We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Dow 30 Stock Roundup: Apple's New iPad, Japanese Label Expansion for Merck/ Eisai's Lenvima
Read MoreHide Full Article
The Dow experienced a volatile holiday-shortened week marked by steep gains and losses. Initially, the index increased after tensions over a possible trade war between the United States and China receded. Subsequently, however, tech stocks dragged the broader markets lower. Several major tech stocks suffered a severe beating on disparate concerns. Yields also plunged for a while leading to losses for bank stocks.
Last Week’s Performance
The Dow decreased 1.8% last Friday following fears that a trade war between the United States and China could take place. Trade related concerns were heightened after President Trump imposed hefty import tariffs on goods worth billions of dollars.
Further, technology stocks, which have been driving the markets this year as well as in 2017, took a massive hit, with Facebook Inc. FB at the helm of the carnage. Fears about a possible trade war coupled and doubts regarding the Fed’s ability to protect the economy from slipping into recession as it normalizes monetary policy from crisis-era levels, also saw the CBOE VIX surging nearly 57%.
The index tanked 5.7% last week, registering its biggest weekly loss since January 2016 on a week-to-date basis. The volatile week started on a low note, following concerns over Facebook’s policies regarding privacy of user data and the company’s alleged data misuse affecting more than 50 million users.
However, markets gained traction on Tuesday supported by a rally in energy shares after oil prices settled at their highest level for the month only to end the week in the red following the quarter-point rate hike by the Fed and Trump’s decision to imposition tariffs on China worth billions of dollars.
The DowThisWeek
The index rallied 2.8% or 669.4 points on Monday. The increase represents its biggest single-day percentage gain since August 2015 and its third best point gain in history. Tensions over the prospect of a trade war between the United States and China appeared to ease.
The United States requested China to slash tariffs on U.S. autos, buy more semiconductors and give U.S firms more access to the Chinese financial sector, in a letter last week. Subsequently, Chinese Premier Li Keqiang Keqiang said China would give equal treatment to both domestic and foreign companies. He also said that he won’t force foreign firms to enter into technology transfer agreements.
China would also work toward strengthening intellectual property rights, Keqiang added. On the other hand, Facebook’s shares initially decline on news of the Federal Trade Commission investigating the company’s data practices, before closing 0.4% higher.
The index declined 1.4%, by 344.89 points, on Tuesday and re-entered correction territory. The sharp decline was fueled by a selloff in the tech sector, which saw all three major indices suffering their fourth decline in five sessions.
Facebook’s shares continued to plummet even as other major tech giants like Nvidia Corporation (NVDA - Free Report) , Tesla, Inc. (TSLA - Free Report) , Microsoft Corporation (MSFT - Free Report) and Apple Inc. (AAPL - Free Report) also taking a beating. Further, financials stocks too slumped on Tuesday, with bank shares witnessing a heavy selloff as U.S. government bonds rallied and the yield on the 10-year Treasury note declined.
The index lost less than 0.1% on Wednesday, following a selloff in tech stocks which failed to recover from the steep losses witnessed in the previous session. Amazon.com, Inc. (AMZN - Free Report) suffered the most, following reports that President Trump has indicated that he wants to rein in the e-commerce giant.
Other tech stocks such as Apple, and Netflix, Inc. (NFLX - Free Report) also took a beating. Further, Tesla’s shares plummeted following a credit downgrade and news of officials investigating a fatal crash in California.
Components Moving the Index
Apple recently announced a feature-rich iPad, a cheaper third-party stylus, an update to its iWork suite of productivity apps, a new Schoolwork application and “Everyone Can Create” initiative.
Zacks Rank #3 Apple’s focus on quality is evident from the superior features of the new iPad device, which “help deliver immersive augmented reality, and provides unmatched portability, ease of use and all-day battery life.”
Notably, Apple’s new 9.7-inch iPad supports Apple Pencil anA10 Fusion chip, large Retina display and advanced cameras and sensors. The addition of Apple Pencil support is significant as earlier only the higher-priced iPad Pro models could take advantage of it.
The price of the new device starts at $329 — unchanged from the company’s entry level iPad. However, Apple is trying to target schools by pricing it lower at $299. (Read: Apple Refocuses on EdTech, Brings Feature-Rich iPad, Apps)
The Boeing Company (BA - Free Report) recently won a $34.4-million modification contract for providing F/A-18A-F and EA-18G aircraft’s integrated product support and equipment engineering services. The services will be rendered to the Navy and the governments of Australia, Finland, Kuwait, Malaysia, Switzerland, Canada, and Spain.
Per the contract, Boeing will offer product support management, design interfacing, sustaining engineering, supply support, maintenance planning and provisioning, technical data updates, support equipment engineering as well as training and software integration services. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland. The stock has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Exxon Mobil Corporation (XOM - Free Report) and TOTAL S.A. are expected to jointly drill the first deepwater well at the Etzil structure, located in Block 2 of the Perdido Fold Belt, offshore Mexico in October 2018, per Mexico's National Hydrocarbons Commission (CNH). The well was assigned to the companies in late 2016 as part of the Mexican hydrocarbon auction, which marked the country's energy reform.
The CNH estimates the oil majors will recover about 916 million barrels of oil equivalent (BOE) from the structure, which is operated by TOTAL. Both Zacks Rank #3 Exxon Mobil and TOTAL own a 50% stake each in the project. Among Mexico’s auctioned deepwater wells, the Etzil structure is assumed to boast the highest geological success rate at 34%. (Read: Exxon & TOTAL to Drill First Deepwater Well Offshore Mexico)
Merck and Co. (MRK - Free Report) along with its Japanese partner Eisai Co., Ltd. announced that the latter’s anti-cancer drug Lenvima has received approval in Japan for an expanded indication. The tyrosine kinase inhibitor, Lenvima has been approved in Japan for the first line treatment of unresectable hepatocellular carcinoma (HCC), a type of liver cancer.
The approval was based on positive data from a phase III clinical study (Study 304/REFLECT study) which showed that Lenvima demonstrated statistically significant non-inferiority of overall survival (OS) (13.6 months) compared to Bayer AG’s (BAYRY) Nexavar (12.3 months). Following the approval in Japan, Eisai will receive a development milestone payment from Zacks Rank #3 Merck. (Read: Merck, Eisai Get Japanese Nod for Lenvima Label Expansion)
Walmart Inc. (WMT - Free Report) has clinched a deal with Tencent Holdings Limited (TCEHY - Free Report) to accept the latter’s WeChat Pay as a mode of payment, according to reports. Acceptance of China’s popular WeChat Pay method of payment is likely to enhance customers’ convenience and strengthen Walmart’s business.
Subsequently, the supermarket giant discontinued Alibaba’s Alipay payment method across all stores in the Western parts of China including places like Sichuan, Yunnan and Gansu.
Zacks Rank #3 Walmart, which started using China’s leading e-commerce player’s Alipay back in 2015, shook China’s retail space with this switch. Notably, Alipay and WeChat Pay are the top-two payment methods used by Chinese e-commerce shoppers, with the former currently ahead in the game.
The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has lost 0.9%.
Next Week’s Outlook
Tensions over an impending trade war between the United States and China may have receded, but the slump in tech stocks continue to weigh on the markets. Facebook’s recent troubles continue to plague the stock even as its larger counterparts, such as Apple, face new challenges.
It is high unlikely that market turmoil will recede in the near term. With an eventful quarter behind them, investors will surely look toward encouraging economic data to boost their spirits. A number of key reports lined up for release early next month are likely to play a key role in guiding stocks in the weeks ahead.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Dow 30 Stock Roundup: Apple's New iPad, Japanese Label Expansion for Merck/ Eisai's Lenvima
The Dow experienced a volatile holiday-shortened week marked by steep gains and losses. Initially, the index increased after tensions over a possible trade war between the United States and China receded. Subsequently, however, tech stocks dragged the broader markets lower. Several major tech stocks suffered a severe beating on disparate concerns. Yields also plunged for a while leading to losses for bank stocks.
Last Week’s Performance
The Dow decreased 1.8% last Friday following fears that a trade war between the United States and China could take place. Trade related concerns were heightened after President Trump imposed hefty import tariffs on goods worth billions of dollars.
Further, technology stocks, which have been driving the markets this year as well as in 2017, took a massive hit, with Facebook Inc. FB at the helm of the carnage. Fears about a possible trade war coupled and doubts regarding the Fed’s ability to protect the economy from slipping into recession as it normalizes monetary policy from crisis-era levels, also saw the CBOE VIX surging nearly 57%.
The index tanked 5.7% last week, registering its biggest weekly loss since January 2016 on a week-to-date basis. The volatile week started on a low note, following concerns over Facebook’s policies regarding privacy of user data and the company’s alleged data misuse affecting more than 50 million users.
However, markets gained traction on Tuesday supported by a rally in energy shares after oil prices settled at their highest level for the month only to end the week in the red following the quarter-point rate hike by the Fed and Trump’s decision to imposition tariffs on China worth billions of dollars.
The Dow This Week
The index rallied 2.8% or 669.4 points on Monday. The increase represents its biggest single-day percentage gain since August 2015 and its third best point gain in history. Tensions over the prospect of a trade war between the United States and China appeared to ease.
The United States requested China to slash tariffs on U.S. autos, buy more semiconductors and give U.S firms more access to the Chinese financial sector, in a letter last week. Subsequently, Chinese Premier Li Keqiang Keqiang said China would give equal treatment to both domestic and foreign companies. He also said that he won’t force foreign firms to enter into technology transfer agreements.
China would also work toward strengthening intellectual property rights, Keqiang added. On the other hand, Facebook’s shares initially decline on news of the Federal Trade Commission investigating the company’s data practices, before closing 0.4% higher.
The index declined 1.4%, by 344.89 points, on Tuesday and re-entered correction territory. The sharp decline was fueled by a selloff in the tech sector, which saw all three major indices suffering their fourth decline in five sessions.
Facebook’s shares continued to plummet even as other major tech giants like Nvidia Corporation (NVDA - Free Report) , Tesla, Inc. (TSLA - Free Report) , Microsoft Corporation (MSFT - Free Report) and Apple Inc. (AAPL - Free Report) also taking a beating. Further, financials stocks too slumped on Tuesday, with bank shares witnessing a heavy selloff as U.S. government bonds rallied and the yield on the 10-year Treasury note declined.
The index lost less than 0.1% on Wednesday, following a selloff in tech stocks which failed to recover from the steep losses witnessed in the previous session. Amazon.com, Inc. (AMZN - Free Report) suffered the most, following reports that President Trump has indicated that he wants to rein in the e-commerce giant.
Other tech stocks such as Apple, and Netflix, Inc. (NFLX - Free Report) also took a beating. Further, Tesla’s shares plummeted following a credit downgrade and news of officials investigating a fatal crash in California.
Components Moving the Index
Apple recently announced a feature-rich iPad, a cheaper third-party stylus, an update to its iWork suite of productivity apps, a new Schoolwork application and “Everyone Can Create” initiative.
Zacks Rank #3 Apple’s focus on quality is evident from the superior features of the new iPad device, which “help deliver immersive augmented reality, and provides unmatched portability, ease of use and all-day battery life.”
Notably, Apple’s new 9.7-inch iPad supports Apple Pencil anA10 Fusion chip, large Retina display and advanced cameras and sensors. The addition of Apple Pencil support is significant as earlier only the higher-priced iPad Pro models could take advantage of it.
The price of the new device starts at $329 — unchanged from the company’s entry level iPad. However, Apple is trying to target schools by pricing it lower at $299. (Read: Apple Refocuses on EdTech, Brings Feature-Rich iPad, Apps)
The Boeing Company (BA - Free Report) recently won a $34.4-million modification contract for providing F/A-18A-F and EA-18G aircraft’s integrated product support and equipment engineering services. The services will be rendered to the Navy and the governments of Australia, Finland, Kuwait, Malaysia, Switzerland, Canada, and Spain.
Per the contract, Boeing will offer product support management, design interfacing, sustaining engineering, supply support, maintenance planning and provisioning, technical data updates, support equipment engineering as well as training and software integration services. The deal was awarded by the Naval Air Systems Command, Patuxent River, Maryland. The stock has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Exxon Mobil Corporation (XOM - Free Report) and TOTAL S.A. are expected to jointly drill the first deepwater well at the Etzil structure, located in Block 2 of the Perdido Fold Belt, offshore Mexico in October 2018, per Mexico's National Hydrocarbons Commission (CNH). The well was assigned to the companies in late 2016 as part of the Mexican hydrocarbon auction, which marked the country's energy reform.
The CNH estimates the oil majors will recover about 916 million barrels of oil equivalent (BOE) from the structure, which is operated by TOTAL. Both Zacks Rank #3 Exxon Mobil and TOTAL own a 50% stake each in the project. Among Mexico’s auctioned deepwater wells, the Etzil structure is assumed to boast the highest geological success rate at 34%. (Read: Exxon & TOTAL to Drill First Deepwater Well Offshore Mexico)
Merck and Co. (MRK - Free Report) along with its Japanese partner Eisai Co., Ltd. announced that the latter’s anti-cancer drug Lenvima has received approval in Japan for an expanded indication. The tyrosine kinase inhibitor, Lenvima has been approved in Japan for the first line treatment of unresectable hepatocellular carcinoma (HCC), a type of liver cancer.
The approval was based on positive data from a phase III clinical study (Study 304/REFLECT study) which showed that Lenvima demonstrated statistically significant non-inferiority of overall survival (OS) (13.6 months) compared to Bayer AG’s (BAYRY) Nexavar (12.3 months). Following the approval in Japan, Eisai will receive a development milestone payment from Zacks Rank #3 Merck. (Read: Merck, Eisai Get Japanese Nod for Lenvima Label Expansion)
Walmart Inc. (WMT - Free Report) has clinched a deal with Tencent Holdings Limited (TCEHY - Free Report) to accept the latter’s WeChat Pay as a mode of payment, according to reports. Acceptance of China’s popular WeChat Pay method of payment is likely to enhance customers’ convenience and strengthen Walmart’s business.
Subsequently, the supermarket giant discontinued Alibaba’s Alipay payment method across all stores in the Western parts of China including places like Sichuan, Yunnan and Gansu.
Zacks Rank #3 Walmart, which started using China’s leading e-commerce player’s Alipay back in 2015, shook China’s retail space with this switch. Notably, Alipay and WeChat Pay are the top-two payment methods used by Chinese e-commerce shoppers, with the former currently ahead in the game.
Sources suggested that dropping Alipay and picking WeChat pay will enhance Tencent Holdings’ position in its payments war with Alibaba. (Read: Walmart Drops Alipay, Picks Up WeChat Pay: Here's Why)
Performance of the Top 10 Dow Companies
The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has lost 0.9%.
Next Week’s Outlook
Tensions over an impending trade war between the United States and China may have receded, but the slump in tech stocks continue to weigh on the markets. Facebook’s recent troubles continue to plague the stock even as its larger counterparts, such as Apple, face new challenges.
It is high unlikely that market turmoil will recede in the near term. With an eventful quarter behind them, investors will surely look toward encouraging economic data to boost their spirits. A number of key reports lined up for release early next month are likely to play a key role in guiding stocks in the weeks ahead.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>