Qualcomm’s stock rallying like it’s 1999

Shares of Qualcomm Inc. continued their rocket climb Tuesday, in a parabolic trajectory that’s eerily reminiscent of the chip maker’s halcyon days during the internet bubble, following its settlement deal with Apple Inc.

The stock QCOM, +6.11%  ran up 5.7% in afternoon trade, putting it on track for the highest close since its Jan. 3, 2000 split-adjusted record of $89.66, after Morgan Stanley turned bullish and boosted its price target.

Since Qualcomm and Apple announced last Tuesday that the companies have dropped all lawsuits against each other, the stock has now soared 51.6%. That would be the best 5-day stretch since it rocketed 63.3% during the 5-days ending April 26, 1999.

Despite the stock’s meteoric rise in the past week, Morgan Stanley analyst James Faucette raised his rating to overweight, after being at equal weight since Nov. 15, while lifting his price target by 73% to $95, which is 10% above current levels.

“We upgrade to [overweight] as we see new opportunities and optionality as more attractive than risks potentially overlooked by any near-term settlement-induced euphoria,” Faucette wrote in a note to clients.

Don’t miss: Qualcomm stock rockets toward five-year high as analysts cheer Apple resolution.

He said the Apple settlement not only increases earnings substantially, it also expands the “freedom” with which Qualcomm can pursue new opportunities. If the company adds potential “meaningful growth” in other markets, like in autos, earnings growth can accelerate and provide additional tailwind for further valuation expansion. That would lift the stock to its most-bullish case scenario of $120, which is 39% above current levels.

See related: Opinion: Qualcomm gets big windfall in surprise settlement, but Apple may have saved the iPhone from 5G doom.

Faucette said that while he takes a more conservative view than most on the pace of 5G ramp, he

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Next potential targets for Saudi Stock Market (Tadawul)

Suggested Tags: #KSA #GULF $KSA $GULF #TASI #Tadawul #MidEast #SaudiArabia #StockMarket #TechnicalAnalysis #ETFs #MiddleEast #EmergingMarkets #Oil

April 22, 2019

Several weeks ago, the Tadawul All Share index () went right through the 61.2% Fibonacci retracement (potential resistance) of the long-term downtrend that started off the September 2014 peak of 11,159.50 and kept going. Year-to-date the index is up 17.5%.

Weekly Tadawul All Share Index

Chart powered by TradingView

The next long-term target is around the 9,911 to 10,002, which consists of the 9,897.44 swing high resistance from way back in April 2015. Nevertheless, there is an interim potential resistance zone, comprised of two Fibonacci projection and extension measurements, from around 9,370 to 9,430. Each of these zones can be seen on the accompanying weekly chart of the TASI.

As noted in prior TASI analysis, Investors in US markets can get exposure to Saudi equities through at least two ETFs: iShares MSCI Saudi Arabia ETF (NYSE:) (almost 100% exposure), and Wisdom Tree Middle East Dividend Fund (NASDAQ:) (approximately 27% exposure).

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed

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S&P 500 closes in on record high after upbeat earnings

(Reuters) – The S&P 500 inched toward a record high on Tuesday, as a clutch of better-than-expected earnings reports eased concerns of slowing corporate profits and sparked a broad-based rally.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 23, 2019. REUTERS/Brendan McDermid

The benchmark index is just 0.28% away from an intra-day record high of 2,940.91 hit on Sept. 21. The index has surged about 17 percent this year, helped by a largely upbeat earnings season, hopes of a U.S.-China trade resolution and a dovish Federal Reserve.

The S&P and Nasdaq indexes breached their record closing highs during the session.

“As we get closer to reaching all-time highs people get a little more interested. There has been a lot of money sitting on the sidelines and that has been drawn in because of the fear of missing out,” said Robert Pavlik, chief investment strategist and senior portfolio manager at SlateStone Wealth LLC in New York.

“Earnings have certainly helped, we’ve seen some pretty good earnings reports and that is helping turn sentiment around.”

Twitter Inc shares soared 16%, hovering near a nine-month high, after the social media company posted better-than-expected quarterly revenue and a surprise rise in monthly active users.

Another big gainer was Hasbro Inc, which rose 15.5% after the toymaker reported a surprise quarterly profit.

Amazon.com Inc, set to report results later this week, gained 2.2%, providing the biggest boost to the S&P 500 and the Nasdaq.

Profits of S&P 500 companies are expected to decline 1.3% in the first quarter, in what analysts say could be the first earnings contraction since 2016. However, forecasts have largely improved since the start of April.

At 12:57 p.m. ET, the Dow Jones Industrial Average was up 154.38 points, or 0.58%, at 26,665.43.

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First-quarter earnings may boost S&P 500 index to record high

NEW YORK — The S&P 500 index was on track for an all-time high Tuesday as big U.S. companies began turning in solid results for the first quarter, despite predictions for the worst quarter of earnings growth in years.

The most recent record for the benchmark index was set last September, shortly before the market took a nosedive in the fourth quarter that took the index almost 20 percent below that peak.

Big names including Hasbro, Lockheed Martin and Twitter all surprised Wall Street with strong profit and revenue. Analysts are watching corporate reports closely this week as they gauge whether first quarter earnings for U.S. companies will be as bad as predicted. Wall Street has been forecasting a contraction during the quarter.

Technology companies led the gains after software maker Cadence Design Systems beat Wall Street’s forecasts and gave investors a better outlook for the year. Cadence rose 4.3 percent and Qualcomm rose 4.8 percent.

Consumer product companies followed Hasbro higher. Industrial stocks gained ground as Lockheed Martin and United Technologies surprised investors with solid earnings reports.

Homebuilder Pulte Group rose 3.7 percent, leading that sector higher after reporting a boost in new orders and solid earnings results. The Commerce Department also reported that new U.S. home sales increased 4.5 percent in March, marking the third straight monthly gain. KB Home rose 2 percent and Lennar rose 0.8 percent.

Energy companies continued riding a rising wave of oil prices, which are up 45 percent for the year. The latest increases are being pushed by the U.S. government’s decision to further block Iranian oil exports, which could cut the global supply of oil. Concho Resources rose 1.4 percent and Cabot Oil rose 0.5 percent.

KEEPING SCORE: The S&P 500 index rose 1 percent as of noon Eastern Time and was

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Oil advances anew, stocks gain on upbeat results

NEW YORK (Reuters) – European energy shares had their best day since January on the back of higher oil prices on Tuesday while Wall Street rose on upbeat results that eased fears of slowing profits.

FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

News that the United States told buyers of Iranian oil to stop purchases by May 1 or face sanctions lifted Brent, the global benchmark, and made for a lively return from a four-day Easter break for European markets. [O/R]

European oil and gas shares jumped more than 2%, with BP Plc and Royal Dutch Shell Plc lifting the FTSE 100 index to six-month highs, while the FTSEurofirst 300 Index <.FTEU3) of leading regional shares hit eight-month highs.

The main U.S. indexes hovered below record highs as strong results from Coca-Cola Co, Twitter Inc and a host of industrial companies allayed concerns about the earnings outlook.

The government shutdown earlier this year weakened the economy and corporate growth but since March companies have done extraordinarily well and growth continues strong, said George Boyan, president of Leumi Investment Services in New York.

“We remain overweight (in equities) and any type of pullback we would view as an opportunity to add equity exposure,” Boyan said. “We’ve enjoyed quite a run but there’s nothing to causes me to want to take off exposure at this point.”

Twitter surged 16.5%, its biggest single-day jump since October 2017, after posting better-than-expected quarterly revenue and a surprising rise in monthly active users.

Coca-Cola rose 2.6% after its quarterly sales beat estimates.

The Dow Jones Industrial Average rose 70.32 points, or 0.27%, to 26,581.37. The S&P 500 gained 13.96 points, or 0.48%, to 2,921.93 and the Nasdaq Composite added 55.96 points, or 0.7%,

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‘I did not expect us to be at all-time highs by April’, says Morgan Stanley’s Wilson as stock market pops

Stocks in 2019 have thus far befuddled Michael Wilson.

The star Morgan Stanley strategist who accurately predicted the 2018 correction appeared to be adopting a more bullish tilt as his calls for a “rolling-bear market” this year have so far failed to pan out.

“I did not expect us to be at all time highs by April,” Wilson, the firm’s chief U.S. equity strategist, told CNBC during a Tuesday afternoon interview as the S&P 500 index SPX, +0.84% and the Nasdaq Composite Index COMP, +1.24% both punched above their closing highs in intraday action, and the Dow Jones Industrial DJIA, +0.50% wasn’t far behind.

The pace of gains even had Wilson suggesting that the S&P 500 is poised to top another milestone in relatively short order. “We’re probably going to 3,000 in the next couple of weeks,” Wilson said.

To some observers, it might sound as if the prominent market bear is throwing in the proverbial towel.

He has maintained a leaning toward pessimism for much of the year, making the case that equity markets were too richly priced and noting that “risk-reward remains unattractive.” As recently as early April, he said that he was struggling to find a good entry point into a market that defied some downbeat predictions for a corrective pullback and was maintaining his year-end target for the S&P 500 at 2,750. Wilson is hardly alone.

Both the breadth and the consistent degree by which equity indexes have managed to climb have surprised many on Wall Street.

Since the three main indexes put in their lows on Dec. 24, the Nasdaq has climbed 31%, the Dow has gained 22.4%, while the S&P 500 has gained nearly 25%. Notable, is the fact that the burden of the move thus far in 2019 has been equally shouldered by

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Why is gold trading near a 4-month low?

Gold for June delivery GCM9, -0.24%  declined $6.30, or 0.5%, to trade at $1,271.30 an ounce, setting the commodity up for the lowest most-active contract settlement since late December, according to FactSet data.

“The safe-haven metals continue to be hamstrung by not much risk aversion in the world marketplace and by a strong U.S. dollar on the foreign exchange market,” said Jim Wyckoff, senior analyst at Kitco.com.

The moves come as the ICE U.S. Dollar Index DXY, +0.38% a key gauge of the greenback against six major rivals, was up 0.5% at 97.793, the highest level for the dollar index since June of 2017, according to FactSet data. A stronger U.S. unit can make buying the buck-pegged commodity comparatively more expensive for investors using other currencies.

Prices for gold had edged higher Monday. Gains in crude-oil prices raised “concerns about problematic inflation, as well as economic growth concerns,” Wyckoff said in a daily update. “Oil’s surge this week is mainly due to the U.S. not renewing waivers it had given to some countries on sanctioned Iranian crude oil imports. And with oil being arguably the leader of the raw commodity sector, crude’s rally should at least be limiting selling interest in the metals.” Gold is often used an a hedge against inflation.

Gold lost 1.5% for the holiday-shortened stretch last week, with financial markets closed for Good Friday and many markets in Europe closed then and for Easter Monday. Gold, in fact, marked its fourth weekly loss in a row, with a jump in U.S. retail figures providing support for the dollar and dulling the appeal of the precious metal. A climb near records for the S&P 500 index SPX, +0.87% the Dow Jones Industrial Average DJIA, +0.62% and the Nasdaq Composite IndexCOMP, +1.19% also has highlighted growing appetite for assets perceived as risky and away from safe investments.

Meanwhile, the SPDR Gold Shares ETF GLD, -0.22%  edged

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A Look A Global Markets: 04-23-19

Market Overview US Stocks End On Mixed Data

Dollar Declines As Existing Homes Sales Fall

US stock market edged higher on Monday on mixed data after reopening following Easter Holiday. The added 0.1% to 2907.97 as the Chicago Fed index rose to negative 0.15 in March from negative 0.31 in February. however dipped 0.2% to 26511.05 dragged by 1.3% drop in Boeing (NYSE:) on reports of lax production oversight of 787 Dreamliner planes. The rose 0.2% to six-month high 8015.27. The weakening persisted as existing homes sales declined 4.9% over month in March. The live dollar index data show the ICE (NYSE:) US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, edged down 0.05% to 97.29 but is higher currently. Futures on US stock indexes point to mixed openings today.

Futures On European Indices Show Mixed Openings After Easter Holidays

Markets in Europe will reopen today after Easter holidays. Futures on stock indices point to mixed openings. continued declining while the ’s climbing endured yesterday with both pairs reversing directions currently. Today euro-zone government debt-to-GDP and numbers will be released at 11:00 CET and 16:00 CET respectively as companies continue reporting quarterly results.

Australia’s All Ordinaries Index Leads Asian Gains

Asian stock indices are mixed today. extended gains 0.2% to 22259.74 despite yen’s climb against the dollar. Markets in China are lower: the is down 0.5% and Hong Kong’s is 0.2% lower. Australia’s index on the other hand rose 1.0% as accelerated slide against the greenback.

AUD/USD

Brent Up

prices are extending gains today. Prices jumped yesterday after US confirmed will end all waivers on imports of Iranian oil: June Brent crude rallied 2.9% to $74.04 a barrel on Monday.

Disclaimer: Fulfilling trading operations under

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Bill Gates backed 'vegan meat' company files for $1.2bn stock market listing

Beyond Meat, the manufacturers of plant-based meat substitutes, has filed for an initial public offering in New York.

The Los Angeles-based company which makes vegan burgers, sausages and chicken plans to raise $184m (£142m) in the flotation on the Nasdaq.

Its product line, which is available at Whole Foods and Tesco, has a number of high profile  investors including Bill Gates and Leonardo DiCaprio. 

The news comes after Beyond Meat filed initial paperwork with US regulators to take the company public last November.    

Riding a wave of growing popularity of meat free products, the company has seen significant growth since its creation a decade ago. 

Valued at over $1.2bn, it is worth roughly…

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3 Transportation ETFs on the Move in 2019

The Dow Jones Transportation Average is outpacing the Dow Jones Industrial Average by about 4 percent thus far in 2019. The strength of the average, composed of primarily 20 airline, rail and trucking stocks, is showing itself in exchange-traded funds (ETFs) that track the transportation sector.

The index is getting help from strong earnings results from the likes of  Kansas City Southern, CSX and United Continental. From a technical standpoint, analysts are liking what they see.

“I think the risk/reward setup right here is very favorable,” said MKM Partners’ JC O’Hara during a “Trading Nation” segment on CNBC. “If we look at the Dow Jones Industrial Transport index, you know we’ve seen over the last few months that this pattern has been a bullish accumulation pattern taking the shape of an inverse head and shoulders and we’re actually breaking out of that pattern today.”

Here are three ETFs that are moving in the transportation sector:

iShares Transportation Average ETF (NYSEArca: IYT)–up 13.85 percent YTD: seeks to track the investment results of the Dow Jones Transportation Average Index composed of U.S. equities in the transportation sector. The underlying index measures the performance of large, well-known companies within the transportation sector of the U.S. equity market. SPDR S&P Transportation ETF (NYSEArca: XTN)–up 13.33 percent: seeks to provide investment results that correspond generally to the total return performance of an index derived from the transportation segment of a U.S. total market composite index. The index represents the transportation segment of the S&P Total Market Index (“S&P TMI”). Direxion Daily Transportation Bull 3X Shares (NYSEArca: TPOR)–up 42.58 percent YTD: seeks daily investment results equal to 300 percent of the daily performance of the Dow Jones Transportation Average. The index measures the performance of large, well-known companies within the transportation industry.

The transportation index is

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