Tesla nears $500bn market cap as markets rally on Trump power transfer

European markets have maintained yesterday’s momentum with news of easing lockdowns in the UK and France adding to the optimism.  The FTSE is up 0.5%, the Dax up 0.4% and the Dow Jones leading way in the US futures market up 1%.

Markets around the world rose on Monday and overnight as further vaccine news, and a hint from outgoing President Trump about a smooth transition of power, all stoked the current rally.

Trump reportedly said he had recommended the General Services Administration, which helps transition to the new presidential regime, “do what needs to be done with regard to initial protocols”. The news helped calm fears about a disorderly handover of power to incoming President Joe Biden.

Elsewhere, AstraZeneca and the University of Oxford announced on Monday that their coronavirus vaccine is up to 90% effective, adding a third vaccine to the ones already announced by Pfizer and Moderna.

The latest pair provided more data than Pfizer and Moderna, and revealed an average efficacy of 70%, depending on the dosages given and time between doses. Crucially, AstraZeneca’s vaccine can be stored at refrigerator temperature, rather than requiring the extreme cold storage that poses a logistical challenge for the Pfizer and Moderna vaccines.

US markets closed higher in reaction, with the S&P 500 up 0.5% yesterday, before shares in Asia followed suit, with the Japanese Nikkei up 2.5% and Hong Kong’s Hang Seng up 0.1%.

Among standout shares, Tesla’s share price passed the $500 milestone for the first time, pushing its market cap close to $500bn. The leap came after analysts at Wedbush raised their bull-case price target on the stock to $1,000. The firm highlighted that currently, 3% of all auto sales are electric, a number it expects to more than triple to 10% by 2025.

Energy sector stocks jumps 7% to start week

On Monday, the Dow Jones Industrial Average led the way in the US with a 1.1% gain, versus +0.6% for the S&P 500 and +0.2% for the Nasdaq Composite. The top of the S&P 500 was dominated by energy names, with Occidental Petroleum, Apache, Marathon Oil and more all delivering double-digit gains after oil continued to hold well above the $40 a barrel mark. Overall, the S&P’s energy sector delivered a 7.1% gain on Monday. In the Dow, Chevron led the way with a 6.1% gain, taking its rally over the past month close to 30% and paring its year-to-date loss back below the 25% mark. Tech firms suffered a tougher day, with Apple down 3% and Netflix off by 2.4%, weighing on the technology-heavy Nasdaq Composite index.

S&P 500: +0.6% Monday, +10.73% YTD

Dow Jones Industrial Average: +1.1% Monday, +3.7% YTD

Nasdaq Composite: +0.2% Monday, +32.4% YTD

AstraZeneca slips despite vaccine news, oil giants rally

London-listed shares were mixed on Monday, as alongside the AstraZeneca vaccine news there was new economic data that showed UK business activity shrunk in November — the first time since June that there has been a contraction. The FTSE 100 closed the day 0.3% lower, with AstraZeneca’s 3.8% loss proving one of the biggest drags on the index. Also towards the bottom of the pile were miners Polymetal and Fresnillo and safety equipment maker Halma. At the top of the index, Royal Dutch Shell, BP, International Consolidated Airlines Group, Rolls Royce and Lloyds all gained between 4% and 8%. The FTSE 250 was positive on Monday, led by Cineworld, which jumped 20% after it secured a financial lifeline in the form of a new debt facility. Travel firm Tui and airline easyJet also helped the index higher, with gains of 8.1% and 6.4% respectively.

FTSE 100: -0.3% Monday, -16% YTD

FTSE 250: +0.4% Monday, -10.5% YTD

What to watch

Best Buy: Electronics retailer Best Buy has gained 39% this year, and more than 64% over the past 12 months, as mass working from home has led to a surge in demand for laptops, monitors and other consumer electronics. The firm delivers its latest quarterly earnings update on Tuesday, just days ahead of Black Friday, a critical day in the retail calendar. Analysts are expecting the company to deliver an earnings per share figure of $1.71, up on their expectations from a few months ago. Currently, analysts are split between buy and hold ratings on the stock.

Dell Technologies: Similar to Best Buy, Dell has climbed 35% this year. The company will deliver its third-quarter earnings on Tuesday, with PC and server sales in focus, along with a proposed spring-off of the company’s 81% stake in cloud software firm VMWare. While business spending on computer equipment has been hurt by the pandemic, there is huge demand for servers from cloud providers. Investors will also be looking at how sales have stacked up versus Hewlett Packard, which reports earnings on the same day. Wall Street analysts are split between buy and hold ratings on the stock.

Autodesk: Software firm Autodesk provides products for industries including engineering, architecture and product design, with Tesla one of the users of its services. The company’s share price is up 40% over the past 12 months, taking its market cap past the $50bn mark. Autodesk delivers Q3 earnings on Tuesday, with the firm’s progress in cloud-delivered software, and whether it has been hurt by reduced business spending key points to watch. Currently, 14 analysts rate the stock as a buy or overweight, four as a hold and two as an underweight or sell.

Crypto corner: Analyst says bitcoin “replacing gold” after huge difference in returns

Bitcoin’s status as a safe haven is taking on renewed impetus following a rollercoaster period for the cryptoasset, with one analyst labelling it a replacement safe haven.

Bloomberg analyst Mike McGlone has reportedly claimed that rising Futures “open interest and investor inflows” into bitcoin stand in stark contrast to demand for gold, during the pandemic period. With this dynamic new to the market (bitcoin having not been around in the last crisis), McGlone says this could give bitcoin an added edge in price appreciation.

Currently this story is playing out clearly, with gold up just 20% year-to-date versus bitcoin’s 150% gain.

Elsewhere, the altcoin rally is continuing to gather pace, we have seen this before where there is a delayed reaction to an initial move in bitcoin. XRP is up a further 23% this morning and the offer has been as high as $0.72. The biggest riser is XLM up a whopping 43% trading at $0.174.

All data, figures & charts are valid as of 24/11/2020.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
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Weekly Stock Market Update: COVID-19 Continues to Unsettle Markets, Amazon Disrupts Health Sector

Last Week’s Top Five Market Winners

Nasdaq Stock Market (NASDAQ)

The Nasdaq Stock Market saw some strong results last week from Fossil Inc. (FOSL), Puma Biotechnology Inc. (PBYI), Nikola Corp. (NKLA), HD Supply Holdings Inc. (HDS) and Bilibili (BILI).

  • Fossil Inc. (FOSL) stocks soared +42.73% following news of strong e-commerce sales and growth in mainland China.
  • The value of Puma Biotechnology Inc. (PBYI) stocks grew +24.97% after a buy rating was maintained by Edward White, an H.C. Wainwright analyst.
  • Discussions with General Motors saw Nikola Corp. (NKLA) stocks boosted by +24.55%.
  • News of an $8 billion acquisition deal from Home Depot saw the value of HD Supply Holdings Inc. (HDS) stocks increase by +24.41%.
  • Bilibili (BILI) stocks jumped +22.70% following the release of strong third quarter results.
NASDAQ TOP-PERFORMING STOCKS
STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Fossil Inc. (FOSL)3.32 (+42.73%)$11.09 USDConsumer Goods
Puma Biotechnology Inc. (PBYI)2.23 (+24.97%)$11.22 USDHealthcare
Nikola Corp. (NKLA)5.20 (+24.55%)$26.38 USDConsumer Goods
HD Supply Holdings Inc. (HDS)10.94 (+24.41%)$55.81 USDServices
Bilibili (BILI)11.10 (+22.70%)$60.11 USDConsumer Goods

New York Stock Exchange (NYSE)

The New York Stock Exchange saw positive movement from Jumia Technologies AG (JMIA), 22nd Century Group Inc. (XXII), SM Energy Co. (SM), Transocean Ltd. (RIG) and Coty Inc. (COTY).

  • The value of Jumia Technologies AG (JMIA) stocks grew +68.41%, although the reason behind this positive growth is currently unclear.
  • 22nd Century Group Inc. (XXII) stocks were up +65.46%, with the company reaching a new 52-week high.
  • Fluctuating oil and natural gas prices saw the value of SM Energy Co. (SM) stocks grow +53.39%.
  • Speculation of further cuts to production by OPEC also saw Transocean Ltd. (RIG) stocks rise by +27.78%.
  • An upgrade from Citigroup analyst Wendy Nicholson sent Coty Inc. (COTY) stocks soaring +26.30%.
NYSE TOP-PERFORMING STOCKS
STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Jumia Technologies AG (JMIA)10.05 (+68.41%)$24.78 USDServices
22nd Century Group Inc. (XXII)0.5342 (+65.46%)$1.3601 USDConsumer Goods
SM Energy Co. (SM)1.2600 (+53.39%)$3.6233 USDConsumer Goods
Transocean Ltd. (RIG)0.3000 (+27.78%)$1.3901 USDBasic Materials
Coty Inc. (COTY)1.26 (+26.30%)$6.07 USDConsumer Goods

Last Week’s Top Five Market Losers

Nasdaq Stock Market (NASDAQ)

Over on the Nasdaq Stock Market, last week’s results were less than ideal for Co-Diagnostics Inc. (CODX), Lending Tree Inc. (TREE), iRhythm Technologies Inc. (IRTC), Walgreens Boots Alliance Inc. (WBA) and Sangamo Biosciences Inc. (SGMO).

  • Despite reporting strong earnings growth and solid revenue, Co-Diagnostics Inc. (CODX) shares fell -25.97% after the company failed to match analysts’ estimates of earnings per share.
  • Lending Tree Inc. (TREE) stocks fell -15.95% off the back of news that the company’s largest shareholder was planning to sell off all of their shares.
  • Despite promising results from the company’s latest clinical trials, iRhythm Technologies Inc. (IRTC) stocks fell -13.99% last week.
  • The launch of a new prescription medicine service by Amazon led to a -12.13% drop in Walgreens Boots Alliance Inc. (WBA) stocks.
  • The value of Sangamo Biosciences Inc. (SGMO) stocks fell -10.63%, although the reason behind this drop is currently unclear.
NASDAQ WORST-PERFORMING STOCKS
STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Co-Diagnostics Inc. (CODX)-3.8900 (-25.97%)$11.1200 USDConsumer Goods
Lending Tree Inc. (TREE)-51.22 (-15.95%)$270.20 USDFinancial
iRhythm Technologies Inc. (IRTC)-36.55 (-13.99%)$225.05 USDConsumer Goods
Walgreens Boots Alliance Inc. (WBA)-5.18 (-12.13%)$37.53 USDConsumer Goods
Sangamo Biosciences Inc. (SGMO)-1.22 (-10.63%)$10.29 USDHealthcare

New York Stock Exchange (NYSE)

Losses were felt on the New York Stock Exchange by Oasis Petroleum Inc. (OAS), Post Holding Inc. (POST), Cardinal Health Inc. (CAH), Ormat Technologies Inc. (ORA.US) and Centene Group (CNC).

  • Oasis Petroleum Inc. (OAS) stocks continued to fall (-99.50%) despite the company announcing that its financial restructuring had been completed following bankruptcy.
  • The value of Post Holding Inc. (POST) stocks fell -11.80% following the company’s fourth quarter earnings call.
  • News of Amazon’s prescription medicine service also impacted Cardinal Health Inc. (CAH) stocks, leading to a -9.70% fall in stock value.
  • Ormat Technologies Inc. (ORA.US) stocks fell -9.17% following the launch of an underwritten public offering of more than 4 million shares of its common stock.
  • Centene Group (CNC) was also impacted by the launch of Amazon’s prescription medicine service, with stocks falling -8.82%.
NYSE WORST-PERFORMING STOCKS
STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Oasis Petroleum Inc. (OAS)-30.8447 (-99.50%)$0.1556 USDConsumer Goods
Post Holding Inc. (POST)-12.11 (-11.80%)$90.81 USDConglomerates
Cardinal Health Inc. (CAH)-5.57 (-9.70%)$51.91 USDConsumer Goods
Ormat Technologies Inc. (ORA.US)-7.33 (-9.17%)$72.98 USDUtilities
Centene Group (CNC)-6.09 (-8.82%)$63.08 USDHealthcare

Highlights and Lowlights

COVID-19 News Continues to Unsettle Markets

Following on from news from Pfizer earlier in the month, Moderna presented some strong results from their late-stage COVID-19 trials last week. Providing a similar level of efficacy as the Pfizer vaccine, the Moderna vaccine (and this news) once again saw markets rally across the globe. Industries negatively impacted by the virus, such as the energy sector, were among those that saw the greatest increases in stock value.

Despite these promising developments in the race to develop an effective vaccine, growing COVID-19 case numbers in the United States and Europe also led to a significant sell-off of stocks during the week. 

At a time when many investors and markets remain quite sensitive to the latest developments around the world, vaccine approval and the eventual roll out of immunisations may be the only way nerves will be calmed in the long term.

Amazon Takes Leap Into Prescription Medicine Services

Pharmacies and drug distributors across the United States saw significant drops in their stock value this week as Amazon launched a new prescription medicine service, Amazon Pharmacy. Designed to make ordering prescriptions simpler, the new service will allow customers to have prescriptions sent directly to the retail giant for fulfillment, with additional discounts offered to Amazon Prime members. It is set to launch in 45 states, putting it into direct competition with some of the country’s most popular pharmacy chains.

Off the back of the news, Walgreens Boots Alliance Inc. (WBA) stocks were hit hard, falling -12.13%, while Cardinal Health Inc.(CAH) and Centene Group (CNC) stocks also fell -9.70% and -8.82%, respectively.

What’s in Store for the Week?  

As the end of the year draws closer, speculation has begun to grow around how the last few weeks of 2020 will pan out for the world’s markets. Although much remains to be seen at this time, especially in terms of COVID-19-related developments, theories have begun to emerge around several additional hurdles that may challenge stock markets before the year ends.

Severable IPOs for large companies, including Airbnb, are set to launch before the end of the year, which may very well be a test of investor appetite in the final weeks before 2021. Investors have also continued to be quite aggressive in previous weeks, with the Bank of America recording the largest fortnightly flow of cash into equity funds, but time will tell whether continued market uncertainty will begin to affect their confidence.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
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Oil holds near 12-week high, with energy stocks soaring

The price of oil held at over $43 a barrel in overnight trading on Sunday and into this morning’s European open, its highest level since early September. That follows the third straight week of gains for oil prices, as progress towards a widely available Covid-19 vaccine has raised hopes of an improvement in energy demand. The price of oil has also been boosted by expectations that global oil cartel Opec and its allies will agree to delay plans to increase their output by two million barrels a day from January, according to Bloomberg. Last week, US-listed Chevron and Exxon gained 2.4% and 3.3% respectively, taking their gains over the past month to 18.2% and 8.1%. London listed BP and Royal Dutch Shell gained 3.2% and 7.3% last week respectively, with their gains over the past month standing at 18.9% and 27.2%.

After substantial gains the prior week, stocks paused last week. The Dow Jones Industrial Average fell back 0.7%, versus a 4.1% gain the previous week, while the FTSE 100 was up 0.6% versus 6.9% the week before.

Retail sales, initial jobless claim data shows slowing momentum

Of the three major US stock indices, only the Nasdaq Composite turned in a positive last week with a 0.2% gain. Small-cap stocks turned in another week of outperformance, with the Russell 2000 index up 2%. Since late September, the small-cap index, has rallied by more than 20%.

Aside from more vaccine progress news, investors had initial jobless claims and retail sales data to digest. Retail sales figures were mixed. While they showed an increase of 0.3% from September to October, momentum has still slowed down. Similarly, last week’s initial jobless claims data was worse than expected, with an increase of 31,000 to 742,000. In a Friday note, analysts at Edward Jones said that the data “in our view, confirms that this economic recovery is likely to be choppy before ultimately returning to pre-pandemic levels.”

S&P 500: -0.7% Friday, +10.1% YTD (-0.8% last week)

Dow Jones Industrial Average: -0.8% Friday, +2.5% YTD (-0.7% last week)

Nasdaq Composite: -0.4% Friday, +32.1% YTD (+0.2% last week)

Double-digit week for Taylor Wimpey, Imperial Brands, BAE

London-listed stocks continued to make progress last week, although the gains posted by the FTSE 100 and FTSE 250 were of a smaller magnitude versus the previous week. The FTSE 100 added 0.6% over the course of the week, while the FTSE 250 gained 1.2%. However, several names in the FTSE 100 delivered double-digit gains last week. Housebuilder Taylor Wimpey gained 12.3%, tobacco giant Imperial Brands added 10.4%, and BAE Systems was up 10.6%. Taylor Wimpey’s share price has surged by 40% over the past month. At the other end of the spectrum, Sage Group suffered a tough week, falling 12.9%. The news came as the accounting software firm said that it will increase its spending on cloud computing in order to capture more of the small business market. In the FTSE 250, Micro Focus International and Just Group helped take the index higher, with gains of 24.2% and 26.3% respectively.

FTSE 100: +0.3% Friday, -15.8% YTD (+0.6% last week)

FTSE 250: 0% Friday, -10.9% YTD (+1.2% last week)

What to watch

Agilent Technologies: Laboratory instrument firm Agilent is up 30% year-to-date, including a 12.8% gain over the past three months. The firm delivers its latest set of quarterly earnings on Monday, after delivering significant earnings beats in the previous two quarters. Earlier in November, the firm announced that it has had a new method for regulating and detecting dioxins (a group of pollutant chemicals that find their way into the food chain) approved by the US Environmental Protection Agency. Wall Street analysts are currently split between a buy and hold rating on the stock.

Warner Music Group: Warner Music Group only listed on the Nasdaq exchange this year, with an initial public offering priced at $25 a share. Since then, the firm’s share price has risen to $29.32. The company is one of the largest recording firms in the business and has artists including Ed Sheeran and Beyoncé in its stable. WMG will hold its quarterly earnings call on Monday. Currently, analysts lean towards a hold rating on the stock and are anticipating an earnings per share figure of $0.04.

The winners and losers since Pfizer’s vaccine announcement

It has only been two weeks since Pfizer first announced its 90% plus effective Covid-19 vaccine trial result on November 9th, but the winners and losers stock-wise since then provide some indication of how markets might behave as vaccine approval and distribution begins to gain momentum.

Until Pfizer made its announcement, the commodities, financials and energy sectors had suffered this year, with losses of 34%, 17% and 50% respectively according to financial advice firm Edward Jones. From November 9th to November 18th, those three sectors gained 6%, 10%, and 22%. At the other end of the spectrum, the technology and consumer discretionary sectors had gained 34% and 29% respectively in the year up to Pfizer’s announcement. From November 9th to 18th, the sectors both fell back by 1%.

Crypto corner: Bitcoin less volatile than one in five S&P 500 stocks

Bitcoin, although having a reputation for volatility, is less susceptible to wild valuation swings than over 100 S&P 500 stocks, according to investment manager VanEck. They compared bitcoin’s performance to S&P 500 stocks over the past 90 days and found it less volatile than the stocks of 112 companies. Expanding that to year-to-date and VanEck found it was less volatile than 145 stocks, placing it firmly in the middle of the pack of investments.

Bitcoin is routinely criticized as being too volatile for investing with many fund managers and other large institutions steering clear as a result. Commenting on a blog post on the company’s website VanEck said: “While bitcoin continues to be a volatile asset, it may surprise researchers and investors as to what other major assets have been more volatile than bitcoin.

“Much of the volatility over the past few years can be attributed to sensitivity to small total market size, regulatory hurdles and generally limited penetration in mainstream stock and capital markets.”

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
General Risk Disclosure | Terms & Conditions

All trading carries risk. Only risk capital you can afford to lose

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. ADR Investors and eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication

Why Copy Trading is a Great tool for new Investors

If you are planning to take your first steps in the financial markets, you may want to consider copy trading as an easy entry point. Copy trading will enable you to learn from other traders and investors, hone your trading skills, save time, and overcome your current lack of experience. Follow the guide below and learn how you can start utilising copy trading in no time. 

What is Copy Trading?

Copy trading is a function which enables you to allocate some of your funds to replicate the actions of another trader. Invented in 2010, CopyTrader™  was the culmination of the social trading revolution led by eToro. 

The practice of mirror trading, which enabled investors to replicate the actions of a professional broker was a service offered by financial institutions, however, it was limited to specific brokers and usually incurred management fees and commissions. CopyTrader™, on the other hand, can literally be used by millions of people on the eToro platform. 

Benefits of Copy Trading for new Investors

Why copy trading is great for new investors


There are several advantages that copy trading can offer new investors:

  • Overcoming lack of experience: Any trader or investor will tell you that experience is one of the most important factors when approaching financial markets. However, with copy trading, even those who lack experience can trade and invest.
  • Learning from the best: eToro is home to some very successful traders and investors, some of whom are even professionals. By using copy trading, users can easily replicate the performance of other traders and monitor their actions closely. Moreover, many traders use the social news feed to discuss their actions and explain their rationale, presenting a real educational opportunity for novice traders.
  • Saving time: Learning the ropes in financial markets takes time. No matter how talented any single trader may be, there is always a learning curve involved. However, with CopyTrader, new traders can spend their time researching which traders to copy, as their stats are transparently displayed on the eToro platform, instead of having the daunting task of researching individual assets. 
  • Approaching different markets: Try as you may, there is no chance of learning the ins and outs of all markets around the world. However, those who wish to diversify their portfolios into asset classes and stock exchanges with which they are less familiar, may want to consider using copy trading as a means of trading and investing in new markets. 

How Copy Trading can help you Avoid Common Mistakes

Some of the more common mistakes made by new traders and investors can be avoided by using copy trading. For example, for some traders, it takes time to overcome emotional decision-making. “Going with your gut” or investing based on an obscure tip just because it “feels right” could be your downfall. However, with copy trading, you put your money in the hands of experienced investors, who have already overcome such barriers and are cool and calculated. 

Another mistake often made by new traders is the proverbial “putting all their eggs in one basket,” meaning, failing to diversify. By copying other traders, you gain exposure to their diversified portfolios. By creating an entirely people-based portfolio, you can enjoy two layers of diversification: The first is the traders themselves, and the second is represented by the assets in each trader’s portfolio. On eToro, you can invest in ready-made, people-based CopyPortfolios, comprising a selection of traders, who were bundled together based on a predetermined strategy.

Are There any Risks to be Aware Of?

risks of copy trading


The short answer is “yes.” There are always risks involved when trading and investing in financial markets. However, there are some ways to reduce the risk, especially when using CopyTrader on eToro:

  • Check out the Risk Score: Perhaps the most straightforward method is to look at the Risk Score of the trader whom you are planning to copy. A Risk Score is a numeric value, ranging from 1-10, with 10 being high risk and 1 being extremely low risk. Choosing a trader with a risk score of 4 or lower, means you are exposing yourself to relatively low risk. 
  • Monitor your copied positions: While you are putting your money in the hands of experienced traders, you don’t want to adopt a “fire and forget” mentality. Periodically look at your trades, go to the copied trader’s profile, read their posts and see if you agree with their strategy.
  • Diversify, diversify, diversify: There’s a reason why most risk management guides focus on diversification. The more diverse your portfolio, the more spread out your risk is. It’s that simple. As mentioned before, you may want to consider investing in a people-based CopyPortfolio, however, make sure to read each CopyPortfolio’s description carefully and look at its Risk Score, to ensure it matches your risk appetite and long-term goals. 

We hope this guide gave you some insight into the world of copy trading. Obviously, there is much more to know and learn, but if you read the above carefully, you will be ready to take your first steps and open your first copy position.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
General Risk Disclosure | Terms & Conditions

US Treasury and Federal Reserve clash over pandemic response

European markets have opened marginally more positive this morning, but today’s upcoming session has been clouded as officials in Washington clash over the pandemic response.

Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell found themselves in disagreement over several emergency lending programs that were started to support businesses during the Covid-19 pandemic.

Mnuchin said in a letter after markets closed that he would allow the programs to expire, arguing that credit markets have now been brought back to sufficient strength. In response, the Federal Reserve said in a statement that it “would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.”

US stock futures fell overnight yesterday after the news was reported, with the Dow Jones and S&P 500 set to open down 0.4% and the Nasdaq flat at time of writing. Investors have been waiting with bated breath for a new round of fiscal stimulus, and the news that policymakers on the monetary side of the equation disagree will not be welcomed.

L Brands jumps 18% on Victoria’s Secret recovery

All three major US stock indices climbed on Thursday, with the Nasdaq Composite up 0.9% and the S&P 500 up 0.4%. At the top of the S&P was L Brands, the firm behind Victoria’s Secret and other names, which jumped by close to 18% after beating expectations in its Q3 earnings report. The company delivered a profit of $330m, versus a $252m loss a year ago, boosted by strength in its Bath & Body Works brand and an improvement in Victoria’s Secret. CEO Andrew Meslow said that the firm is heading into the holiday season with a “well-positioned” inventory. Year-to-date, L Brands’ share price is up by more than 100%, after a sustained multi-year downturn.

In other retail news, Macy’s CEO Jeff Genette said in a Thursday interview that the firm has proven it can operate stores safely during the pandemic, according to The WSJ. The firm has been lobbying states and cities to not close down its stores due to surging Covid-19 cases, heading into a crucial holiday season. Year-to-date, and despite having rallied more than 40% in the past three months, the stock is still down some 46%.

S&P 500: +0.4% Thursday, +10.9% YTD

Dow Jones Industrial Average: +0.2% Thursday, +3.3% YTD

Nasdaq Composite: +0.9% Thursday, +32.7% YTD

UK shares fall back, Cineworld looks for a lifeline

Both the FTSE 100 and FTSE 250 fell back yesterday, by 0.8% and 1% respectively. Year-to-date, the FTSE 100 trails its US counterpart the S&P 500 by more than 25 percentage points, despite an upswing in recent weeks. On Thursday, chemicals firm Johnson Matthey, turnaround specialist Melrose Industries and Rolls Royce were among the biggest losers, falling by 5.6%, 4.7% and 3.9% respectively. The UK’s oil giants fell back too, with BP down 3.3% and Royal Dutch Shell down 2.5%.

In the FTSE 250, Aston Martin Lagonda and Cineworld Group were the biggest losers, sinking by 12.3% and 8.7% respectively. Yesterday, The WSJ reported that Cineworld is in talks with investors to secure financial lifelines, after warning last month that it could run out of cash by the end of the year.

FTSE 100: -0.8% Thursday, -16% YTD

FTSE 250: -1% Thursday, -10.9% YTD

What to watch

Foot Locker: Over the past three months retailer Foot Locker’s share price has surged by 52%, pushing it to a 6% gain year-to-date, after the lifting of lockdown restrictions allowed its stores to reopen. Footlocker delivers its Q3 earnings report this morning in the US, where investors will be keen to hear how the firm is planning for any new potential lockdowns with new Covid-19 cases running at record levels. Currently, analysts are split between a buy and hold rating on the stock and are expecting an earnings per share figure of $0.63 for the quarter.

UK service sector data: On Monday, the Markit/CIPS UK services sector purchasing managers index for November will be reported. The data being released is “flash” data, based on a substantial but not complete set of the total survey responses, but since the majority of the UK economy is made up of the services sector, the data is a critical indicator of its health. Expectations are for the reading to have fallen versus October, to below 50, which is the demarcation line between expansion and contraction.

Crypto corner: Goldman Sachs backs digital Yuan, could account for 15% of global payments

The digital yuan, China’s planned national virtual currency, could account for 15% of total consumption payments in ten years, Goldman Sachs has predicted.

In a report given to CoinDesk, Goldman Sachs said the Digital Currency Electronic Payment (DC/EP) could be a more attractive alternative to existing digital payment services provided by fintech companies in a cashless environment.

It cited that anonymity enabled by the separation of a bank account and the digital yuan wallet, offline payments, and interconnectivity with various payment options could also make the digital yuan a success.

“In ten years we expect DC/EP to reach 1 billion addressable users, have 1.6 trillion rmb ($229 billion) in issuance, 19 trillion rmb ($2.7 trillion) in annual Total Payment Value (TPV) and account for 15% of total consumption payments,” the report said.

Goldman Sachs said consumption payments – the transactions in which users make purchases via a digital payment platform – will see the hottest competition amongst providers.

“Consumption is the major source of income for Third Party Payment (3PP) providers given the higher take rate than transfers and finance; thus consumption payments are regarded as ‘commercial payments’ by payment institutions,” Goldman Sachs said, as per Coindesk.

All data, figures & charts are valid as of 20/11/2020. All trading carries risk. Only risk capital you can afford to lose

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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Stock market predictions and the stocks Australian retail investors will have in their portfolios at the start of 2021

2020 has arguably been one of the wildest years the stock market has ever seen. 

Now, as we start to farewell the year that’s been, investors are starting to plan their portfolios for the year to come. With the newly elected president Joe Biden in the US and the race to find a COVID-19 vaccine still at play, it’s expected to be an interesting year for investors.

What should investors expect?

Stimulus package and new US president

Moving into 2021, it is hoped that a stimulus package will be agreed upon before the end of 2020. This would be a huge positive for US markets, as it’s been expected that the Democrats will look to push through a stimulus package within Biden’s first few months as president. Although, the package may be smaller than originally expected had we seen a ‘blue wave’. 

A stimulus package is also likely to weaken the USD, as we move into the early stages of 2021. A weakening USD could see many investors shift towards traditional assets such as gold, or cryptoassets such as bitcoin – the latter has returned 126 per cent YTD.

A divided government in 2021 will also benefit investors, as we are unlikely to see any dramatic policy changes over this time. Biden has announced his plans of higher taxes and introducing renewable energy in the US, but these are unlikely to be pushed through as quickly as anticipated. Not only does this result in less volatility in the markets in the early stages of 2021, but it’s also highly favourable for traditional energy industries such as oil and gas.

Oil demand

Demand has slumped for oil since the first half of 2020, reaching negative prices and continuing to struggle ever since. Prices have rallied on the back of positive vaccine trials in recent weeks, but this is unlikely to help demand in the short term. OPEC has already lowered its global oil demand forecasts for the remainder of 2020 and the start of 2021

Any large spikes in COVID-19 cases throughout Europe and the US will continue to provide downward pressure on oil as we move into the new year. The recent news of an effective vaccination, which is expected to become available in the near-term, could potentially limit the decline of oil in 2021. A vaccine early in the new year could see prices move back towards early 2020 highs of $50-$55 a barrel. 

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Vaccine hopes

With hopes of a vaccine being developed in the short term by Pfizer, many experts believe that we still have a long way to go before it can be introduced globally, as well as be produced on a mass scale. Pfizer has been working in the background on its vaccine, whereas names such as Gilead SciencesModerna and AstraZeneca have been more prominent in the news as competitors in the race for the vaccine in 2020. 

Gilead announced stage 3 trials in April and the FDA recently approved its remdesivir drug, which was the same drug that Donald Trump was prescribed. Reports also show that AstraZeneca is producing a drug here in Australia which we could see rolled out in the new year, despite not yet passing the last stage of approval. 

Any vaccine is likely to bring optimism to the markets, and analysts at JP Morgan predict the S&P 500 could increase by 11 per cent in the first half of 2021, as a result.

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What other stocks should investors keep an eye on?

Chinese stocks

China continues to demonstrate the best recovery from the global crisis, compared to the US, the UK and Europe. During the first half of 2021, we can expect to see Asian markets, with China in the lead, outperform the global equity markets. With renewed hopes under Biden that the relationship between the US/China can potentially improve, there are big hopes for the Asian markets, specifically in China Tech. Names such as TencentBaidu and NetEase are likely to benefit from a more diplomatic union between the two countries. 

Alibaba recently recorded $56 billion in Singles’ Day sales, exceeding its 2019 high. This data clearly shows a movement towards online sales and a favour in Chinese eCommerce companies such as Alibaba and JD.com. It’s expected that this trend will continue to accelerate in 2021. 

eCommerce and payment provider stocks

2020 has been the catalyst for a move to an online world, and there’s no stopping for 2021. It’s expected that eCommerce and payment provider companies will boom more than ever, as consumers continue to feel more comfortable shopping from the comforts of their own home. In 2021, I believe this acceleration of digital transformation will continue into many parts of our lives, and we’ll be looking to technology providers to make our buying experiences even easier. This includes how we pay for products and services, with leaders such as PayPal planning to integrate cryptoassets into their platform.

Cloud computing and AI stocks

Nvidia, who have enjoyed a strong 2020 so far, are looking to continue the drive towards global AI dominance in 2021. In September, Nvidia agreed to buy Arm Holdings for $40 billion as they seek to corner the AI market. This acquisition could be a game-changer for Nvidia in 2021, especially as the world continues to adapt to AI technology and cloud computing. 

In what has become one of the most common words in the realm of technology, cloud computing has changed numerous aspects of our daily lives. Cloud computing will underpin the technology we use today such as email, video streaming and even social media. 

There are some very big players in the industry already from MicrosoftGoogleAmazon and Salesforce, even Snowflake,which went public this year and was backed by Salesforce and Warren Buffet. Another software company to go public this year was Palantir Technologies

Palantir was one of eToro’s most popular stocks for Australian and global investors in October after it’s initial IPO. They provide big data analytics and have been working very closely with the US government. Their software is perceived to be more affordable, which is likely to be positive for Palantir as we move into a US government under Biden, who is keen to cut spending. In its first earnings report since going public, the company raised its annual revenue outlook after increased demand this year. The pandemic has caused government health agencies to increase their investment into software, and I can see Palantir capturing a part of this investment in 2021.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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eToro’s top 5 stock picks for Q4 2020

It’s hard to believe we are already in the final stretch of what will go down in history as one of the most eventful years in the stock market. Q3 brought us more stimulus driven euphoria as rampant tech markets saw the Nasdaq make several more record highs. The S&P managed to follow suit leaving only the Dow Jones as the major US index that had not managed to reverse its year to date losses.

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The tide then started to turn in September as a deadlock in Congress over additional fiscal stimulus as well as increasing infection rates in Europe spooked investors as they sold out of stocks and sought safer pastures. The extent of the fear factor is evident in the fact that even gold took a hit and the preferred safe haven was cash with the USD catching a bid against its major counterparts.

Many investors may now be sitting on profits wondering what to do, or indeed still be holding some stocks in beleaguered sectors and searching out alternatives to try and eke out some gains during these uncertain times. A lot could change in the coming three months with the Federal Reserve intimating that there is some $300 billion in unused Covid-19 aid, so a stimulus package could yet be agreed. Not to mention we have the US election looming on the 3rd November which will undoubtedly cause some huge volatility in the build up and on the day.

In light of this, we have highlighted five stocks that are worth watching considering all the factors that are at play. Whether you want to batten down the hatches and look to protect your portfolio or if you think we could bounce from this correction and are ready to get back involved, these opportunities could fit the bill.

READ OUR TOP 5 STOCKS REPORT FOR Q4
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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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Three rallying stocks to consider

Vaccine breakthroughs are like buses: the world waits for months for hopeful news, two then come along in quick succession. Markets rallied off the back of the announcements and lifted countless share prices in the process. Here, we delve into three such companies and assess the investment potential they can bring portfolios.

Lloyds

StocksLloyd'sLLOY.L

Banks were one of the hardest-hit sectors in the early days of lockdown. High street names had to shut their national branch networks and accelerate their digital transformations to stay operational. Investors grew skittish about how these banks would react to the first crisis since the 2008 crash with many deciding to sell their shares when faced with the uncertainty of a pandemic.

Investor sentiment was undoubtedly helped by the vaccine-breakthroughs and bank shares were carried up by the ensuing rally. When we look past these headline figures though, the underlying health of some banks is encouraging. Lloyds is a good example with its Q3 pre-tax profits of £1bn beating most forecasts.

As well as being well-placed to benefit from a stronger-than-expected demand for mortgages, this year, Lloyds has a conservative management team who are determined to reduce costs where possible. The bank is cutting over 1000 jobs as it pivots towards prioritising digital services for its millions of customers, which will help it stay operational despite future Covid-19 restrictions. This has helped the Lloyds share price trade steadily around the £0.25-£0.30 range for the past few months but a combination of strong Q3 numbers and the vaccine breakthroughs helped shares trade at £0.35 by mid-November.

easyJet

StockseasyJetEZJ.L

easyJet has had an extremely difficult year for obvious reasons. Millions of holidays around the world have been cancelled and the stop-start nature of lockdowns across Europe hasn’t helped travel companies. In its full year 2020 results easyJet revealed a full year pre-tax loss of £835m, thanks in large part to a 53% fall in revenue from 2019. 

The airline has already confirmed it will be running at 20% capacity for the coming months. Although this is not ideal, it will likely help cut costs across the business and give management some much-needed breathing room. The company has already been aggressively cutting costs – including selling or leasing planes – and has generated surplus liquidity of £3.1bn throughout the year. And for once this budget airline also isn’t having to worry about being outmanoeuvred in the extremely competitive budget holiday space. Covid-19 is challenging the entire holiday industry so there is little likelihood of easyJet’s lower capacity being taken advantage of by a competitor. Therefore easyJet is bullish about being able to take advantage of demand whenever it reappears (for example easyJet sales increased 900% in the days after travel restrictions were initially lifted around the Canary Islands).

Shares shot up in response to vaccine news, rallying by as much as 35% in the days immediately afterwards. A workable vaccine will still take time to be approved and distributed but timing may work in easyJet’s favour. The winter months often mean lower air traffic so easyJet is not incurring losses like it would have experienced if it ran at 20% capacity at the height of a summer holiday season. Therefore, if there was ever a time for easyJet to lower production and take a hit, now could be it.   

Nio

StocksNio Inc.NIO

Nio, the ‘Chinese Tesla’ as it is sometimes called, has had a strong rally throughout 2020, with its share price surging by over 1000%. Nio shares started trading at around $3 in January but entered November at over $40.

This electric car manufacturer hasn’t let a pandemic get in its way. This year, Nio has been expanding its customer base through an aggressive marketing campaign and sales have picked up, pipping the 5000 mark in October for the first time in its history. Meanwhile Nio has been working hard on improving its battery technology and made these cheaper and longer lasting. The company has also invested in more ‘battery swap’ locations and a fleet of roaming ‘charging cars’ throughout China, which all helps reduce the overall price of ownership for its customers.

This has all created some healthy numbers for Nio. In Q2, car deliveries were up to 10,331 from 3,838 in the first quarter. Over the same period gross profit up to RMB313m ($44.3m) which was a far cry from the loss of RMB167m experienced in the first quarter. Although the electric car space is becoming increasingly competitive, Nio is in very good shape to capitalise on its brand strength and expand further into its home market of China.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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Stocks swing to loss as Covid-19 surge hits optimism

European shares have followed Wall Street into the red this morning as a worrying rise in Covid cases sees jittery investors sell off stocks. Hot off the heels of the positive news that Pfizer’s vaccine was up to 95% efficacy, the US death count hitting the milestone 250,000 mark caused markets to slide. This shows how delicately poised markets are and that news of a vaccine is not sufficient, approval and vaccinations being rolled out is what will make the real difference.

US markets opened higher yesterday and stayed that way until lunchtime, before selling off sharply in the afternoon. The daily US death toll hit its highest level in six months on Tuesday and the daily new case count is running above the 150,000 mark. That is around a quarter of the global total daily new cases. The Dow Jones Industrial Average and S&P 500 both closed the day 1.2% lower. In the S&P, the energy sector fell hardest, losing 2.9% overall.

In corporate news, Boeing’s 737 Max airliner – which has been grounded for more than a year after two fatal crashes – cleared a crucial hurdle to be allowed to return to the skies. The plane was cleared to fly in the US by the FAA, although that clearance does not extend internationally and changes to the planes will be required before they can be flown with passengers. Pilots will be required to complete additional training, and the FAA has to inspect each individual plane. The approval news wasn’t enough to lift Boeing stock, which followed the pattern of the broader market on Wednesday and closed 3.2% lower.

Lowe’s stock sinks despite firm doubling online sales

At the bottom of the S&P 500 yesterday were home improvement supplies firm Lowe’s, Norwegian Cruise Line and energy company Phillips 66. Lowe’s stock slumped by more than 8%, despite reporting a doubling in online sales, it marginally missed earnings expectations in its Wednesday quarterly earnings update. Oppenheimer analyst Brian Nagel told CNBC that the market is less interested in online sales gains than the broader question of what is next for the company once the Covid-19 crisis comes to a close and elevated home improvement demand subsides.

Nvidia also delivered quarterly earnings on Wednesday, where it beat both revenue and earnings expectations. The firm’s share price still fell back in after-hours trading, however, as the company predicted a decline in data centre sales – a division that has been a key growth driver in 2020.

S&P 500: -1.2% Wednesday, +10.4% YTD

Dow Jones Industrial Average: -1.2% Wednesday, +3.2% YTD

Nasdaq Composite: -0.8% Wednesday, +31.5% YTD

Micro Focus soars 30% on upbeat outlook

After gaining 0.9% on Wednesday, the FTSE 250 is now back into single-digit loss territory in 2020, at -9.98%. Business software firm Micro Focus International was the biggest winner in the index yesterday, with its share price jumping 30% after delivering a promising forecast in its earnings report. Year-to-date, the firm’s share price is still down more than 60%.

The FTSE 100 was led to its 0.3% gain on Wednesday by RSA Insurance Group, homebuilder Taylor Wimpey and energy firm SSE, which all added more than 4%. There were no major events on Wednesday affecting sentiment, but pharmaceutical company Pfizer offered up additional data on the efficacy of its Covid-19 vaccine, which showed it protected 94% of over 65-year-olds in a phase three trial.

FTSE 100: +0.3% Wednesday, -15.3% YTD

FTSE 250: +0.9% Wednesday, -10% YTD

What to watch

Intuit: Finance and accounting software firm Intuit has gained 35% in 2020, including a 14% increase over the past three months. The firm sells popular products TurboTax and QuickBooks, and owns a huge portion of the online tax preparation market in the US. Intuit delivers its latest set of quarterly earnings today, after beating expectations last quarter. Wall Street analysts’ expectations for the firm have ticked up over the past three months, with an earnings per share figure of $0.41 anticipated for the latest quarter.

NetEase: Chinese internet technology firm NetEase is a major provider of online and mobile games and internet services in China. The company has a Nasdaq listing in the US, and has added nearly 40% to its share price year-to-date. Netease delivers its latest quarterly update on Thursday morning New York time, with its dividend and how gaming demand has sustained in China after several months of Covid-19 being effectively contained. Wall Street analysts lean heavily towards a buy rating on the stock.

Workday: Financial and human capital management software firm Workday offers businesses access to a range of applications through the cloud, and as such has gained more than 35% in 2020 so far on the back of mass remote working. That rally has stalled recently, however, with the stock close to flat over the past month. Workday will report quarterly earnings today; demand for its cloud-based human capital management solutions will be a key point of focus, according to Zacks Equity Research. Over the past three months, multiple analysts have upgraded their view of the stock to a buy rating.

Crypto corner: Unfortunate bitcoin holder spends $47,000 on single transfer

An unlucky bitcoin holder has spent $47,000 in transaction fees to send 0.01088549 bitcoins (around $193) by mistake.

In most likelihood the mistake was made by accident with an unknown user setting the fee manually – in this case paying 2.66038352 Bitcoin to send a much smaller sum, according to Decrypt.

This is not the costliest blunder an unknown cryptoasset holder has made though. Back in June, an ethereum holder spent $2.6 million to send $130 of ETH – an extraordinarily large fee.

Typically the average bitcoin transfer fee is about 0.00025 BTC – or around $4.45. In October a so-called ‘bitcoin whale’ moved over $1 billion-worth of the cryptoasset but paid a fee of just around $3.

All data, figures & charts are valid as of 19/11/2020. All trading carries risk. Only risk capital you can afford to lose.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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Get to know an Elite Popular Investor: Wesley Nolte

He’s already a Chief Technology Officer of an up-and-coming startup, but that doesn’t stop Wesley Nolte from being a self-taught eToro Popular Investor with plans to beat the S&P 500 by at least 20% year-on-year. If you want to understand how check out his interview. 

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  • Tell us a little bit about yourself.

I immigrated to London from Durban, South Africa, in 2008. The financial crisis had just taken hold, and getting a job was nearly impossible. I was broke within 2 months. 

Since then I’ve helped fledgling startups, as well as leading global teams in some of the world’s largest businesses. I’m a published author and love writing in general. I’m a voracious reader, and consider myself an informal student of economics, psychology, philosophy, and sociology. Right now I’m the CTO of a startup called SalesTrip.

In my spare time (what’s that? haha) I run and cycle. I have two young children so I don’t get much sleep.

I joined eToro in May of 2015 and the Popular Investor Program about a year and a half later. At that time, I thought you had to pay to join the Program (but you actually end up getting paid). 

  • Tell us about your financial background.

All of my financial experience is self-taught. Between 1999 and 2009 I tried my hand at stock trading, almost always losing money in the process. I learned a lot through these mistakes and continued to study the great investors and traders. Around 2010 I developed the beginnings of the approach I use today. 

  • What is your strategy and have you changed it recently to adapt to the volatile markets? Where do you do your research? 

I have a single strategy although I emphasize components of it when market conditions change e.g. I’m almost always net long but during volatile periods I will do a lot more short-term trading than usual. I also tend to hold a little more cash than non-volatile periods and will use leverage now-and-again.

  • How has eToro changed the way you trade? 

Being responsible for a significant amount of AUM means I must perform well while minimizing risk. In order to do this, I’ve needed to become an expert in several areas – fundamental analysis, technical analysis, economics, and several industries. Today I have a much better understanding of how markets and macroeconomics work, and a much better process for analyzing stocks.

  • Which assets or industries do you have your eye on now?

The next set of mega-caps like the FAANGs (Facebook, Apple, Amazon, Netflix, Google) are out there today, and I’m going to find them. I’m looking for them in biotech, space-tech, artificial intelligence, and robotics. I believe the next wave of the industrial revolution will be born out of those 4 “industries”.

  • What was your favorite investment over the past 12 months?

Hmm, tough one. A fun, fairly risky trade was $NCLH in May. Risky because it’s a cruise line company, and the world was locked down but their share price was insane. I ended up making nearly 100% in a month.

Note gains and returns such as these are not typical and all investment involves risking your capital.

  • Do you invest in any asset classes outside of stocks, commodities, and crypto?

Yes, I do. I invest in private companies e.g. Monzo, Future Bricks, All plants; and the London property market.

  • What is your long term trading goal?

My goal each year is to beat the S&P 500 by at least 20%, but my ultimate goal is to turn my current balance of about $50k into $1,000,000.

  • Any message to copiers or potential copiers?

Many of you have been with me for years. I’d like to thank you for sticking it out, this is the ideal way to copy my portfolio. Some of you have been with me for much shorter, and I thank you for your confidence but encourage you to hold for the long-term. For those that are thinking of copying me, feel free to send me questions on eToro.

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