Mining stock analysis
Most mining stocks have risen during the past one month due to the revival in precious metal prices. The mining companies below are all more sensitive to movements in precious metals than they are to movements in the equities market in general.
For our analysis here, we’ve selected First Majestic Silver (AG), Goldcorp (GG), IAMGOLD (IAG), and Harmony Gold (HMY). AG and HMY have 30-day trailing losses of 0.28% and 2.8%, respectively, while GG and IAG have 30-day trailing gains of 18.8% and 12%, respectively.
Mining stock volatility is important, as it offers insight into the fluctuations in the price of an asset given the fluctuations in the price of its call option. AG, GG, IAG, and HMY have call implied volatilities of 52.6%, 32.9%, 43.5%, and 57.3%, respectively.
When a stock’s RSI level is higher than 70, it indicates that it could be in overbought territory, so the stock’s price could fall. When a stock’s RSI indicator is less than 30, it indicates that the stock could be oversold, and thus its price could rise. AG, GG, IAG, and HMY have RSI levels of 54.6, 78.8, 61.2, and 38.6, respectively.
Gold prices retreated from their four-month high of $1,340 and slipped 0.81% on Wednesday, January 17.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.