Stock market earnings season
Many companies will release their quarterly earnings today 26th July 2016 so stock market could see volatility.
Some of the major companies they will release earnings today are 3M Company (MMM),Akamai Technologies, Inc. (AKAM) ,Allegheny Technologies Incorporated (ATI) and the much anticipated Apple Inc. (AAPL).
Source : http://www.nasdaq.com/earnings/earnings-calendar.aspx
Earnings can either have a dramatic up or down move to stocks prices depending on estimates and surprises.
Buying stocks in the stock market when their price is falling is almost always a good idea.Almost not always.The idea is to buy low,sell high.For example Apple AAPL tomorrow will release the quarterly earnings and results.For now it is down at 97.33 -1.35%.
If earnings are good then an up move is very likely.But there is always the risk of earnings not meeting expectations.In any way buying at lower prices stocks seems a very reasonable investing strategy.
Verizon buys Yahoo but Yahoo stock falls today.According to source Yahoo Finance Verizon buys Yahoo for $4.8B.Still Yahoo stock is down today.Currently YHOO stock is trading at 38.46 down 2.34% while Verizon stock,VZ is trading at 55.82 down 0.50%.
In many cases not always the stock of the target like YHOO rises and the stock of the acquirer falls.But not today,exception in the stock market.
Major US stock indices end up at the end of week.Maybe US stock market is as many say at levels that seem valuations are too high.But time will tell if a correction is due or not.Especially in August with lower volume due to vacations and lower liquidity.
Source : Yahoo finance
S&P 500 2.175,03 9,86 (0,46%)
Dow 30 18.570,85 53,62 (0,29%)
Nasdaq 5.100,16 26,26 (0,52%)
3 questions for any stock market decision
What are 3 questions to ask before buying or selling a stock?There could be more than just 3 but here are the most basic to start with.
1.What are the fundamentals
2.What are the technicals
3.Is it the proper timing to buy or sell
As major US indices are now at very high prices making daily even new highs some caution is required. If you make your research and find some overpriced stocks then maybe it is a good time to sell if you have compelling arguments that support your analysis.
If you plan to buy some stocks then more caution is required. Waiting for lower prices,after a small or larger dip or correction seems more reasonable.
And timing is so important in any decision. You may be correct in your analysis but bad timing may stop you out. Be patient.
Another factor to consider is the risk reward ratio. If lets say you aim to risk 3% on your capital to gain 6% or a 2 risk reward ratio which is good then timing is even more important than first 2 questions. Waiting for good levels to buy or sell is all about timing and patience.Stock market offers opportunities.Just be patient.
Stock market and emotions
Emotions can have dramatic moves in stock market and there is a chance a majority of stocks to see their prices decline.Brexit has already have financial impact on UK stock market.And depending on the result on June 23rd it can cause a lot of volatility in global financial markets as well.Fear or not emotions move markets either up or down.
Brexit fears wipe £100bn off FTSE 100 in four days.
Today crude oil falls almost 3%.And US stock market falls also.Is it a strong correlation or not?Lets watch closely.
Stock market and oil prices correlation
Last months stock market,the US stock market at least has a very high correlation with oil prices.As oil prices rallied so did the stock market.So interesting to see if a possible drop or correction to oil prices will coincide with a stock market correction.
Stock market earnings
What drives really stock market and stock prices?Earnings are very important.And profitability also as the more profitable a company the better is for its stock,as long as valuation is not extreme and above the intrinsic value of the stock.
Stock market news
According to the following source a deal between Pfizer and Allergan is being cancelled.Deals like that move the stock market significantly.Some reasons of why this deal is off are important.Lets watch the reaction of these 2 stocks.