What Stock Market Investors Should Look For Before Investing in an ICO
(MoneyNewsWire.Net, April 29, 2018 ) Hollywood, CA -- After four years, the rate on the 10-Year U.S Treasury note has shown a climb of 2.99% - an increase that has made turbulence in the stock prices in return.
The yield has affected the growth tech investors which are known to be FANG stocks in a negative way. FANG is an acronym for Facebook, Amazon, Netflix, and Alphabet (previously known as Google). It has been reported that about $86.6 billion in stock value was lost last Tuesday. The stocks experienced a range of 3.7 % - 4.8% drop, with Alphabet being the biggest loser. The reason behind the Alphabet’s decline is the lowered profit margin projections by a Wall Street analyst primarily due to the company’s cloud computing investment plans. In addition, big names such as Amazon (AMZN.O) were at -0.6 % and Microsoft (MSFT.O) remained in flat line.
Aside from the tech investors, some of known equity markets received their fair share of turbulence. Dow Jones Industrial (.DJI) fell 14.25 points to 24,448.89, Nasdaq Composite (.IXIC) was down by 17.53 points to 7,128.60, and S&P 500 (.SPX) has closed flat at 2,670.29. Caterpillar Inc. (CAT) was one who experienced a favorable gain on the onset but it fell at 6.4% with the early comment of a Caterpillar Chief Financial officer Brad Halverson pertaining to the company’s first-quarter profit “will be the high-water mark for the year”. It greatly affected the stock market for Caterpillar and the downfall suggests that investors are sensitive to comments that may suggest a slide in the earnings of a certain entity.
With the great loss of some comes the benefit of others. While major markets suffered, there are still stocks that defy the odds and gained from the yield. Brent (LCOcv1) got $74.05 while U.S. Crude (CLCV1) moved up which makes it $67.92 per barrel.
The ups and downs in the stock markets may seem inevitable with the current yield. Some stock strategists and expert such as Chad Leat are looking into where the yield goes after the 3%. A fast move will result in the negativity in stocks. The Chief Equity and Derivatives Strategist at BTIG, Julian Emanuel, said that there’s one case that could put the stocks at risk. It is when the rates continue to rise and the curve for yields flatten at the same time. If the flattening stays, the economy could weaken and it may suggest an inverted curve that has been long a reliable recession signal. It can be remembered that America suffered a painful recession last 2008. One question arises, will history repeat itself?
About Chad Leat
Chad A. Leat is a retired Vice Chairman of Global Banking at Citigroup who has nearly 30 years of markets and banking experience on Wall Street.
Contact Person: Chad Leat
Contact Email: joel@optikal.com
Business Address: 1680 N. Vine St #905 Hollywood, Ca. 90028
