Walmart Stock Seen Rising 10% Over Short Term
By Michael Kramer
Walmart Inc.’s (WMT) stock has been in rally mode since the end of June with shares rising by more than 10%. Now shares may climb even higher.
Earnings beat analysts’ estimates by more than 6% while revenue came in almost 2% higher. Even better, the company boosted its full-year forecast and comparable sales guidance.
Analysts also see the stock rising, with the average price target for the retailer at $103.50, about 9% higher than the current price. That price target has increased from $94.50 since the end of July.
For now, the outlook for Walmart appears to be bullish.
Citigroup’s Stock May Rise 10% on Earnings Growth
By Michael KramerThe stock looks poised to increase by more than 10%, based on technical analysis.
The company delivered strong second-quarter results in the middle of July, with earnings topping estimates by almost 5%. As a result, analysts are boosting their forecast for the balance of the year.
Also bank repurchased 33 million common shares during the second quarter. Additionally, the company announced on June 28, its plan to return more than $19 billion to shareholders through share repurchases and dividends. Reducing the number of shares helps to increase the earnings per share.
The better than expected results, the significant share repurchases, and dividend hikes may be what is driving shares of Citigroup higher. Now the stock looks primed to continue to climb back to its previous highs.
Microsoft May Be About to Boost Its Dividend in a Big Way
By Jon Swartz
Microsoft (MSFT) investors can expect a juicier dividend payout than usual next month, according to a new Morgan Stanley report.
For the last eight years the board has announced the raise on the third Tuesday of September,” Morgan Stanley’s Keith Weiss wrote in a note to clients on Monday. “If this holds true in 2018, the announcement would come on September 18.”
Weiss sees “a high probability of a larger-than-average increase in the dividend” based on two factors: more than $130 billion in cash freed offshore by recent tax-law changes, and 20% growth in earnings before interest and taxes in the company’s fiscal 2018, which ended June 30.
He rates Microsoft at Overweight with a $130 price target.
A higher dividend could boost Microsoft shares 2.5% or more, according to Weiss.
Bearish AUD/USD Trends Remain Intact Following Turnbull Turmoil
By David Song
AUD/USD appears to be stuck in a narrow range as Malcolm Turnbull gets ousted, with Scott Morrison now set to lead the Liberal party, and the exchange rate may continue to consolidate ahead of the next Reserve Bank of Australia (RBA) meeting on September 4 as the central bank is widely expected to keep the official cash rate (OCR) at the record-low.
Recent comments from the RBA suggest the central bank will stick to its wait-and-see approach throughout the remainder of the year as ‘there was no strong case for a near-term adjustment in monetary policy,’ and Governor Philip Lowe & Co. may continue to tame bets for higher interest rates as ‘once-off declines in some administered prices in the September quarter are expected to result in headline inflation in 2018 being a little lower than earlier expected.’
With that said, uncertainty surrounding the fiscal outlook paired with the more of the same from Governor Lowe & Co. may continue to sap the appeal of the Australian dollar, and AUD/USD may continue to track the downward trend from earlier this year as market participants push out bets for an RBA rate-hike.
Bitcoin, Ether, Ripple – Prices Continue to Grind Higher
By Nick Cawley
The early August sell-off has now all but been retraced as Bitcoin leads the market higher in low volume trading. While BTC looks set to push further ahead, other tokens/coins are finding upward momentum difficult to maintain with resistance levels nearing.
Bitcoin (BTC) is currently back above $7,000 and has made eight higher lows in a row, a bullish chart pattern. There seems little in the way of a move back to the July 25 high at $8,481 although it may take time to achieve this target.
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.