Excerpt from Louis Navellier's Marketmail - 4/30/2019
The S&P and NASDAQ both reached all-time highs on Friday, but the big news last week is that there may be a switch in leadership in the social media space. Previously, investors seemed worried that Twitter (TWTR) was purging some users. However, last week Twitter posted better-than-expected first-quarter sales and earnings, due largely to the fact that advertisers and users appreciated the company’s attempt to curtail abuse from (1) disinformation, (2) fake news, and (3) bullying. The fact that Twitter is tackling social media abuse while boosting advertising revenue bodes well for Twitter surpassing Facebook as a social media leader. (It doesn’t hurt that President Trump is an active Twitter user.)
Meanwhile, negative 10-year yields in both Japan and Germany put downward pressure on U.S. Treasury bond yields, which promotes the “Goldilocks” environment that has fueled much of the stock market rally this year. So far, nearly half (46%) of the S&P 500’s announcements are in, and first-quarter sales are up at a 5.1% annual pace, and 77% of S&P companies have reported a positive surprise in earnings! The analyst community now expects the S&P 500’s first-quarter earnings to fall 0.6%, up from -3.9% just a month ago. It is now possible that the S&P 500 may eke out a small gain when all is said and done.
Bryan Perry takes a closer look at the FAANG stocks, with a focus on Apple and its delayed entry into the 5G phone market. Gary Alexander compares April 30 to May 1 in history – both in the market sense (should we “Sell in May”?) and in the political arena. Ivan Martchev sees higher market highs by looking at comparative bond yields in the U.S., and by comparing the dollar to the euro and yen. Jason Bodner looks at “stealth buying” by institutional investors as another sign that this bull market has legs, while I examine America’s newfound power in energy independence and our global economic leadership.
Income Mail: Apple’s Earnings are at the Core of Further Market Gains
By Bryan Perry
Apple iPhones Will be Late to the 5G Party
Growth Mail: April Was Great, But Don’t “Sell in May” (or Go Away)
By Gary Alexander
Do We Prefer Our Constitution (April 30) or Socialism (May 1)?
Global Mail: The U.S. Yield Curve Has Still Not Inverted
By Ivan Martchev
Implications for the Stock Market
Sector Spotlight: The Market Image I Can’t Un-see
By Jason Bodner
What are the Big Buyers (and Sellers) Doing Now?
A Look Ahead: In Oil Markets, The U.S. is the “New OPEC”
By Louis Navellier
The U.S. Economic Dashboard is Still “Under the Speed Limit”