Erdogan

Market Review 02-04

Market Review 02-04

Forex News

Turkish lira weakens after U.S. halts F-35 equipment delivery

From: Reuters.com

The Turkish lira weakened more than 1 percent against the dollar early on Tuesday after the United States halted delivery of equipment related to the F-35 fighter aircraft to Turkey.

At 0519 GMT, the lira stood at 5.5550 against the U.S. currency, compared with a close on Monday of 5.4913.

The lira has been volatile in the uncertain aftermath of local government elections, weakening 2.5 percent on Monday to 5.7 per dollar before recovering ground.

In Istanbul, both the main opposition Repulican People’s Party (CHP) and President Tayyip Erdogan’s AK Party claimed victory in the mayoral elections. Later, both candidates said CHP’s Ekrem Imamoglu was around 25,000 votes ahead.

The disagreement over the F-35 is the latest of a series of diplomatic disputes between the United States and Turkey, foremost among which are Turkish demands that the United States extradite Islamic cleric Fethullah Gulen, differences over Middle East policy and the war in Syria, and sanctions on Iran.

U.S. officials have told their Turkish counterparts they will not receive further shipments of F-35 related equipment needed to prepare for the arrival of the stealthy fighter aircraft, sources told Reuters on Monday.

Washington’s step to block the delivery of the jet comes amid fears, harbored by the United States and other NATO allies, that radar on the Russian S-400 missile system will learn how to spot and track the F-35, making it less able to evade Russian weapons.

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Pound Falls Amid Brexit Uncertainties;AUD Slips as RBA Keeps Rates on Hold

From: Investing.com

The British pound fell on Tuesday in Asia after U.K. lawmakers rejected all alternative options to Prime Minister Theresa May’s Brexit deal.

The GBP/USD pair was down 0.2% to 1.3068 by 12:01 AM ET (04:01 GMT).

Traders are closely monitoring further developments on the Brexit after the U.K. parliament again rejected all alternative options to May’s withdrawal deal.

The four options that were rejected include a call on the government to negotiate a permanent customs union, the U.K joining the European Free Trade Association and European Economic Area (Common Market 2.0), a confirmatory public vote on the Brexit deal and a choice between no-deal Brexit or revoking Article 50 – stopping Brexit – if the EU does not agree to an extension.

The legal default, for now, will be for the U.K. to leave the European Union in 11 days.

“The House has voted in favor of nothing. As a result in 11 days time, the U.K. will leave the EU without an agreement unless the prime minister acts,” said Labour member of Parliament Hilary Benn.

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies edged up 0.1% to 96.893.

A stronger-than-expected ISM manufacturing data was cited as a tailwind for the U.S. dollar.

ISM manufacturing data for March showed an uptick to 55.3, handily beating expectations of 54.5. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

“ISM Manufacturing for March came in above expectations and employment remains below cycle peaks but comfortably back near prevailing levels in 2018, as March showed the biggest one-month increase in three years. This points to a potentially strong NFP on Friday,” BMO said in a note.

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Stock Market News

Nasdaq, Goldman Sachs, and Amazon are de-risked IPO plays

From: CNBC.com

  • “If you want to play the IPO boom without taking the immense risk of buying these stocks right out of the gate, embrace the indirect approach and buy the more consistent winners here,” CNBC’s Jim Cramer says.
  • “Given where most of these deals are coming, I think Nasdaq’s stock is the way to go,” the “Mad Money” host says.
  • “Goldman Sachs is a pure-play investment bank … The IPO boom could be the catalyst that finally gets this [moving],” he says.

CNBC’s Jim Cramer on Monday said he did not expect Lyft shares to get hit so hard on Monday after their after a positive Friday debut on the stock market.

The rideshare app traded as high as $88 a share in its first day, but tumbled nearly 12 percent to settle at $69.01 on Monday. With a load of highly-anticipated companies planning to go public in 2019, he said it’s a sign that investors must be very careful buying red-hot initial public offerings. Those include names such as Pinterest, Uber, and Airbnb.

But there is a way to make money on the IPO frenzy without buying the new stocks, Cramer said.

“If you want to play the IPO boom without taking the immense risk of buying these stocks right out of the gate, embrace the indirect approach and buy the more consistent winners here like Nasdaq, Goldman Sachs and Amazon,” the “Mad Money” host said.

Invest in the exchanges

Cramer said investors can buy the stock exchanges that will list the oncoming IPOs. The usual suspects on the U.S. market are the New York Stock Exchange and the Nasdaq, he said.

“Given where most of these deals are coming, I think Nasdaq’s stock is the way to go,” Cramer said.

Levi Strauss went public less than two weeks ago on the NYSE, but was the only new name to list on that market in the first quarter. The Nasdaq brought 17 deals, including Lyft, to market in the first three months of the year, he noted.

Additionally, Lyft was the Nasdaq’s largest IPO since the faulty debut of Facebook on the tech-focused exchange in 2012. At the time, Facebook’s stumble worried many tech companies, which pushed notable names such as Twitter, Alibaba, and Snap Inc. to list on the NYSE, Cramer said.

Uber and Pinterest have also opted for the NYSE, but the host thinks the Nasdaq is in position to land big deals in the future.

“Nasdaq delivered 11 percent organic revenue growth, double digit, in its latest quarter. That’s a nice acceleration and 21 percent earnings growth,” Cramer said. “Plus, with Nasdaq’s stock trading at less than 16 times next year’s earnings estimates, I think it’s a bargain.”

Underwriters

The investment banks that underwrite an IPO are well compensated, Cramer said. Goldman Sachs and JP Morgan handled the Levi’s and Lyft offerings, respectively, and both firms will play a role in Pinterest’s listing this year, he noted.

“Goldman Sachs is a pure-play investment bank … their underwriting business is much more of a needle-mover than JP Morgan,” he said. “They win a bunch of these deals and it will really bolster their earnings power … The IPO boom could be the catalyst that finally gets this, the cheapest on a price-to-earnings multiple brokerage stock that there is, [moving].”

Uber is going through its public offering process with Morgan Stanley, which should be a “lucrative” deal for the bank, Cramer said.

“Again, the financials are an unloved group, but these IPOs give you a reason to bet on the investment banks,” he said.

Amazon
Amazon doesn’t have direct exposure to the IPO market, but there is a high chance that its cloud segment does business with the company that’s filing, Cramer said.

Snap Inc. had $1 billion worth of business with Amazon Web Services at its initial offering, the host said. In Lyft’s case, the ride-hailing company will pay the Amazon’s cloud arm $300 million over the next three years, he said. While Pinterest is set to pay the company $750 million over a six-year period through 2023, he added.

“Amazon Web Services dominates this business. Their next largest competitors, [Alphabet subsidiary] Google and Microsoft, don’t even come close,” Cramer said. “So as we see this parade of tech IPOs … it’s telling us how much — each one of them seems to have a deal with Amazon.”

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U.S. stocks higher at close of trade; Dow Jones Industrial Average up 1.27%

From: Investing.com

U.S. stocks were higher after the close on Monday, as gains in the Industrials, Financials and Basic Materials sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average gained 1.27% to hit a new 3-months high, while the S&P 500 index climbed 1.16%, and the NASDAQ Composite index climbed 1.29%.

The best performers of the session on the Dow Jones Industrial Average were Caterpillar Inc (NYSE:CAT), which rose 3.51% or 4.76 points to trade at 140.25 at the close. Meanwhile, JPMorgan Chase & Co (NYSE:JPM) added 3.37% or 3.41 points to end at 104.64 and United Technologies Corporation (NYSE:UTX) was up 3.34% or 4.30 points to 133.19 in late trade.

The worst performers of the session were McDonald’s Corporation (NYSE:MCD), which fell 0.80% or 1.51 points to trade at 188.39 at the close. UnitedHealth Group Incorporated (NYSE:UNH) declined 0.70% or 1.72 points to end at 245.54 and Johnson & Johnson (NYSE:JNJ) was down 0.58% or 0.81 points to 138.98.

The top performers on the S&P 500 were Wynn Resorts Limited (NASDAQ:WYNN) which rose 8.40% to 129.34, IPG Photonics Corporation (NASDAQ:IPGP) which was up 6.79% to settle at 162.09 and BorgWarner Inc (NYSE:BWA) which gained 5.49% to close at 40.52.

The worst performers were Monster Beverage Corp (NASDAQ:MNST) which was down 2.38% to 53.28 in late trade, Kellogg Company (NYSE:K) which lost 2.37% to settle at 56.02 and American Tower Corp (NYSE:AMT) which was down 2.31% to 192.51 at the close.

The top performers on the NASDAQ Composite were Pulmatrix Inc (NASDAQ:PULM) which rose 81.89% to 2.310, CM Seven Star Acquisition Corp (NASDAQ:CMSS) which was up 41.45% to settle at 10.34 and AVEO Pharmaceuticals Inc (NASDAQ:AVEO) which gained 35.35% to close at 1.1100.

The worst performers were Comscore Inc (NASDAQ:SCOR) which was down 29.68% to 14.24 in late trade, Adomani Inc (NASDAQ:ADOM) which lost 16.27% to settle at 0.32 and Sears Hometown and Outlet Stores (NASDAQ:SHOS) which was down 13.18% to 1.91 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 2262 to 761 and 75 ended unchanged; on the Nasdaq Stock Exchange, 1764 rose and 875 declined, while 82 ended unchanged.

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Cryptocurrency News

Bitcoin Climbs 10% As Investors Gain Confidence

From: Investing.com

Bitcoin was trading at $4,603.6 by 01:17 (05:17 GMT) on the Investing.com Index on Tuesday, up 10.20% on the day. It was the largest one-day percentage gain since April 2.

The move upwards pushed Bitcoin’s market cap up to $81.0B, or 51.30% of the total cryptocurrency market cap. At its highest, Bitcoin’s market cap was $241.2B.

Bitcoin had traded in a range of $4,143.5 to $4,603.6 in the previous twenty-four hours.

Over the past seven days, Bitcoin has seen a rise in value, as it gained 15.97%. The volume of Bitcoin traded in the twenty-four hours to time of writing was $12.1B or 29.78% of the total volume of all cryptocurrencies. It has traded in a range of $3,936.1614 to $4,603.6401 in the past 7 days.

At its current price, Bitcoin is still down 76.83% from its all-time high of $19,870.62 set on December 17, 2017.

Elsewhere in cryptocurrency trading

Ethereum was last at $148.19 on the Investing.com Index, up 3.62% on the day.

XRP was trading at $0.32966 on the Investing.com Index, a gain of 5.80%.

Ethereum’s market cap was last at $15.8B or 10.02% of the total cryptocurrency market cap, while XRP’s market cap totaled $13.7B or 8.66% of the total cryptocurrency market value.

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