Daily Video Review - 03/08
- Donald Herison
- English
- MARKETS NEWS
- Hits: 1237
Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
It's Monday morning and Greek markets are tanking, down about 20%.
It can only get better from here, right?
1) Greek market freak out
Greece's stock market reopened after being shut for more than a month due to the country's financial crisis.
Traders started selling immediately and the overall market dropped by 23% in the first few moments. Shares in the country's big banks fell by about 30%.
A bailout for Greece -- worth about 86 billion euros ($94 billion) -- has been agreed in principle with Greece's eurozone partners. But the finer details still have to be hammered out.
Greek markets have been highly volatile this year.
2) Another fall in China
Chinese stocks continued their recent move lower Monday.
The Shanghai Composite dipped by 1.1% and the Shenzhen index dropped 2.7% after fresh data showed China's factory sector slumped in July.
Chinese markets were the best performers earlier in the year, but have since come back to earth. The Shenzhen has fallen by about 35% since mid June, having soared by 120% since January.
The weak manufacturing data from China is likely spooking oil traders. Crude oil futures are down by nearly 2% to trade around $46.40 a barrel.
All Asian markets -- except for India -- dropped Monday.
3) Other markets calm
U.S. stock futures are little changed Monday morning. European markets are mostly edging up in early trading, although London's FTSE is flat.
4) Earnings
Companies including Tyson Foods (TSN), Loews (L) and Frontier Communications (FTR) will report quarterly earnings ahead of the open.
Allstate (ALL), Chegg (CHGG) and Denny's (DENN) are among the companies reporting this afternoon once markets are closed.
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What is it? The goods portion has limited impact because it's a duplicate of the Goods Trade Balance data released about 5 days earlier. A positive number indicates that more goods and services were exported than imported. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? Released monthly, about 35 days after the month ends. This is the earliest look at vital consumer spending data.
When? At 9:30pm Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
When? At 10:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy. Survey of about 600 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
When? At 4:30am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the GBP to rise.
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Exxon Mobil Corp., the biggest and richest U.S. oil company, reported a 52% drop in profit for its second quarter, as higher profit from its refining and chemical operations couldn’t offset plunging earnings in its exploration and production business amid lower crude prices. Shares of Exxon Mobil, down 16% over the past year, fell 1.8% to $81.50 in premarket trading.
The International Monetary Fund is participating fully in the ongoing talks for a new bailout program for Greece, a spokeswoman for the European Commission said on Friday, dismissing reports the IMF could be abandoning the rescue plan. The talks on a new bailout program are ongoing "with the IMF present and fully participating in the talks in Athens," Commission spokeswoman Mina Andreeva told journalists in Brussels.
Commodities and China investors waved a relieved goodbye to July on Friday following a brutal sell-off that has revived fears about the global economy and overshadowed more encouraging news from the U.S. and Europe.
There were signs that the rout wasn't over yet as Chinese stocks - which have suffered their worst monthly drop in six years - wobbled again, oil prices slipped following a more than 15 percent July slump and metals from industrial copper to precious gold hit multi-year lows.
U.S. stocks edged up on Friday as historically low wage growth supported the view that the Fed could delay the timing of a rate increase.
The Dow Jones industrial average (DJI) rose 10.96 points, or 0.06 percent, to 17,756.94, the S&P 500 (SPX) gained 2.98 points, or 0.14 percent, to 2,111.61 and the Nasdaq composite (IXIC) added 12.37 points, or 0.24 percent, to 5,141.16.
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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:
It's the last day of July and if stocks hold steady Friday, all three U.S. indexes will close out a bumpy month with gains.
1) Market overview
U.S. stock futures are not making any major moves ahead of the open.
The Dow Jones industrial average has added 0.7% this month. The S&P 500 and Nasdaq have both posted healthier gains of 2.2% and 2.9%, respectively.
European markets are mixed in early trading.
Most Asian markets ended with gains, except for China where the Shanghai Composite dipped by 1.1% and the Shenzhen index edged down by 0.8%. Chinese markets have stabilized a bit after crashing earlier this month. The Shanghai index lost 14% in July.
2) Major movers
LinkedIn, Expedia, Hanesbrands: Shares in LinkedIn (LNKD, Tech30) are highly volatile premarket as investors react to the group's earnings released Thursday. At first, shares shot up, but then pushed deep into negative territory as investors grew concerned about future revenue growth.
Shares in Expedia (EXPE) are rising by about 8% premarket after releasing better-than-expected quarterly results.
Shares in Hanesbrands (HBI) are tumbling by about 8.5% in reaction to its new earnings report from Wednesday afternoon.
3) More earnings
Earnings continue to roll in Friday.
Several major oil companies including Chevron (CVX), Exxon Mobil (XOM) and Phillips 66 (PSX) are expected to release results before the market opens.
Honda (HMC) reported results this morning that beat expectations. Shares are up about 1.5% in Tokyo. Airbus (EADSF) shares are also rising by 3% in Paris after reporting earnings Friday morning.
4) Watch commodities and currencies
Crude oil is skidding lower again -- down nearly 2% -- and currency markets are volatile.
"The last trading day of the month [brings the] risk of choppier than normal trading as institutional investors re-balance portfolios and funds adjust to fit around month end performance statistics," wrote Simon Smith, chief economist at FxPro, in a Friday note.
In early trading, the Aussie dollar and Canadian dollar were weaker, while the Swiss franc was firmer against most major currencies.
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What is it? It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.
When? At 9:00am Eastern Time.
Trading Tip: If the actual number is higher than the forecast, you can expect the CNY to rise.
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