Skip to content Skip to footer
U.S. jobs growth beats estimates

Today’s Waves – 7th August

U.S. Jobs Growth Beats Estimates

Payrolls increased by 1.76 million in July, well above the consensus estimate of 1.48 million jobs that we expected to be added by the U.S. Economy.  This led to a fall in the unemployment rate to 10.2% as the U.S. economy continues a slow recovery from the effects of the coronavirus.

But Stock Markets Fear the Recovery is Losing Steam

Although monthly jobs beat expectations, markets continue to be worried about the resurgence of coronavirus around the world, U.S.-China tensions and a standoff between U.S. politicians that could derail another round of economic stimulus. 

U.S. markets were flat except for the tach-heavy NASDAQ, which was down 0.64% in mid-day trading.  European markets were also mostly unchanged with the exception of a 0.66% increase in the DAX to 12,674.88.  Overnight there was general weakness in Asian markets while traders digested the latest round of U.S. sanctions on 11 officials in China and Hong Kong, including Hong Kong Chief Executive Carrie Lam.  President Trump also issued two executive orders late Thursday placing restrictions on Chinese social networks TikTok and WeChat.  The market will be looking to see if and how China might respond next week.

Groupon Increases by Over 50% on Q2 Earnings

Shares in GRPN exploded higher following the company’s second quarter financial results, shares increased by $8.30 to $25.75.  Groupon has been hit hard by the effect of the coronavirus on travel and other leisure activities which generate substantial revenue for Groupon., however the company’s non-GAAP loss of 93 cents per share was much lower than the estimate of $2.63 among analysts who follow the stock.  Revenues came in a $396 million beating estimates by over 115%.

Groupon was able to surprise the market by generating higher than expected sales of goods to offset the damage caused by Covid-19 on its other business categories.

Quote of the day: “In investing what is comfortable is rarely profitable.

Robert Arnott

Biggest Bull

OSTK: Overstock continued its momentum fuelled run from March lows below $3 to today’s high at $112.62, an almost 20% increase from yesterday’s close of $94.14. The stock is now over 40 times higher than the absolute low from five months ago.  Is this tech winner overvalued, or will the shares continue to increase?

Biggest Bear

EURUSD: The US dollar trimmed its weekly losses as EURUSD broke under 1.1800, falling as low as 1.1755 marking the largest daily decrease since April.  The move was triggered by data indicating the U.S. labour market continued to recover despite the surge in Covid-19 infections during July.

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.