Category: Portfolio Management

Feb 20th, 2024 - After the UK inflation rate in January 2024 reached 4.00 %, Goldman Sachs (GS) (+0.02% at  4:00 PM EST), in a research note, asserted that there is a high probability that BoE will delay  interest rate cuts from May to June, with subsequent stronger interventions during the final  semester of 2024. The US investment bank believes the Central Bank will introduce five consecutive 25 basis point cuts, determining a decrease in interest rates from 5.25% to 4%.  Also, a terminal rate equal to 3% should be reached by June 2025. As reported by many Goldman Sachs analysts, the main reasons behind this delay are the surprising strength of the UK labor market and the wage growth currently ongoing, but they also predicted a remarkable reduction of…

Feb 19th, 2024 - In a recent turn of events, shares of Nintendo took a significant hit, following reports suggesting a delay in the launch of the highly anticipated Switch 2, the next iteration of its flagship gaming console. The company’s stock in Japan closed 5.84% lower amidst growing concerns regarding the company's future prospects. According to a report by Bloomberg over the weekend, sources familiar with the matter revealed that Nintendo had informed game publishers about the potential delay of the Switch 2 until the early months of 2025; this news comes as a disappointment to both investors and gaming enthusiasts who were eagerly awaiting the release of the next-generation console. Initially targeting a release toward the end of this year, Nintendo reportedly warned game makers that the launch…

Wall Street is witnessing a seismic shift as Big Shale emerges as the new powerhouse in the energy sector. The recent $26 billion merger between Diamondback Energy Inc. and Endeavor Energy Resources LP marks a watershed moment, reflecting a significant departure from past skepticism towards the shale sector. This monumental deal is just one in a series of record-breaking transactions, totaling approximately $250 billion in US oil and gas deals over the past year. Diamondback's move to acquire Endeavor has captured investor attention like never before. The stock market responded with an immediate 11% surge in Diamondback's stock value, signaling resounding approval from investors. This merger frenzy not only consolidates fragmented wildcatters but also signifies a broader industry push towards efficiency and profitability over sheer output growth. The shift towards…

On Friday, Coinbase stock surged 16% after posting its first profit in two years. The largest US cryptocurrency exchange has reported significantly better than expected earnings thanks to growth in transaction volumes. The company posted for its first quarter an adjusted EPS of $1.04, better than the $0.02 EPS forecasted by Wall Street analysts. Quarterly results surged with transaction revenue up 64% due to Bitcoin spot ETF approvals and anticipated macroeconomic improvements in 2024. The Vice President of Investor Relations, Anil Gupta, dismissed concerns about fee compression, noting a surge in trading volumes to $154 billion in Q4, surpassing analysts' projections by far. Coinbase shares have shown bullish momentum, bouncing off the 50-day moving average, with attention on the $210 upper trendline. The streaming service provider Roku lost 22.3% of…

Stock popped on Thursday with the S&P 500 hitting 5,029.73 with a growth of 0.58% despite a disappointing retail sales report. The Dow Jones rose 0.9% hitting 38,773.12, while the tech-heavy NASDAQ added 0.3% reaching 15,906.17. DoorDash (DASH) shares climbed 5.2% after the announcement of fiscal results of the fourth quarter, where revenues and orders exceeded expectations, although net losses failed to shrink as quickly as forecast hoped. The delivery company saw its revenue raising 27% to $2.3 billion, exceeding the $2.25 billion projected by analysts. Total orders rose 23% to $574 million compared to the $561.3 forecasted. On the other hand the company’s net loss shrinked to $154 million despite analyst’s expecting them to narrow further to $61 million. AppLovin (APP) stock surged on Thursday, with share price up…

On Wednesday, markets bounced back from the sharp decline that happened on Tuesday. S&P 500 increased by 0.96% to close at 5,000.62. Nasdaq advanced 1.3% to close at 15,859.15 while Dow Jones climbed 0.4% closing at 38,424.27 The latest consumer price index made public on Tuesday was hotter than expected. According to the Bureau of Labor Statistics, CPI showed that the prices rose by 3.1% for the 12 months ended in January. Markets were anticipating a 2.9% increase. The inflation data reported diminished investors’ rate cut expectations in March. According to the CME FedWatch Tool, after the data reported,the rate cut probability in March decreased to 10%, this data recently was showing a 60% probability of a rate cut in March. In conclusion, markets experienced the worst sell-off since March…

Despite its market trend characterized by a decrease of its share price of 0.17% by 4:00 PM  EST, today portfolio holding Nvidia (NVDA) (purchased 0.24 units @ $472.38) was able to  achieve an exciting achievement, reaching a market capitalization higher than Amazon.  In fact, while Nvidia’s total value was equal to $1.78 trillion, the Seattle based company did not go beyond $1.75 trillion, after Amazon’s share price dropped by 2.15% by 16:00 EST. One of the main reasons behind this incredible achievement is the fact that, as more tech  companies are trying to insert AI into their products, large firms like Meta Platforms recently  concluded acquisitions of Nvidia’s components for billions of dollars. Unfortunately, Nvidia was not able to replicate this performance against Alphabet. In fact, the firm owning Google …

Saudi Arabia's state-controlled oil giant, Aramco, announced on Monday the suspension of its capacity expansion plans, citing the ongoing green transition: Energy Minister Abdulaziz bin Salman emphasized that the future of energy security lies in renewables, signaling a significant shift in the kingdom's energy strategy. The decision to postpone Aramco's capacity investment, which aimed to increase crude production from 12 to 13 million barrels per day by 2027, reflects Saudi Arabia's acknowledgment of the changing global energy landscape; the directive, issued by the Saudi energy ministry, underscores the kingdom's commitment in adapting to evolving market conditions and prioritize sustainable energy sources. In his remarks at the International Petroleum Technology Conference in Dhahran, Minister Abdulaziz bin Salman highlighted Aramco's evolution from an oil company to an energy company, with investments spanning…

The European Union (EU) has reached a preliminary agreement to relax its strict fiscal regulations, offering member states greater flexibility in managing debt while incentivizing investments in key areas such as climate action, industrial development, and security. The revision of the Stability and Growth Pact, in response to unprecedented debt levels amid pandemic recovery efforts and ambitious EU goals, aims to adapt to contemporary economic and geopolitical realities. Under the new rules, minimum deficit and debt reduction targets are adjusted to be less stringent, providing clarity and predictability for member states' fiscal policies. European Commission Vice-President Valdis Dombrovskis highlighted the importance of these rules in enhancing the sustainability of public finances and promoting sustainable growth through investment incentives. MEP Margarida Marques emphasized the shift towards a case-by-case and medium-term approach,…