The indices continue to climb higher and here are some stocks that made some interesting moves today
Carnival Corp CCL collapses and with it other cruise stocks
Cruise stocks made a huge move in the last few days on news that the CDC had ended its Covid-19 program for cruise ships, allowing cruise lines to set their own policies regarding vaccination, testing, and other requirements. Carnival stock was back at the resistance point yesterday.
But then Carnival said that it would sell $1 billion of new stock just months after raising $1 billion dollars by selling bonds. The stock sold off sharply.
Cruise companies are under tremendous debt and should be avoided at all costs. That was my recommendation even when these stocks were rallying.
Snap collapses 25%
One should never buy the stock ahead of earnings. Snap recovered with the market over the last 3 days but today after hours post earnings, the stock is down 25% and trading near $12 🙁
The company posted lower sales growth and a $422 million net loss for the second quarter and also said it would “substantially” reduce its rate of hiring.
AT&T dives – wipes out the Technical Bullish structure
AT&T was one stock that did well in 1H CY2022, especially after becoming a standalone Telecom company. The stock Gapped up and sustained that Gap till yesterday. Today the company shocked the market with its earnings report and guided for lower FCF. The reaction was bad and instant.
When you buy a stock for dividend growth, the last thing you want to hear is lower free cash flow guidance. The stock’s dividend yield continues to be attractive and hence at lower levels, the stock would find support but the upside might remain limited. AT&T earlier this year cut its annual dividend by 46% to $1.11 per share because of the WarnerMedia spinoff. The dividend lovers can buy the stock near 17.
One Trade that always works: AMD
One strategy that never fails: “Buy AMD at support”. AMD was at $73 around early July and I recommended it back then. The stock did not disappoint and now trades at $91. It’s up 24%
AMD is expected to report earnings on Aug. 2.
SHOPIFY exhibits leadership
Shopify stock was right at the support base of $30 and thanks to rise in the market and partnership with YouTube to boost influencer sales, the stock has rallied 30% this month. I avoided recommending the stock due to earnings ahead on July 27.
Will Nokia finally run? I am buying it
I like when stocks Gap up on strong earnings reports. Nokia stock did just that today
The company reported an 11% increase in second-quarter sales to 5.9 billion euros, compared with a year earlier. Profit rose 31% to €460 million.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purposes. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers
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