Today’s Market Wrap Up and a Glimpse Into Wednesday

A winning streak on Wall Street came to a screeching halt today after all three of the major indices finished in the red. The Dow Jones Industrial Average, S&P 500 and Nasdaq all ended the day lower after Monday’s record session.

The Nasdaq fell more than 1% as tech stocks tumbled. Investors appear to be taking some profits after five days of gains.

Technology leaders reported their earnings after the closing bell, including Google parent Alphabet, Microsoft and Apple. All three companies shined in different areas, while revenues were strong all around.

Durable Goods orders for items such as vehicles and appliances increased last month, the latest data show, in yet another sign that the economic recovery is in full swing. Supply-chain constraints continue to be a problem, however.

The results buoyed General Electric shares, which climbed 1% higher. GE also reported Q2 earnings, and its aviation division is poised to benefit from a rebound in the travel industry.

The FOMC began a two-day meeting today. And while inflation will no doubt be at the center of the discussions, economists are not expecting any surprises. Stock index futures are under pressure, with the Dow Jones, S&P 500 and Nasdaq all moving lower. Dow futures are down nearly 100 points on Tuesday evening.

Stocks to Watch

  • Apple’s earnings were better than expected, while iPhone sales increased 50% vs. year-ago levels to USD 39.6 billion. The stock is down more than 1% in extended-hours trading as investors worry if Apple can keep the good times rolling, especially in light of chip supply issues.
  • Microsoft just flipped green in after-hours trading with the stock up 1%. The company outperformed analyst estimates on the top and bottom lines. Fourth-quarter revenues soared more than 20% to USD 46.2 billion. Microsoft has a market cap of USD 2.15 trillion.
  • Google parent Alphabet far exceeded Wall Street estimates and benefited from robust online advertising sales.

Look Ahead

The earnings parade is far from over, with Facebook, PayPal, McDonald’s and more all on tap for Wednesday. In addition, Dow stock Boeing will unveil its Q2 results before the opening bell. The company is widely expected to report a loss as it continues to grapple with 787 jet airliner setbacks.

Google Parent Alphabet Leaves Wall Street Analysts in the Dust

Investors were skittish ahead of earnings out of big tech companies. All eyes have been on technology earnings, as the sector has been helping to fuel the market higher and investors want to know if it can last.

Google parent Alphabet has just reported its Q2 results, and the tech giant didn’t disappoint. After the stock fell 2% in the regular session, shares are up approximately 3% in extended-hours trading.

Beat the Street

Investors are celebrating Alphabet for beating estimates on the top and bottom lines. The company reported EPS of USD 27.26 vs. estimates of USD 19.34. Meanwhile, revenue came in at USD 61.88 billion while Wall Street analysts were calling for about USD 56 billion.  With a massive market cap of USD 1.79 trillion, Google/Alphabet is growing at a pace that is akin to a tech unicorn.

Google and Alphabet CFO Ruth Porat stated:

“Our strong second-quarter revenues of USD 61.9 billion reflect elevated consumer online activity and broad-based strength in advertiser spend.” 

Ad Revenue Race Is On

Online advertising is booming as businesses spend on internet ads with a vengeance now that the economy has officially reopened. Companies like Snap Inc. already reported robust ad revenue for Q2, teeing up Alphabet to take the baton. Now the race is on.

Google’s online ad revenue soared nearly 70% in Q2 vs. year-ago levels to USD 50.4 billion. YouTube’s ad revenue alone came in at USD 7 billion, soaring 84% YoY and topping Wall Street estimates.

Google Cloud revenue came in at USD 4.63 billion, also better than expected. Google has been investing in artificial intelligence and the cloud. Alphabet also recently got the green light for a USD 50 billion share repurchase program of Class A and Class C shares.

If tech stocks continue to work their magic, they could potentially carry the market higher on Wednesday and beyond.

The gains in Alphabet’s shares come on the heels of a bullish performance in which the stock has advanced 50% so far this year. Meanwhile, tech giants Microsoft and Apple also reported earnings after the bell, but both stocks are moving lower in after-hours trading.

Investors might want to take note that the strong online ad sales market is expected to persist. GroupM is reportedly predicting global ad sales will be USD 749 billion in 2021, up by a double-digit percentage vs. year-ago levels. Tech stocks such as Alphabet could potentially continue to benefit from this trend.

Today’s Market Wrap Up and a Glimpse Into Tuesday

Stocks started off the week strong, with all three of the major indices finishing at all-time highs. The gains are an extension of last week’s rally and demonstrate a vote of confidence among investors in corporate America’s earnings results. While the Dow Jones Industrial Average, S&P 500 and Nasdaq were up just fractionally, it was enough to send them all into record territory.

In the cryptocurrency markets, the bitcoin price crossed the USD 40,000 level for the first time in over a month, but the gains slowly faded away. Reports previously suggested that Amazon.com was on the brink of accepting bitcoin payments this year. The e-commerce giant, however, reportedly quashed those rumors despite maintaining that it is looking into crypto.

Stocks to Watch

Tesla’s highly anticipated Q2 earnings are out, and Elon Musk didn’t disappoint. The EV maker surpassed Wall Street estimates on earnings and revenue as Tesla continues to hit on all cylinders. Net income crossed over into the billion-dollar territory, which was a first for the company, while revenue came in at USD 11.9 billion vs. estimates of USD 11.3 billion.

Tesla, which delivered more than 200K vehicles in Q2, said it’s on track to produce its Model Y vehicles in Berlin and Austin, Texas this year. The Cybertruck will also be produced in Austin, Texas “subsequent to Model Y.”

Tesla’s stock is inching higher in extended-hours trading after gaining 2% in the regular session. Tesla also noted it “recorded a bitcoin-related impairment of USD 23 million.” The bitcoin price nosedived 40% in the second quarter of 2021.

F5 Networks is rallying in after-hours trading, with shares up more than 5%. Investors rewarded the technology company for its fiscal Q3 results, which came in better than Wall Street expected.

Cryptocurrency exchange Coinbase saw shares fall close to 2% in extended hours, perhaps in sympathy with bitcoin after the air was let out of the Amazon-fueled rally.

Look Ahead

Major technology companies are queued to report earnings on Tuesday, including Apple, Google parent Alphabet and Microsoft. Snap and Twitter’s quarterly results last week revealed a strong online advertising market that is likely to have benefited Alphabet as well.

On the economic front, Durable Good Orders for the month of June come out at 10 a.m. ET on Tuesday. Wells Fargo economists predict that this indicator increased 2.3% last month fueled in part by orders for Boeing aircraft.

EU Gives Google 2 Months to Improve Hotel, Flight Search Results

By Foo Yun Chee

The world’s most popular internet search engine has long faced scrutiny from antitrust enforcers and consumer groups around the world over its business practices, which in some cases have landed it with hefty fines.

The latest grievance centres on the prices of its services Google Flights and Google Hotels.

The final prices for these should include fees or taxes that can be calculated in advance, while reference prices used to calculate promoted discounts should be clearly identifiable, the EU executive and national consumer watchdogs, led by the Dutch agency and the Belgian Directorate General for Economic Inspection, said in a joint statement.

“EU consumers cannot be misled when using search engines to plan their holidays. We need to empower consumers to make their choices based on transparent and unbiased information,” EU Justice Commissioner Didier Reynders said.

The agencies also told Google to revise the standard terms of its Google Store because some cases showed that traders have more rights than consumers.

If Google’s proposals are not sufficient, the agencies will discuss the issue further with the company and may impose sanctions.

Google said in a statement: “We welcome this dialogue and are working closely with consumer protection agencies and the European Commission to see how we can make improvements that will be good for our users and provide even more transparency.”

(Reporting by Foo Yun Chee; editing by Barbara Lewis)

Alphabet Could Scale to Fresh Record High on Upbeat Q2 Earnings; Target Price $3,000

The parent of Google and the world’s largest search engine that dominates internet search activity globally, Alphabet, is expected to report its second-quarter earnings of $19.33 per share, which represents year-over-year growth of about 90% from $10.13 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 45% to around $56.16 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 43% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Alphabet shares surged more than 50% so far this year. On Friday, the stock closed at a fresh record high at $2,660.30, up 3.57%.

Analyst Comments

Alphabet dominates the online search market with Google’s global share above 80%, via which it generates strong revenue growth and cash flow. We expect continuing growth in the firm’s cash flow, as we remain confident that Google will maintain its leadership in the search market. We foresee YouTube contributing more to the firm’s top and bottom lines, and we view investments of some of that cash in moonshots as attractive. Whether they will generate positive returns remains to be seen, but they do present significant upside,” noted Ali Mogharabi, Senior Equity Analyst at Morningstar.

“Our fair value estimate is $2,925 per share, equivalent to a 2021 enterprise value/EBITDA ratio of 21. We expect revenue growth to accelerate in 2021 as the economy recovers from the COVID-19 pandemic, helped by greater revenue contribution from YouTube and cloud and the acquisition of Fitbit. While new offerings will pressure gross margin, we look for operating leverage improvement during the next five years. Our model represents a five-year compound annual growth rate of nearly 19% for total revenue and a five-year average operating margin of 26%.”

Alphabet Stock Price Forecast

Eleven analysts who offered stock ratings for Alphabet in the last three months forecast the average price in 12 months of $2,743.00 with a high forecast of $2,900.00 and a low forecast of $2,510.00. The average price target represents a -0.48% change from the last price of $2,756.32. All of those 11 analysts rated “Buy”, none rated “Hold” or “Sell”, according to Tipranks.

Morgan Stanley gave the stock price forecast of $2,575 with a high of $3,060 under a bull scenario and $1,800 under the worst-case scenario. The firm gave an “Overweight” rating on the internet giant’s stock.

Google Websites growth is likely to rebound in ’21 as we believe there are several underappreciated products driven by mobile search, strong YouTube contribution, and continued innovation, such as Maps monetization. Continued expense discipline leads to operating leverage and upward revisions on EPS estimates,” noted Brian Nowak, equity analyst at Morgan Stanley.

Several other analysts have also updated their stock outlook. Alphabet had its price objective hoisted by stock analysts at Credit Suisse to $3,350 from $2,755. The brokerage currently has an “outperform” rating on the information services provider’s stock.

Barclays boosted their target price to $3,000 from $2,500 and gave the stock an “overweight” rating. Susquehanna Bancshares lifted their price target to $3,100 from $3,000 and gave the stock a “positive” rating.

Check out FX Empire’s earnings calendar

Monstrous Earnings Week Ahead: Tesla, Google, Microsoft, Apple, Facebook and Amazon in Focus

Earnings Calendar For The Week Of July 26

Monday (July 26)

IN THE SPOTLIGHT: TESLA, LOCKHEED MARTIN

TESLA: The California-based electric vehicle and clean energy company is expected to report its second-quarter earnings of $0.94 per share, which represents year-over-year growth of over 113% from $0.44 per share seen in the same quarter a year ago.

The high-performance electric vehicle manufacturer would post revenue growth of about 90% to around $11.4 billion. The electric vehicle producer has beaten earnings three times in the last four quarters.

“A double-fly-wheel. We believe Tesla can leverage its cost leadership in EVs to aggressively expand its user base, over time generating a higher % of revenue from recurring/high-margin services revenue. Services drives the upside. We forecast Tesla’s network services EBITDA as a % of total TSLA EBITDA to reach 11% by 2025, ~18% by 2030 and ~35% by 2040. Tesla Service revenue includes automated driving, infotainment, upgrades, supercharging, maintenance, telematics, etc,” noted Adam Jonas, equity analyst at Morgan Stanley.

“Valuation supportive vs. tech. Including Network Services, Energy & Insurance to our core auto fcst, at $900 Tesla trades at ~29x EV/EBITDA in 2025 and ~6x 2025 sales. Expensive vs. auto but not vs. software/tech comps.”

LOCKHEED MARTIN: The Bethesda, Maryland-based global security and aerospace company is expected to report its second-quarter earnings of $6.53 per share, which represents year-over-year growth of about 13% from $5.79 per share seen in the same quarter a year ago.

The world’s largest defense contractor would post revenue growth of over 4% to around $16.9 billion. It is worth noting that the aerospace company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 26

Ticker Company EPS Forecast
PSON Pearson £8.40
LMT Lockheed Martin $6.53
PHG Koninklijke Philips $0.47
CHKP Check Point Software Technologies $1.56
LII Lennox International $4.39
RPM RPM International $1.26
BOH Bank of Hawaii $1.31
DORM Dorman Products $1.04
TSLA Tesla $0.94
KOF Coca Cola Femsa Sab De Cv $14.53
ARE Alexandria Real Estate Equities $0.62
AMP Ameriprise Financial $5.20
SUI Sun Communities $0.57
BRO Brown & Brown $0.40
UHS Universal Health Services $2.69
PKG Packaging Of America $1.77
FFIV F5 Networks $2.46
AGNC American Capital Agency $0.65
ACC American Campus Communities -$0.07
AMKR Amkor Technology $0.45
CR Crane $1.39
ADC Agree Realty $0.47
SSD Simpson Manufacturing $1.61
AXTA Axalta Coating Systems $0.46
TNET TriNet $0.81
HXL Hexcel $0.01
RRC Range Resources $0.25
PCH Potlatch $2.55
JJSF J&J Snack Foods $0.76
IBTX Independent Bank $1.31
CATY Cathay General Bancorp $0.83
AIN Albany International $0.73
CALX Calix $0.27
IBA Industrias Bachoco Sab De Cv $1.22
ARI Apollo Commercial Real Est Finance $0.36
PPERY PT Bank Mandiri Persero TBK $0.18
CDNS Cadence Design Systems $0.76
OTIS Otis Worldwide Corp $0.72
RYAAY Ryanair -$1.46
HAS Hasbro $0.48
WWD Woodward $0.98
ACKAY Arcelik ADR $0.46
GT Goodyear Tire & Rubber $0.16
TTM Tata Motors -$0.31
CBU Community Bank System $0.80
SANM Sanmina $0.91
BDN Brandywine Realty $0.01
FRME First Merchants $0.91

Tuesday (July 27)

IN THE SPOTLIGHT: GOOGLE (ALPHABET), MICROSOFT, APPLE

GOOGLE (ALPHABET): The parent of Google and the world’s largest search engine that dominates internet search activity globally is expected to report its second-quarter earnings of $19.33 per share, which represents year-over-year growth of about 90% from $10.13 per share seen in the same quarter a year ago.

The Mountain View, California-based internet giant would post revenue growth of more than 45% to around $56.16 billion. It is worth noting that the company, on average, has delivered an earnings surprise of over 43% in the last four quarters.

Alphabet’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Alphabet shares surged more than 50% so far this year. On Friday, the stock closed at a fresh record high at $2,660.30, up 3.57%.

MICROSOFT: The Redmond, Washington-based global technology giant would report its fiscal fourth-quarter earnings of $1.91 per share, which represents year-over-year growth of over 30% from $1.46 per share seen in the same quarter a year ago. The world’s largest software maker would post revenue growth of over 15% to around $44.1 billion, up from the $38.03 billion a year earlier.

“Channel work and our CIO survey point to building momentum across the Cloud, Hybrid and On-premise portfolio, which should power a solid Q4. While investors seek reassurances margin expansion continues into FY22, our model suggests durable high-teens EPS growth and upside in the shares,” noted Keith Weiss, equity analyst at Morgan Stanley.

Microsoft’s better-than-expected results, which will be announced on Tuesday, July 27, would help the stock hit new all-time highs. Microsoft shares have surged more than 30% so far this year.

APPLE: The consumer electronics giant would post its fiscal third-quarter earnings of $1.01 per share, which represents year-over-year growth of over 55% from $0.65 per share seen in the same quarter a year ago.

The iPhone manufacturer would post revenue growth of over 20% to around $73.3 billion up from $59.69 billion a year earlier. It is worth noting that the company has beaten earnings in all last eight quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 27

Ticker Company EPS Forecast
SIRI Sirius XM $0.07
IEX IDEX $1.62
PCAR PACCAR $1.40
MMM 3M $2.29
MSCI Msci $2.31
ENPH Enphase Energy $0.42
LSXMK Liberty Media SiriusXM C $0.36
LSXMA Liberty Media SiriusXM A $0.48
CVLT Commvault Systems $0.52
LOGI Logitech Internationalusa $0.90
MXIM Maxim Integrated Products $0.85
ST Sensata Technologies $0.88
CNC Centene $1.22
UPS United Parcel Service $2.79
TRU TransUnion $0.91
SHW Sherwin-Williams $2.67
IVZ Invesco $0.70
FELE Franklin Electric $0.80
LW Lamb Weston Holdings Inc $0.42
IQV IQVIA Holdings Inc $2.07
RTX Raytheon Technologies Corp $0.93
ENTG Entegris $0.79
LECO Lincoln Electric $1.48
FISV Fiserv $1.28
DTE DTE Energy $1.36
GE General Electric $0.03
ROK Rockwell Automation $2.09
WM Waste Management $1.19
SWK Stanley Black & Decker $2.88
ADM Archer-Daniels Midland $1.02
HUBB Hubbell $2.16
PNR Pentair Ordinary Share $0.79
BSX Boston Scientific $0.37
ECL Ecolab $1.21
PPBI Pacific Premier Bancorp $0.71
GPK Graphic Packaging $0.28
PHM PulteGroup $1.73
AWI Armstrong World Industries $1.05
RGEN Repligen $0.52
SFNC Simmons First National $0.52
SSTK Shutterstock $0.68
ABG Asbury Automotive $4.60
MPWR Monolithic Power Systems $1.69
CHRW C.H. Robinson Worldwide $1.33
MANH Manhattan Associates $0.43
GOOG Alphabet $19.33
CB Chubb $3.00
AMD Advanced Micro Devices $0.54
PGRE Paramount Group -$0.05
SBUX Starbucks $0.77
CAKE Cheesecake Factory $0.72
EGP EastGroup Properties $0.67
AXS Axis Capital $1.42
WSBC WesBanco $0.75
HIW Highwoods Properties $0.33
STAG STAG Industrial $0.12
VIST Vista Oil Gas $0.15
NAVI Navient $0.85
EHC Encompass Health Corp $0.98
OMAB Grupo Aeroportuario Del Centro Nort $11.31
NOV National Oilwell Varco -$0.13
V Visa $1.34
GOOGL Alphabet $19.24
BXP Boston Properties $0.57
AAT American Assets $0.11
MSFT Microsoft $1.91
JNPR Juniper Networks $0.39
BYD Boyd Gaming $0.90
MASI Masimo $0.90
MTDR Matador Resources $0.75
CSGP CoStar $0.23
FIBK First Interstate BancSystem $0.72
OLN Olin $1.44
EQR Equity Residential $0.19
EXR Extra Space Storage $1.06
EPR EPR Properties $0.06
USNA USANA Health Sciences $1.72
THG Hanover $2.38
UMBF UMB Financial $1.75
CHE Chemed $4.29
SYK Stryker $2.13
MDLZ Mondelez International $0.65
MAT Mattel -$0.06
PFG Principal Financial $1.52
AAPL Apple $1.01
TER Teradyne $1.75
VIV Telefonica Brasil $0.13
ASH Ashland $1.31
GLW Corning $0.51
PII Polaris Industries $2.15
JBLU JetBlue Airways -$0.74
RDY Drreddys Laboratories $0.55
XRX Xerox $0.40
CIT CIT $0.86
SID Companhia Siderurgica Nacional $0.86
RNST Renasant $0.77

Wednesday (July 28)

IN THE SPOTLIGHT: FACEBOOK

The world’s largest online social network is expected to report its second-quarter earnings of $3.04 per share, which represents year-over-year growth of about 70% from $1.80 per share seen in the same quarter a year ago. The Menlo Park, California-based social media conglomerate would post revenue growth of over 49% to around $28.0 billion.

“Monetization Potential: We are positive on FB’s monetization roll-out of Instagram as well as FB’s ability to continue to innovate and improve its monetization (Canvas Ads, Dynamic Ads, video). Combined with the high and growing engagement we see monetization upside going forward,” noted Brian Nowak, equity analyst at Morgan Stanley.

“Investing from Position of Strength to Drive Faster Long-Term Growth: We are modeling ~33% GAAP opex (excl. one-time items) growth in 2021, implying an incremental ~$18bn in opex. Our base case model implies opex per employee moderates in ’21 while FB hiring remains roughly flat on an absolute basis. We believe FB will grow EPS at a ~39% CAGR (2019-2022).”

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 28

Ticker Company EPS Forecast
PTC PTC $0.63
URI United Rentals $4.90
ENSG Ensign $0.88
ALKS ALKERMES $0.12
TYL Tyler Technologies $1.63
AMG Affiliated Managers $3.85
SF Stifel Financial $1.38
FIX Comfort Systems USA $0.91
MSA MSA Safety $1.04
CBD Companhia Brasileira De Distrib $0.04
ALGT Allegiant Travel $2.55
GD General Dynamics $2.55
HES Hess $0.11
PFE Pfizer $0.97
QCOM Qualcomm $1.68
HP Helmerich & Payne -$0.56
UMC United Microelectronics $0.14
BA Boeing -$0.81
EQIX Equinix $1.87
DB Deutsche Bank $0.33
RJF Raymond James Financial $2.27
SAN Banco Santander $0.13
HNP Huaneng Power International $0.86
LRCX Lam Research $7.59
APH Amphenol $0.55
EVR Evercore Partners $2.71
PPC Pilgrim’s Pride $0.52
R Ryder System $1.38
NSC Norfolk Southern $2.97
FORM FormFactor $0.33
SHOO Steven Madden $0.31
SCI Service International $0.67
ADP ADP $1.14
MNRO Monro Muffler Brake $0.52
SLAB Silicon Laboratories $0.93
BXMT Blackstone Mortgage $0.60
PAG Penske Automotive $2.76
ROL Rollins $0.18
BCS Barclays $0.54
CAJ Canon $0.33
XLNX Xilinx $0.78
HUM Humana $6.82
AVY Avery Dennison $2.05
NYCB New York Community Bancorp $0.30
SCL Stepan $1.84
GSK Glaxosmithkline $0.55
CME CME $1.61
TEVA Teva Pharmaceutical Industries $0.59
MCD McDonalds $2.11
BSBR Banco Santander Brasil $0.20
EXP Eagle Materials $2.07
DT Dynatrace Holdings $0.15
EEFT Euronet Worldwide $0.65
SPOT Spotify -$0.38
OC Owens Corning $2.14
FMX Fomento Economico Mexicano Sab $14.29
BMY Bristol-Myers Squibb $1.89
VRTS Virtus Investment Partners $8.11
GRMN Garmin $1.26
SIX Swiss Exchange -$0.22
CCJ Cameco USA -$0.05
TDY Teledyne Technologies $2.70
IART Integra LifeSciences $0.66
GNRC Generac $2.30
MCO Moody’s $2.77
VRT Veritas Pharma $0.24
EPD Enterprise Products Partners $0.50
GIB CGI Group USA $1.08
TMO Thermo Fisher Scientific $5.47
TEL TE Connectivity $1.58
SLGN Silgan $0.83
PB Prosperity Bancshares $1.39
ODFL Old Dominion Freight Line $2.17
BG Bunge $1.62
LFUS Littelfuse $2.24
CNMD CONMED $0.62
CP Canadian Pacific Railway USA $1.00
AVB AvalonBay Communities $0.74
ALGN Align Technology $2.52
AM Antero Midstream Partners $0.19
CNO CNO Financial Group $0.54
CINF Cincinnati Financial $0.99
SSNC SS&C Technologies $1.14
MTH Meritage Homes $3.28
TTEK Tetra Tech $0.88
MKSI MKS Instruments $2.95
ROIC Retail Opportunity Investments $0.06
SIGI Selective $1.23
VAC Marriottacations Worldwide $0.89
PDM Piedmont Office Realty $0.05
IRBT Irobot $0.32
UDR UDR $0.01
EXAS Exact Sciences -$0.75
MOH Molina Healthcare $3.39
EQT EQT $0.04
MXL MaxLinear $0.50
IR Ingersoll Rand $0.42
AGI Alamos Gold $0.11
MAA Mid-America Apartment Communities $0.55
KGC Kinross Gold USA $0.13
ESRT Empire State Realty -$0.01
BSMX Santander Mexico Fincl Gp Sab Decv $0.17
CRUS Cirrus Logic $0.39
MUSA Murphy USA $3.21
RE Everest Re $8.58
VALE Vale $1.47
DRE Duke Realty $0.19
PYPL PayPal $1.12
NOW ServiceNow $1.21
CCS Century Communities $2.84
NLY Annaly Capital Management $0.27
TROX Tronox $0.52
XPO XPO Logistics $1.66
SAVE Spirit Airlines -$0.86
PAC Grupo Aeroportuario Del Pacifico $1.14
CHX ChampionX Corp $0.10
NUVA NuVasive $0.44
FBHS Fortune Brands Home Security $1.39
NOVA Nova Mentis Life Science Corp -$0.24
FB Facebook $3.04
ACGL Arch Capital $0.84
CONE CyrusOne $0.04
AR Antero Resources $0.20
AEM Agnico Eagle Mines USA $0.59
RBC Regal Beloit Corporation $2.07
PEGA Pegasystems -$0.18
AFL Aflac $1.28
PKI PerkinElmer $2.44
CHDN Churchill Downs $2.51
PEB Pebblebrook Hotel -$0.65
CTSH Cognizant Technology Solutions $0.96
HOLX Hologic $1.12
KRC Kilroy Realty $0.29
ALSN Allison Transmission $0.93
F Ford Motor -$0.04
ASGN On Assignment $1.29
HIG Hartford Financial Services $1.34
ORLY O’Reilly Automotive $7.51
ISBC Investors Bancorp $0.31

Thursday (July 29)

IN THE SPOTLIGHT: AMAZON.COM

The eCommerce leader for physical and digital merchandise is expected to report its second-quarter earnings of $12.24 per share, which represents year-over-year growth of about 19% from $10.3 per share seen in the same quarter a year ago.

The Seattle, Washington-based multinational technology giant would post revenue growth of about 29% to around $115 billion. The company has beaten earnings per share (EPS) estimates at all times in the last four quarters.

TAKE A LOOK AT OUR EARNINGS CALENDAR FOR THE FULL RELEASES FOR THE JULY 29

Ticker Company EPS Forecast
RLGY Realogy $1.08
VSTO Vista Outdoor $0.90
AGCO AGCO $2.20
PCG PG&E $0.28
MATX Matson $2.96
PRFT Perficient $0.79
NATI National Instruments $0.05
GPI Group 1 Automotive $7.59
CFX Colfax $0.53
CMS CMS Energy Corporation $0.46
LYG Lloyds Banking $0.14
MHK Mohawk Industries $3.59
EBS Emergent BioSolutions $1.41
TXT Textron $0.65
AUOTY AU Optronics $0.56
CMCSA Comcast $0.66
VLO Valero Energy $0.17
CG Carlyle $0.60
ABEV Ambev $0.02
NLSN Nielsen $0.36
MTD Mettler Toledo International $7.62
ADS Alliance Data Systems $3.68
FTNT Fortinet $0.88
FTV Fortive Corp $0.60
ASX Advanced Semiconductor Engineering $0.16
LKQ LKQ $0.75
ERJ Embraer -$0.26
TFX Teleflex $2.87
CARR Carrier Global Corp $0.55
CX Cemex Sab De Cv $0.16
ORAN Orange $0.18
CVE Cenovus Energy USA $0.26
MT Arcelormittal $2.52
MA Mastercard $1.74
KBR KBR $0.50
HOCPY Hoya Corp $0.85
YUM Yum Brands $0.96
EIX Edison International $1.02
EME EMCOR $1.58
AGIO Agios Pharmaceuticals -$1.35
KPELY Keppel Corporation $0.18
BUD Anheuser-Busch $0.87
CS Credit Suisse $0.22
DANOY Danone PK $0.45
SNY Sanofi $0.77
AZN Astrazeneca $0.45
TEF Telefonica $0.14
STM Stmicroelectronics $0.37
GRFS Grifolsbarcelona $0.26
THRM Gentherm $0.65
WWW Wolverine World Wide $0.49
CNX Consol Energy $0.24
CBRE CBRE Group Inc $0.77
TAP Molson Coors Brewing $1.35
VC Visteon $0.05
KEX Kirby $0.14
TREE LendingTree -$0.63
SAH Sonic Automotive $1.38
HSY Hershey $1.42
AMT American Tower $1.27
TW Towers Watson $0.39
OSK Oshkosh $2.25
MAS Masco $1.04
MO Altria $1.18
TROW T. Rowe Price $3.19
CTXS Citrix Systems $1.22
SPGI S&P Global Inc $3.26
BAX Baxter International $0.75
ICE Intercontinental Exchange $1.16
SO Southern Co. $0.79
NTCT Netscout Systems $0.18
GOL Gol Linhas Aereas Inteligentes -$0.91
CFR Cullen/Frost Bankers $1.56
CWT California Water Service $0.41
FSS Federal Signal $0.45
AER AerCap $1.37
COLB Columbia Banking System $0.66
COR CoreSite Realty $0.45
WEX WEX $1.95
TMHC Taylor Morrison Home $0.96
XEL Xcel Energy $0.56
FLEX Flextronics International $0.38
SAIA Saia $2.05
OSTK Overstock $0.67
IDA IdaCorp $1.21
FCN FTI Consulting $1.52
LAWS Lawson Products $0.60
WST West Pharmaceutical Services $1.74
MLM Martin Marietta Materials $3.85
MTSI MACOM Technology Solutions $0.53
LH Laboratory Of America $5.62
EXLS ExlService $1.01
BSAC Banco Santander Chile $0.50
AOS A.O. Smith $0.65
TPX Tempur Sealy International $0.56
HBAN Huntington Bancshares $0.32
WAB Westinghouse Air Brake Technologies $0.96
NOC Northrop Grumman $5.83
MMP Magellan Midstream Partners $1.02
HLT Hilton Worldwide $0.39
KDP Keurig Dr Pepper $0.37
OMCL Omnicell $0.82
BC Brunswick $2.14
MRK Merck & Co $1.40
TRP Transcanada USA $0.77
KIM Kimco Realty $0.12
IP International Paper $1.06
MDC MDC $1.99
PRLB Proto Labs $0.44
SGEN Seattle Genetics -$0.61
CPT Camden Property $0.34
SIMO Silicon Motion Technology $1.25
CUBE CubeSmart $0.21
DLB Dolby Laboratories $0.28
BIO Bio-Rad Laboratories $2.66
CC Chemours Co $0.94
ZEN Zendesk $0.16
FWRD Forward Air $0.97
AJG Arthur J. Gallagher $1.08
SPSC SPS Commerce $0.40
ROG Rogers $1.89
ERIE Erie Indemnity $1.51
CUZ Cousins Properties $0.20
WELL Welltower Inc $0.15
PTCT PTC Therapeutics -$1.81
AUY Yamana Gold USA $0.06
LPLA LPL Financial $1.67
WWE World Wrestling Entertainment $0.25
WRE Washington Real Estate Investment -$0.04
TXRH Texas Roadhouse $0.98
ATR AptarGroup $0.97
GLPI Gaming And Leisure Properties $0.57
OFC Orate Office Properties $0.14
RSG Republic Services $0.95
TEX Terex $0.60
X United States Steel $3.08
LBTYA Liberty Global Class A Ordinary Shares $0.46
KLAC KLA-Tencor $3.99
SWKS Skyworks Solutions $2.14
DXCM Dexcom $0.44
HUBG HUB $0.70
VCYT Veracyte -$0.25
POWI Power Integrations $0.75
LGND Ligand Pharmaceuticals $1.38
FHI Federated Hermes Inc $0.66
FSLR First Solar $0.55
CWST Casella Waste Systems $0.24
DLR Digital Realty $0.24
MTX Minerals Technologies $1.25
VRTX Vertex Pharmaceuticals $2.37
PFPT Proofpoint $0.49
ESS Essex Property $0.88
GILD Gilead Sciences $1.73
WERN Werner $0.87
MMSI Merit Medical Systems $0.45
LBTYK LIBERTY GLOBAL $0.46
AMZN Amazon $12.24
QGEN Qiagen $0.65
EW Edwards Lifesciences $0.55
NRZ New Residential Investment $0.31
MSTR Microstrategy $0.81
SM SM Energy -$0.26
SWN Southwestern Energy $0.21
TMUS T-Mobile Us $0.51
DECK Deckers Outdoor -$0.15
CORT Corcept Therapeutics $0.17
TWOU 2U -$0.16
SBH Sally Beauty $0.62
MPW Medical Properties $0.29
CACC Credit Acceptance $10.36
SJW SJW $0.64
SHEN Shenandoah Telecommunications $0.86
ES Eversource Energy $0.80
KMPR Kemper $1.33
WRI Weingarten Realty Investors $0.10
OPK Opko Health $0.02
SU Suncor Energy USA $0.39
APELY Alps Electric $0.11
ACI AltaGas Canada $0.69
EXPO Exponent $0.42

Friday (July 30)

Ticker Company EPS Forecast
KMTUY Komatsu $0.40
VFC VF $0.11
ABR Arbor Realty $0.42
PEXNY PTT Exploration & Production $0.16
LAZ Lazard $0.89
HRC Hill-Rom $1.35
XOM Exxon Mobil $1.00
COG Cabot Oil Gas $0.29
MFG Mizuho Financial $0.08
GCTAY Siemens Gamesa ADR $0.02
TU Telus USA $0.21
JCI Johnson Controls $0.83
CL Colgate-Palmolive $0.80
BAH Booz Allen Hamilton $0.97
TOTDY Toto $0.25
ASEKY Aisin Seiki Co $1.13
BBVA Banco Bilbaoizcaya Argentaria $0.06
E ENI $0.33
FMS Fresenius Medical Care $0.48
SMFG Sumitomo Mitsui Financial $0.21
SBGSY Schneider Electric SA $0.63
PG Procter & Gamble $1.09
CHD Church Dwight $0.70
ALNPY ANA Holdings ADR -$0.20
CVX Chevron $1.58
BNPQY BNP Paribas ADR $1.07
NMR Nomura $0.17
CHT Chunghwa Telecom $0.34
HUN Huntsman $0.81
LIN Linde PLC $2.55
AON AON $1.85
PNM PNM Resources $0.46
CAT Caterpillar $2.41
CPRI Capri Holdings Ltd $0.79
BLMN Bloomin’ Brands $0.66
CHTR Charter Communications $4.79
DAN Dana $0.50
ITW Illinois Tool Works $2.09
GWW Grainger $4.59
CERN Cerner $0.76
NWL Newell Brands Inc $0.45
POR Portland General Electric $0.37
ENB Enbridge USA $0.45
LYB LyondellBasell Industries $5.30
ABBV AbbVie $3.08
SHLX Shell Midstream Partners $0.35
WPC W. P. Carey $0.56
AVNT Avient Corp $0.81
WY Weyerhaeuser $1.37
IDXX Idexx Laboratories $2.02
BCPC Balchem $0.82
For a look at all of today’s economic events, check out our economic calendar.

Australian Regulator to Probe Amazon, Ebay Among Online Markets

By Byron Kaye

The Australian Competition and Consumer Commission (ACCC), which previously slapped the world’s toughest content licencing rules on Facebook Inc and Alphabet Inc’s Google, said it was now looking at retail as part of a wider examination of so-called Big Tech.

“Online marketplaces are an important and growing segment of the economy so it is important that we understand how online marketplaces operate and whether they are working effectively for consumers and businesses,” ACCC Chair Rod Sims said in a statement.

“We want to be sure that the rules that apply to traditional retail are also complied with in the online context.”

The ACCC would take submissions until mid-August with a final report due in March 2022, the regulator said.

An Amazon spokesperson said the company looked “forward to engaging with the ACCC on these important topics in the coming months”, while an eBay representative was not immediately available for comment.

The Australian regulator said it would examine the relationships between large online markets and third-party sellers and shoppers, including competition impacts and handling of data, complaints and reviews.

Amazon has not reached the market dominance in Australia since launching in 2017 that it experiences elsewhere, but still doubled sales in calendar 2020, the ACCC said.

Overall, Australian online purchases jumped 57% in 2020 for a record $50.5 billion spend amid a series of coronavirus lockdowns, it added.

The ACCC said it had received wide-ranging complaints, including the “quality of goods sold on marketplaces, the timeliness of payment remittance to sellers, how goods are put on display on marketplaces, and the level of support provided by marketplaces to consumers when disputes arise”.

The ACCC has been conducting a series of investigations in recent months as part of a broader Digital Platform Services Inquiry.

($1 = 1.3609 Australian dollars)

(Reporting by Byron Kaye; editing by Jane Wardell and Michael Perry)

EU Court to Rule on Google’s $2.8 Billion EU Antitrust Fine on Nov. 10

By Foo Yun Chee

The European Commission issued the fine on the world’s most popular internet search engine in 2017 for favouring its own price-comparison shopping service and giving it an unfair advantage against smaller European rivals.

Google told the Luxembourg-based General Court at a hearing last year that making innovative products was the core of its business model rather than helping rivals. It denied favouring its own service.

The court and Google did not respond immediately to requests for comment or confirmation of the EU ruling date.

The losing side can appeal to the EU Court of Justice (CJEU), Europe’s top court.

Google has racked up a total of 8.25 billion euros in EU antitrust fines related to this price comparison shopping case and two other cases in the last decade.

News agency MLex was the first to report on the court judgment date. The case is T-612/17 Google and Alphabet v Commission.

($1 = 0.8498 euros)

(Reporting by Foo Yun Chee, editing by Louise Heavens)

Earnings vs Inflation – What Is The Right Bet?

As investment money will always be looking for a place to roost many stocks still look like the best opportunity for alpha, especially some of your bigger high-tech companies like Microsoft, Google, Facebook, etc… who don’t face the same headwinds created by supply chain dislocations, higher commodity prices, etc.

Fundamental analysis

Bulls are hoping to see more money lured into the market by strong Q2 earnings which have so far failed to ignite a meaningful rally. Analyst expectations for S&P 500 company earnings is still around +65%, something stock bears argue is lofty considering the extreme level of supply chain dislocations and labor shortages.

There is also a lot of debate about whether corporate profit gains are “peaking” in the face of slower growth in the quarters ahead as the reopening boom begins to fade. Remember, investors place bets on the future, not what happened last quarter.

The earnings pace really picks up next week with highlights including IBM on Monday; Chipotle and Netflix on Tuesday; ASML, CocaCola, Novartis, and Verizon on Wednesday; Abbott Labs, AT&T, Biogen, Capital One, Dow Inc., Intel, Snap, Southwest Airlines, Twitter, and Union Pacific on Thursday; and American Express, Honeywell, and Nextera on Friday.

Inflation

One of the biggest factors that seem to be weighing on investor sentiment continues to be inflation. The latest indication of rising costs was reflected last week in U.S. Import Prices, which climbed for an eighth straight month in June.

However, the year-on-year increase slid to +11.2%, down from +11.6% in May is an encouraging sign that some inflationary pressures might be starting to ease. Federal Reserve Chairman Jerome Powell, testifying before the Senate Banking Committee yesterday, repeated the script he’s stuck with for months, saying inflation will likely remain elevated in the coming weeks and months before moderating.

Powell also told lawmakers that the Fed is not in a hurry to start paring its monthly asset purchases but he stressed that the central bank is prepared to adjust policy if they see signs of inflation moving “materially and persistently beyond levels consistent with our goal.” Wall Street increasingly expects the Fed to start trimming asset purchases later this year and even start lifting rates as soon as Q4 2022.

The Fed meets next on July 27-28 but most analysts think Powell will wait to make any big policy change announcements at either the annual Jackson Hole symposium at the end of August or possibly the FOMC’s September policy meeting. Central banks in Canada and New Zealand this week scaled back their asset purchase schemes which some worry could start to put pressure on central bankers in other developed countries to also tighten.

The European Central Bank releases its latest policy decision next Thursday. Bulls still largely believe that U.S. growth will be able to outpace “transitory” inflation pressures but the outlook for some companies could dim if the Fed starts reining in its “easy money” policies sooner than investors have been anticipating.

sp500 analysis forecast 18 july 2020

SP500 technical analysis

SP500 pulled back last week after another attempt to break out. There is no surprise we see such choppiness in the middle of summer. Moreover, very likely this price activity will stay for a few more weeks. We are still in a bull market. However, the risk of deep pullback is rising. If that happens, SP500 will target to close the gap near 4000.

On the other hand, if the price sustains above Gann resistance 4400, bulls will target 4500 at least. Two of my favourite indicators are giving opposite signals now. So, I don’t have any strong bias at the moment. Advance Decline Line remains bearish. At the same time, Insider Accumulation is bullish. In general, swing traders have to focus on daily support and resistance. Likely it will take few more weeks to see a real direction. Short-term traders can use Gann levels and Cycles on 4h charts to find trading opportunities.

U.S. Tech Companies Disappointed with DACA Ruling, Urge Congress to Act

U.S. District Judge Andrew Hanen on Friday sided with a group of states suing to end the Deferred Action for Childhood Arrivals (DACA) program, arguing that it was illegally created by former President Barack Obama in 2012.

“We have long argued in support of this program, filing an amicus brief in this case, and we are very disappointed by the decision (from the judge)”, Google spokesperson Jose Castaneda said.

“Dreamers and immigrants make the United States — and Twitter — better”, a spokesperson from social media platform Twitter said in an emailed statement.

Twitter, Google, Microsoft and Photoshop maker Adobe urged the U.S. Congress to come together to protect Dreamers, with Google saying they wanted DACA to be “cemented” into law.

Microsoft President Brad Smith said that the “disappointing” ruling created “uncertainty yet again for Dreamers.”

The judge ruled on Friday that the program violated the Administrative Procedure Act (APA) when it was created but said that since there were so many people currently enrolled in the program – nearly 650,000 – his ruling would be temporarily stayed for their cases and their renewal applications.

Biden, who was vice president when Obama created the program, has said he wants to create a permanent pathway to citizenship for DACA recipients, known as “Dreamers.”

On Saturday, Biden vowed to preserve the program that protects from deportation hundreds of thousands of immigrants brought to the U.S. as children, promising to appeal the judge’s ruling invalidating it and urging Congress to provide a path to citizenship.

For a look at all of today’s economic events, check out our economic calendar.

(Reporting by Kanishka Singh in Bengaluru, Editing by Nick Zieminski)

Apple’s Stock Price Up By 2% Today. Analysts Estimate Further Increase in H2

The shares of Apple Inc. are up by 2% earlier today, reaching another record high for the third consecutive week. Analysts believe that the stock will rally even higher in the second half of the year as the company makes some improvements.

Apple’s Shares Rally At Pre-Market Trading Session

The shares of Apple Inc. are up by over 2% at Thursday’s pre-market trading session. Following this rally, APPL is trading close to the $150 mark per share. The rally was a result of the tech giant announced plans to boost iPhone production over the coming months.

According to the report, Apple has asked its suppliers to increase the production of its next-generation iPhones by 20%. The boost in production is expected to come despite Apple describing 2020 as a Super Cycle that was driven by 5G models offering consumers access to the improved, faster wireless networks.

AAPL Could Experience Massive Growth In Second Half Of The Year

AAPL is now up by over 15% since the start of the year. Its market cap of $2.5 trillion makes it the most valuable company in the world. Jim Suva, a senior tech analyst at Citigroup, said Apple’s current valuation is fair and might likely not expand.

However, he expects the company to experience an increase in revenue and sales. As such, the expected increase in Apple’s stock price will come from the increase in revenue and sales over the coming months.

AAPL stock chart. Source: FXEMPIRE

Loup Ventures’ co-founder and managing partner Gene Munster is of the opinion that Apple’s stock will rally higher in the coming months. he stated that “ultimately that I think the best days are still ahead of the company, whether it’s 5G, augmented reality, what they’re going to do in health care and transportation and other additional services.”

The growth recorded by Apple in various aspects of its business could see its stock price reach $200 by the end of 2021, Munster added. He is predicting a 40% increase in the stock price over the coming months.

Munster predicted earlier this year that he thinks Apple will be the top performer amongst the FAANG stocks. However, with Google up by 44% year-to-date, Munster doesn’t see that happening. He still believes Apple will be a top-performing stock by the end of 2021.

France Slaps Google With A New $593 Million Fine

Search engine giant Google has been fined $593 million by French competition regulators for failing to negotiate air deals with news publishers to use their content.

Google Gets $593 Million Fine For Compliance Issues

France’s Autorité de la concurrence has announced earlier today that search engine giant Google has been fined 500 million Euros ($593 million) after failing to comply with an order given to it in April.

According to the regulator, Google had breached an order given to it in April 2020, where it was asked to negotiate licensing deals with publishers and news agencies for the re-use of their copyright contents.

However, Google had to wait till January this year to agree on a major digital copyright deal with French publishers. Per the terms of the deal, Google said it would negotiate individual licenses with the various members of France’s press alliance. The negotiation would cover related rights and access to a new service dubbed News Showcase.

The move didn’t go down well with the French regulator, which stated that its agreement with Google doesn’t include discussion on remuneration for its current use of content. The regulator further accused Google of restricting the scope of talks with the media by excluding the use of press images.

Google’s Stock Price Rallying Despite France’s Fine

The shares of Google are performing excellently this morning despite the recent fine by the French regulators. At the time of this writing, GOOGL is up by 0.5% since the market opened, and it is now trading around the $2,550 region.

GOOGL stock chart. Source: FXEMPIRE

Google’s stock has performed excellently year-to-date. GOOGL began trading above $1,770 at the start of the year and is now up by roughly 30% YTD. According to France 24, the fine imposed on Google is the largest by France’s competition watchdog for a company’s failure to comply with one of its orders.

The regulator had ordered Google to present an offer of remuneration for the use of protected content to French publishers within two months. Failure to do would see Google face fines of up to 900,000 euros per day. Google maintains that it is disappointed with the decisions of the regulator.

Google Restores Services After Multiple Users Face Outage

Platforms including Google, YouTube, and Gmail were down, with users citing issues with login and accessing the website in parts of North America, according to Downdetector.

More than a thousand users were having difficulties with the search engine at one point, the outage monitoring website showed, and users were also facing issues with YouTube TV and Google Drive.

Reports of Google outage on Downdetector have dropped significantly to single digits early Tuesday.

The issue affecting the platforms was not immediately clear.

Google did not immediately respond to a Reuters’ request for comment after business hours.

Downdetector tracks outages by collating status reports from a series of sources, including user-submitted errors on its platform.

(Reporting by Aakriti Bhalla in Bengaluru; Additional reporting by Radhika Anilkumar; Editing by Amy Caren Daniel and Sherry Jacob-Phillips)

Amazon And Google Come Under Fire In The UK Over Fake Reviews

Amazon and Google are under investigation by British regulators over concerns that they are not doing enough to tackle the issue of fake reviews on their platforms. Google has been facing criticisms from European regulators, with the UK’s probe the third time this month for the search engine giant.

UK’s CMA Investigates Amazon and Google

UK’s Competition and Markets Authority (CMA) has revealed earlier today that it is probing online retail giant Amazon and search engine company Google for not doing enough to tackle fake reviews on their respective platforms.

Andrea Coscelli, chief executive of the CMA, said they are investigating concerns that Google and Amazon have not been taking the required steps to prevent and remove fake reviews to protect honest businesses and customers. “It’s important that these tech platforms take responsibility, and we stand ready to take action if we find that they are not doing enough,” he added.

The regulator is concerned that fake consumer reviews have become a huge problem in the e-commerce sector. Amazon has become the number one platform merchants use to hype up their products online. However, the e-commerce giant is doing something about it as it called out social media platforms to help it weed out fake reviews.

The CMA said it would look into Amazon and Google to determine their efforts in detecting and removing fake reviews. The investigation will also look at whether the tech giants penalize reviewers or firms to stop them from posting misleading scores. The CMA praised Facebook for removing thousands of groups that were dealing in false and misleading reviews. The social media company also made changes to its systems to identify, remove and prevent misleading content from appearing on its various platforms.

AMZN stock chart. Source: FXEMPIRE

At the time of this report, Amazon’s stock price is down by 1.56% ahead of the trading session on Friday.

Google is Coming Under Pressure in Europe

Google is facing pressure in Europe. Earlier this month, Google was fined $267 million by the French Competition Authority after the search engine giant was accused of abusing its leadership in the online advert sector. The European Commission (EC) officially launched an investigation into Google’s advertising unit for also abusing its dominance in the market.

GOOGL stock chart. Source: FXEMPIRE

Google’s stock price is up by less than 1% at Friday’s pre-market trading decision despite the looming investigation in the UK.

Google Delays Chrome’s Blocking of Tracking Cookies to Late 2023

By Paresh Dave

Google had wanted to bar reams of ad-personalization companies from gathering users’ browsing interests through cookies from January 2022. But rivals accused the world’s biggest online ads seller by revenue of using improved privacy as a pretense to gain greater market share.

After an investigation, Britain’s Competition and Markets Authority (CMA) agreed this month with Google to oversee the Chrome changes. Google said its new timeline was in line with the agreement.

“We need to move at a responsible pace, allowing sufficient time for public discussion on the right solutions and for publishers and the advertising industry to migrate their services,” Vinay Goel, privacy engineering director for Chrome wrote in a blog post.

CMA could not immediately be reached for comment on Thursday.

The U.S. Department of Justice has also investigated Chrome and cookies, Reuters has reported.

The European Union’s competition commission said Wednesday it too was investigating.

Google is working with the ad industry on technologies that could replace the tracking capabilities of cookies while better protecting online privacy.

It now aims to choose new techniques by late next year, do final testing and then gradually phase out tracking cookies starting mid-2023 if CMA signs off.

Critics question the effectiveness of alternatives. They add that Google can only benefit from the elimination of what are known as third-party cookies because it can continue collecting similar data through YouTube, search and its other popular systems. A data advantage could help Google attract more advertisers.

Apple Inc’s Safari browser has pursued similar changes, but Chrome is used more widely in the United States and Europe.

(Reporting by Paresh Dave; editing by Richard Pullin)

YouTube Wins User Copyright Fight in Top EU Court Ruling

By Foo Yun Chee

The case marks the latest development in a long-running battle between Europe’s $1 trillion creative industry and online platforms, with the former seeking redress for unauthorised works that are uploaded.

It is also part of the wider debate on how much online platforms and social media should do to police the posting of unauthorised, illegal or hateful content, an issue that European Union regulators are targeting with tough new rules that could come into force next year.

“As currently stands, operators of online platforms do not, in principle, themselves make a communication to the public of copyright-protected content illegally posted online by users of those platforms,” the EU Court of Justice said.

“However, those operators do make such a communication in breach of copyright where they contribute, beyond merely making those platforms available, to giving access to such content to the public,” judges said.

The EU court said platforms could also be liable if they do not put in place the appropriate technological tools to tackle copyright breaches by their users or where they provide tools on their platforms for illegal sharing of content.

In response to the court ruling a YouTube spokesperson said: “YouTube is a leader in copyright and supports rights holders being paid their fair share.”

“That’s why we’ve invested in state of the art copyright tools which have created an entirely new revenue stream for the industry. In the past 12 months alone we have paid $4 billion to the music industry, over 30% of which comes from monetised user generated content.”

The case underlines a long-running debate on the responsibilities of online platforms, with the CJEU giving useful guidance to national courts assessing such disagreements, said Nils Rauer, a partner at law firm Pinsent Masons.

“The core question is and remains whether the platform is in a rather passive role (no liability) or in an active role (liability). There is a fine line between those two roles,” he said.

“With today’s ruling, the domestic courts will be able to build on more guidance from Luxembourg where to draw the line between the good ones (platforms) and the bad ones,” he said.

YouTube found itself in the dock after Frank Peterson, a music producer, sued the company and Google in Germany over the uploading to YouTube by users in 2008 of several phonograms to which he holds the rights.

In a second case, publishing group Elsevier took legal action against file-hosting service Cyando in Germany after its users uploaded several Elsevier works on its platform Uploaded in 2013 without its approval.

A German court subsequently sought advice from the EU Court of Justice, which ruled on both cases on Tuesday.

Existing EU rules exempt YouTube and its peers from such liability regarding copyright when they are told of violations and remove them.

The EU last year overhauled its copyright rules for the first time in two decades to help its creative industries by adopting a key provision known as Article 17. This requires YouTube, Facebook’s Instagram and other sharing platforms to install filters to prevent users from uploading copyrighted materials.

But this has drawn criticism from civil rights groups worried about potential censorship by authoritarian governments and risks to freedom of expression.

Several EU countries have yet to transpose the EU law into national legislation, due in part to the COVID-19 pandemic.

The European Commission has also proposed much a more wide-ranging Digital Services Act, which sets stringent obligations on very large online companies, online platforms and hosting services, backed by fines up to 6% of a company’s revenue for non-compliance.

This would apply to websites, internet infrastructure services and online platforms such as online marketplaces, social networks, content-sharing platforms, app stores, and online travel and accommodation platforms.

The draft rules need to be thrashed out with EU countries and EU lawmakers before they can become law, likely to be next year.

The cases are C-682/18 YouTube and C-683/18 Cyando.

(Reporting by Foo Yun Chee; Editing by Alex Richardson, Jane Merriman and Louise Heavens)

Google’s Advertising Unit Under Fire Again. This Time From The EU

The European Commission opens a probe into Google’s advertising unit a few weeks after it was fined by French authorities. Google’s advertising unit is going against several EU regulations and is paying the price for it.

EU Opens Probe Into Google

The European Commission (EC) announced earlier today that it has officially launched an investigation into Google’s advertising unit. According to the announcement, Google is under investigation for favoring its own online display ad technology services. Hence, breaching the antitrust rules put in place by the commission.

European Commission Executive Vice President Margrethe Vestager said, “Google collects data to be used for targeted advertising purposes, it sells advertising space and also acts as an online advertising intermediary. So Google is present at almost all levels of the supply chain for online display advertising.”

The commission is concerned that the search engine giant is making it harder for rival online advertising services to compete in the ad sector. The European Commission exec said as part of the probe, they would be looking at the restrictions Google has put in place to undermine the efforts of advertisers, publishers and other third parties. The measures that limit their ability to access data and other user information would also be looked at.

Google Fined For Similar Offence In France

The probe comes a few weeks after Google was fined $267 million by the French Competition Authority for abusing its dominance in the online advert sector. The French regulator accused the search engine giant of using its position in the market to unfairly send business to its own service and discriminate against competitors in the online advertising industry.

Google has already committed to ending some of its selfish practices. However, it is unclear if it has implemented any of its suggestions. The regulations want to ensure they create a level playing field for all advertisers and allow publishers to adequately leverage their advertising spaces.

GOOGL stock chart. Source: FXEMPIRE

At the time of this report, Google’s stock price is up by 1.4%, and it is trading at $2,436 per share on the NASDAQ stock exchange.

Best Growth Stocks July 2021

The hallmark way we go about finding the best stocks…the outliers, is by looking for quiet Big Money trading activity.

Oftentimes, that can be institutional activity. We’ll go over what that looks like in a bit. But, the 5 stocks we see as long-term candidates are ATVI, SHOP, PYPL, GOOGL, & QFIN.

For MAPsignals, we believe the true tell on the near-term trajectory of the stock lies in the trading activity of the stock. The bottom line here is that oftentimes the manner in which a stock trades can oftentimes alert you to the forward fundamental picture more so than by simply looking at a company’s financials alone. We want the odds on our side when looking for the highest quality stocks.

Up first is Activision Blizzard, Inc. (ATVI), which is a leading gaming and entertainment firm. They have been cruising higher for years.

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success with a few for ATVI being:

  • 1-year performance (+36.17%)
  • YTD underperformance vs. NASDAQ ETF (-2.6% vs. QQQ)
  • Historical big money signals

Just to show you what our Big Money signal looks like, have a look at all of the top buy signals ATVI has made the past few years. That’s one strong uptrend. Green bars are showing that Activision Blizzard was likely being bought by a Big Money player according to MAPsignals.

It’s clear there’s a lot of green historically with this stock. That’s exactly what you want to see when looking for a great growth name. The lone red signal occurred during a broad market pullback:

Source: MAPsignals, End of day data sourced from Tiingo.com
Source: MAPsignals, End of day data sourced from Tiingo.com

On top of technicals, you need to look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Activision’s revenue numbers have been strong:

  • 3-year sales growth rate (+6.09%)
  • 3-year earnings growth rate (+196.28%)

Next up is Shopify, Inc. (SHOP), which is an ecommerce software company. The company has been a huge winner over the years.

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success with a few for SHOP being:

  • 1-year performance (+62.22%)
  • YTD vs. technology ETF (+4.83% vs. XLK)
  • Recent big money signals

While the stock has outperformed recently, look at the long-term picture. These are the top buy signals Shopify has made since 2015. Clearly the Big Money has been consistent for years:

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of a great long-term technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Shopify has grown revenues massively:

  • 3-year sales growth rate = +64.02%
  • 3-year earnings growth rate = -63.12%

Another growth name to consider is PayPal Holdings, Inc. (PYPL), which is a leading digital payments company.

When we decide on the strongest candidate for long-term growth, we want to see a history of big money buying the shares. PayPal has that. Also, recent underperformance can be attractive:

  • 1-year performance (+74.5%)
  • YTD outperformance vs. technology ETF (+6.79% vs. XLK)

Below are the big money signals PayPal has made since 2015. After the pandemic lows, it’s been moon-bound:

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of a strong technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. PayPal’s growth rate is impressive. I expect more growth in the coming years:

  • 3-year sales growth rate = +17.96%
  • 3-year earnings growth rate = +36.06%

Number 4 on the list is Alphabet Inc. (GOOGL), which is the leader in online search amongst other growth areas. The shares have been in bull-mode the past couple of years.

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success with a few for GOOGL being:

  • 1-year performance (+72.37%)
  • YTD outperformance vs. technology ETF (+29.13% vs. XLK)
  • Historical big money signals

Below are the big money signals that GOOGL has made since 2015:

Source: MAPsignals, End of day data sourced from Tiingo.com
Source: MAPsignals, End of day data sourced from Tiingo.com

On top of the technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, Alphabet has been growing nicely:

  • 3-year sales growth rate = +18.06%
  • 3-year earnings growth rate = +60.69%

Our last growth candidate is 360 DigiTech, Inc. ADR (QFIN), which is a leading Chinese finance firm. The stock has zoomed recently.

When we decide on the strongest candidate for long-term growth, we consider many technical areas important to success with a few for QFIN being:

  • 1-year performance (+322.5%)
  • YTD outperformance vs. financials sector (+231.7% vs. XLF)
  • Historical big money signals

Below are the big money signals 360 DigiTech has made since 2019. You can see how powerful the performance has been the past year:

Source: MAPsignals, End of day data sourced from Tiingo.com

On top of the technical picture, one should also look under the hood to see if the fundamental picture supports a long-term investment. As you can see, 360 DigiTech has grown revenues massively over the past few years:

  • 3-year sales growth rate = +504.91%
  • 3-year earnings growth rate = -761.38%

The Bottom Line

ATVI, SHOP, PYPL, GOOGL, & QFIN represent top growth stocks for July 2021. Given the strong historical revenue & earnings growth, and multiple big money buy signals, these stocks could be worth extra attention.

To learn more about MAPsignals’ Big Money process please visit.

Disclosure: the author holds long positions in PYPL & GOOGL in personal and managed accounts. He holds no positions in ATVI, SHOP, & QFIN at the time of publication.

Investment Research Disclaimer

Market Power of Siri, Alexa, Google a Concern, EU Regulators Say

By Foo Yun Chee

The comments from the European Commission come after a year-long inquiry into voice assistants and other internet-connected devices and responses from more than 200 companies.

Similar inquiries in the past into sectors such as e-commerce, pharmaceuticals, financial services and energy have led to cases against companies and hefty fines.

Alexa, Siri and Google Assistant are the most popular voice- assistant devices in Europe, with the global market expected to double to 8.4 billion devices from 4.2 billion between 2020 and 2024, according to Statista.

“We saw indications that some practices that we know too well may lead to tipping and to the emergence of gatekeepers,” European Competition Commissioner Margrethe Vestager told reporters.

“And from the preliminary results published today, it appears that our concerns are shared by many players,” she said.

Vestager said it was too early to say if the inquiry would lead to cases against companies which will be decided after a 12-week long public consultation ending Sept. 1 and a final report due in the first half of 2022.

The EU antitrust watchdog said respondents cited worries over certain exclusivity and tying practices related to voice assistants such as producers of smart devices being prevented from installing a second voice assistant on a device.

A second concern was about voice assistant providers promoting their own services or those of third parties via default settings on devices, thus restricting rivals.

A third concern focused on the troves of data available to providers of voice assistants and smart devices, while a fourth worry was about the lack of inter-operability between devices.

Amazon said there was intense competition in the smart home market.

“There will not, and should not, be one winner. Today, Alexa is compatible with over 140,000 smart home products, and we make it easy for device makers to integrate Alexa directly into their own products,” a spokesperson said.

Amazon went on to say it has signed up 80 companies to its Voice Interoperability Initiative which gives customers the ability to access multiple voice services on a device.

Google and Apple did not immediately respond to requests for comment.

Vestager has proposed tough new rules known as the Digital Markets Act which targets a number of these practices. The draft needs to be thrashed out with EU lawmakers and EU countries before it can be implemented, likely next year.

(Reporting by Foo Yun CheeEditing by Bernadette Baum and Elaine Hardcastle)

Google to Change Global Advertising Practices in Landmark Antitrust Deal

By Mathieu Rosemain

The deal with the French competition watchdog could help rebalance the power over advertising in favour of publishers, which held sway over the business in the pre-internet era but lost control with the rapid rise of Google and Facebook.

The settlement, which was announced on Monday and also saw Google fined 220 million euros ($268 million), is the first time the U.S. tech giant has agreed to make changes to its huge advertising business, which brings in the bulk of its revenue.

“The decision to sanction Google is of particular significance because it’s the first decision in the world focusing on the complex algorithmic auction processes on which the online ad business relies,” said France’s antitrust chief Isabelle de Silva.

The watchdog found that Google’s ad management platform for large publishers – Google Ad Manager – favoured the company’s own online ad marketplace – Google AdX – where publishers sell space to advertisers in real-time.

Ad Manager provided AdX with strategic data such as the winning bidding prices, while AdX also enjoyed privileged access to requests made by advertisers via Google’s ad services, the authority said.

AdX, in turn, exchanged data more smoothly with Ad Manager than it did with other advertising management platforms, the watchdog added. Such platforms are crucial for publishers to manage and sell advertising space.

Under the terms of the settlement, Google made commitments to improve the way Ad Manager services worked with rival ad servers and ad space sales platforms, the French watchdog said. Some changes would be implemented by the first quarter of 2022, it said, adding that Google would not appeal the decision.

Google also said it had agreed to make it easier for publishers to use its data and tools.

“We will be testing and developing these changes over the coming months before rolling them out more broadly, including some globally,” the company added.

‘RIGHTLY SANCTIONED’

Many publishers globally have been infuriated over ad practices employed by the tech giants, whose success relies on the trove of data it has amassed over the years.

Most of Google’s sales come from search and YouTube ads. But last year about $23 billion was tied to helping publishers sell ads, drawing antitrust scrutiny to the connections between Google’s businesses, plus calls from some critics to break up the sprawling company.

French Finance Minister Bruno Le Maire welcomed the antitrust decision.

“The practices put in place by Google to favour its own advertising technologies have affected press groups, whose business model is heavily dependent on ad revenues,” he said.

“These are serious practices and they have been rightly sanctioned.”

The French authority said the decision opens the way for publishers who felt disadvantaged to seek damages from Google.

It launched its investigation in 2019 following a complaint from News Corp., French news publishing group Le Figaro and Belgian press group Rossel.

The three publishers did not immediately respond to requests for comment.

($1 = 0.8225 euros)

(Reporting by Mathieu Rosemain; Writing by Richard Lough; Editing by Christian Lowe and Pravin Char)