Global Markets Rise Ahead Of Fed And Trade Talks As Gold Hits 8 Month High

World stocks inched up and the dollar steadied on Wednesday after Apple failed to disappoint investors and reported earnings***, meeting Wall Street's lowered expectations, and sending its stock higher in a muted session as investors braced for a barrage of catalysts, from US-China trade talks and the Fed meeting to an avalanche of corporate earnings. The pound halted a two-day decline and U.K. shares rallied after lawmakers voted to renegotiate Brexit.

US equity futures all rose, supported by with Apple shares which extending gains in pre-market trading after first-quarter earnings reassured investors that the worst may be past, although it remains very much unclear if Apple can pivot from a cell phone to a "services" company, especially with services revenue growth slowing sharply. In any case, investors were relieved that there was no more bad news after the company shocked financial markets at the start of this month with a revenue warning that sparked fears that U.S.-China trade tensions were taking a toll on the tech sector.

The Stoxx Europe 600 Index was mixed after data showing euro-area economic confidence extended its worst losing streak in a decade, ahead of Sino-U.S. trade talks and a closely watched Fed announcement in which Chair Powell is likely to disappoint markets. The UK's FTSE 100 traded higher by 0.9%, climbing for a second day and outperforming continental bourses, with CAC also rising 0.5%; DAX trades lower by 0.4%. Investors fretted about the possibility of a “no-deal” British departure from the European Union after UK lawmakers instructed Prime Minister Theresa May on Tuesday to reopen the treaty she had negotiated with Brussels to replace a controversial Irish border arrangement.

Goldman Sachs upped its “no-deal” Brexit probability to 15 percent from 10 percent, and cut the chance of Brexit not happening at all to 35 percent from 40 percent according to Reuters. “Tuesday’s Brexit amendments offered little additional clarity to anyone,” Goldman Sachs analysts wrote.

Elsewhere, following lackluster corporate earnings in January, all eyes will be on tech giants including Facebook and Microsoft when they report today. That will be the backdrop for the Fed’s policy decision and its assessment of the U.S. economy, while the arrival of Chinese negotiators in Washington for talks to resolve the ongoing trade dispute adds another layer of complexity.

Expectations from Wednesday’s Federal Reserve rates review are that policymakers will reinforce their recent dovish stance, given signs of a slowdown in the U.S. economy.

rest at link

________

*** Apple lowered it's guidance on January 2nd and the stock dropped almost 10%. If results that include sales in china dropping by 27%, not breaking down actual unit sales, large share repurchase program, dividend payments, and a lower tax rate along with dropping prices outside of the US within hours of said announcement is not a recipe for disappointment I don't know what planet the tyler's are on this morning.

https://www.zerohedge.com/news/2019-01-30/global-markets-rise-ahead-fed-and-trade-talks-gold-hits-8-month-high

>>4962950

Facebook earnings today

They do not have a hard product like Apple and have been buying it's own stock in large quantity's to combat a failing business model.

The only thing that can help it is the share repurchase program it undertook.

Currency swaps and other activity's should help it however Sheryl Sandberg knew something was up when she dumped 55k shares recently. The day before it was announced that half of FB's users are fake.

April 16th 2018

https://investorplace.com/2018/04/time-buy-back-facebook-shares/

Novemeber 18th 2016

https://www.wsj.com/articles/facebook-to-buy-back-up-to-6-billion-of-stock-1479504896

Microsoft earnings today

They have a better position, similar to Apple, and can move around money to mask poor performancewith currency swaps and moar favorable tax rates. It does not hide the fact it embarked on a $40b share repurchase program shortly after Hillbags lost.

The board of directors also approved a new share repurchase program authorizing up to $40 billion in share repurchases. The new share repurchase program, which has no expiration date, may be terminated at any time. The company reaffirmed that it is on track to complete its current $40 billion stock repurchase program by December 31, 2016.

September 20th 2016

https://www.bloomberg.com/news/articles/2016-09-20/microsoft-plans-to-repurchase-up-to-another-40-billion-in-stock

>>4963050

peace for you and yours sa

The latest Tesla earnings report is due out on Wednesday, Jan. 30, and it could be a pivotal day for the company.

Despite reporting a profit during its Q3 earnings last quarter, the company has taken a series of hits leading up to its Q4 earnings report.

Last week, Tesla Inc. (NASDAQ: TSLA) slashed its earnings forecast for the fourth quarter and announced plans to cut its workforce by roughly 7% and cut car prices by $2,000 to drum up demand.

While Musk's public acknowledgement of Tesla's production woes is important, the real news here comes from his mention of "batteries and solar products."

https://moneymorning.com/2019/01/25/all-eyes-are-on-tesla-earnings-but-the-best-is-yet-to-come/

from 2017

Tesla: Over-Hyped, Lousy Company Destined for Bankruptcy

Tesla is an over-hyped, lousy company, from a financial perspective that is destined to go bankrupt.

Contrary to the likely barbs and pitchforks we will receive, I do wish that global warming was not occurring and that polar bears and penguins could live undisturbed in their former environments.

Current revenue is roughly 99% automobile related and due to Model 3 introduction and projected sales, this ratio will likely remain similar for quite some time.

Thus, Tesla is an auto manufacturer, plain and simple.

Panasonic supplies TSLA with batteries and other companies provide TSLA with electric motors, tires, wheels, etc.

Thus, with a few extraneous business lines, TSLA designs and assembles cars

Honda makes jet airplanes, ATV’s and boat motors – still, Honda is considered an auto company as the majority of its revenue is derived in that business.

Until TSLA’s battery storage and solar equipment business become majority contributors, it will remain viewed as an auto company.

Unfortunately for Tesla, none of these businesses are currently profitable nor do we see any possibility of them becoming materially profitable over any visible time horizon

TSLA has had a ton going for it: extremely cheap equity and debt capital, government loans, huge government subsidies, a manufacturing plant that was purchased for nearly nothing, a marketing oriented CEO who has an eye for beautiful cars, and a great idea to put a really big battery in high end electric cars so that it can go over 200 miles before needing to be recharged

However, with all of these positives, company has not made an annual profit despite catching the auto giants asleep at the wheel

Now, to help raise capital, they’ve shown large demand for electric cars (373,000 Model 3 reservations at last disclosure) and have placed a large bullseye on their back

Executives inside top 10 auto manufacturers now all need electric car strategy and what was once a niche market that Tesla could dominate will become far more competitive with time – there is no doubt or argument about this

https://investoralmanac.com/2017/05/21/tesla-over-hyped-lousy-company-destined-for-bankruptcy-vilas-capital/

__

do not equate rhetoric to performance metrics.

They can talk all they want however when the earnings are filed that is where the rubber meets the road..or doesn't in TSLA's case.

The two viewpoint here are a few year's apart however the first is missing the actual fundamental analysis from the later. These are cold hard facts and no amount of talk about battery's and solar production can mask these.

https://moneymorning.com/2019/01/25/all-eyes-are-on-tesla-earnings-but-the-best-is-yet-to-come/

>>4963104

much respect for you guys.

>>4963078

Dow Jumps After Boeing Earnings, Outlook Smash Expectations

Boeing shares soared more than 6%, and are set to take out all time highs of $392 after reporting earnings that smashed expectations and unveiling guidance that was far higher than consensus.

Boeing's annual sales topped $100 billion for the first time in its 102-year history according to Bloomberg, with the US planemaker, whose former employees are now close advisors to President Trump saying even more gains are on tap for 2019 as it bounces back from production snarls with its 737 jetliners.

The company reported 4Q core EPS $5.48, smashing estimates of estimate $4.59, and printing well above the high end of the forecast range ($4.36 to $4.87). Revenue of $28.34 billion also trounced expectations of $26.93 billion (range $25.46 billion to $28.24 billion), with the company reporting a 4Q backlog $490 billion and operating cash flow $2.95 billion.

More importantly, looking ahead the company said that adjusted earnings will be $19.90 to $20.10/share this year as sales climbed across all businesses, far above the analyst consensus of $18.44. Operating cash flow will be as much as $17.5 billion.

Tangentially, it is worth recalling that Trump's acting defense secretary, Patrick Shanahan, worked at Boeing; additionally Trump's deputy National Security Advisor, Charlie Kupperman, also worked at Boeing.

Some more highlights from Boeing's impressive quarter, via Bloomberg:

Sales climbed across all businesses. The defense division was a bright spot in the fourth quarter, with a 16 percent sales gain. That softened the blow from factory stumbles that slowed deliveries of the workhorse 737 jetliner, Boeing’s biggest source of profit.

Costly out-of-sequence work on commercial aircraft weighed on results, dragging free cash flow down to $2.45 billion in the fourth quarter. Analysts had predicted $2.52 billion.

Increased jetliner production is crucial to Boeing’s plans to boost cash flow. Expect analysts to focus on the strength of the company’s supply chain. Investors listening to this morning’s 10:30 a.m. conference call also will look for clues about a proposed midmarket aircraft.

Boeing stock soared 6.5% in the premarket, rising above $388, and just shy of its all time high of $392.30 hit on October 3; Boeing stock was up 13% this year through Tuesday.

Boeing

385.30 +20.40 (5.59%)

Pre-Market: Jan 30, 8:39AM EST

https://www.zerohedge.com/news/2019-01-30/dow-jumps-after-boeing-smashes-expectations

>>4962963

stay away from the COMEX. Nothing moar than paper pushers. Even if you stand for delivery they have paid people off in cash to not take delivery. It is illegal for this to occur by the rules governing the CME but what are rules anymoar?

>>4963167

can't answer that with 100% certainty but my guess is yes. They certainly allowed much to happen with the plane 'issues'. The chip sets that control flight did not just appear on them if you catch my drift.

>>4963145

It is used to push the markets up.

I wouldn't say I am excited over it. I have not drilled down the report yet. It's busy today and may not get to it. Lots habbening with many company's

>>4963192

Apple traded up to 163/164 in after hours trading last evening after the company convinced that life after the iPhone won´t be so bad.

We leave the long-term fundamentals to be discussed by the pundits. More interesting to us is the shorter-term chart and the psychology of investors. The stock is down some 30% from ATH levels. The move lower has surprised many and it has been a one-way traffic move. The bounce since lows, including the after-hour gains is some 15%, not bad if you caught the lows.

The negative trend line from highs is around the 165 level. Note the 50-day average is at that level as well. The 100 day is just crossing the 200 day, and is creating the longer-term death cross.

Do you fade Apple soon or is this the new bull unfolding? One thing is sure, there is much less Apple buzz these days, and we can now turn to focusing on the mighty Fed and what they will tell us later today.

__

See earlier stock market update towards bottom for moar on this.

They can't mask poor fundamentals

https://www.zerohedge.com/news/2019-01-30/apple-wheres-buzz

>>4963241

>>4963278

you have to ask anon?

>>4963327

fundamentals do not lie

Actual performance and equity prices are two different things anon

>>4774747 pb