Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
HP’s earnings are coming out
2020-08-24 • Updated
All attention to the HP’s Q3 earnings report on August 27 at 23:30 MT time. Are you ready?
The company’s performance has been really awesome during 2020. Stocks have managed to rise by 28 during summer so far. In fact, they got a boost from the tech stocks’ boom amid the coronavirus. No wonder that the demand for HP’s products and services surged amid the stay-at-home regime as people were forced to work remotely. According to Gartner, HP Inc. was the second largest PC seller in the second quarter of 2020. That is why its earnings report for the second quarter showed a growth. In addition, it raised its dividend payouts by 10% since the last year. In a nutshell, the overall picture is quite optimistic for the PC maker. Let’s discuss what predictions analysts have.
Wall Street brokers recommend to hold HP shares. They set a target price of $18.06, which is slightly less the current stock price. Deutsche Bank has the same target price and advises to hold HP shares. Unlike them, analysts from JP Morgan have more optimistic prospects and have established the price of $21. Bloomberg foresees a decline of HP’s year-over-year revenue in the third quarter, but a growth on the quarter-over-quarter bias.
What does it mean?
The market is on the side of stocks these days, as vaccine hopes and improved US-China relationships encourages investors. Moreover, investors are ready for the slump of HP’s revenues. Therefore, if actual numbers come out better than expected, it will drive the price upward more than usually. Otherwise, if they come out less than the forecasts, the HP’s price will dip down.
HP has been climbing up slowly, but confidently. If it breaks through the 200-day moving average of $18.40, it will open doors towards the high of August 10 at $19.00. In the opposite scenario, if it falls below the key support of $18.00, it may plummet even deeper to the low of July 21 at $17.50.
Oil prices rebounded slightly on Friday but are still expected to show losses for the week due to concerns about slowing growth in the US and China. US crude futures rose 2.7% to $70.41 per barrel, while the Brent contract increased by 2.5% to $74.33 per barrel.
More and more analysts are sure Brent oil will surpass $100 a barrel. So how heavily will oil move the markets, and what will the direction of the movement be? Let's find out!
Get ready for some suspense as the Bank of Canada faces a tough decision on whether to raise interest rates or keep them on hold. The resilient Canadian economy and the goal of curbing inflation further are at the heart of this dilemma. While some money markets and economists predict another rate hike, others believe the central bank should exercise caution and wait, hinting at a possible increase later in the summer.
Let's take a closer look at Australia's recent economic performance. Brace yourselves for some interesting developments. The country's economy experienced its slowest growth since late 2021 in the first quarter, raising doubts about the Reserve Bank of Australia's rapid interest rate increases. Despite the bank's record-breaking 12 rate hikes in the last 13 months, the resource-rich economy only grew by a modest 0.2% in the quarter, falling short of economists' expectations.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.