Check back later today for Daniel’s Den and visit the BMR comments section throughout the day for updates and helpful information!
1. Gold has traded between $1,217 and $1,227 so far today…as of 7:00 am Pacific, bullion is up $3 an ounce at $1,225…Silver is 13 cents higher at $15.48…Copper, Nickel and Zinc are flat at $2.84, $6.19 and $1.19, respectively…Cobalt remains steady at $31.75…Crude Oil has retreated 25 cents a barrel to $69.36 while the U.S. Dollar Index is relatively unchanged at 94.70…after a strong recent run, Bitcoin corrected this morning, falling back below $8,000 (U.S.), after the U.S. Securities and Exchange Commission denied an application for what would have been the first-ever Bitcoin ETF…this had been the second attempt by Cameron and Tyler Winklevoss, founders of crypto exchange Gemini, to list a cryptocurrency ETF on a regulated exchange…the U.S. financial watchdog remains concerned with issues around security, market manipulation and investor protection…
2. Jim Wyckoff, Kitco’s astute Gold analyst, made a very valid point with these comments: “There’s an old trading adage that says when the major, mainstream business media finally catches wind of a major market move and then reports on it, that market move has then very likely run its course. Thursday, a Barron’s report on Dow Jones Newswires entitled ‘Gold Could Be in a Prolonged Tailspin’ suggested the yellow metal’s price will not recover any time soon. In fact, the Barron’s reporter even suggested investors sell (go short) December Comex Gold futures, or even sell call options on SPDR Gold Shares. Boy howdy, when a news reporter starts doling out trading advice to sell Gold, it’s an even better bet that trade won’t pan out. So on a day when Gold prices were down again and are hovering near 12-month lows, the bearish proclamation and selling advice from Barron’s is a classic case of a market whose price trend is about to change”…
3. The U.S. economy grew at the strongest pace in nearly 4 years during Q2, powered by a rebound in consumer spending, exports and firm business investment…GDP – the value of all goods and services produced across the economy – rose at a seasonally-adjusted and inflation-adjusted annual rate of 4.1% from April through June, in line with expectations…that was a pickup from the revised Q1 growth rate of 2.2%…the Q2 growth reading was the strongest since the 4.9% annual rate reported for the 3rd quarter of 2014…The robust report will keep the Federal Reserve on its current path of gradually raising short-term interest rates to prevent the economy from overheating…central bank officials have raised rates twice this year, and penciled in two further increases this year and 3 in 2019…
4. Just a day after the Facebook Follies, Wall Street was stunned over Amazon’s impressive June quarter earnings results released last night…analysts say they are growing more confident in Amazon due to its increasing ability to generate more profits from its key opportunities…the e-commerce juggernaut says it generated Q2 earnings per share of $5.07, crushing the $2.50 Thomson Reuters consensus…operating profit margin came in at 5.6% vs. the 3.2% that was forecast…Goldman Sachs reiterated its buy rating for Amazon shares, citing the company’s rising profit margin. “Amazon reported 2Q profitability well above consensus forecasts, with operating income margin expanding 400bps yoy driven by AWS, advertising, and fulfillment efficiencies. Guidance for 3Q operating income was also meaningfully above consensus forecasts. We continue to believe that we are in the sweet spot between Amazon investment cycles where new fulfillment/data centers are driving accelerating growth while incremental capacity utilization and efficiency is driving margin expansion”…
5. Facebook (FB, NASDAQ) yesterday posted the largest 1-day loss in market value by any company in U.S. stock market history after releasing a disappointing quarterly report and scaling back projections…the social media giant’s market cap plummeted by $119 billion to $510 billion as its stock price tanked nearly 20%…no company in the history of the U.S. stock market has ever lost $100 billion in market value in just 1 day, but two came close…on September 22, 2000, Intel shed $90.7 billion in market value as the dot-com bubble burst…earlier that year, Microsoft lost $80 billion from its market cap in just 1 day…other companies that have experienced similar 1-day losses in dollar amount include Apple in 2013, when it lost $59.6 billion, and Exxon Mobil in 2008, when it lost $52.5 billion…bottom line is, they all recovered, and Facebook will, too…
6. The Dow is up 7 points through the first 30 minutes of trading…Twitter (TWTR, NYSE) shares have done a Facebook, plunging nearly 20% after the social media platform revealed that the number of its monthly active users fell in the 2nd quarter…the TSX is 17 points higher as of 7:00 am Pacific…Barrick Gold (ABX, TSX) was a drag on the TSX Gold Index yesterday after falling more than 6% on the heels of weaker-than-expected financial results…Goldcorp also took a hit yesterday after it posted a $131 million net loss in Q2, while Agnico Eagle’s (AEM, TSX) quarterly loss also fell short of estimates…Barrick has lost one-fifth of its market value this year, materially underperforming both Agnico and Goldcorp…the Venture is up 2 points at 707 as it continues to hover around the top of a strong support band…
7. Teck Resources (TECK.B, TSX) has boosted its production forecasts for Copper, Zinc and Oil as the diversified miner posted market-beating profits on the back of higher prices for several commodities…flush with $2.9 billion in cash and $7 billion in liquidity, Teck is in “great shape” to finance growth, said CEO Don Lindsay, including Chilean developments like the $4.8 billion Quebrada Blanca Phase 2 Project and the $3.5 billion NuevaUnion Project…with its new Galore Creek Project partner, Newmont Mining, Teck plans to update a prefeasibilty study in 3 to 4 years…Newmont agreed to pay $275 million to NovaGold Resources for its 50% stake in the Copper-Gold project…asked on a conference call whether Oil remains a core business, Linsday said that if the value of its stake in the Fort Hill Oil sands is inadequately reflected in its stock in 2020 or 2021, when operations are well established, he would consider a spinout, sale or partnership…also, Teck appointed outsider Dominic Barton as as its new chairman, replacing Norman Keevil…Teck has shown great support in the low $30’s in recent months and is off 33 cents at $33.84 in early trading today…
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a 385K cross from Claris on GGI at 2.80… any meaning to this????
Comment by Jeremy — July 27, 2018 @ 11:06 am
House 24 , pretty heathy cross on ggi..
Comment by Laddy — July 27, 2018 @ 11:11 am
Stronger hands we hope….
Comment by Laddy — July 27, 2018 @ 11:53 am
Like JAX very much. Any thoughts?
Comment by Tran — July 27, 2018 @ 12:26 pm