Monday Monitor: Weekly Stock Market News

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Stock Market News: Week in Review – August 12, 2019

The Monday monitor is our weekly report on all the latest stock market news. Check here every Monday to get a brief rundown last week’s market and a forecast of this week’s biggest market-moving stories.

Stocks

Stocks are set for a down day this Monday, with all three major indices declining in pre-market trading.

The S&P 500 is down over 0.5%, giving back some of its gains from last week.

The DJIA and NASDAQ are also sliding in the pre-market. Both indices are down half a percent as of early Monday morning.

European stocks are currently trading in the red after opening to gains.

The British FTSE 100 opened with strength but pulled back after news broke that protests in Hong Kong had shut down the city’s airport.

News of the airport’s shutdown sent the FTSE on a 0.25% decline and set the tone for today’s trading session.

U.S. Treasury yields are also down in pre-market trading. Bond yields are back down to 1.70% after closing last week near 1.80%.

Declining stocks, accompanied by gains in gold and bonds, are textbook symptoms of an uncertain, fear-driven market.

Commodities and Crypto:

Everything you need to know about gold, crypto, and every hot commodity making on Wall Street’s radar in this week’s stock market news.

Oil

Crude futures are down as concerns over demand and slowing global economic growth continue to weigh on the oil market.

WTI crude futures slid over 1.39% in pre-market trading, extending a roughly month-long downtrend.

With problems on both the supply and demand of the market, the long-term outlook for the crude oil market isn’t good.

Gold

Gold is rallying on the uncertainty surrounding markets this morning, it’s up 0.48% in early Monday trading.

Spot prices stumbled at the end of last week after hitting multi-year highs just a few days earlier.

After a few days of consolidating around $1,500; it seems gold is making another run at its previous highs.

Gold is currently trading for $1,515 in pre-market trading.

Crypto

Bitcoin pulled back below $11,500 over the weekend.

Prices have fluctuated between $11,500 and $11,100 since Saturday, but Bitcoin is currently priced at $11,370.

Before the Open: Late-Breaking Stock Market News

This is the stock market news that’s impacting markets going into Monday’s open.

Experts Expect Continued Volatility

The S&P 500 fluctuated wildly last week after escalating tensions with China sent the market sliding over 3% last Monday.

However, the market was encouragingly resilient and managed to gain back all of its losses by Friday’s close.

Global trade concerns and the resultant economic impact has fueled the recent volatility, and there’s no resolution for those concerns on the horizon.

Fear and uncertainty are weighing on markets worldwide, setting the stage for a wild August in markets.

However, the market’s strong bounce back last week is a bullish sign for some investors.

Regardless of your outlook, we’ve reached a key inflection point for markets.

The S&P is facing possible resistance at its 50-day SMA and, if it fails to push through, it could be the beginning of a pullback down to the 200-day SMA near 2,800.

Hong Kong Airport Shutdown By Protests

Protesters swarmed the Hong Kong airport in the thousands on Monday afternoon, compelling authorities to cancel over 100 flights.

The protests practically shutdown outbound flights from Hong Kong’s airport.

Over 100 flights have been canceled, just days after a citywide strike caused the cancellation of over 200 flights just week.

Recent clashes between police and protesters have strained tensions and escalated the intensity of recent protests.

The civil turmoil in Hong Kong isn’t showing any signs of decelerating, and eventual Chinese intervention appears to be increasingly likely.

In the meantime, the protests are weighing on markets global markets.

News of the airport shutdown sent British stocks into the red and set the stage for a weak market on Monday.

It’s unclear how these protests could potentially impact U.S. equities, but the situation undoubtedly creates more uncertainty for the market.

Featured Earnings

  • NVIDIA Corp. (NVDA)

Performance Last Week: -4.35%

Thursday, 4:20p

Semiconductor stocks got slammed last week because of escalating tensions with China, and NVDA declined with the rest of the sector. This Thursday’s earnings report will tell the market if the move was overdone.

Consensus Estimates: $1.14 EPS on $2.55B Revenue

YoY Growth: (-35.59%) EPS, -18.35% Revenues

About 68% of investors are expecting an earnings beat. Short interest has decreased by 16.7% since the company’s last earnings report, while prices have declined by 2.7% during that time. Current price levels are 5.3% below the stock’s 200-day SMA of $162.75. Option traders are pricing in an 8.5% move following earnings; more than the recent average of 6.1%.

  • Walmart Inc. (WMT)

Performance Last Week: -1.94%

Thursday, 7:00a

Walmart was another victim of China trade uncertainties, but some experts say the stock is being unfairly punished. The bulls say Walmart has been shifting supply chain out of China for years, and tariffs won’t impact the titanic retailer as much as the market is anticipating. On Thursday, traders will get a peek under the hood when Walmart releases earnings.

Consensus Estimates: $1.21 EPS on $130.49B Revenue

YoY Growth: (-6.20%) Earnings, +1.92% Revenues

About 77% of investors are expecting an earnings beat. Short interest has increased by 4.8% since the company’s last earnings report, while prices have also gained 4.3% during that time. Current price levels are 6.5% above the stock’s 200-day SMA of $100.74. Option traders are pricing in a 4.4% move following earnings; less than the recent average of 4.5%.

  • Canopy Growth (CGC)

Performance Last Week: +0.58%

Wednesday, 7:50pIt’s been a rough few weeks for the cannabis sector, and investors will be watching Canopy earnings closely to see if now is the time to get back in. A surprise on earnings could provoke a significant upward reaction in the stock.

Consensus Estimates: (-$0.28) EPS on $85.97M Revenue

YoY Growth: +9.68% EPS, +328.03% Revenues

About 47% of investors are expecting an earnings beat. Share prices fell 19.5% since Canopy’s last earnings release, and current price levels are 18.1% below the stock’s 200-day SMA of $40.17. Option traders are pricing in a 9.5% move following earnings; less than the recent average of 12.7%.

  • Barrick Gold Corp. (GOLD)

Performance Last Week: +7.27%

Monday, 7:00a

The spot price of gold continues to rally, and Barrick is one of the best-performing gold miner stocks on the market since prices took off. The firm reports earnings this week but be cautious. The stock is performing so well that even a good report could induce a ‘sell the news’ reaction.

Consensus Estimates: (-$0.10) EPS on $2.09B Revenue

YoY Growth:  +42.86% Earnings, +22.08% Revenues

About 70% of investors are expecting an earnings beat. Short interest has increased by 29.8% since the company’s last earnings report, while prices also gained 41.7% during that time. Current price levels are 32.8% above the stock’s 200-day SMA of $13.66. Option traders are pricing in a 5.7% move following earnings; more than the recent average of 3.6%.

Economy Calendar

Monday, August 12th:

Tuesday, August 13th:

  • CPI [Jul] … 8:30a
  • NFIB Small Bus. [Jul] … 6a

Wednesday, August 14th:

  •  

Thursday, August 15th:

  • Retail Sales [Jul] … 8:30a
  • Industrial Production [Jul] … 9:15a
  • NAHB Index [Aug] … 10a

Friday, August 16th:

  • Housing Starts [Jul]…8:30a

Chris Dios is an American writer and entrepreneur based in the Greater NYC area.

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