EBAY HAS A FIRE SALE
Shares smacked after bad Q2
Shares of EBay, the original online retailer, hit one-year lows yesterday, when the twenty-three-year-old firm missed earnings estimates, and a slew of exciting “initiatives” failed to ignite revenue growth.
If your first reaction to this story was, “Oh, EBay? Are they still around?” …then you understand the extent of the problem that management faces.
$EBAY shares closed down over 10%.
Collective2 strategy Northquant Insight Fund trades EBay, and other tech companies. Its performance has been tracked by C2 for nearly five years.
TRUMP JAWBONES THE FED
Banks, dollar, and yields get hit
President Trump revealed his limited grasp of economics on Thursday when he criticized the Federal Reserve and expressed his opposition to a “strong dollar.” Since most Americans have dollars in their wallets, and not, you know, wampum or bitcoins, the president’s call to make the the wallets of every American less valuable seems, shall we say, counter-intuitive.
The greenback fell in response, backing off one-year highs. Treasuries slid at the prospect of slower or fewer rate hikes. Banks also fell, with $BAC, $MS and $JPM all down over 1%.
In principle, the Federal Reserve is independent of direct political interference. But the markets either do not know this, or, more likely, do not believe that frail human beings who inhabit cushy bureaucratic jobs, and essentially just want to chillax, can stand up to relentless, withering political attacks by politicians who specialize in ruthless knife-fights.
EARNINGS AND DATA
Notable Earnings on Friday, July 20, 2018
$GE – General Electric Co. – FQ2 ‘18 – BMO
$SLB – Schlumberger Limited – FQ2 ‘18 – BMO
$HON – Honeywell International Inc. – FQ2 ‘18 – BMO
$CLF – Cleveland-Cliffs Inc. – FQ2 ‘18 – BMO