4 Reasons Apple’s Big Stock Gains Aren’t Over
By Shoshanna Delventhal
As tech titan Apple Inc. (AAPL) soars past the $1 trillion mark, some bulls on the Street expect shares to rally another 20%, pointing to a variety of factors that justify the stock trading a premium valuation.
On Thursday, Apple became the first U.S. company to pass the $1 trillion mark, trading at a multiple of 15.8 times projected earnings for the next four quarters, according to FactSet.
4 Reasons Apple’s Stock Will Keep Rising
- Company’s financial strength, growth potential
- Expanding services business
- Fall outlook for iPhones
- AirPods, Apple Watches faring well
Cisco Stock May Plunge Despite Bullish Forecasts
By Michael Kramer
Cisco Systems Inc. (CSCO) bulls are forecasting major stock gains—but they may stumble badly. Analysts are forecasting the networking company’s stock will increase by more than 13%., but that optimism may prove unfounded for a company that’s struggling to grow earnings.
Cisco’s stock has risen by over 36% in the past year, more than double the S&P 500’s rise. Shares are already beginning to falter, down by over 6% since the start of May. The stock fell sharply after reporting inline quarterly results and guidance that were not enough to please bullish investors. The technical chart is also weak and suggests shares may drop by about 10%.
Intel Needs To Prove It Can Beat AMD: Barclays
By Rebecca McClay
Barclays has downgraded shares of Intel Corp. (INTC), citing the chipmaker’s rising competition from AMD (AMD), which it says makes its growth uncertain.
Barclays analyst Blayne Curtis lowered his rating on Intel to Equal Weight from Overweight, and lowered the firm’s price target to $53 from $62, or a roughly 7% upside from Friday’s close. Curtis said Intel needs to prove it can produce a generation of chips that can outperform AMD’s chips.
Intel stock was down 1.7% in pre-market trade Monday following the report. Intel shares are up 36% the past 52 weeks, but down 5% the past three months.
Trade War Concerns Hit EURUSD, Nears Critical Support Levels
By Martin Essex
TRADE WAR CONCERNS KEEP EURUSD UNDER DOWNWARD PRESSURE
Continuing concerns about a US-China trade war are continuing to boost the US Dollar while weakening the Euro. That has sent the EURUSD price close to important support levels and, if they break, further losses would be highly likely.
On the USD side of the equation, the US Dollar is seen increasingly as a safe haven thanks to a relatively strong US economy and a belief that tariffs would narrow the US trade deficit. Meanwhile, worries that Italy will boost its spending and some poor industrial output data from Germany continue to weigh on the Euro.
Crude Oil Analysis: Oil Gains as US Reinstate Sanctions on Iran, What Next?
By Justin McQueen
CRUDE OIL GAINS MARGINAL AT BEST
Oil prices are notably firmer following renewed sanctions on Iran, with Brent back above $74/bbl. However, gains so far this morning have been modest at best. One of the reasons is due to the fact that China who is the largest buyer of Iranian oil have agreed to maintain current import levels (700kbpd) instead of listening to US demands to reduce purchases to zero by November. Elsewhere, the EU are looking to protect European companies who do business with Iran by putting in place a blocking statute which has taken effect.
IRANIAN OIL SUPPLY LOSS WILL BE KEY DRIVER
Supply loss will be a key driver in oil prices in the near term with many asking the question on how much Iranian oil will be lost before the sanctions in November take effect. Some analysts suggest that the drop in Iranian exports may lead to 600k-1.5mbpd being taken off the market. As such, headline risk will remain high as countries will look to comply with US guidance. As a reminder, back in June, the second largest importer of Iranian oil, India, had asked refiners to prepare for a drastic reduction or zero imports from Iran by November.
Risk Disclaimer: The information contained in this market review should not be construed in any way, as containing investment advice and/or a suggestion and/or solicitation for any trading activity and financial transaction. There is no guarantee and/or prediction of future performance. EuropeFX, its affiliates, agents, directors or employees do not guarantee the accuracy and validity of any information or data made available and assume no liability as to any loss arising from any investment based on the same. Trading Forex/CFD’s carries a high level of risk and can result in the loss of your whole investment. Forex/CFD’s are leveraged products and therefore Forex/CFD’s trading may not be appropriate for all investors. It is recommended that you do not invest more money than you can afford to lose to avoid significant financial problems in the case of losses. Please make sure you define the maximum risk acceptable for yourself.