Author: AnswerStock

After a rough patch in May 2019, markets are finding reason to rally…

The Dow Jones Industrial Average rose 6% in the first two weeks of June so far, with many analysts speculating the trade war spat may finally be cooling off.

Jitters eased a bit, at least in regards to the U.S.-Mexico trade issue after President Trump suspended plans to impose tariffs on Mexican goods.  

All after the two countries struck a deal on immigration.

So, what’s ahead?

Continue reading “Could G20 Uncertainty Lead to $300 Billion in Tariffs?”

Tesla’s stock jumped after a rough start to 2019…

Tesla’s stock rose 10% last week and the company continued this forward momentum on Monday. The stock rose an additional 4.5%, which has many speculating that the company is finally getting back on track.

Baird analyst Ben Kallo reiterated the company’s buy rating and set its price target at $340. This could be overly generous considering the company’s stock has been falling for most of 2019.

But Kallo wasn’t the only analyst who seemed to be feeling upbeat when it comes to Tesla…

Continue reading “Tesla’s Shares Rebound… but the Company Could Still Crash and Burn”

The company’s stock is up 43% in 2019…

On Thursday, President Trump threatened to impose additional tariffs on Mexico. These tariffs would start at 5% and could increase to as much as 25% in the coming months.

Almost immediately after this announcement, companies like Chipotle began to experience the potential fallout and speculations began. Will tacos cost more? Will Chipotle still be able to serve guacamole?

Continue reading “Chipotle CFO: What Tariffs?”

We’re talking round numbers here…

A U.S. jobs report in today shows non-farm payroll jobs added to the American economy in May at 75,000, instead of the 175,000 that economists expected.

Breaking news from the Department of Labor also shows unemployment holding steady at around 3.5 percent, though economists admit that doesn’t tell us a lot about the realities job seekers face…

Continue reading “Disappointing U.S. Jobs Report Coincides with Fed-Centered Rally”

Tariff woes? Some investors look to more obscure parts of the retail world…

One is Stitchfix (SFIX), where excellent earnings this week sent shares spiking over 30% in pre-market trading, and notwithstanding a big drop over Q4 of 2019, the company’s stock is still over double its initial value.

Stitchfix essentially sends shoppers clothes in a box, and they decide what they want to wear and what they want to return. According to new first-quarter reports, the company added over 3 million customers during the quarter, which is a 17% increase year-over-year.

The next company is familiar to most people who’ve ever cruised a shopping mall…

Continue reading “Zany Retail Shows Promise”

After the sudden announcement of billions of dollars in new tariffs on American imports, markets prepared to go into a tailspin…

Then, this morning, there was big-banner news of a two-day rally on Wall Street.

What gives?

Essentially, investors (and everyone else) have started to ask the Federal Reserve Bank for an interest rate cut that would give the markets a temporary shot in the arm.

As Fed chair Jerome Powell has suggested that an interest rate cut might be forthcoming, that’s driven positivity in the markets.

However, for those who have closely paid attention to the Fed’s very long-term strategy of slowly raising interest rates, this might seem like a step backward…

Continue reading “Investors Cross Their Fingers for Fed Rate Cut”

Goldman Sachs analysts upgraded United Airlines stock to ‘buy’…

In recent months, economic weakness in China has been a drag on United Airlines’ stock. But according to analysts at Goldman Sachs, these concerns have been largely overrated.

On Wednesday, Goldman Sachs analysts upgraded United Airlines from neutral to buy. In a note to investors, analysts Catherine O’Brien and Joyce Koltisko said they think it’s likely the company’s stock will perform better during the second half of 2019.

The company’s shares rose 1.7% in premarket trading to $81.85 per share. However, the analysts did hold United Airlines’ price target of $109 per share.

But, there’s some turbulence in the air…

Continue reading “United Airlines Stock Could Rise Up to 32% According to Analysts”

Jack Daniel’s Maker Brown-Forman Reports Good Earnings Amid Tariff Tempest

A bright spot in the U.S. market today comes from a liquor brand that has gotten a lot of free publicity in the lyrics of many a country music song…

In its Q4 2018 earnings report, Brown-Forman Corp (BFB), the owner of Jack Daniel’s whiskey, beat Wall Street estimates with a premium bourbon, Woodford Reserve, up 23 percent in sales from last year, and other key brands seeing rises.

However, spokespersons conceded that unanticipated tariff threats dragged sales down about one percent through the year, with Q4 net income of about $159 million. So, what’s next…?

Continue reading “Whiskey All Around: Bottoms Up for Brown-Forman”