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Cisco looks primed for buying as Amazon, Microsoft start to look rich, Piper Jaffray technician says

By Keris Lahiff

Some Wall Street bulls are looking at Amazon, or perhaps even Microsoft, as the next big tech titan to reach that milestone. First, they have to give back some gains, according to Craig Johnson, chief market technician at Piper Jaffray.

“Amazon, great-looking chart, but we’d be a buyer of that stock toward $1,825 on a pullback,” Johnson told CNBC. Meanwhile, software giant Microsoft also has good technical indicators, with Johnson suggesting the stock would be a buy if it pulls back toward $105.

Some Wall Street bulls are looking at Amazon, or perhaps even Microsoft, as the next big tech titan to reach that milestone.

Johnson added that its Cisco, an older tech bellwether, that could be poised for a run to the upside. The stock, trading under $50 with a relatively low market cap near $225 billion, may be a value pick for some investors.

Cisco trades with a price-to-earnings ratio of nearly 16 times forward earnings, while Apple has a 17 times multiple. The Nasdaq Composite has a P-E ratio of 22 times forward earnings.


EURUSD Under Pressure as US Dollar Soars Ahead of NFPs

By Nick Cawley

The greenback has gained a safe-haven bid as US President Trump continues on his trade tariff crusade, while Emerging Markets continue to suffer, giving the USD an additional boost. And US dollar bulls may also be anticipating another strong US Labour Report of Friday as the economy continues to expand. Markets are expecting a short-200k+ NFP print, a 3.8%, fresh 18-year low unemployment rate (down from 3.9%) with average earnings at 0.2% m/m and constant at 2.7% y/y.


Why Musk and Tesla Bulls Shouldn’t Worry Much About an SEC Ban

By Benjamin Bain and Matt Robinson

Yet legal analysts argue that the U.S. Securities and Exchange Commission — the federal agency that potentially holds Musk’s fate in its hands — is unlikely to try to remove him precisely because doing so would hurt shareholders.

The power to temporarily or permanently ban executives from serving as officers and directors of public companies is one of the most powerful enforcement tools the SEC wields. If the agency concludes that Musk, 47, intentionally misled investors when he wrote in an Aug. 7 tweet that he had “funding secured” to take the company private, the regulator could pursue a ban. Musk and Tesla would undoubtedly fight such punishment.

To win a ban in a litigated case, the SEC must show executives are unfit to serve. Musk’s questionable tweets and behavior aside, legal analysts say his conduct probably falls short of what’s deemed “unfitness” under securities laws.

Also, it hasn’t been suggested that he used information he got as a company insider to make money trading Tesla shares or used his privileged position for some other personal gain.


Russian ruble weaker on strong dollar and sanctions risks

By Reuters

The Russian ruble fell against the dollar on Tuesday after investors worried about global trade tensions and the risk of new U.S. sanctions against Moscow bought dollars.

“There will be weakness in the national currency until there is clarity about potential U.S. sanctions (against Russia). That uncertainty could persist for one and a half to three months,” analysts at BCS brokerage said in a note.

New U.S. sanctions, tied to an attack on a former Russian double agent in Britain, could be imposed on Russia in the autumn.

The market is also waiting for a decision from the U.S. Congress in the autumn about draft legislation that includes restrictions on investment in new Russian sovereign debt and bans several state-run Russian banks from operating in the United States.


USD/JPY Initiates Bearish Sequence Amid Failed Run at August-High

By David Song

Fundamental Forecast for Japanese Yen: Bullish

The recent rebound in USD/JPY unravels following the failed attempt to test the monthly-high (112.15), but fresh data prints coming out of the U.S. economy may prop up the exchange rate as Non-Farm Payrolls (NFP) are projected to increase another 191K in August.

Fed Fund Futures continue to reflect expectations for higher borrowing-costs, with market participants gearing up for a move in September and December, and a batch of positive developments may heighten the appeal of the U.S. dollar as it puts pressure on the FOMC to extend the hiking-cycle.

However, a set of lackluster data prints may drag on the greenback as Chairman Jerome Powell talks down the risk for above-target inflation, and central bank officials may continue to project a longer-run Fed Funds rate of 2.75% to 3.00% as ‘‘there does not seem to be an elevated risk of overheating.’ Until then, USD/JPY may continue to give back the advance from the August-low (109.77) following the failed attempt to test the monthly-high (112.15), with the exchange rate at risk of exhibiting a more bearish behavior over the coming days as it starts to carve a series of lower highs & lows.


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