A very happy Manic Monday to you all. Can I just say, I’ve been excited to write this week’s email since this weekend with all the exciting market movements. The market opened up higher on the first day of a new trading week with strong earnings reports and news of mergers and acquisition hit the wires. McDonald’s jumped 5.3% after the world’s biggest fast-food chain beat its expected earnings forecast. U.S. bond yields edged lower after data showed March personal income rose lesser-than-expected, and personal spending in February was revised down to 0.3%, from the previously reported 0.4%
The real big headliner of the day has been the deals, that continue the trend of strong M&A environment running hot this calendar year. Walmart selling its European arm to Sainsbury’s for about $10 billion. This announcement caused shares of WalMart to raise a little more than 2%. The biggest announcement of deals came this weekend (which I’ve longed expected, finally happened) with the deal between T-Mobile acquiring Sprint. Sprint shares fell 13.5%-which I expected- as worry about the regulatory resistance to the telecom industry going from four major players to three.
This week will also be a big week for earnings results from some of the biggest names on the indexes. In the healthcare field big pharmaceuticals companies and insurers as due to report. In addition, Silicon Valley giants such as Apple, Snap, and Tesla are also up for earning this week. I wouldn’t recommend buying this week before earning, one or two weeks proper is usually a good buying time for a security in earning season. But just be attentive of any big news for buying opportunity available once reports have been released.
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