Uber Is Tempting, Right?

By Hoda Mehr Wed, May 22, 2019

Good Good Morning and Happy Hump Day. The week is getting greener by the day as the stock market is getting its groove back on the announcement of the 90-day Huawei exemption. It’s not a long term thing, and it certainly has it’s restrictions, but it’s enough to make the bulls happy and ready to buy again.

$11 Billion Going Bye, Bye. Many are wondering if semiconductor stocks like Qualcomm (QCOM) can survive the ban – mainly because so many suppliers do business with the Chinese telecom powerhouse. Analysts have found Huawei buys about $11 billion worth of electronic components from U.S. suppliers. How will this hurt future earnings and future guidance? Only time will tell.

Uber Is Tempting, Right? Hitch a ride service (UBER) has been trying to stabilize its chart since its IPO debut last week. The stock was priced at $45 and is currently trading roughly 7% down from its opening price, currently at 41.47. Some are calling it a “once in a generation” company. What do you think? Are you the type to sit back and wait until an IPO reports its first quarterly earnings, or do you know a winner when you see one? Personally, my finger is hovering over the buy button, but I just can’t hit buy just yet.

• Crypto: Bitcoin fought hard to get above its $8,000 resistance on Tuesday, ignoring a widely-expected delay by U.S. authorities on a much-anticipated bitcoin fund that experts expect to be a “game changer” for the crypto trading and investing world.
• Pot Stocks: Pot stocks have been mellowing out lately – but the push for legislation that would allow banks to do biz with cannabis companies without the feds getting involved is gaining support, and your friendly local credit unions are leading the attack.

Oil data at 10:30AM EST 

Watch for volatility in the market today. Crude Oil Inventories report at 10:30 EST. Oil has been in bull mode since January. Will the numbers keep the bull run going tomorrow? If supplies continue to weaken, then we could absolutely see prices spike up.

FOMC minutes at 2:00 pm EST

Today brings the minutes from the most recent Federal Reserve meeting. Fed communications are notorious for causing volatility for interest rates, and some tweets from Trump, although this one stands nearly as much chance to do no harm due to comments that many on the board are floating the idea of not only keep rates flat here but cutting rates if necessary, which the bulls will love.

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Tesla (TSLA) shares dipped below $200 Tuesday morning after Morgan Stanley analyst Adam Jonas dropped his price target to a measly $10, previously calling for a 97 target, pointing to deteriorating fundamentals powered by a drop in demand for the electric vehicles. Tesla short interest is reportedly $8.10 billion, or 38.41 million shares shorted; which comprises 29.32% of float. Enough for any investor or trader to be mindful of a potential short squeeze!

Target (TGT) is set to report this morning. Target stock opened Tuesday morning lower, but quickly recovered after little brother Kohls (KSS) reported first quarter results that struck out at bat in every category.

Lowes (LOW) is another big one to watch reporting today. Analysts predict Lowe’s will report earnings of $1.34per share on revenue of $17.70 billion. If the company were to match the consensus estimate when it reports Wednesday, EPS would be up 12.61 percent. Revenue would be up 1.96 percent on a year-over-year basis, maybe enough to edge the stock above its 50 day moving average, with some breathing room to boot.

U.S. existing home sales fell unexpectedly for a second straight month in April as the supply of lower-priced housing continued to weigh. 

Here is what you need to know… Existing Home Sales measures the change in the annualized number of existing residential buildings that were sold during the previous month. The bottom line is this report helps to gauge the strength of the U.S. housing market and is a key indicator of overall economic strength. So this news isn’t great, but experts expect that US wage increases and further improvements in the job market will lead to better than expected home sales numbers later this year. Personally, I think housing prices are just out of reach for most people and unless we see a health correction I think we will see a flat to lower home prices over the summer.

Apple (AAPL) apparently tried to buy Tesla for more than it’s currently worth back in 2013, a report says.

Sometime in 2013, there was a serious bid from Apple at around $240 a share according to Craig Irwin of Roth Capital Partners in a conversation with CNBC. This might be something that keeps some investors from getting too overly bearish on Tesla. Knowing there was a credible bid back in the day, would you want to be short Tesla stock today?

Let’s not forget that Apple is rumored to have some very hush hush electric battery systems in development for some time. If the two companies were to combine, it would make it the biggest acquisition for Apple to date. Do you think Elon would get to stay on as CEO for the company, or would he be asked to step away?

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card