New Highs and a Softening Outlook?
Major global stock markets continue to grind higher, with key US indexes making new all-time highs and European stocks finally recovering all of the post-Brexit losses this week. At the same time, incoming news and data, as well as geo-political events, keep pointing to trouble ahead.
Just Friday, the Eurozone posted an anemic preliminary 2Q GDP of 0.3% QoQ, down from 0.6% in 1Q. Also out Friday, U.S. retail sales for July were flat on the measure that goes into GDP calculations (control group ex-food, autos, gas, and building materials) vs. forecasts of +0.3% (prior +0.5%), and down -0.1% ex-autos and gas vs. expectations of +0.3% (prior +0.8%). Not a good way to start the third quarter, especially after the disappointing 2Q.
Also Friday, the IMF (International Monetary Fund) issued a warning to China that it urgently needed to undertake economic reforms or risk ‘permanently lower growth.’ Lack of action on the government’s part could lead to a ‘medium-term hard landing’, even though near term prospects remain ‘benign,’ according to the IMF. The IMF also cited mounting corporate debt levels as a major concern. On the data side, China’s industrial production slipped back to 6.0% from 6.2% in July.
Top 5 European Stocks For 2016: Cullen/Frost Bankers, Inc.(CFR)
Cullen/Frost Bankers, Inc. operates as the holding company for Frost Bank that offers commercial and consumer banking services in Texas. The company operates in two segments, Banking and Frost Wealth Advisors. It provides commercial banking services to corporations and other business clients, including financing for industrial and commercial properties, interim construction, equipment, inventories, and accounts receivable; acquisition financing; commercial leasing; and treasury management services. The company also offers consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. It international banking services comprise accepting deposits, making loans, issuing letter of credits, handling foreign col lections, transmitting funds, and dealing in foreign exchange. In addition, the company acts as correspondent for approximately 247 financial institutions; offers trust, investment, agency, and custodial services for individual and corporate clients; provides capital market services consisting of sales and trading, new issue underwriting, money market trading, and securities safekeeping and clearance; and supports international business activities. Further, it offers insurance and securities brokerage services; holds securities for investment purposes; and provides loans to qualified borrowers, as well as offers investment management services to Frost-managed mutual funds, institutions, and individuals. The company operates approximately 126 financial centers and approximately 1,200 ATMs in Texas. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. Cullen/Frost Bankers, Inc. was founded in 1868 and is headquartered in San Antonio, Texas.
- [By Sofia Horta e Costa]
Sanofi fell 2.6 percent after withdrawing a U.S. application for a diabetes drug. Cie. Financiere Richemont (CFR) SA dropped 2.3 percent as revenue missed analysts estimates. Vivendi SA advanced 2.7 percent after saying it will begin a formal study to separate its French phone unit from its media businesses. Home Retail Group Plc (HOME) surged 5.4 percent to a two-year high as sales exceeded projections.
Top 5 European Stocks For 2016: Nabors Industries Ltd.(NBR)
Nabors Industries Ltd., together with its subsidiaries, provides drilling and rig services. It offers equipment manufacturing, rig instrumentation, optimization software, and directional drilling services; and patented steering systems and rig instrumentation software systems, including ROCKIT directional drilling system that provides data collection services to oil and gas exploration and service companies, and RIGWATCH software, which monitors a rigs real-time performance and daily reporting for drilling operations. The company also manufactures and sells top drives, catwalks, wrenches, draw works, and other drilling related equipment; and offers well-site services, such as engineering, transportation and disposal, construction, maintenance, well logging, directional drilling, data collection, and other support services. As of December 31, 2015, it marketed approximately 430 rigs for land-based drilling operations in the U nited States, Canada, and approximately 20 other countries worldwide; and 42 rigs for offshore drilling operations in the United States and internationally; and 6 jackup units. The company was founded in 1968 and is headquartered in Hamilton, Bermuda.
- [By Monica Gerson]
Nabors Industries Ltd. (NYSE: NBR) is expected to post a quarterly loss at $0.33 per share on revenue of $630.85 million.
Sohu.com Inc (NASDAQ: SOHU) is projected to report a quarterly loss at $0.57 per share on revenue of $406.50 million.
Top Healthcare Equipment Stocks To Watch Right Now: SVB Financial Group(SIVB)
SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. The company offers deposit products, such as traditional deposit and checking accounts, certificates of deposit, money market accounts, and sweep accounts, as well as lockbox and merchant services; and lending products and services, including traditional term loans, equipment loans, asset-based loans, revolving lines of credit, accounts-receivable-based lines of credits, capital call lines of credits, and credit cards. It also provides cash management products and services comprising wire transfer and automated clearing house payment services, collection services, disbursement services, electronic funds transfers, and online banking services. In addition, the company offers foreign exchange services; letters of credit, including export, import, and standby letters of credit; investment services and solutions; brokerage; asset management; investment a dvisory services, such as outsourced treasury services; and non-banking products and services, such as funds management, venture capital/private equity investment, and equity valuation services. Further, it provides private banking services comprising mortgages, home equity lines of credit, restricted stock purchase loans, and other secured and unsecured lending services. As of March 09, 2012, the company operated 26 offices in the United States and 7 offices internationally. It serves customers in the technology, venture capital/private equity, life science, wine, and clean tech industries. The company was founded in 1982 and is headquartered in Santa Clara, California.
- [By Ben Levisohn]
The twenty stocks in Worth’s basket are: Ameriprise Financial (AMP) Bank of America, Banner (BANR), Citigroup, Citizens Financial Group (CFG), East West Bancorp (EWBC), First NBC Bank Holding (FNBC), HFF (HF), KeyCorp(KEY), Legacy Texas Financial Group (LTXB), Lincoln National (LNC), Morgan Stanley, Old National Bancorp (ONB), PacWest Bancorp (PACW), PNC Financial Services Group (PNC), Principal Financial Group (PFG), Stifel Financial (SF), SVB Financial Group (SIVB), TCF Financial (TCB), and Wells Fargo.
Top 5 European Stocks For 2016: Guess?, Inc.(GES)
Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of contemporary apparel and accessories for men, women, and children that reflect the American lifestyle and European fashion sensibilities. It operates through Americas Retail, Europe, Asia, Americas Wholesale, and Licensing segments. The companys clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, knitwear, and intimate apparel. It also grants licenses to manufacture and distribute various products that complement its apparel lines, such as eyewear, watches, handbags, footwear, kids and infants apparel, outerwear, swimwear, fragrance, jewelry, and other fashion accessories. The company markets its products under the brands of GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO, and Gc. It sells its products through direct-to-consumer, wholesale, and licensing distribution channels. As of January 30, 2016, the company directly operated 835 retail stores in the Americas, Europe, and Asia. The company’s licensees and distributors operated an additional 804 retail stores worldwide. Guess?, Inc. was founded in 1981 and is headquartered in Los Angeles, California.
- [By Monica Gerson]
Analysts are expecting Guess?, Inc. (NYSE: GES) to have earned $0.58 per share on revenue of $657.59 million in the latest quarter. Guess? shares gained 0.35 percent to $21.80 in after-hours trading.
- [By Monica Gerson]
Wall Street expects Guess?, Inc. (NYSE: GES) to post a quarterly loss at $0.19 per share on revenue of $464.37 million. Guess? shares dropped 0.06 percent to $16.25 in after-hours trading.
Top 5 European Stocks For 2016: E*TRADE Financial Corporation(ETFC)
E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services primarily to individual retail investors under the E*TRADE Financial brand name. It operates through two segments, Trading and Investing, and Balance Sheet Management. The Trading and Investing segment offers retail brokerage products and services, investor-focused banking products, and corporate services. The Balance Sheet Management segment manages asset allocation; loans previously originated by the company or purchased from third parties; deposits and customer payables; and credit, liquidity, and interest rate risk. The company provides its services to customers through digital platforms; and a network of customer service representatives and financial consultants through phone, email, and online at two branches, as well as in person through 30 branches across the United States. E*TRADE Financial Corporation was incorporated in 1982 and is headquartered in New York, New York.
- [By Jon C. Ogg]
E*TRADE Financial Corp. (NASDAQ: ETFC) was reiterated as Buy, but the price target was raised to $19.50 from $16.50, at Sterne Agee, making the third or fourth such price target upgrade in as many days, but what stands out here is that this appears to now be a “street-high” price target.