Earnings for the third quarter are expected to have risen 8%
Well into the earnings season, earnings for the third quarter are expected to have risen 8% compared with estimates of a 5.9% rise as forecast in October. More than 400 of the S+P 500 companies have reported already. Healthcare stocks rallied on robust earnings with all three major U.S. indexes hitting record levels in early trade on Tuesday. Valeant Pharma rose 14.2% due to strength in its eye-care Bausch + Lomb business as profits beat Wall Street estimates. Mylan, the drug maker, rose 2% after raising its yearly forecast. Eight of the 11 major S&P sectors were higher, with the health index's 0.34 percent rise leading the advances. In addition to the strong earnings reports showing an improving economy, the markets are also buoyed by President Trump’s promise to cut taxes. A bill for the tax plan was introduced in the House last week and Republicans are negotiating the plan which if passed, will be the biggest overhaul of the Tax system since the 80’s.
Saudi Arabia freezes more accounts taking control of about $33 Billion
Saudi Arabia freezes more accounts taking control of about $33 Billion. On Tuesday the Saudi’s expanded their anti-corruption crackdown ordering banks to freeze the accounts of dozens of individuals who aren’t under arrest. It has been reported that the Saudi Monetary Authority has sent a list of hundreds of names to banks, instructing them to freeze all accounts linked to the list. The Saudi attorney general said in a statement released Monday that weekend arrests of princes, businessmen and officials were only “phase one” of the anti-corruption drive. President Trump tweeted his support for the actions taken by King Salman and Crown Prince Mohammed Bin Salman saying that “they know what they are doing”. Oil prices continued to rally, trading at the highest level seen since 2015, due to the political upheaval in the major crude exporter the Saudi Kingdom and already supported by tightening supplies due to the OPEC production cut agreement.
Snapchat shares plunged 20%
Snapchat (SNAP) shares plunged 20% in afterhours trading on Tuesday bringing the price to $12.65 following their earnings report which fell short of financial expectations. Snap earned $207.9 million in revenue with a loss of $0.14 per share, compared to expectations of a $237 million in revenue and a loss of $0.15 EPS. The 178 million total daily users equates to a 2.9 percent quarter-over-quarter user growth rate, its lowest ever, and much slower than the 4.2 percent in Q2 and 5 percent in Q1. Analysts had expected 180 million users. Snap lost a staggering $443 million this quarter as it struggles to improve its efficiency while growing its advertising base. The company took a $40 million charge on unsold Spectacles hardware, confirming reports of them selling worse than the company expected. The company announced that it is planning to redesign the messaging application to make it easier to use after facing several consecutive quarters of anemic user growth. Evan Spiegel, the company CEO said that the goal is to make it easier to discover content on the social network and also to create more opportunities for content creators to make money.
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Market Events 08.11.2017
EU: Trade balance (Jan)
USA: The number of drilling rigs from Baker Hughes
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