Daily News Breakdown 1/28/2016

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  • Daily Market Update
    • The Dow ended the day up 125.18 points or approximately 0.79%.
    • The S&P 500 ended the day up 10.41 points or approximately 0.55%.
    • The NASDAQ ended the day up 38.51 points or approximately 0.86%.
    • Oil ended the day up $0.92 at $33.22 a barrel.
    • Gold ended the day down $0.20 at $1,114.70.
  • Additional News

Saudi Arabia Did Not Propose 5% Production Cuts:

Earlier today Russian Energy Minister Alexander Novak announced that Saudi Arabia had suggested production cuts by each OPEC member of approximately 5%.  Due to these claims oil spiked at the beginning of the trading day however, due to conflicting reports from the Saudis oil gains slowed but still ended the day up $0.92 as hopes of a OPEC reduction deal remained strong.  For more information click here

Chart Credit Bloomberg.com

Chart Credit Bloomberg.com

Iran Dives Back Into the International Marketplace:

Iran’s President recently signed an outline order with Airbus Group for a total of 118 jetliners as well as an accord with PSA Peugeot Citroen regarding the modernization of a car plant in Tehran.  The total price tag, according to Bloomberg calculations, was approximately $33 billion.  Iran’s central bank estimates that the lifting of international sanctions will result in approximately $50 billion a year in foreign investments.

Recommended further readings:

Amazon earnings: $1 per share, vs expected EPS of $1.56 (CNBC)

Xerox to split, Icahn to get 3 board seats at one of them: DJ (CNBC)

Fed to Stress-Test 33 Banks on Severe Global Recession Response (Bloomberg)

Private Equity

I know I have not touched on private equity and I do not plan on. However, this is a concise overview of private equity in a way that ties into the publicly traded stock market. Definitely worth a read.

cognitease

To start off my first write-up, I will cover one of the most common and basic asset class, Equity in the early stage, Private Equity.

Equity

Private Equity

Why

The most common and basic investment asset class is Equity. Equity is being valued since the formation of a company. Private Equity as an industry, invests and grows private and unlisted companies. Because of today’s environment and ease of creating a new business idea and company, the term “startup” today describes new businesses that have begun its operations. On top of this, there are claims that the new business ideas have to be innovative and new in any industry. However, companies have been built from scratch and grown over hundreds of years, where the big names are sitting on today’s stock exchanges.

The primary reason private equity investment came about was the need to raise operational capital by companies. As companies…

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Daily News Breakdown 1/27/2016

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  • Daily Market Update
    • The Dow ended the day down 222.77 points or approximately 1.38%.
    • The S&P 500 ended the day down 20.68 points or approximately 1.09%.
    • The NASDAQ ended the day down 99.51 points or approximately 2.18%.
    • Oil ended the day up $0.85 at $32.30 a barrel.
    • Gold ended the day up $2.50 at $1,118.30.
  • Additional News

The Federal Reserve:

In a statement today the Federal Reserve of the United States announced that they will not be raising interest rates due to slowed US economic growth.  For more information click here for BBC and here for the Guardian

North Korea:

According to sources questioned by Japanese news agency Kyodo News, North Korea may be preparing for a long-range ballistic missile launch test.  This comes just weeks after North Korea claimed to have successfully detonated a hydrogen bomb.  However, experts believe that an atomic bomb test was conducted; technology which North Korea is already known to possess.

Recommended further readings:

A China bank contagion could blow up global markets (CNBC)

Facebook smashes Street’s highest estimates on revs and EPS (CNBC)

Daily News Breakdown 1/26/2016

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  • Daily Market Update
    • The Dow ended the day up 282.01 points or approximately 1.78%.
    • The S&P 500 ended the day up 26.55 points or approximately 1.41%.
    • The NASDAQ ended the day up 49.18 points or approximately 1.09%.
    • Oil ended the day up $1.11 at $31.45 a barrel.
    • Gold ended the day up $14.90 at $1,120.20.
  • Additional News

API Weekly Report:

The American Petroleum Institute reported today that crude supplies increased by 11.4 million barrels for the week of January 22, 2016.  Tomorrow the more significant EIA report will be released.  Meanwhile, as shown above, the price of oil still ended the day up $1.11 a barrel.

China Oil Demand:

Today state-run China National Petroleum Corporation announced their forecast for China’s oil demand growth for 2016.  The forecast cut demand growth from 4.8% last year to 4.3% for 2016.  CNPC also forecasted China’s net crude imports to grow by 7.3% compared to last years growth of approximately 9%.

Conflict in the Middle East:

Today Syrian government forces recaptured a “strategically important” town in southern Syria.  Syrian’s government forces have made significant gains during the recent weeks as Russian airstrikes continue to destroy their opposition.  As President Assad’s government continues to further entrench itself with military victories and the West and its allies remain steadfast in their demands for President Assad to step down the future of Syria remains frighteningly in the shadows.  For more information click here

Escalating US and Russian Tensions:

The Kremlin has officially demanded proof from the US Treasury after Adam Szubin, a US Treasury sanctions official, made an on the record comment to the BBC accusing Russian President Vladimir Putin of being corrupt.  While the United States has put sanctions on a number of Russian officials in the past the United States government has never gone so far as to place sanctions on President Putin himself.  For more information click here

Recommended further readings:

More bad news from investor who called $30 oil a year ago (CNBC)

Daily News Breakdown 9/16/2015

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  • Daily Market Update

    • The Dow ended the day up 140.10 points or approximately 0.84%.
    • The S&P 500 ended the day up 17.22 points or approximately 0.87%.
    • The NASDAQ ended the day up 28.72 points or approximately 0.59%.
    • Oil ended the day up 2.56 at $47.15 a barrel.
    • Gold ended the day up $16.40 at $1,119.00.
  • Hewlett-Packard Will Cut Another 10% of its Workforce

Hewlett-Packard has announced additional cuts to its workforce as it moves ahead with the plan to split the company.  The reasoning behind the move is additional savings of $2.7 billion annually as the company attempts to turn things around.