Thursday, August 2, 2018

Markets rise cautiously as Apple reaches $1 trillion market cap

Dow lost 7 after a volatile day, advancers over decliners 4-3 & NAZ jumped climbed 95 helped by Apple (AAPL) - more below.  The MLP index had a good day, up 6+ to the 286s, & the REIT index slid back 1+ to the 354s.  Junk bond funds were flattish & Treasuries climbed higher with the yield on the 10 year Treasury near 3%.  Oil shot up to 69 (more below) & gold continues in the trenches, off 10 to 1217.

AMJ (Alerian MLP Index tracking fund)

Live 24 hours gold chart [Kitco Inc.]

3 Stocks You Should Own Right Now - Click Here!

Apple (AAPL), a Dow & NAZ stock, briefly reached a $1T market capitalization, with shares climbing above the $207 price today.  Yesterday, the company announced that it adjusted its number of shares outstanding, which gave investors the per-share level to hit the milestone.  This makes AAPL the first US company to reach a $1T market cap.  PetroChina reached a $1T market capitalization briefly in 2007.  PetroChina is backed by the Chinese gov.  The momentum continued for AAPL today, following the company's latest quarterly earnings reported on Tues when the closing bell Tues, the tech giant reported that, despite slow-growing demand for the iPhone, that the company benefited from higher prices of its flagship device.  Its fiscal  Q3 profit jumped 32% to $11.52B & EPS hit $2.34 to beat the of $2.18 forecast.  Amazon (AMZN) is approaching a $1T market cap assuming 484M shares outstanding, as indicated in its Q2 financial statements.  With a share price of $1810, this puts the market cap for AMZN at about $871B.  AAPL stock finished the day up 5.89 at 207.39 & AMZN rose 37 to 1834.
If you would like to learn more about AAPL, click on this link:
If you would like to learn more about AMZN, click oon this link:

Apple becomes $1T company briefly

Kellogg (K) reported Q2 net income of $596M & EPS was $1.71.  EPS, adjusted for non-recurring gains, came to $1.14, beating expectations.  The estimate was for EPS of $1.05.  The maker of Frosted Flakes, Pop Tarts & Eggo waffles posted revenue of $3.36B in the period, which also topped the forecast for $3.32B.  The stock went up 45¢.
If you would like to learn more about Kellogg, click on this link:

Kellogg: 2Q Earnings Snapshot

Cisco (CSCO), a Dow stock, will buy Duo Security, a venture capital-backed cyber security company, for $2.35B in cash, as it seeks to expand its offerings in cloud computing.  The deal is the biggest acquisition for the company since its $3.7B purchase of business performance monitoring software company AppDynamics last year & its largest in the cyber security sector since its $2.7B takeover of Sourcefire in 2013.  Duo's platform allows users to verify their identity with a two-step authentication & its investors include Index Ventures, Workday, Redpoint Ventures & True Ventures.  The deal is expected to close in Q1 of CSCO's fiscal 2019.  CSCO, the world's largest networking gear maker, has been making efforts to transform itself into a software-focused company.  With its traditional business of making switches & routers struggling, CSCO has been focusing on high-growth areas such as security, the Internet of Things & cloud computing.  The stock rose 67¢.  
If you would like to learn more about CSCO, click on this link:

Cisco to buy cybersecurity company Duo for $2.35B

DowDuPont (DWDP), a Dow stock, reported Q2 profit of $1.77B.  The company had EPS of 76¢ & EPS, adjusted for asset impairment costs & non-recurring costs, was $1.37.  The results beat expectations of $1.33.  The specialty chemicals maker posted revenue of $24.25B in the period, also exceeding the forecast of $23.67B..  The stock fell 1.52.
If you would like to learn more about DWDP, click on this link:

DowDuPont: 2Q Earnings Snapshot

Oil prices rebounded from 2 days of losses, reversing course after a report suggested crude stockpiles at the US storage hub at Cushing, Oklahoma fell in the latest week.  US stockpiles have been in the spotlight because they rose unexpectedly last week, stoking fears that the market is becoming oversupplied.  Today's data suggests last week's increase might have been an anomaly.  Crude inventories at Cushing dropped 1.1M barrels since Fri, Jul 27, traders said, citing a report issued by energy information provider Genscape.  In the previous week, total US inventories rose 3.8M barrels, while supplies at Cushing fell 1.3M barrels.  Buying also picked up after West Texas Intermediate crude dipped below $67 to a 6-week low.  Futures reversed course after trading lower on concerns about oversupply early in the session.  Saudi Arabia, Russia, Kuwait & the UAE have increased production, as agreed at a meeting in Jun, to help to compensate for an anticipated shortfall in Iranian crude supplies once US sanctions come into force later this year.  OPEC & partners including Russia agreed in late 2016 to cut output by 1.8M barrels per day to rebalance supply & demand.  But the producers agreed at a meeting in Jun to hike output after removing more barrels from the market than they originally intended and to account for the sanctions on Iran.  The US believes Iran is preparing to carry out a major exercise in the Gulf in coming days, apparently moving up the timing of annual drills amid heightened tensions with the US.  Brent crude futures were last up $1.23 (1.7%) at $73.62 a barrel, after dropping 2.5% on yesterday.  US crude futures rose $1.35 (2%) to $68.93, having declined 1.6% in the previous session.

Oil rebounds strongly as US crude stockpiles are seen falling

While this was an exciting day for AAPL, AMZN & tech shares, the rest of the market did not participate in the rise.  Tomorrow traders will pay attention to the Jul jobs & then trade tensions, especially with China, going forward.  Dow is still at the high end of its trading range for the last 6 months & with the cloud of trade tensions overhead, it has an uncertain future.

Dow Jones Industrials

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