EU Markets Dip
BABA Poised to Surge
CSCO Shares Tumble
Market Recap – This week in a nutshell:
This week started on a positive note after a rally in oil prices pushed markets higher. Markets wobbled mid-week however, after reports President Donald Trump asked then-FBI Director James Comey to drop a probe into his ex-national security advisor.
Thu, May 18: In Today’s Markets…
1. European Markets Dip on Rising US Political Turmoil
European markets have started the day lower on Thursday amid mounting political uncertainty. Specifically, concerns are rising among investors as to whether President Donald Trump would be able to deliver on key pro-growth policies. Political turmoil in Washington worsened on Tuesday after several reports surfaced claiming that Trump had pressed former FBI Director James Comey to drop a probe into former National Security Advisor Michael Flynn. The White House has denied these accusations but concerns over Trump’s leadership abilities and political integrity continue to rise. On the earnings front, Merck and Thomas Cook are among the major companies scheduled to report today; you can find both shares on the MT4 platform.*
2. Alibaba Group Holding Ltd Poised to Surge on Q4 Earnings Forecasts
Alibaba Group Holding Ltd (NYSE:BABA) is due to post its fiscal fourth quarter earnings results before the opening bell on Thursday. Investors will be looking very closely at the latest earnings reports as recently the stock’s price was boosted. In a note dated May 16, MKM Partners analyst Rob Sanderson increased his price target for Alibaba stock from $130 to $155 per share. On average, Wall Street analysts expect BABA to post Q4 EPS of $0.66, which is significantly higher compared to the $0.46 it reported in the same quarter last year. Analysts are also looking for revenues of $5.25 billion which would be a massive surge from the $3.72 billion the company posted last year. BABA shares are expected to edge significantly higher for the day.**
3. CSCO Shares Plunge As Forecast Disappoints
Cisco Systems, Inc. posted solid fiscal third quarter earnings yesterday but offered a weak Q4 outlook, which send its shares plunging. The networking giant reported Q3 earnings per share (EPS) of $0.60, beating estimates by $0.02. However, revenues fell 0.5% from last year to $11.94 billion while Q4 forecasts see revenues falling between 4% and 6%. Investors sent CSCO shares down over 5% in after-hours trading late on Wednesday while the stock is expected to recover some of its losses today.***
*Source: CNBC
**Source: Stock News
***Investing.com
