Wednesday, June 13, 2018: Markets Lacklustered, CSCO, AMZN, SHOP, BAC Lead




A Lacklustered Stock Market

DOW -20.99  •  NASDAQ +22.44   •  SP500 +0.10   •   NYSE -22.30

Portfolio Leaders: CSCO, AMZN, SHOP, BAC




So, AT&T (T) has a judge’s okay to acquire Timer Warner (TWX) for $85 billion dollars! Right now AT&T stock is down some 4-5%, while TWX gapped up this morning on the news.

Personally, I think T will rebound, and it’s just a temporary reaction by unsure investors thinking that AT&T has made a super big purchase that affects the company’s bottom line, profits! But, the company’s core businesses have been suffering a bit, thus the need to acquire a strong media company that will expand the business.

Starbucks has acquired several smaller businesses over the years, and that is why its stock has been going sideways. Acquisitions and mergers are great, but in the long run the company has to rebound from such large purchases.

AT&T’s stock was climbing heading into this merger ruling, and now that the companies have been given the go ahead to merge, this uncertainty can prove to be detrimental to stock performance, at least temporarily.

It’ll be interested to see how Timer Warner shareholders make out, and if their shares will convert to AT&T shares, or they will get cashed out. I used to own Whole Foods stock (WFM) when it was acquired by Amazon (AMZN). My shares didn’t get converted to AMZN and I believed were just cashed out.

We see what happens in the coming weeks.




Notable Moving Stocks

Tesla (TSLA)

Tesla’s stock is moving this morning, based on the news that it is laying off a big portion of its workforce. About 9%. And the stock is surging, but I think this is only a temporary fix, as the company has been bleeding cash and Elon Musk is being pressured to finally become profitable. The production of the new Model 3 is suffering, as there is a great need for the cars but they can not manufacture enough of them.

I’m still holding out on TSLA stock, as I think it might fall again. We shall see…

finviz dynamic chart for  TSLA
AT&T (T)

As mentioned above, we’ll have to wait a few days and let the dust settle. I could be that the downturn is only temporary reaction, and hopefully the stock will bounce back soon enough.

finviz dynamic chart for  T
Shopify (SHOP)

Shopify is still looking surprisingly good, and I’m just waiting until my position reaches 100% profit. Which will hit 100% first? Boeing or Shopify?

finviz dynamic chart for  SHOP

Disclaimer: The content provided here is for information and entertainment purposes only. It is not intended as an offer or solicitation to purchase any investment. And this material should not be taken as investment advice, since investors’ needs and strategies may vary. Investing in equities is subject to extreme volatility.
Trade at your own risk.

More Investing Thoughts

Stock Trading
Tuesday December 4, 2018 by Carlos Rull
Filed as: Money, Trading Notes
Trading Setup
Monday December 3, 2018 by Carlos Rull
Filed as: Money, Trading Notes
trading setup
Monday November 26, 2018 by Carlos Rull
Filed as: Day Trading
Trading Setup
Sunday November 25, 2018 by Carlos Rull
Filed as: Money, Trading Notes
Day Trading Setup
Saturday November 24, 2018 by Carlos Rull
Filed as: Money, Trading Notes




Comments

comments

Carlos Rull

Carlos Rull is a musician living in the San Diego area. His interests include Yoga, Eastern Philosophy, Zen Buddhism, and Gardening. He plays drums, piano, and composes New Age & Ambient music, and his albums are available on iTunes and Amazon.com.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.