Shares of drugmaker Incyte (INCY) and mega-cap partner Eli Lilly (LLY) are sliding after the Food and Drug Administration rejected their application for rheumatoid arthritis therapy baricitinib in its current form, due to safety concerns. Nonetheless, the latter reaffirmed its 2017 and mid-term guidance. The news sparked varied reactions from Wall Street analysts. While some remain bullish on Eli Lilly, Morgan Stanley analyst David Risinger downgraded the stock to Neutral, while his peer at Piper Jaffray cut Incyte’s rating to Neutral. In a research note this morning following the news, Morgan Stanley’s Risinger downgraded Eli Lil...
Turning to the markets, tensions with North Korea and better-than expected economic data out of China are in focus this morning. The Dow, S&P 500 and Nasdaq indices are coming off three straight losing sessions and start the day at two month lows. And with the Dow and S&P having put in a “lower low” on the charts, it appears that a downtrend is developing. Thus, the price action in the near-term takes on added importance this week. Now let’s move on to an objective review the key market models and indicators. To review, the primary goal of this exercise is to remove any preconceived, subjective notions about the markets and ensu...
The Federal Reserve increased interest rates in March, and last December as well. Without a doubt, interest rates are on the rise. Many investors are looking to the financial industry to capitalize on this trend. Large-cap banks like Wells Fargo (WFC) and J.P. Morgan (JPM) see increases in their net interest margins as benchmark interest rates move upwards, which will in turn boost earnings-per-share and shareholder returns. One financial stock that might not immediately come to mind is Computer Services (CSVI). While not a lender itself, Computer Services provides technology solutions to financial institutions and fintech companies. Th...
The March 20 Market Update showed our Long Term interval forecast – both 15 and 12 year intervals. As we are now seeing the biggest pullback in the Dow since last autumn we have to assume that the 15yr interval is exerting its influence and the decline won’t end until the 12yr interval (May-November, 2017) takes over. Lindsay wrote that a 12yr interval counts 12yrs, 2mo. – 12yrs, 8mo. from an important high. However, these long term intervals (as might be expected) were the least exact of all Lindsay’s counts. For example, the 2/11/16 low was exactly 12yrs, 0mo. from the high on 2/11/04. If we account for a possible two month error in...
Constant earnings growth captivates almost everyone, right from the top brass to research analysts. This is because earnings are a measure of the money a company is making. Take a company’s revenues over a given period of time, subtract the cost of production and you will have its earnings! Upbeat earnings results are more often than not followed by an uptick in the share price. Earnings acceleration, however, works even better when it comes to lifting the stock price. Studies have shown that a majority of successful stocks had seen acceleration in earnings before an uptick in the stock price. Finding Future Outperformers Basically, earning...
Written by StockNews.com PacWest Bancorp (NASDAQ:PACW) early Monday posted worse-than-expected first quarter earnings results, as its provision for credit losses widened. The Brea, CA-based regional banker reported: Q1 earnings per share (EPS) of $0.65, which was $0.07 worse than the Wall Street consensus estimate of $0.72. Net interest income fell by $15.9 million to $232.5 million in the latest period, down from $248.3 million sequentially from the fourth quarter. The company’s provision for credit losses rose in Q1 to $24.7 million, while its tax equivalent NIM was 5.16%, down from 5.47% in Q4. PacWest commented via press release: “Fi...
A well-rounded dividend growth strategy should include income from a number of different sources and styles. Not surprisingly, the ETF industry helps address that need by offering well over 100 different funds utilizing dozens of different strategies. The ProShares S&P 500 Dividend Aristocrats ETF (NOBL), for example, targets companies with decades-long histories of steady dividend growth. The Vanguard High Dividend Yield ETF (VYM) seeks out above average yields, while the FlexShares Quality Dividend Index ETF (QDF) looks for dividend strength and quality. Any of these highly rated ETFs would be an ideal choice for a dividend growth portf...
US Vice President Pence and Commerce Secretary Ross will go to Japan this week. In addition to regional security issues, trade relations will likely be featured. Earlier this year, US President Trump and Japan’s Prime Minister Abe agreed to hold bilateral trade talks, led by Pence and Japan’s Finance Minister Aso. Ross, charged with reducing the US trade deficit, will join in some Tokyo talks. After withdrawing from the Trans-Pacific Partnership negotiations, the US is exploring the possibility of a bilateral trade agreement with Japan. This possibility has long been suggested, but it is not clear the priority the Trump Adm...
According to the report on used car dealers in the US published by IBISWorld earlier this year, the used car industry is estimated to grow 2.9% annually through the period 2012 through 2017 to $116 billion in revenues. The market has traditionally been dominated by physical dealership stores, but has, as of late, seen several online players as well. But not many of these have really managed to succeed. Carvana is one player who appears to be ready to test stock market appetite for a business model that has yet to turn in profits. Carvana’s Offerings Phoenix-based Carvana was founded by Ryan Keeton and Ernie Garcia in January 2013 as an o...