JP Morgan cuts Facebook estimates, price target due to rising ‘safety and security’ spending
By Tae Kim
J.P. Morgan is getting less optimistic about Facebook due to the company’s rising investment spending.
The firm lowered its price target to $195 from $205 for Facebook shares. J.P. Morgan also reduced its 2019 earnings estimate for the company due to higher expense spending.
The company’s “investments in 2019 could be larger than anticipated in consensus estimates. We expect the narrative of heavy investment spending to continue at 3Q earnings,” analyst Doug Anmuth says.
Amazon is down 7% since hitting $1 trillion, but one technician expects it to snap back
By Keris Lahiff
Amazon’s amazing run has hit a roadblock.
After the company topped $1 trillion in market cap earlier this month and set new records, Amazon’s shares have pulled back more than 7 percent. Just this month, they have dropped nearly 5 percent in what could be their worst performance since November 2016.
One technician says the charts point to a snapback.
“The trend is still higher and intact. Amazon still ranks very highly in our momentum work,” Ari Wald, head of technical analysis at Oppenheimer, said Monday on CNBC’s “Trading Nation.”
Momentum stocks are characterized by sharp increases and little volatility over a relatively short period of time. Amazon shares have steadily risen this year with brief bouts of trouble in February and March when the rest of the market tumbled.
McDonald’s Stock Could Break Down in Coming Weeks
By Alan Farley
Dow component McDonald’s Corporation (MCD) has struggled so far in 2018, falling more than 8% since the first trading day of January, in stark contrast to 2017’s outstanding 41% return. The stock has had plenty of opportunity to attract committed buyers in recent weeks, with blue-chip indices probing all-time highs, but McDonald’s has now turned tail and dropped to a multi-week low. This relative weakness shouldn’t be ignored because it may foretell 20% to 30% downside into early 2019.
The stock is maintaining a delicate balance between bulls and bears, crisscrossing the horizontal 200-day exponential moving average (EMA) near $160 more than 30 times since February. A moving average rollover may be instructive in this bilateral scenario, predicting the start of an active downtrend. With this in mind, shareholders and short sellers should keep close watch on this battleground, waiting for the standoff to come to an end with a decline that undercuts $150.
AUD Bulls Extend Recovery, However, Key Resistance Keeps Bearish Trend Intact
By Justin McQueen
Australian Dollar has continued to extend on its recovery from last week’s 2.5yr low (0.7085) with the currency back above 0.7250. Overnight, Chinese Premier Li vowed that no competitive devaluation will take place, consequently providing a lift to the Aussie. Alongside this, the boost in risk sentiment with oil prices tracking higher and a further pullback in the greenback have contributed to the lift in the Australian Dollar.
Further gains in the Australian Dollar pose a threat to the sizeable amount of speculative AUD shorts, which total $3.2bln. This in turn leaves AUDUSD vulnerable to another leg higher as shorts are squeezed, while demand for protection against AUD losses has also continued to recede.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests AUDUSD prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger AUDUSD-bullish contrarian trading bias.
Microsoft’s Stock Seen Climbing 9% on Robust Profits
By Michael J. Kramer
Microsoft Corp.’s (MSFT) stock has soared by more than 33% this year, far outpacing the S&P 500, and the stock may keep on rising.
Analysts forecast not only faster earnings growth, but also bigger profits. Earnings are estimated to grow by more than 10% in fiscal 2019, followed by growth of 15% in 2020 and 18% in 2021.
The robust growth is one reason analysts continue to increase their price targets on the stock. Analysts see the stock rising to almost $123 from the current stock price of around $113.25.
S&P 500 Price Forecast – S&P 500 continues to rally
By Christopher Lewis
The Chinese and the Americans continue to fight each other through tariffs, and this of course has a lot of people concerned. On Tuesday, S&P 500 dipped well below the 2900 level, but did not hang around underneath that level for more than a few moments. That of course is a very bullish sign, as it appears equity traders are more than willing to ignore tariffs in the short term.
Currently, I believe that the market will eventually try to go to the 3000 level, but we will continue to have these massive shake outs due to headlines crossing the wire between both the Americans and Chinese. The markets already know that the Americans are getting ready to react to the Chinese and add more tariffs, and there’s a question as to whether the Chinese or even going to come talk about trade after this. Although it looks bullish right now, and I do think that longer-term the buyers will continue to jump into this market, do not be surprised if we get the massive selloff occasionally. Look at those as buying opportunities on stability, using short-term charts.
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.