Trading Ideas

Shares in Cisco Systems Inc. (CSCO) rose after its third-quarter profit topped market expectations as work-at-home orders drove demand for its tools and virtual networking products. The stock appreciated 2.3% to $42.93 in pre-market trading on Thursday.In the third quarter ended April 25, earnings per share, excluding items, stood at 79 cents exceeding analyst expectations of 69 cents. Total revenue in the reported quarter dropped 8% to $12 billion year-on-year which is slightly higher than the analysts’ average estimate of $11.7 billion.”The pandemic has driven organizations across the globe to digitize their operations and support remote workforces at a faster …read more […]

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Nokia, which axed its dividend after a profit warning in October to preserve cash, is battling with China’s Huawei [HWT.UL] and Sweden’s Ericsson in the race to build next-generation 5G networks. “We are pleased to have pre-financed our 2021 and 2022 maturities in-line with our prudent capital structure management,” Chief Financial Officer Kristian Pullola said in a statement. Nokia said it accepted 66% of notes tendered and 350 million euros of its March 2021 notes would remain outstanding after settlement of the offer. …read more […]

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Royal Caribbean Cruises (RCL) is planning to raise $3.3 billion from a bond sale as the ailing cruise operator struggles with the financial fallout of the coronavirus-related travel restrictions which brought its operations to an almost complete halt.The embattled cruise operator is offering series of notes due 2023 and 2025, which will be secured by 28 of the company’s vessels, it said in a SEC filing. The proceeds of the $3.3 billion secured note issuance will be used to refinance the cruise operator’s existing $2.4 billion 364-day secured facility that matures in March 2021 with the balance being held for …read more […]

(Bloomberg) — U.S. and European stock futures slid along with Asian benchmarks on Thursday after Federal Reserve Chair Jerome Powell warned about economic risks and big-name investors fueled doubts about valuations. Treasuries climbed and the dollar edged up, as did the yen. Powell said the threat of a lasting downturn could deepen without additional government spending — something not on the immediate horizon amid a divided Congress. The Australian dollar fell after data showed a record plunge of over half a million jobs in April. Crude oil ticked up, taking back some of Wednesday’s drop.The rally in global equities from …read more […]

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(Bloomberg) — Wirecard AG said it still expects full-year earnings to rise, even as some business customers struggle with the lockdown.Earnings before interest, taxes, depreciation and amortization will be 1 billion euros ($1.1 billion) to 1.2 billion euros in 2020, the company said in its preliminary first-quarter earnings statement on Thursday. Adjusted first-quarter ebitda rose 29% to about 204 million euros.The German payment processor didn’t further address an inconclusive audit by KPMG released last month that was meant to clear the company of accusations about its accounting practices. Chief Executive Officer Markus Braun has dismissed calls to step down instead …read more […]

For weeks, hopes that massive stimulus from the Federal Reserve and U.S. government would set the stage for a recovery later in the year fueled a blistering rebound in stocks even as the worst drop-off in jobs since the Great Depression slammed the economy. After surging over 30% in just over a month, the S&P 500 benchmark stock index has edged down about 4% since late April. In contrast, bond funds have notched inflows for four consecutive weeks, drawing nearly $47 billion, the bank said. …read more […]

(Bloomberg) — Oil was anchored near $25 a barrel as investors weighed cuts to supply by major producers such as Saudi Arabia against lingering concerns over the pace of recovery from virus-led demand destruction.Saudi Aramco reduced contractual supplies to at least 12 customers in Asia for June, according to traders notified by the company, as OPEC and its allies cut daily output by almost 10 million barrels. While there are early signs of a recovery in the U.S. energy sector, the Federal Reserve said the threat of a lasting downturn could deepen without additional government spending.OPEC also presented a bleak …read more […]

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(Bloomberg) — China was seen to drain liquidity from the banking system even as lenders come under pressure to handle higher demand for funds.The People’s Bank of China probably allowed 200 billion yuan ($28 billion) of its one-year lending facility to mature on Thursday, with no statement on the operation as of 11:38 a.m. local time. Analysts had expected the central bank to roll over at least some of the funds and cut the cost of the loans from the current rate of 2.95%. The PBOC typically releases a statement on MLF operations by 9:45 a.m.The central bank also refrained …read more […]

Oil prices crept up on Thursday, supported by a surprise decline of U.S. crude inventories, but gains were capped by worries that a potential second wave of the coronavirus pandemic might trigger fresh lockdowns and slam fuel demand once again. U.S. West Texas Intermediate (WTI) crude futures were up 8 cents, or 0.3%, to $25.37 a barrel. Crude stocks in the United States had billowed since mid-January on falling fuel demand around the world as a result of the pandemic. …read more […]

The market has proven itself difficult to predict at the best of times, yet the sustained rally since mid-March has left many perplexed. As the bad news on Main Street has kept piling up, Wall Street has nonchalantly marched on, seemingly oblivious to the pandemic’s destructive effect and buoyed by the stimulus measures.But perplexing market moves are nothing new. Which brings us to Roku (ROKU). The OTT leader delivered a solid quarterly report last week, and promptly tanked in the market, as shares dropped by 8% in Friday’s session.At first glance, this may seem odd. Roku reported revenue of $321 …read more […]