subscription and professional revenues. Subscription revenues (82.7% of total revenues) soared 37.2% year over year to ...
    On November 30, 2017 / By
  • Finance 0

    GBP/USD Pierces Above 1.35 On A Big Brexit Deal: Ireland, Transition

    Optimism is rampant for a big Brexit breakthrough. First, we learned that the May is ready to open the checkbook regarding the divorce bill. Now, we also learn that Dublin and London are drawing closer to some kind of an agreement on the Irish border. And to top it off, the Times report also discusses a potential agreement with the EU on a transition deal. GBP/USD is already over 100 pips up on the day, rising to 1.3525. Here is a quote from the article: British officials tabled proposals this week to avoid a “hard border” in Ireland that could unblock the last remaining major obstacle to a deal, The Times understands. And here is a ...
    On November 30, 2017 / By
  • Finance 0

    Uber Reports Massive $1.5 Billion 3Q Loss As Two Investors Drop Out Of New Financing Round

    Following an embarrassing revelation from about a weak ago that Uber concealed a massive cyberattack – in which hackers stole personal data from 57 million customers for more than a year – and paid the hackers $100,000 to keep quiet (not to mention the plethora of other scandals of late), investors in the private company have rightfully balked at providing the $7-$10 billion worth of new equity it apparently needs to keep the doors open.  Therefore, it’s probably not helpful, at least for Uber management, that the company just reported another quarter of massive losses totaling some $1.5 billion.Here’s more from the...
    On November 30, 2017 / By
  • Finance 0

    US Retail Companies Have A Massive Bill To Pay Come 2018

    Right now, retail stores are closing at a pace that we haven’t seen since the 2008-2009 financial crisis. Some are calling it a ‘retail apocalypse’ as a number of major headwinds approach, including increasing pressure from Amazon and the sad fact that most brick-and-mortar retailers simply built way too many stores and borrowed too much money to do so. Though many are likely aware of the above, what isn’t so well known is how much debt is coming due starting next year. That’s really the heart of the issue, which is why America’s ‘Retail Apocalypse’ Is Just Getting Started, Bloomberg’s Matt Townsend expl...
    On November 30, 2017 / By
  • Finance 0

    How Should We Think About Bitcoin?

    Is it a speculation or an investment? Is it an Investment? Bitcoin is most certainly not an investment. Investments can be valued based on a current or expected cash flow stream. Think CDs, bonds, stocks, or real estate. Bitcoin generates no cash flow. Yes, there are businesses that currently do not generate positive cash flow (think Tesla or Uber) but investors expect them to be cash flow positive in the future (even if the logic seems far-fetched and ultimately turns out to be wrong). Since Bitcoin is not an investment we must then analyze it as a form of payment or currency. Is it a Form of Payment or Currency? Since Bitcoin generates no c...
    On November 30, 2017 / By
  • Finance 0

    USD/JPY And AUD/USD Forecast – Thursday, Nov. 30

    USD/JPY The US dollar rallied during the trading session on Wednesday, slicing through the 112 level at one point during the day. We did pull back a bit, but as we roll over into the Thursday session, it looks as if the buyers are trying to continue the move to the upside. If we can break above the top of the candle for the Wednesday session, then I think that the US dollar continues to rally, probably aiming for the 113 handle next. Alternately, if we were to get some type of exhaustive daily close, perhaps something like a shooting star, the market should roll right back over and go looking towards the 111 level. It is worth noting that we ...
    On November 30, 2017 / By
  • Finance 0

    Bitcoin Buying Panic Leaves A Dangerously Overextended Market

    What’s interesting about the nature of markets is just when one side of the battle between buyers and sellers thinks they have it completely won, they are at their most vulnerable. Bitcoin has gained over 100% since the start of October on top of an over 900% gain for the year 2017. Since Bitcoin broke out into a Stage 2 advance in 2015 around $250 it is up over 40x. Intoxicating gains that everyone is captivated by currently and wishes they could go back in time and capture. The reality though is the best time to buy Bitcoin was back in 2015 and 2016 when few were talking about it and it was emerging out of a Stage 1 base. Now everyone...
    On November 30, 2017 / By
  • Finance 0

    Billion Dollar Unicorns: Zscaler Getting Ready For IPO

    According to Gartner, cloud-based security web gateways services are showing rapid growth with a five-year historical compound annual growth rate of 32%, compared to just 5% for on-premise appliances. Billion Dollar Unicorn Zscaler has been named as a leader in the Gartner Secure Web Gateway Magic Quadrant for the seventh consecutive year. Zscaler’s Journey San Jose-based Zscaler was founded by serial entrepreneur Jay Chaudhury in 2008. After successfully flipping one of his many startups, Jay realized that his next challenge would be to create something that would have a lasting impact in the market. It was then that he came up with th...
    On November 30, 2017 / By