What Summer and the First Week of July Hold in Store
Success in online stock trading requires constant monitoring of the condition of the market. As we really get settled into the summer and a new month is upon us, it is important to analyze what the week has in store.
A Silver Lining as June Ended
The last week of June ended on a note of consolation. On June 29, President Trump and his Chinese counterpart Xi Jinping signed a trade mini-deal that featured concessions on a modest scale from both sides. There was a seeming halt in punitive measures agreed on by both parties. This is a positive development though it can’t be said that the trade war is heading for its demise. The news of the truce also sent Asian stocks climbing along with the US equity futures. The yuan rose as well. There was a decline in the yen, gold and Treasuries though. June’s last week also saw rumors that the newest version of Apple’s ($AAPL) Mac Pro will not be made in the US, but in China instead.
A Sales & Revenue Slump Likely for Pfizer
Looking forward to July, Pfizer ($PFE) could be entering a sales slump though that wouldn’t make the stock any less worthy for a buy, reckons analyst Keith Speights. The sales and revenue decline can be accounted for by its Lyrica nerve pain blockbuster drug losing the patent exclusivity it enjoyed, with the underlying patent having expired at the end of June 2019.
With Lyrica having generated close to $3.8 billion in 2018 and $1.2 billion in 2019’s first quarter alone, it is one of the most important drugs in Pfizer’s lineup. The revenue from those sales will continue to boost Pfizer, but the company has warned that a period of drastic revenue decrease is about to strike. As per estimates by Wall Street analysts, Pfizer will experience a revenue decrease in the region of $290 million in Q3.
F-Rated Stocks to Sell in the Summer
And as we’re in the midst of the summer, growth investor Louis Navellier suggests some F-rated stocks to sell, Schlumberger Ltd ($SLB), FedEx ($FDX), ArcelorMittal ADR ($MT), CenturyLink Inc ($CTL), Teva Pharmaceuticals ($TEVA), Schneider National ($SNDR) and Golar LNG Ltd ($GLNG).
US Jobs Report This Week
Markets will be closed on Thursday, July 4 on the occasion of Independence Day. The major event this week is the US jobs report that is scheduled to be released on Friday, July 5. The report is expected to reveal the increase of nonfarm payrolls by 160,000 last month, having rebounded from just 75,000 in May. The unemployment rate is expected to be revealed at 3.6%.
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