Most market moving like a Rolls Royce
Published 11-NOV-2020 11:26 A.M.
3 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Chris Beauchamp, Chief Market Analyst at IG, discusses what is happening in the markets.
“In mid-morning trading the FTSE 100 has powered ahead, rising 70 points thanks to gains for oil companies and Rolls-Royce.
“Huge gains for oil companies have resulted in another strong morning for the FTSE 100, as the vaccine trade continues to play out across global markets.
“BP and Shell are providing around a third of the index’s gains this morning, while Rolls-Royce enjoys yet another day in the sun with a 25% gain that has put 9 points on the FTSE 100, making a gain of around 75% for the shares since yesterday’s open.
“Also doing well today are REITs, banks and housebuilders, again benefiting from a rush into those names likely to see at least some benefit from an earlier than expected reopening of the UK and global economies.
“Previous big winners such as tech stocks are still being left out for now however, as shown by US futures, where the S&P 500, Dow and small cap Russell 2000 are once more looking much stronger than the hitherto-unstoppable Nasdaq.
“It is not just stock markets that are looking towards the time when a vaccine is available. Sterling is also in robust form despite the unemployment figures this morning, rising to two-month highs against the dollar and the euro.
“Now that a vaccine is due to arrive sooner than many hoped, markets will be looking to governments around the world to extend support measures, which in the UK’s case means furlough, hoping that the chancellor will decide the cost of extending the scheme until the recovery is more firmly in place is outweighed by the hit to the economy from cutting back on support and allowing unemployment to spike.”
Stocks to watch mid-week
Here is eToro's market analyst Adam Vettese's take on what investors should look out for mid week.
Tencent Music Entertainment Group: TME is a joint venture between Chinese tech firm Tencent and Spotify to develop music streaming for the Chinese market, where its apps have more than 100 million paying subscribers. The firm, which has a US listing, has gained 28.8% in 2020 so far, behind the 63% and 83% gains posted by Tencent and Spotify themselves year-to-date. TME delivers its Q3 earnings update on Tuesday, after a recent run of quarters that have come in below expectations. Currently, Wall Street analysts heavily lean towards a buy rating on the stock.
Lyft: After rival Uber reported earnings last week that showed faster gains in its food delivery business than its ride business, Lyft will deliver its own earnings update in the US today. Lyft is only just beginning to dip its toes in the food delivery business, which has been reflected in its share price performance versus Uber. Year-to-date, the firm has lost 12% despite a 50% plus rally over the past week, versus Uber’s 62% year-to-date gain. On Monday, Lyft stock jumped 26% on the back of the Pfizer Covid-19 vaccine news, which is certain to be a key focus of its earnings call. Analysts are expecting the firm to deliver a $0.93 per share loss for Q3.
Apple event: Following the launch of its new iPhone, iPad and Apple Watch models, Apple is set to unveil its new Mac computers on Tuesday. The new laptop and desktop computers will be the company’s first powered by its own chips (built using ARM’s architecture), which are expected to be more akin to the chips found in its iPhone than a typical PC. This shift marks the end of an area for Apple, which has used Intel’s chips in its products for more than a decade.
S&P 500 -0.14%
FTSE 100 +1.79%
CAC 40 +1.55%
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.