Investors Insight - Week of 04.05.2021 Report.pdf - Preston Buhrmaster

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WEEKLY INVESTORS INSIGHT REPORT APRIL 05, 2021 - APRIL 09, 2021 PREPARED BY PRESENTED BY Preston Buhrmaster Venerated Capital Group Austin Verde WEEKLY INVESTORS INSIGHT REWIND APRIL 05, 2021 - APRIL 09, 2021 INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 1.61% ▲ 3.00% ▲ 1.36% S&P 500 NASDAQ DOW The U.S. Stock Market recorded gains across the major indexes over the course of the previous trading week. The S&P500 and the DOW gained around 1.5%, adding +1.61% (+$64.1) and +1.36% (+389.0) respectively. The NASDAQ was the week's largest gainer with a gain of +3.00% (+444.9) over the past week. Last week, the major indexes showed strong performance for the holiday- shortened trading week, with the markets being closed Friday in observance of the Good Friday holiday. Major news for the S&P500 was that the index crossed the 4,000 mark for the first time ever and managed to close above it at $4,038.8 last week. The NASDAQ showed the strongest return as result of gains present in a wide range of stocks on the Index, specifically semiconductor and hardware stocks. It can also be noted that growth stocks largely outperformed the market for the first time since January of 2021. One can note that losses incurred in the markets related to trades with Archegos Capital Management may have been responsible for the ripple effect that caused mixed prices at the beginning of the week. This soon was overshadowed by investors beginning to focus once again on the increase in bond yields as well as hope for faster economic growth. President Biden's infrastructure plan was unveiled Wednesday, which also made an impact. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 1.61% ▲ 3.00% ▲ 1.36% S&P 500 NASDAQ DOW The infrastructure plan unveiled on Wednesday by President Joe Biden would vastly increase government spending on internet and transportation infrastructure, as well as increase research and development spending, The plan totaled to be $2.25 trillion dollars, which was lower than expectations as Biden hinted at a second package to be revealed in April. The plan Biden is set to release in April is said to focus on spending on health care, education and childcare. The plan also notably included the top corporate tax rate being raised back to 28% as means of covering the cost of the bill. Last Tuesday, The Conference Board announced its index of consumer confidence recorded its largest gain in nearly 18 years during March. Its gauge of consumer expectations also reached its strongest level since the Summer of 2019. On Thursday, the Labor Department announced that weekly jobless claims showed an increase to 719,000 weekly claims, from a pandemic-era low of 658,000 in the week prior. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 0.73% ▼ 0.17% ▼ 0.42% US Oil Gold Silver U.S. Crude Oil prices recorded slight gains over the course of the previous holiday-shortened trading week, adding +0.73% (+$0.45) per barrel. Gold and Silver prices both recorded minor losses over the course of the week, erasing -0.17% (-$2.890) and -0.47% (-$0.10450) respectively. It also can be noted that markets were closed on last Friday in observance of the Good Friday holiday. In regard to the prices of U.S. Crude Oil over the past week, it can be noted that the organization OPEC+, the Petroleum Exporting Countries, Russia and their allies, agreed to ease production curbs in the coming months. OPEC+ agreed to ease the production curbs in place by 350,000 barrels per day in May, 350,000 barrels per day in June and 400,000 barrels per day in the month of July. This decision is the result of a few key reasons that aimed to keep the energy prices for consumers affordable despite the current demand concerns. Europe is noted to have remained under lockdown amid the COVID-19 pandemic and Japan is rumored to expand their emergency efforts as deemed necessary to control the spread of a new wave of coronavirus Infections spreading worldwide. Coronavirus infections are continuing amid vaccination efforts and pose the threat of mutations that are not compatible with the current vaccinations available. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 0.73% ▼ 0.17% ▼ 0.42% US Oil Gold Silver According to Goldman Sachs analysts, the decision points to a cautious and orderly ramp-up from OPEC+ which may allow tightening of the oil market In the coming months. Goldman Sachs predicts a large rebound in the demand for oil as we approach the summer months, requiring an estimated 2 million barrels per day of OPEC+ production between the months of July to October. In the coming week, investors should focus on the talks in Vienna taking place between Iran and the United States with intent of lifting all sanctions present. It can be noted that they are said to reject any "step-by-step" easing of restrictions on trade between the countries. It is expected that U.S. sanctions on the sale of Iranian oil, and others, are said to be lifted only after the completion of these talks and a return to compliance from Iran. In relation to the ongoing talks, Iran has already ramped up exporting of crude oil to the world's largest importer, China, with an estimated million barrels per day of exports despite the U.S. sanctions. Over the past trading week, Gold was unable to ignore the rising yield rates, which wrapped up their worst quarter since 2016 when former President Donald Trump won the presidential election. This close to the first quarter of 2021 resulted in the worst start to the year for gold in nearly four decades, yet analysts predict a strong potential rally ahead. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 0.73% ▼ 0.17% ▼ 0.42% US Oil Gold Silver President Joe Biden's $2 trillion jobs plan was unveiled last week which is set to transform the U.S. economy over the coming years. Biden's spending plan spans over the course of the next eight years and will be funded by increasing the corporate tax rate to 28%. According to Wells Fargo, gold is potentially facing its 'strongest rally' as their analysts predict a price target of $2,200 by the end of 2021. The supply of gold has been noted to move from an excess to a deficit, which historically sparks some of gold's strongest price rallies to date. Silver is also expected to pose a strong upside potential following a weak first quarter. During the first quarter of 2021, the price of silver also showed weak price movement to start the year. The metal recorded a high of $30.35 on February 1 and is noted to have been trading below the midpoint of this year’s trading range the week prior, on Monday, March 22. Silver can be seen consolidating in price. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 4.41% ▲ 23.08% ▲ 9.76% BTC ETH LTC ▲ 16.30% ▲ 12.81% ▲ 7.46% XRP BCH DOGE After taking a major hit near the end of 2020, in December, Ripple (XRP) has been on the rise, erasing its losses incurred. The previous losses recorded for the cryptocurrency are largely result of the U.S. Securities and Exchange Commission (SEC) filing a lawsuit against Ripple Labs and its executives around the time of the drop in prices. Since the beginning of 2021, the cryptocurrency has recorded more than a 200% gain on the year thus far. Last week, XRP was the top preforming cryptocurrency as it added nearly 30% to its value. Last Thursday, Coinbase announced that the company intends to go public on April 14. Coinbase Global Inc. is the largest U.S. based cryptocurrency exchange and has received official approval from the SEC to be listed on the NASDAQ beginning April 14, 2021. The public offering proposed by Coinbase was declared effective by the SEC on April 1. Shares will trade under the Global Sector Market under the ticker symbol "COIN" beginning on April 14 with the company's initial public offering. Ripple updated their filing with the SEC to disclose an average initial share price for the offering of $343.58 at the private market auction. The NASDAQ is expected to use this value as a reference price as we near the company's direct listing. INVESTORS INSIGHT A Recap of Last Week WEEKLY REWIND ▲ 4.41% ▲ 23.08% ▲ 9.76% BTC ETH LTC ▲ 16.30% ▲ 12.81% ▲ 7.46% XRP BCH DOGE Ethereum (ETH) also showed strong bullish momentum over the previous trading week with a clear break above the resistance present around the $1,950 level. There was also a strong psychological resistance noted at the $2,000 mark, though ETH made strong bullish moves to move further into a positive zone above the level. There is now a major support seen forming near the $2,000 level. If the cryptocurrency is able to hold its support at $2,000 without breaking to the downside, ETH is likely to start another run above the $2,100 level. Below this level, the first major support present is noted around the $1,980 level. A break of this level may send prices dropping further toward the support level present at $1,900 and potentially even further down around the $1,850 level. INVESTORS INSIGHT NEWS INVESTORS INSIGHT STORIES APRIL 05, 2021 - APRIL 09, 2021 INVESTORS INSIGHT This Week's Top News NEWS STORIES Tesla Upgraded By Wedbush After Delivery Numbers Release: Strong Tesla sales are a ‘drop the mic’ moment, analyst says. Tesla delivered 184,800 vehicles in Q1, blowing past estimates. U.S. Stock Futures Shoot Higher After Strong Jobs Report: On Friday, the federal jobs report exceeded expectations, as the U.S. added 916,000 in March. The U.S. unemployment rate fell to 6% from 6.2%. Job growth was widespread in March, with gains led by leisure and hospitality, public and private education, and construction, the report showed. LG Electronics To Leave The Smartphone Business: The company announced its mobile business will be closing down by the end of July, though existing inventory may still be available for sale after the date. Service, support and software updates will continue for its existing mobile phones for an undetermined period. Biden Expected to Push Infrastructure Plan Without GOP Support: President Biden's second major legislative initiative so far looks unlikely to draw more bipartisan support than his first $1.9T COVID-19 relief package. Disney Plus Rivals Netflix In Consumer Loyalty: Disney Plus has been around for just 16 months and has its own strong subscriber trajectory, now rivaling Netflix in terms of customer loyalty. OPEC+ Agrees To Gradual Oil Production Raise Beginning In May: OPEC+ is considering a rise In oil production by 350K barrels per day in May, 350K barrels per day in June and 400K barrels per day in July. INVESTORS INSIGHT This Week's Top News NEWS STORIES Federal Job Report Crushes Estimates, Adding 916,000 Jobs: The nonfarm payrolls number jumped 266K, falling well above the consensus estimate. The unemployment rate slid to 3.5% and average hourly earnings rose 0.2%. Tesla And Toyota Reportedly Considering A SUV Partnership: Reports generated out of China indicate that Tesla and Toyota are considering working together on developing a small SUV platform. Container Ship Stuck In Suez Is Set Free, Authorities Say: The massive container ship that ran aground last week in the Suez Canal and cut off traffic for nearly a week has been successfully set free, according to canal authorities. Stimulus Checks Flow Right Into Online Buying: The first look at aggregated credit and debit card data by Bank of America since stimulus checks started flowing shows e-commerce growth for the week of March 20 was up 74% Y/Y to accelerate from the 60% Y/Y pace the week before. INVESTORS INSIGHT WEEKLY INVESTORS INSIGHT OVERVIEW APRIL 05, 2021 - APRIL 09, 2021 INVESTORS INSIGHT This Week's Key Takeaways WEEKLY OVERVIEW U.S. Economic Calendar WEEK OF APRIL 05 - APRIL 09 Monday, April 05 09.45am | Markit Services PMI (final) | March Prev. 60.0 10:00am | ISM Services Index | March Prev. 55.3% 10:00am | Factory Orders | February Prev. 2.6% Tuesday, April 06 10.00am | Job Openings | February Prev. $6.9m Wednesday, April 07 08:30am | Trade Deficit | February Prev. -$68.2m 02:00pm |. FOMC Minutes 03:00pm | Consumer Credit | February Prev. -$1.3b Thursday, April 8 08.30am | Initial Jobless Claims (Regular State Program) | April 03 08:30am | Continuing Jobless Claims (Regular State Program) | March 27 Friday, April 9: 08.30am | Producer Price Index | March Prev. 0.5% 10:0am | Unemployment Rate: March Prev. 1.3% INVESTORS INSIGHT This Week's Key Takeaways WEEKLY OVERVIEW What To Expect This Week: Last week, the markets closed at session highs after a strong boost from the federal job report, which crushed expectations as 916,000 jobs were added in the month of March. The job growth observed in the month of March was well above the Dow Jones estimates of 675,000 jobs, rising at its fastest rate since August 2020. Revisions on the previous months reports also added 156,000 jobs to the totals for the months of January and February. Job growth showed growth at its fastest pace since last Summer, resulting from an aggressive vaccination effort and economic growth strengthening, resulting in a surge in hospitality and construction jobs. The S&P 500 rose to the 4,000-point milestone for the first time ever, while the Dow, and the NASDAQ saw solid gains themselves. There are multiple stocks that will see gains next week, but investors need to begin to be cautious at the same time. The U.S. stock market futures showed a weakened reaction to the number’s releases, yet government bond yields rose. The report is among an array of indicators that point toward stronger economic growth as the U.S. tries to shake off the detriment of the ongoing COVID-19 pandemic on the country's economy. States and municipalities across the country are continuing to reopen after operating at reduced capacity for the past year. The rise in the corporate tax rate by President Biden is expected to combine with potential surges in COVID-19 infection rates to continue uncertainty across the markets. The jobs report shows promise for an economic recovery though it is only part of the picture. INVESTORS INSIGHT This Week's Key Takeaways WEEKLY OVERVIEW What To Expect This Week: With the current political administration aiming to raise the corporate tax rate, combine with possible COVID surges from different variants, there is still a lot of uncertainty in the markets. Investors need to do their research to know what’s going on in the world, and not be afraid to take their earnings while they can. The current pace of market gains combines with the unprecedented amount of government stimulus distributed in recent months to create the threat of inflation. The Federal Reserve officials have come out to state that any increases in inflation observed should only be temporary. Even with the recent improvements observed on the U.S. jobs data, policymakers have repeatedly stated that the labor market is still nowhere near the point in which the central bank would begin raising interest rates. It can be noted that analysts are speculating that the March jobs numbers could push the Fed toward slowing the pace of its monthly asset purchase program by the end of 2021. INVESTORS INSIGHT WEEKLY INVESTORS INSIGHT ANALYSIS APRIL 05, 2021 - APRIL 09, 2021 INVESTORS INSIGHT Company Overview & Analysis IN-DEPTH ANALYSIS Facebook closed out this past Friday at an average cost price of $286.66. This is a great sign, as our analysis concludes that a share of Facebook is worth over $300. The stock added +1.61% ($64.10) over the previous trading week, reaching a high of $302.40 and a low of $284.70. Currently, Facebook’s P/E Ratio is at a solid 29.60, which is at a good point right now for the social networking company. Furthermore, Facebook’s PEG ratio lying at 1.54, compared to the service industry’s 1.77. This tells us the stock is fairly priced as it is right now, especially when relating it to their industry’s friends. Facebook is truly undervalued under $300 a share and shows strong growth potential. The future outlook for Facebook is bright for a host of different reasons. In a statement made by Deutsche Bank, it is estimated that Facebook’s Shops e-commerce business could add up to $12 billion in sales by the year 2023. In addition, Facebook still holds the leaderboard for having the most users out of any social media platform, and they have an increasing amount of revenue from advertisements. This only encourages companies to advertise more on Facebook’s social media networks, which provides Facebook with more opportunity for revenue. INVESTORS INSIGHT Company Overview & Analysis IN-DEPTH ANALYSIS While Facebook has a lot of great things going for them; their combination of privacy and political issues seem to come up rather frequency when compared to other companies. For example, just this past weekend it has been reported that the personal data of 533 million users has been made available online for free. Business Insider has been looking into this situation, but Facebook claims this data leak resulted in a vulnerability in 2019 that they’ve already fixed. Nevertheless, it appears that the compromised data has come up again, which hackers and scammers will try to use against the users. Despite the reports, Facebook is looking strong, with a solid EPS that is continuously increasing. With a strong potential for future growth, Facebook is an attractive stock for investors making it a Strong Buy. INVESTORS INSIGHT Company Overview & Analysis IN-DEPTH ANALYSIS UPS closed out this past Friday at an average cost price of $171.28. Adding +1.96% (+$3.30) in the past week, UPS stock is carrying strong momentum. The stock is up +6.66% percent in the past month and +1.71% in the past three months. Over the previous trading week, UPS reached a high of $172.14 and a low of $166.66. Delivering an average of 24.7 million packages a day in 2020, UPS displays why it is the largest express carrier and package delivery company on the planet. Currently, UPS is closing in on its 52-week high of $178.01; nevertheless, our analysts believe there is more than enough room to grow. A steady increase in their EPS is a good sign for investors when looking at any stock as it displays how the company could be doing both probability wise and growth wise. When company reports strong earnings, it tends to drive the price per share up, which is obviously good for investors. UPS will announce their first quarter earnings this month on April 27, and our analysis predicts UPS will be higher than $171.28; especially after their earnings report. Still, it’s important to evaluate the stock more to get the most accurate possible feel of the company, and if you want to buy a piece of it or not. INVESTORS INSIGHT Company Overview & Analysis IN-DEPTH ANALYSIS For instance, taking a look at a company’s dividend yield which for UPS is 2.38%, is another one of the many thing’s investors can do to see if they like the stock or not. Investors can also look at a company’s revenue, but more closely their profit, to see how profitable the company is after subtracting all the expenses. For 2020, UPS reported revenue that totaled $84.6 billion dollars (which is up 14.2% when compared to 2019). Of the $84.6 billion dollars, UPS reported an operating profit of $7.8 billion, and an adjusted operating profit of $8.7 billion. All of these were increases when compared to 2019, just continuing the steady incline for UPS over the years. Our analysts like UPS stock for long term investors, and as we raise the stock’s target price to $195 a share, we recommend UPS as a Buy at $171.28. INVESTORS INSIGHT THE INVESTORS INSIGHT ENDING WWW.VENERATEDCAPITALGROUP.COM The Weekly Market Update is published every Monday, before the market opens. The content contained in this report is shared for informational purposes only and should not be interpreted as specific investment or financial advice. Investors should base decisions on their own research, knowledge, strategies, objectives and financial situation. The information shared through Venerated Capital Group consists of our own ideas, opinions, and speculative hypotheses on the market. Always do your own research and due diligence before investing or trading. Take any advice shared through Venerated Capital; Group, or any of its entities, at your own risk. 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