GoPro (GPRO) is scheduled to release its fourth quarter earnings report on Wednesday after closing bell, and management has already given investors ample warning that their expectations will not be met by preannouncing some of the results. Management said revenue will come in at around $435 million. Wall Street is expecting the camera maker to break even on that amount. Wall Street prepared for a poor report from GoPro In a report dated Jan. 28, Wedbush analyst Michael Pachter and his team issued their updated numbers ahead of Wednesday’s earnings report. He’s expecting earnings of 1 cent per share, which is a penny ahead of the consensu...
Oil’s price drop currently dominates market coverage. While some analysts argue the net effect is positive, the majority of economists now believe the overall impact is bearish. Economist James Hamilton recently provided an explanation: the combination of job loss and declining capital purchases outweighed the benefits of potential increased consumption.While his article focused on North Dakota and Texas, its reasoning can be applied to entire countries such as Saudi Arabia and Venezuela. However, it’s possible the market could be bottoming: Overall volume was higher in January, possibly indicating a selling climax. And prices are ...
? Bank of Japan introduced negative interest rates, supporting global equity ? S&P500 ends week with 1.7% gain, after surging 2.5% on Friday ? USD/JPY rises to monthly record amid BoJ policy ? Fed uses rate announcement to back away from hawkish stance ? Oil prices rise to highest since beginning of month What started as an indecisive weekly session ended with a strong Friday note as the Bank of Japan announced the introduction of negative interest rates, for the first time in Japanese monetary policy history. According to the BoJ, the decision was approved by a 5-4 majority vote. In addition to setting rates for -0.1% for current acco...
You know that major commodities have taken a huge hit, but did you know that prices of everyday commodities, such as the material that goes into making the lowly cardboard box, have also cratered? As a result, the stocks of the companies that make these materials were bludgeoned this week. For instance, International Paper Company (IP), the world’s largest paper producer, has seen its share prices fall the most in six years. Inventories Mount Given stronger-than-expected December box shipments and the increased demand for packaging enhanced by online shopping, you’d think that containerboard prices would be stable or rising. But this h...
In their first “Preliminary” estimate of the US GDP for the fourth quarter of 2015, the Bureau of Economic Analysis (BEA) reported that the economy was growing at a +0.69% annualized rate, down -1.30% from the third quarter All of the key line items in this report showed meaningful deterioration relative to the third quarter. The reported growth in consumer spending was less than half of that recorded during the prior quarter. The growth in fixed investments nearly disappeared, as did growth in governmental spending. Exports continued to crater, showing outright contraction. In fact, the only good news was that the ongoing inve...
(This is an excerpt from an article I originally published on Seeking Alpha on January 15, 2016. Click here to read the entire piece.) The recent movements in crude oil prices are very substantial in historical context. Headline inflation will return to target once oil prices stabilize, but recent further declines in global oil prices are calling into question when such a stabilization may occur. Inflation expectations in the U.S. may be falling. If so, this would put downward pressure on inflation. Relatively low oil prices remain a net positive for the U.S. economy. These were the main conclusions made by James Bullard, President and CEO, F...
Photo Credit: Paul Saad || What’s more cyclical than a mine in South Africa? This is the first of a series of related posts. I took a one month break from blogging because of business challenges. As this series progresses, I will divulge a little more about that. When I look at stocks at present, I don’t find a lot that is cheap outside of the stocks of companies that will do well if the global economy starts growing more quickly in nominal terms. As it is, those companies have been taken through the shredder, and trade near their 52-week lows, if not their decade lows. Unless an industry can be done away with in entirety, some of...
The coming week ahead is likely to be quite similar to last week in terms of the volume and likely impact of due data. There is a fair amount of crucial U.S. economic data including the vital Non-Farm Payrolls, and also monthly central bank statements concerning the British Pound and Australian Dollar. With more central banks signaling easing rather than tightening of monetary policy, any similar signals this week could cause further impact in the Forex market. U.S. Dollar This is going to be a busy week for the Greenback starting on Monday with ISM Manufacturing PMI. Wednesday will see the releases of ADP Non-Farm Employment Change, ISM Non-...
Stocks around the globe have seen more than $3 trillion wiped off their valuations so far in 2016. Now, I’ve been in the investment business since the 1980s, and I’ve witnessed every large market decline since the 1987 crash. And right now, investors are making two major mistakes that will cost them profit opportunities in the months and years ahead. Mistake #1: Pouring Into Index Funds The first big mistake is that investors are pouring money into index funds. Data from Morningstar for 2015 shows that investors pulled $207.3 billion from actively managed funds and put $413.8 billion into index funds. This is ironic because, in 2015, ac...
Apple Inc. (AAPL) designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, and a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and OS X operating systems, iCloud, and a variety of accessory, service and support offerings. Apple Inc. (AAPL) Q1 2016 Misses On iPhone Sales, Revenue, But Sets $18.4 Billion Profit Record (Source: Google Finance) O...