SunTrust: Buy Netflix Shares After Pullback
By Rebecca McClay
SunTrust Robinson Humphrey now says Netflix Inc. (NFLX) shares are a Buy, up from a Hold, after their recent pullback.
The stock, up 1.8% in pre-market trade, has generally declined since about mid-July, easing back from strong momentum after it missed second-quarter projections on subscriber numbers. So far this year, the stock is up 77% and in the past 52 weeks it has risen 101%.
SunTrust analyst Matthew Thornton lowered his price target on Netflix shares to $410 from $415, a roughly 21% upside on Friday’s closing price. He noted that Netflix is having significant success in international markets.
For the third quarter, based on a web search trend analysis, Thornton expects the company to see healthy subscriber growth.
GBP/USD: Bulls look to regain 1.2880 amid light trading
By Dhwani Mehta
The downside consolidation in the US dollar has managed to keep the bid tone intact around the GBP/USD pair, as the bulls yearn for a break above the 1.2880 resistance for a sustained break higher.
Fed Chair Powell’s mildly dovish speech at the Jackson Hole Symposium has left the Dec rate hike in doubt, suggesting that the flattening of the US yield curve would be allowed to continue, which exerted bearish pressure on the US dollar.
However, markets remain wary over further upside amid a lack of fresh fundamental drivers and looming Brexit uncertainty, as the UK government readies for a no-Brexit deal.
The main event risk this week remains the US prelim GDP release due out on Wednesday.
Verizon May Rise 11% to Prices Not Seen in 18 Years
By Michael Kramer
Verizon Communications Inc.’s (VZ) stock has been trending higher since the beginning of May, rising by more than 18%. The stock is now poised to increase by almost 11% from its current price of $54.78 based on technical analysis to prices not seen since the year 2000.
One reason for the bullish outlook is the strong earnings growth expected for the balance of 2018. Analysts currently forecast earnings to rise by more than 24% this year to $4.65 per share. The earnings forecasts have increased over the past month, from $4.55 in the middle of July. Revenue is forecast to rise by almost 4% this year to $130.8 billion. Since the middle of July revenue forecasts have increased from $129.4 billion.
Nigeria Cocoa Exporters Say 30,000 Tons Stuck on Port Roads
By Tolani Awere and Tope Alake
At least 30,000 metric tons of cocoa are trapped on their way to ports in Nigeria’s main city of Lagos as roads in a state of disrepair delay access to ships, the cocoa exporters body said.
Shipment delays are making it difficult for exporters to get credit from banks to finance their operations, according to Akin Olusuyi, president of the Cocoa Processors Association of Nigeria, who said 1,760 tons of cocoa butter and cake are held up in the gridlock to the ports.
Cocoa futures closed Friday at $2,364 per ton for December deliveries, after gaining 1.16 percent from the previous day, according to data compiled by Bloomberg.
Crude oil prices may remain between $65-70/barrel in H2
By Our Bureau
Crude oil prices are expected to remain between $65 a barrel to $70 a barrel in the second half of financial year 2018-2019.
This will be driven by increasing geo-political tensions, OPEC supply cuts and drawdowns in crude oil inventory stocks along with slower growth in the total exploration capital expenditure in the US, according to India Ratings and Research (Ind-Ra).
Higher crude oil prices along with higher crack spreads for diesel and kerosene, improved refining complexities, better distillate yields and a strong domestic demand supporting high capacity utilisation, are likely to support the gross refining margins of oil marketing companies for the remainder of the year as well.
Turkish Lira Tumbles as Volatility Returns After Holiday Week
By Tugce Ozsoy
The lira has been battered in the past month as the U.S. started imposing sanctions on two Turkish ministers amid a spat over a detained U.S. pastor, adding to investor concerns over the country’s economic and monetary policies. Turkey’s President Recep Tayyip Erdogan has called the turmoil an “economic war” waged by Washington.
JPMorgan Chase & Co. has revised its forecast for Turkey’s growth next year to 1.1 percent from 2.8 percent, citing “worsening financial conditions and tighter liquidity conditions,” economist Yarkin Cebeci wrote in a report. “Coordinated policy action by the policy makers could put Turkey on a soft landing path where rebalancing is achieved with manageable collateral damage.”
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.