Happy Manic Monday to everyone. It appears more and more my choice of the word “manic” serves well the up and down motion of the stock market these days. Stocks ended a wishy-washy day mostly lower, with the Dow suffering a fourth straight loss. Another down day for the tech sector weighed on stocks, starting to make me wonder if the tech stocks of Silicon Valley have way to much influence on the overall market than it should have. Technology isn’t an overall barometer of the economy has a whole, just the sexiest sector of investing over the last 20 years.
It wasn’t all pull backs and bad news on Wall Street today, one of our longest held holdings finally got some love ahead of their earnings. Under Armour Inc. shares rose nearly 4% in trading Monday on expectations that the sportswear maker’s “rapidly growing” international business will boost earnings and improve help improve the company’s margins. Deutsche Bank upgraded its rating for shares of Baltimore based Under Armour from “sell” to “hold” and raised the stock price target from $13 to $16. UA experienced it’s most humbling year last year after 20 quarters of start growth. And while the domestic business is still undergoing recovery the expansion international may provide the way forward for the time being until they get the faith of the domestic customers back.
This week is going to be a who’s who of big names in the earning release. Two of the major companies in the telecom sector report earnings this week. Verizon reports before market open on Tuesday, Apr. 24, and AT &T reports after market close on Wednesday, Apr. 25. The telecom sector had a challenging 2017 and ended up being the worst performer for the year out of the S&P 500 sectors. So far, 2018 hasn’t been any better for telecom companies and both T and VZ are down just over 10 percent year to date. I’m particular interest in these numbers because it might impact the recent news that T-Mobile and Sprint as once again doing this merger dance with one another. Other earnings release will come from: Caterpillar, Boeing, Facebook, Twitter, Ford, General Motors, Amazon, Microsoft, Chevron, & Exxon
Earnings season is often a good time to take a review of your portfolio. Gauge if there is any significant change in the management or philosophy of any of your security holding that would cause you to sell some of your position. Research, research, RESEARCHHHHHH!! Dive into those financials, get on some of these earnings call and really listen to the goals for the rest of the year.
Information from this weekly email is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for analysis purposes only. Be sure to understand all risks involved with each strategy, before attempting to place any trade.
Per usual hope you all have a great and prosperous week and an even better investment week. I’ll be talking with you all soon.
Jamaal W Vetose
Director of Research & Analysis