Author Archives: Scalper1

HP’s Thrust Into 3D Printers Could Torch 3D Systems, Stratasys

The entry of HP Inc. ( HPQ ) into the 3D printer market is seen as creating problems for 3D Systems ( DDD ) and Stratasys ( SSYS ), causing an analyst to issue a warning about the two market leaders. While 3D Systems and Stratasys are the two largest providers of 3D printers, HP (formerly Hewlett-Packard before its split) will gain market share over time, wrote UBS analyst Steven Milunovich in a research note. He reiterated a sell rating on Stratasys with a price target of 19. UBS also has a sell rating on 3D Systems and a price target of 9. Stratasys stock was up almost 3%, near 26, during afternoon trading in the stock market today . 3D Systems was near 15, down a fraction. The stocks of 3D Systems and Stratasys, having collapsed over the past two years due to numerous problems, are up sharply since recently hitting bottom. Despite the improvement and expectations of a turnaround, Milunovich believes that HP will be a disruptor. He says that HP expects to formally announce its first product in a few months, with availability by year end. “We expect HP to discuss betas with large industrial companies and provide impressive performance metrics,” Milunovich wrote. He also said, “(HP) indicates little interest in acquiring either Stratasys or 3D Systems, which surprises us.” He believes that HP could gain broader technology, patents, channels and, with 3D Systems, metals capability, via an acquisition of one or the other. HP has also said that it plans to avoid the consumer market, where 3D Systems and Stratasys have flailed. 3D printer revenue, including supplies, is expected to top $7 billion this year and approach $10 billion by 2017. Despite the struggles of 3D Systems and Stratasys, the 3D printing industry is stronger than it seems , say industry analysts who track the field. Among companies with big investments in 3D technology are Nike ( NKE ) and General Electric ( GE ). Nike has used 3D printers to develop several sport shoes, while General Electric uses them to produce advanced jet-engine fuel nozzles.

ETF Winners And Losers Following Yellen Comments

Putting all April rate hike speculations, spurred by hawkish comments from some Fed officials, to rest, Fed Chair Janet Yellen has stressed on global market concerns, and the consequent need for taking a ‘cautious’ stance on future rate hikes. With this, the Fed Chair reaffirmed its statements from the March meeting where it reduced its forecasts for rate hikes in 2016 from four to just two. However, citing positive developments in the U.S. economy in recent times, Atlanta Fed President Dennis Lockhart, San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker indicated the possibility of a faster policy tightening this year. As per these officials, the reduced rate hike projection mainly reflected the tantrums thrown by the global financial market, which are now showing signs of cooling off. The two important indicators to measure the timing of another rate hike – labor market and inflation – are both stabilizing. The San Francisco Fed President even said that he would promote a hike as early as April. While these remarks ignited the chances of a rate hike in April, the U.S. economy reflected some weaker data points. U.S. consumer spending grew slightly in February, raising questions about the economic growth momentum. Market Impact The latest comments of Yellen apparently went against the trending beliefs in the market. As a result, equities reacted nicely taking cues from this sweet surprise. Among the top ETFs, investors saw SPY add over 0.9%, DIA up over 0.5% and QQQ move higher by 1.6% on March 29, 2016. Some subtle moves in various markets and asset classes were also noticed. U.S. sovereign bond prices recorded gains. On March 29, yields on 10-year Treasury notes dropped 8 bps to 1.81% in a single day while yields on two-year Treasury notes fell 11 bps to 0.78%. Below we discuss a few ETFs which popped and dropped after Yellen’s speech and could remain in focus ahead. The Losers PowerShares DB US Dollar Bullish Fund (NYSEARCA: UUP ) The U.S. dollar lost following dovish Fed comments. This U.S. dollar ETF UUP was down about 0.9% on March 29. iPath S&P 500 VIX ST Futures ETN (NYSEARCA: VXX ) As the optimism took the broader market in its grip, volatility-based exchange-traded products underperformed on March 29. As a result, VXX, a popular ETN providing exposure to volatility, lost about 5.8% on the very day. The Gainers WisdomTree Emerging Currency Strategy ETF (NYSEARCA: CEW ) As the Fed hike talks took a backseat and the greenback fell, emerging market currencies emerged stronger. Notably, ‘A Bloomberg index tracking emerging currencies rallied in March by the most since 2009’. A strengthening commodity market, during the timeframe, helped this commodity-rich block. As a result, CEW added over 0.2% on March 29, 2016 (read: These Commodity Currency ETFs Outpacing Dollar to Start 2016 ). SPDR Gold Shares (NYSEARCA: GLD ) Gold prices, which lost steam on a rising greenback a few days back, witnessed a rally due to a sudden change in market sentiments. The ETF tracking the gold bullion – GLD – added about 1.9% on March 29, 2016 (read: Gold is Shining: Go Long With These ETFs ). Real Estate Select Sector SPDR (NYSEARCA: XLRE ) As the Fed indicated a cautious approach ahead, the drive for income once again came to prominence. While many dividend ETFs benefitted from this trend, several sector ETFs with high potential and high dividend also turned out to be major beneficiaries. XLRE – which focuses on real-estate companies – hit an all-time high on March 29. XLRE added about 2.2% on March 29. It yields 2.06% annually (as of the same date) (read: Inside the New REIT Select Sector SPDR ETF ). Original Post

Led by Verizon And AT&T, Telecom Tops S&P Sectors; Dividends Rule

With Verizon Communications ( VZ ) stock up nearly 17% and AT&T ( T ) soaring over 14%, the S&P telecommunications services sector is poised to lead the S&P 500’s 10 sectors in Q1 performance. As of afternoon trading in the stock market today , the S&P telecom services sector ranked tops, with utilities the only other sector posting a double-digit gain, for the first three months of 2016. “Absent some blow-away window dressing late in the session, that’s the way” the quarter will end up, S&P analyst Howard Silverblatt told IBD. The S&P telecom services sector is up over 15% in Q1. High dividend-paying Verizon and AT&T are among the best-performing stocks in the S&P 100 this year. Smaller phone companies also have outperformed, with CenturyLink ( CTL ) jumping 26%, Frontier Communications ( FTR ) up 20% and Windstream Holdings ( WIN ) gaining nearly 17%. Among wireless-only service providers, shares of   T-Mobile US ( TMUS ) are down about 2% and  Sprint ( S ) stock is near down 4.5%. Neither T-Mobile nor debt-laden Sprint pay dividends. Though they’re not in the S&P telecom services group, cable TV companies also posted solid returns in Q1. Shares of  Charter Communications ( CHTR )  and Time Warner Cable ( TWC ), which plan to merge, are both up 10% in Q1. Analysts expect the Charter-TWC deal to close in May. Comcast ( CMCSA ) stock is up 8% this year, and shares of  Cablevision Systems ( CVC ) have edged up over 3%. The Q1 laggards have been the financial, health care and consumer discretionary sectors. Craig Moffett, an analyst at MoffettNathanson, says Verizon and AT&T have benefited from global interest rates falling and “risk appetites withering.” “Whether the telco rally has legs will depend on fundamentals and growth and perhaps a change in industry structure,” Moffett said in a research report. Federal regulators, though, have been opposed to wireless consolidation, such as a Sprint and T-Mobile merger. AT&T has also been boosted by its purchase of satellite TV broadcaster DirecTV Group, analysts say. At Barclays, analyst Amir Rozwadowski in a report said that while the “flight to safety trade” isn’t showing signs of dispersing, investors may look at fundamentals more, going forward. IBD’s Telecom Services-Integrated group ranks No. 39 out of 197 industry sectors. AT&T is an IBD Leaderboard stock. Image provided by Shutterstock .