H&W in the Media
Stocks slammed; gold, oil move; overseas woes for Google, Facebook
Stocks (^DJI, ^GSPC, ^IXIC) getting pummeled on concerns about European financial firms and falling oil (OIL) prices.
To discuss that and some of the other big stories of the day are Yahoo Finance’s Alexis Christoforous, Yahoo Finance Columnist Rick Newman and Kevin Mahn, CIO, Hennion & Walsh Asset Management.
Overseas woes for Google, Facebook
A couple of major tech companies are facing flaps overseas. First, there’s Google parent Alphabet (GOOGL) trying to deal with regulators in Europe over the so-called “right to be forgotten.” In the meantime, Facebook (FB) has issues in India, including the country’s rejection of Facebook’s efforts to provide Internet service there, as well and comments from a famous investor that have raised the ire of CEO Mark Zuckerberg.
Profit good, forecast bad
Shares of Pepsi (PEP) are lower today despite fourth-quarter earnings soaring 31%. The reason for the selloff — a disappointing forecast for 2016 profit. It’s a theme we’ve been seeing this earnings season. For example, Apple (AAPL) made more than any other company in history, and yet the stock sank as the iPhone maker predicted a decline in revenue this quarter. Boeing’s (BA) solid numbers were also overlooked by investors who focused instead on weaker-than-expected full-year numbers.
Oil loses, gold wins
Can $100 trillion simply vaporize? Well, if you consider the proved oil reserves of about 1.7 trillion barrels as a giant oil savings account, then take into account the $75+ drop in oil prices, well then you’ve lost over $100 trillion. The flip side is that gold holders have gained about $1.2 trillion on the latest price increase.