Market News: American Express, Advanced Micro Devices, Mattel

0
Market News: American Express, Advanced Micro Devices, Mattel
market news

The equity markets in the United States and other countries suffered significant declines today amid investors’ selloff. One of the reasons behind the decline of the broader stock market was the tightening of trading rules in China.

Play Quizzes 4

Sign up for our free newsletter

Chinese regulators clamped down the use of shadow financing to purchase equities and increased the supply of shares available to short-sellers. The margin trading businesses of brokerages were prohibited from taking part in umbrella trusts.

Growing Up In The Fund Management Business: This PM’s First Stock Was A Value Stock

Invest ESG Leon CoopermanWhen portfolio managers get started in the business, their investing style often changes over the years. However, when Will Nasgovitz bought his first stock when he was 12, he was already zeroing in on value investing, and he didn't even know it. Nasgovitz has been with mutual fund manager Heartland Advisors for almost 20 years, Read More

Investors used umbrella trusts to have more leverage and increased their bets on Chinese equities after a monetary stimulus that led to a huge rally of China’s benchmark equity gauge. The Shanghai Composite Index closed a seven-year high on Friday.

Hao Hong, chief strategist at Bocom International Holdings, commented that the recent surge “has been a little too fast for the regulator’s comfort.” He added, “The market should consolidate, as it is overbought and part of the market is overvalued.”

[drizzle]

On the other hand, Matt Maley, an equity strategist at Miller Tabak & Co. said, “The China news shows there was a lot of leverage in that market, and there’s a lot of leverage in ours, it shows how vulnerable the market can be when that’s the case.”

The concerns regarding the ability of Greece to pay its debt also contributed to slide of the stock markets, according to Donald Ellenberger, a senior portfolio manager at Federated Investors.

In addition, Ellenberger said, “Investors have piled into German bunds, and credit spreads widened. But it was news from China’s regulators that triggered selling, as a lot of investors were sitting on gains after a run-up in equity markets.”

U.S. Markets

  • Dow Jones Industrial Average (DJIA) – 17,828.24 (-1.53%)
  • S&P 500- 2,081.31 (-1.12%)
  • NASDAQ- 4,932.77 (-1.50%)
  • Russell 2000- 1,253.14 (-1.55%)

European Markets

  • EURO STOXX 50 Price EUR- 3,674.05 (-2.07%)
  • FTSE 100 Index- 6,994.63 (-0.93%)
  • Deutsche Borse AG German Stock Index DAX- 11,688.70 (-2.58%)

Asia-Pacific Markets

  • Nikkei 225- 19,652.88 (-1.17%)
  • Hong Kong Hang Seng Index- 27,653.12 (-0.31%)
  • Shanghai Shenzhen CSI 300 Index- 4,596.14 (+1.83%)

Stocks in Focus

The stock price of American Express declined more than 4% to $77.32 per share after reporting its quarterly financial results. The credit card company reported$1.48 in earnings per share and $1.4 billion in net interest income (NII). Its total revenues of $7.95 billion missed the $8.21 billion expected by analysts.

Advanced Micro Devices plummeted more than 10% to $2.58 per share. Its stock price was negatively impacted by company’s statement that it is uncertain whether the second-half will be “substantially better” than the first-half of this year. Analysts Canaccord Genuity reduced their price target for the stock to $2 per share and reiterated their Hold rating.

The shares of Mattel climbed almost 6% to $16.75 per share after reporting an improvement in the sales of its Barbie and Fisher-Price brands. The toy maker posted quarterly losses of $0.08 per shares. Analysts expected losses of $0.09 per share.

[/drizzle]

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article [Archives] Forecasting Bankruptcy More Accurately: A Simple Hazard Model
Next article Isaac Schwartz: Macro, Technical Analysis, And Value Investing

No posts to display