- Energy stocks are telling a strong growth story
- Apple may save the day
Smashing Quarter BY BP
Energy stocks are telling one story, improvement in the oil price has pushed the profits higher for them. BP smashed its profit forecast in its Q2 earnings, setting the tone for other stocks. Its profits for the second quarter increased nearly by four times as compared to the previous year. Bright lights are flashing no matter where you look, however, the only aspect which is of a little concern is the drop in its production on a quarterly basis.
But again this was expected from the company. Despite the overwhelming quarterly result, BP's management is still determined to keep the cost under control and investors feel confident that the company is determined to keep the full-year expenditure towards the lower end of the forecast range at $15 billion. The gearing element has also dropped by nearly one percent (27.8 in Q2 2018 vs 28.28% in 2017) but that is not to say that the net debt isn’t going to increase. This number would inflate because of the BP's deal with BHP Billiton. The firm would have to pay part of the $10.5 billion deal.
In terms of technical analysis, the price has bounced from its 100-day moving average. However, it is important to keep in mind that the bulls are not in full control of the price as the price is trading below the 50-day moving average.
Apple Earning May Provide Silver Lining
Tech investors have their eyes on Apple today. The company would announce its earnings tonight and traders would focus if consumers are still interested in the expensive versions of the iPhone, iPhone X or if they are going to lean towards cheaper versions. And if consumers are leaning more towards cheaper versions, how is Apple changing its echo system to fulfil this need. Another aspect which can help the company is the launch of new products, investors would like to see what is in the pipeline and if there’s anything which is worth talking about!