Oil prices deepen losses after surprise build in U.S. inventories

Oil prices dropped Thursday, extending losses that came in the wake of fresh U.S. government data showing mounting petroleum stockpiles.

Brent crude LCOV8, -0.51% �, the global benchmark, was down 0.6% at $71.94 a barrel on London��s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures CLU8, -0.84% �were trading down 0.9% at $67.05 a barrel.

The U.S. Energy Information Administration said late Wednesday that U.S. crude oil inventories increased by 3.8 million barrels last week, to stand at 409 million barrels. Traders and analysts surveyed by The Wall Street Journal had predicted an average weekly decline of 2.2 million barrels.

Prices fell to their lowest level in almost six weeks after the data came out Wednesday.

��The build was driven by lower crude oil exports, which fell by 1.37 million barrels a day week-on-week,�� according to analysts at ING Bank.

Tamas Varga, an analyst at brokerage PVM Oil Associates, noted that total U.S. commercial oil inventories, including refined products, increased by more than 10 million barrels last week.

��They are still well below the historical norm, but the jump of this magnitude does not bode well for oil bulls,�� he said.

Prices have also come under pressure in recent weeks following a decision in late June by the Organization of the Petroleum Exporting Countries and partner producers like Russia to begin ramping up crude production after more than a year of holding back output. The move came in response to surging prices this spring �� buoyed by geopolitical risk to supply in Iran �� that saw Brent temporarily breach $80 a barrel.

Analysts at consultancy JBC Energy estimate that OPEC production rose 300,000 barrels a day month-on-month in July, with Saudi Arabia, the de-facto head of the oil cartel, the ��primary driver behind this growth.��

Russian energy officials have also reported production for last month rose, averaging 11.21 million barrels a day, compared with 11.07 million barrels a day in June.

Oil-market observers are looking ahead to weekly data from Baker Hughes on Friday on the number of rigs drilling for oil in the U.S., a key metric for activity in the sector.

Among refined products Thursday, Nymex reformulated gasoline blendstock RBU8, -0.74% ��� the benchmark gasoline contract �� was down 0.6% at $2.03 a gallon.

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3 Things In Biotech, August 2: Japanese Drug Makers Rise And Fall

Welcome to another edition of "3 Things In Biotech You Should Learn Today," a daily digest dedicated to helping you keep pace with the fast-moving world of pharmaceutical and biotechnology research.

Otsuka failure portends termination of an important AML study

Company: Otsuka (OTCPK:OTSKF)

Therapy: Guadecitabine

Disease: Acute myeloid leukemia (AML); click here to learn more about this disease space!

News: Otsuka announced top-line findings from their pivotal ASTRAL-1 study, which is assessing the hypomethylating agent guadecitabine in patients with newly diagnosed AML who are not candidates for aggressive therapy. The study has failed to meet its co-primary endpoints of complete remission rate and overall survival, compared with physician's choice of low-intensity therapy.

Looking forward: Once a highly promising next-generation hypomethylating agent, guadecitabine is now relegated to other treatment settings, where hopefully Otsuka will be able to salvage the agent. Two other studies are ongoing, but this does not bode well for this one. This includes the use of guadecitabine in the treatment of myelodysplastic syndromes, underscoring the need for alternatives, which I'm sure is quite the comfort to Geron (GERN) shareholders.

Buy, sell, or hold? Being a fairly large company itself, Otsuka will probably be able to weather this news, even in the event of a collapse of the guadecitabine project. I wouldn't strongly consider changing my investing strategy based on this news.

Many people want the quick answers about buying, selling, and trading in general. Get the answer today by becoming a subscriber of the Total Pharma Tracker.

Pfizer and Merck KGaA get moving with their ovarian cancer study

Company: Pfizer (PFE) and Merck KGaA (OTCPK:MKGAY)

Therapy: Avelumab

Disease: Ovarian cancer

News: PFE announced as part of their earnings release that the first patient has been dosed in the phase 3 JAVELIN Ovarian PARP study, which is assessing the combination of avelumab and their PARP inhibitor talazoparib for use in untreated, advanced ovarian cancer. The study will enroll patients to receive avelumab plus chemotherapy, followed by maintenance with avelumab and talazoparib.

Looking forward: To date, avelumab has not made as grand an entrance on the immune checkpoint inhibitor stage as its siblings from other big pharma companies. But it's not for lack of trying, as PFE is pursuing a lot of avenues to see where the drug may fit. This is a particularly exciting project, given the known efficacy of PARP inhibitors in ovarian cancer. However, to date we have not seen the approval of talazoparib in ovarian, and in fact we haven't yet seen any PARP inhibitor break into first-line ovarian cancer so far. This gives PFE the opportunity to make a two-pronged assault on the disease.

Buy, sell, or hold? If PFE can pull this one off, then avelumab could start to realize its promise, and they would also become competitive in the PARP space, two emerging blockbuster areas. However, it's going to take quite a while for this to be realized, and as such I wouldn't recommend buying based on this news alone.

Daiichi Sankyo gets the breakthrough nod from the FDA in AML

Company: Daiichi Sankyo (OTCPK:DSKYF)

Therapy: Quizartinib

Disease: AML

News: DSKYF announced that the FDA has granted their Flt3 inhibitor quizartinib Breakthrough Therapy designation for the treatment of Flt3-positive AML. This designation was based on the positive findings from the QuANTUM-R study, which demonstrated prolonged overall survival compared with chemotherapy in a specific, high-risk form of Flt-3-positive AML.

Looking forward: This builds on the positive nods given by the FDA and EMA to DSKYF, including Fast Track and Orphan Drug designations, and they are hard earned. The field of Flt-3 inhibition has been frustratingly slow to pay off, but it is now starting to become one of the pillars of AML therapy for the percentage of patients who have this subgroup. (Again, you can read more on that in my expansive AML article). Pretty soon, we'll have an important outcropping of effective Flt-3 inhibitors, ushering in another generation of targeted therapy for AML.

Buy, sell, or hold? Honestly, I would consider placing Daiichi Sankyo on a short list of buy contenders. They have this agent, of course, which seems to be a winner, and they have an exciting pipeline of other oncology drugs that could pay off in a big way in the coming years.

Author's note: Thank you for taking some time out of your day to read some commentary on recent biotech happenings. I hope you'll consider leaving a comment or a question in the section below! This is one way in which Seeking Alpha is able to gauge the effectiveness of its writers and the platform. So if you want to keep seeing more editions of "3 Things," go ahead and participate!

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

Avoid Tesla Stock and Buy This Car Company Instead

Tesla stock shot up nearly 2% after CEO Elon Musk confirmed his company was finally hitting production goals for its vaunted Model 3 sedan.

But when it comes to cashing in on the global auto market, we're steering clear of Tesla and piling into another car stock…

Last month, Tesla Inc. (Nasdaq:�TSLA) announced that the company's Los Angeles factory had managed to produce 5,000 Model 3 cars in five days.

In an email sent to Tesla employees the afternoon of the achievement, Musk stated that be believed Tesla has finally become a "real car company."

Wall Street certainly agreed – following the news, investors poured money into what's widely been hailed as the car manufacturer of the future.

However, this attitude is missing the bigger picture – and the more substantial profits.

You see, Tesla's real profit potential isn't in electric cars. In fact, it isn't in auto manufacturing at all…

Tesla Is the Energy Company of the Future

As Money Morning�Chief Investment Strategist Keith Fitz-Gerald points out, Tesla's real profits lie in the company's ambition to become "more than a car company."

According to Keith, the fact that Musk "is involved in so many things is precisely the attraction here and why savvy investors would be wise to pay attention. Musk wants to�redefine the electric grid�and, with it, the world's energy supply."

Life-Changing Profit Potential: One tiny firm is rapidly developing the parts for a game-changing technology – and the gains from its stock, trading for less than $10, could turn every $1,000 invested into $4,719. Learn more…

In other words, Tesla's future lies in the design, production, and distribution of an international energy company.

And Tesla is already aggressively pursuing its future as an energy provider. In 2015, Tesla announced the launch of the Tesla Powerwall, a home battery product. Tesla describes the Powerwall as a "rechargeable lithium ion battery with liquid thermal control" that can last nearly two days during a power outage.

In May 2016, Tesla began accepting preorders for "solar tiles" – solar panels that could be installed as roof tiles on homes.

This was followed by Tesla's acquisition of one of Musk's other ventures, Solar City, an industrial manufacturer that specializes in the production of solar energy devices. Over the last two years, Tesla has used Solar City's manufacturing base to increase production of the company's solar panels and make large-scale distribution a reality.

A recent report from Bloomberg revealed that Tesla's efforts are paying off – Tesla recently partnered with Home Depot to install 800 selling spaces in the home improvement company's stores. The areas, staffed by Tesla employees, will demonstrate the daily capabilities of Tesla's solar panels and the Powerwall to prospective customers.

These energy developments not only overshadow Tesla's breakthroughs in the auto industry – they demonstrate that the company's future is in revolutionizing how people access and consume energy.

In fact, Tesla's big win amounted to producing 5,000 vehicles over five days, but serious automakers achieve that level of production in mere hours.

And one of these companies is on the verge of redefining the American auto industry and making a killing in the process.

It's a classic American car company that's investing over $1 billion into driverless technology and artificial intelligence (AI).

It's taking on the largest auto market in the world – China's 22.8 million annual sales – with a lineup of five new car models for 2018 in a plan to boost revenue from China by 50%.

Plus, it currently boasts a perfect Money Morning�Stock VQScore�� of 4, indicating that it's a prime buy for the savvy investor.

Here it is…

Join the conversation. Click here to jump to comments…

Profit growth set to boom again by more than 20%

The last earnings season was all about raising expectations for earnings on the back of corporate tax cuts, share buybacks, and a synchronous global economic expansion.

A lot has changed in the last three months, according to Nick Raich of Earnings Scout. "Last earnings season it was all about raising estimates. This earnings season, all we want to see is companies maintain their EPS estimates."

That may seem like a real downgrade in expectations, but Raich disagrees. Second quarter earnings for the S&P 500 are expected to increase by 20 percent, not far off the first quarter's 26 percent growth. And estimates of 23 percent and 20 percent growth for the third and fourth quarter have not dropped at all.

Despite all the worries about trade wars, companies still seem comfortable with the earnings guidance they gave earlier in the year. "If they are comfortable with that, that is bullish for stocks," Raich told CNBC.

Still, you have to marvel at the strength of the market. Stocks have shrugged off almost everything. Just look at the rally on Monday. Stocks surged on the absence of any bad headlines about trade wars. Given that global trade has been the main sentiment mover in the last three months, and that the heated rhetoric has not really abated, just quieted down, you would think the markets would have a much more muted reaction.

This is obviously dangerous territory. The market has come to believe that cooler heads will prevail on global trade. Christine Short, who has watched this all unfold for Estimize, believes it makes sense. "Everyone knows global trade is good for earnings, and to get into a global trade war means that every country is going to shave a bit off GDP growth, and that many companies are going have to lower earnings growth, and no one wants that," she told CNBC.

It goes beyond trade, however: The market is pricing in a lot of good news.

1. The Fed: While global growth estimates are marginally lower, strong U.S. growth estimates are little changed, and the markets seem to believe they will stay that way. With inflation still relatively muted this has put the Fed is in a "dovish box" that will prevent it from aggressively raising interest rates.

2. Growth over Value: Traders believe that technology �� the mother of all growth stories �� will continue to put up outsized gains. With technology at a 25 percent weighting in the S&P 500, far and away the biggest sector, and again expected to grow earnings 25 percent in the second quarter, "You need tech to keep growing," Short said. She thinks tech will likely deliver, and not just FAANG names. Smaller companies in the enterprise space like Hubspot, Zendesk, Workday and Salesforce have also been doing well.

3. Shrugging off higher costs: The market will occasionally get into a mini-funk over higher commodity costs, or rising rates, or a higher dollar, but it has not yet translated into prolonged negative trading action.

What could derail this rosy scenario? For Nick Raich, it will all depend on corporate guidance: "If we see earnings estimates for the third and fourth quarter drop below 20 percent growth, that would be bearish in my mind," he told CNBC.

China's Tencent turns to US for IPO of its music business

One of China's top tech companies plans to list its online music business in the United States.

Tencent (TCEHY) said in a statement Sunday that it will sell shares in the music unit on a US stock exchange. It didn't provide a time line or details on the size of the proposed stock offering, but recent reports have suggested the move could value Tencent Music at more than $30 billion.

The company didn't respond to requests for further comment.

A valuation on that scale would put Tencent Music on a par with global music streaming service Spotify (SPOT), which went public in New York in April. The two companies already own stakes in each other after a share swap in December.

Hong Kong-listed Tencent, which has a market value of around $480 billion, owns an array of internet businesses, including WeChat, a multipurpose messaging app that has more than one billion users.

Tencent Music dominates the music streaming market in China through its QQ Music, KuGou and Kuwo platforms. It has around 600 million users, although only about 15 million of them are paying subscribers.

Tencent's QQ Music, Kugou and Kuwo services seen on the screen of an iPhone.

It has exclusive deals with Sony Music, Universal Music Group and Warner Music Group. Under the arrangement, Tencent gets to decide which songs rivals can stream.

"Tencent has an overwhelming market share in a growing business," Travis Lundy, an analyst at investment research platform Smartkarma, wrote in a note Monday. He added that an IPO would give Tencent Music new funds that it could use to buy more content for its platforms.

Tencent shares were up 2.5% in afternoon trading in Hong Kong.

The planned IPO of Tencent Music comes amid a flurry of anticipated listings for Chinese tech companies in the coming months.

Smartphone maker Xiaomi made its trading debut in Hong Kong on Monday after raising $4.7 billion in an IPO.

-- Sherisse Pham contributed to this report.

Vsync (VSX) Trading 2% Higher Over Last Week

Vsync (CURRENCY:VSX) traded up 0.5% against the US dollar during the 1 day period ending at 13:00 PM ET on July 7th. Vsync has a total market cap of $1.21 million and $978.00 worth of Vsync was traded on exchanges in the last 24 hours. During the last week, Vsync has traded 2% higher against the US dollar. One Vsync coin can now be purchased for approximately $0.0075 or 0.00000115 BTC on cryptocurrency exchanges including CoinExchange and Trade Satoshi.

Here’s how other cryptocurrencies have performed during the last 24 hours:

Get Vsync alerts: Bitcoin Diamond (BCD) traded up 57.1% against the dollar and now trades at $3.09 or 0.00047076 BTC. Stratis (STRAT) traded 3.9% lower against the dollar and now trades at $2.54 or 0.00038812 BTC. NavCoin (NAV) traded 0.9% lower against the dollar and now trades at $0.44 or 0.00006713 BTC. CloakCoin (CLOAK) traded 1.6% lower against the dollar and now trades at $4.18 or 0.00063740 BTC. DeepOnion (ONION) traded 3.6% lower against the dollar and now trades at $0.66 or 0.00010074 BTC. Stealth (XST) traded 4.7% lower against the dollar and now trades at $0.19 or 0.00002866 BTC. Kore (KORE) traded down 2.8% against the dollar and now trades at $1.58 or 0.00024050 BTC. Bitcoin Plus (XBC) traded down 1.4% against the dollar and now trades at $25.89 or 0.00395034 BTC. Elite (1337) traded 1.1% higher against the dollar and now trades at $0.0001 or 0.00000001 BTC. BlitzPredict (XBP) traded 2.4% lower against the dollar and now trades at $0.0039 or 0.00000060 BTC.

Vsync Coin Profile

Vsync is a PoW/PoS coin that uses the X13 hashing algorithm. Its genesis date was August 27th, 2017. Vsync’s total supply is 168,332,594 coins and its circulating supply is 160,559,294 coins. Vsync’s official Twitter account is @VsyncCrypto. Vsync’s official website is vsync.pw.

Vsync Coin Trading

Vsync can be bought or sold on these cryptocurrency exchanges: Trade Satoshi and CoinExchange. It is usually not presently possible to buy alternative cryptocurrencies such as Vsync directly using U.S. dollars. Investors seeking to trade Vsync should first buy Ethereum or Bitcoin using an exchange that deals in U.S. dollars such as Changelly, GDAX or Gemini. Investors can then use their newly-acquired Ethereum or Bitcoin to buy Vsync using one of the exchanges listed above.

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America Movil SAB de CV ADR Series L (AMX) Trading Up 5.3%

America Movil SAB de CV ADR Series L (NYSE:AMX)’s share price was up 5.3% on Thursday . The stock traded as high as $17.37 and last traded at $17.33. Approximately 4,045,750 shares changed hands during trading, an increase of 52% from the average daily volume of 2,666,568 shares. The stock had previously closed at $16.46.

Several equities analysts recently weighed in on AMX shares. Zacks Investment Research upgraded America Movil SAB de CV ADR Series L from a “sell” rating to a “hold” rating in a research report on Monday, March 12th. Goldman Sachs Group started coverage on America Movil SAB de CV ADR Series L in a research report on Tuesday, April 3rd. They issued a “buy” rating and a $25.00 price objective on the stock. Deutsche Bank began coverage on America Movil SAB de CV ADR Series L in a research report on Monday, June 25th. They issued a “hold” rating and a $18.00 price objective on the stock. Finally, ValuEngine downgraded America Movil SAB de CV ADR Series L from a “buy” rating to a “hold” rating in a research report on Wednesday, May 9th. Three research analysts have rated the stock with a sell rating, three have assigned a hold rating and six have assigned a buy rating to the stock. America Movil SAB de CV ADR Series L has an average rating of “Hold” and an average target price of $20.13.

Get America Movil SAB de CV ADR Series L alerts:

The company has a market cap of $57.25 billion, a P/E ratio of 25.96, a P/E/G ratio of 1.16 and a beta of 0.51. The company has a quick ratio of 0.72, a current ratio of 0.80 and a debt-to-equity ratio of 2.79.

America Movil SAB de CV ADR Series L (NYSE:AMX) last announced its quarterly earnings results on Wednesday, April 25th. The Wireless communications provider reported $0.29 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.50 by ($0.21). The firm had revenue of $13.57 billion during the quarter. America Movil SAB de CV ADR Series L had a net margin of 1.09% and a return on equity of 10.38%. equities analysts predict that America Movil SAB de CV ADR Series L will post 0.9 earnings per share for the current fiscal year.

Institutional investors have recently bought and sold shares of the business. Signaturefd LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $119,000. Alpine Woods Capital Investors LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $139,000. Lake Street Advisors Group LLC purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 4th quarter valued at $209,000. Pin Oak Investment Advisors Inc. purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 4th quarter valued at $212,000. Finally, CIBC World Markets Inc. purchased a new stake in shares of America Movil SAB de CV ADR Series L during the 1st quarter valued at $229,000. Institutional investors own 7.63% of the company’s stock.

About America Movil SAB de CV ADR Series L

Am茅rica M贸vil, SAB. de C.V. provides telecommunications services in Mexico and internationally. The company offers wireless and fixed voice services, including airtime, local, domestic, and international long-distance services; and network interconnection services. It also provides data services, such as Internet access, messaging, and other wireless entertainment and corporate services; data transmission, email services, instant messaging, content streaming, and interactive applications; and data center, data administration, and hosting services to residential and corporate clients, as well as residential broadband services.

ReneSola (SOL) Earning Somewhat Favorable News Coverage, Study Finds

News headlines about ReneSola (NYSE:SOL) have been trending somewhat positive recently, according to Accern. Accern scores the sentiment of news coverage by monitoring more than 20 million news and blog sources in real time. Accern ranks coverage of companies on a scale of negative one to positive one, with scores closest to one being the most favorable. ReneSola earned a news impact score of 0.14 on Accern’s scale. Accern also gave media headlines about the semiconductor company an impact score of 45.891612814863 out of 100, meaning that recent news coverage is somewhat unlikely to have an effect on the company’s share price in the next several days.

These are some of the media headlines that may have impacted Accern’s scoring:

Get ReneSola alerts: ReneSola Sells North Carolina Solar Project To Greenbacker (solarindustrymag.com) ReneSola (SOL) Rating Increased to Neutral at Roth Capital (americanbankingnews.com) ReneSola (SOL) Q1 Earnings in Line, Revenues Top Estimates (zacks.com) ReneSola’s (SOL) CEO Xianshou Li on Q1 2018 Results – Earnings Call Transcript (seekingalpha.com) ReneSola (SOL) Releases Earnings Results (americanbankingnews.com)

Shares of ReneSola traded up $0.08, hitting $2.76, during trading on Friday, Marketbeat.com reports. The stock had a trading volume of 124,969 shares, compared to its average volume of 108,565. The firm has a market capitalization of $102.11 million, a PE ratio of 21.23 and a beta of 2.05. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.36. ReneSola has a 12 month low of $2.12 and a 12 month high of $3.79.

ReneSola (NYSE:SOL) last posted its quarterly earnings results on Wednesday, June 20th. The semiconductor company reported $0.14 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.01 by $0.13. The company had revenue of $44.76 million during the quarter, compared to analysts’ expectations of $29.80 million. sell-side analysts predict that ReneSola will post 0.04 earnings per share for the current fiscal year.

Several equities research analysts have recently issued reports on SOL shares. ValuEngine upgraded shares of ReneSola from a “sell” rating to a “hold” rating in a report on Monday, April 2nd. Roth Capital lowered shares of ReneSola from a “neutral” rating to a “sell” rating and set a $2.00 target price for the company. in a report on Monday, June 4th. Finally, Zacks Investment Research lowered shares of ReneSola from a “hold” rating to a “sell” rating in a report on Friday, May 4th.

ReneSola Company Profile

ReneSola Ltd, through its subsidiaries, manufactures and sells various solar power products in the People's Republic of China and internationally. The company operates through three segments: Wafer, Cell and Module, and Solar Power Projects. It provides virgin polysilicon, monocrystalline, and multicrystalline solar wafers; and photovoltaic cells.

How a trade war could affect your 401(k)

President Trump's threat to slap tariffs on an additional $200 billion in Chinese goods entering the U.S. has spooked financial markets and boosted fears that a full-blown trade war could break out.

Here's what American shoppers and 401(k) investors need to know about trade wars and the potential impact on their personal finances:

What is a trade war?

It's not a military fight; it's an economic brawl.�

Simply put, it is "a situation in which two or more countries raise import taxes ... to try to protect their own economies," Cambridge Dictionary says. The downside? It can cause economic growth to slow, reduce sales of goods that cross borders, and result in higher prices for consumers and lower profits for companies. Ultimately, it could�lead to fewer jobs if the economic hit is sizable enough and businesses are forced to cut their work force.

More Money: Stocks drop, wipe out gains for the year after new Trump tariff threat

More: Ask HR: What can you do about workplace vulgarity? And how many work hours is too many?

More Money: CVS�launches prescription delivery nationwide

Can a trade skirmish affect my investments?

Yes. Professional investors have a far more favorable view of free trade than they do restrictions that reduce the free flow of goods between countries. The big risk to stock�investors is if the trade dispute causes the confidence of CEOs and investors to decline. Why would that happen?�If the economy's growth takes a hit, it�means fewer profits for companies that sell goods, including�smart phones,�strawberries and electric cars.

Those fears, for example, are a big reason why the Dow Jones industrial average fell as much as 420 points�Tuesday, or 1.7%. The Dow's gains for the year have been wiped out.

U.S. companies most at risk are those that export a lot of goods overseas, such as technology firms and heavy-equipment makers,�as well as companies that import Chinese and other foreign parts and products needed to complete finished goods.

What's Wall Street worried about?

Investors worry that�tariffs on a broad scale could�morph�into a threat to Americans' finances that goes beyond paying a little extra for a cigar, a bottle of whiskey or�other everyday items expected to�rise in price due to import taxes.

In fact, the U.S. decision Friday to move ahead with tariffs on $50 billion of Chinese goods�and the latest threat of $200 billion more could potentially put workers' investment portfolios and jobs in jeopardy if the trade tiff�intensifies and�a trade war ensues.

The big risk is if Trump's�preemptive strikes in the tariff conflict are followed by continued counterstrikes by Beijing�and others, such as Canada and the European Union, causing the disagreement to spin out of control and undermine investor and CEO confidence in the economy and markets.

"It's the indirect effect on confidence that matters," says Michael Gapen, chief U.S. economist at the New York�offices of Barclays, a British bank.

What's at stake for consumers?

There's a lot more at stake for consumers than price inflation at the cash register, Gapen says.�It is far worse for them financially if the trade fight causes the economy to slow, businesses to stop hiring or start firing, and markets to�tumble enough to set�people's retirement accounts back. The trade spat could undo much of the economic good set in motion in December by�the tax cuts.�

What are Wall Streets pros watching?

Market pros�are waiting and watching to see how the high-stakes negotiations play out.

"One of the most significant worries for the U.S. economy and markets is the possibility of a prolonged volley of threats and retaliation," says Quincy Krosby, chief market strategist at Prudential Financial.

The U.S. threat to hit China with additional tariffs on top of those already put in place -- and China's move to fight back with tariffs of its own -- is exactly the type of escalation that investors�fear.

More: Trump threatens to slap new tariffs on $200 billion in Chinese goods

More: Stocks set to drop after new Trump tariff threat

More: How Trump's planned steel, aluminum tariffs affect you

Will Americans pay more for goods they buy?

Yes. But it won't be a budget buster, at least not yet. The total amount of imported goods bought�by Americans represents just a sliver of their�overall purchases. Imported purchases, Gapen notes, only account for about 6% of the consumer price index, which measures prices Americans�pay for a basket of everyday goods, such as groceries, gas and medicine.

But that doesn't mean prices on some products will remain the same. Even tariffs on imported industrial products�used to make finished consumer goods in the U.S. will likely result in higher prices -- a tax of sorts -- that will be passed on to consumers, says Chris Rupkey, chief financial economist at MUFG, a Tokyo-based global bank with offices in New York.

"Production costs will go up here," Rupkey says. "Consumers are going to lose and pay a higher price no matter if the goods are consumer-based or industrial supply-chain products."

Is U.S. targeting consumer products with tariffs?

No. In an effort to shield American consumers from the tariffs, the list of Chinese products the Trump administration targeted in the first phase of its tariffs announced Friday�focused mostly on "industrially significant technologies." The initial list, which goes into effect July 6, covers about $34 billion of Chinese goods. The second phase, which is still under review by the U.S., would impose an additional $16 billion of levies.�

The tariff list reads more like a supply-parts buying guide. It includes things like watertube boilers, steam turbines, and can-sealing machines. Consumer-focused stuff was less prominent, but included things like motorcycles and mopeds, as well as LEDs for backlighting of LCD TVs.�

What's the biggest risk?

Escalation of the conflict. More tariffs. And bigger dollar amounts.

The danger of the dollar amount of tariffs imposed by the U.S. on its trading partners rising sharply, and vice versa, is another risk, Rupkey adds.�

Can there be a happy ending?

Many Wall Street pros believe cooler heads will prevail and that the end result won't cause a global recession.

Wall Street is still hoping that the�tit-for-tat trade skirmish is just a negotiating tactic of Trump that will end with the U.S. receiving better trade terms.

"I view all of this as hardball negotiations," says Alan Skrainka, chief investment officer at Cornerstone Wealth Management in Des Peres, Missouri.

Hot Value Stocks For 2018

tags:ROLL,STC,YRCW,

Gabelli Research’s Adam Trivison calls MGM Resorts International’s (MGM) purchase of Boyd Gaming’s (BYD) half of the Borgata in Atlantic City “well played.” He explains why:

On May 31, 2016, MGM Resorts (MGM) agreed to purchase Boyd Gaming��s 50% stake in Borgata for $600 million of cash with MGM assuming Borgata��s $600 million of debt, which implies an enterprise value of 9.0x our 2016 EBITDA estimate. Subsequently, MGM Growth Properties (MGP) agreed to purchase Borgata��s real estate (i.e. $100 million of annual rent payments) for $1,175 million. We think that the outcome is better for all three parties, made possible by
MGP��s low cost of capital. Our estimates have been updated to reflect the two transactions.

On net, MGM Resorts�� 2017 EBITDA attributable to Borgata increases by ~$90 million, $76 million from the addition of Borgata rent to�MGM Growth Properties and $15 million resulting from MGM��s increased stake in MGM Growth Properties.

Hot Value Stocks For 2018: RBC Bearings Incorporated(ROLL)

Advisors' Opinion:

• [By Max Byerly]

  Get a free copy of the Zacks research report on RBC Bearings (ROLL)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

• [By Shane Hupp]

  Shares of RBC Bearings Incorporated (NASDAQ:ROLL) have earned an average rating of “Buy” from the six brokerages that are covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $140.67.

Hot Value Stocks For 2018: Stewart Information Services Corporation(STC)

Advisors' Opinion:

• [By Ethan Ryder]

  StarChain (CURRENCY:STC) traded 8.7% lower against the US dollar during the 24-hour period ending at 20:00 PM E.T. on May 14th. StarChain has a market cap of $0.00 and approximately $5.27 million worth of StarChain was traded on exchanges in the last 24 hours. One StarChain token can now be purchased for about $0.0925 or 0.00001062 BTC on major cryptocurrency exchanges. During the last seven days, StarChain has traded down 16.3% against the US dollar.

Hot Value Stocks For 2018: YRC Worldwide Inc.(YRCW)

Advisors' Opinion:

• [By Stephan Byrd]

  Marten Transport (NASDAQ: MRTN) and YRC Worldwide (NASDAQ:YRCW) are both small-cap transportation companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, risk, dividends, earnings, institutional ownership, analyst recommendations and valuation.

• [By Lisa Levin] Gainers Euro Tech Holdings Company Limited (NASDAQ: CLWT) surged 73.3 percent to $3.90. Integrated Media Technology Limited (NASDAQ: IMTE) shares gained 51 percent to $33.1365. The nano-cap low-float stock skyrocketed over 1,300 percent on Wednesday on no company specific news which would support the surge. The move higher is consistent with what was seen in other low-float stocks over the past few months. Monaker Group, Inc. (NASDAQ: MKGI) shares jumped 34 percent to $3.00. Sharing Economy International Inc. (NASDAQ: SEII) shares rose 28.2 percent to $4.51 after gaining 9.32 percent on Wednesday. STAAR Surgical Company (NASDAQ: STAA) shares jumped 27.8 percent to $21.40 after reporting upbeat Q1 results. Boxlight Corporation (NASDAQ: BOXL) rose 20.5 percent to $8.920 after climbing 107.87 percent on Wednesday. Xspand Products Lab Inc (NASDAQ: XSPL) gained 19.5 percent to $ 5.97. Xspand Products priced its IPO at $5 per share. YRC Worldwide Inc. (NASDAQ: YRCW) rose 18.9 percent to $10.035 following upbeat quarterly earnings. ENDRA Life Sciences Inc. (NASDAQ: NDRA) gained 18.3 percent to $3.0177. ENDRA Life Sciences is expected to report Q1 results on May 15. MYR Group Inc. (NASDAQ: MYRG) rose 18.1 percent to $35.85 after the company posted strong Q1 earnings. Rudolph Technologies, Inc. (NASDAQ: RTEC) shares jumped 16 percent to $30.75 following upbeat quarterly earnings. TTM Technologies, Inc. (NASDAQ: TTMI) gained 13.7 percent to $16.53 after reporting Q1 results. Insight Enterprises, Inc. (NASDAQ: NSIT) shares surged 12 percent to $40.06 following better-than-expected Q1 earnings. TreeHouse Foods, Inc. (NYSE: THS) rose 11.8 percent to $40.93 following Q1 results. Engility Holdings, Inc. (NYSE: EGL) surged 11.2 percent to $27.36. Engility reported upbeat quarterly earnings. Synalloy Corporation (NASDAQ: SYNL) rose 10.7 percent to $19.10 following Q1 results. Logitech International S.A. (NASDAQ: LOGI)
• [By Lisa Levin]

  On Monday, the industrial shares surged 1.55 percent. Meanwhile, top gainers in the sector included Kelly Services, Inc. (NASDAQ: KELYA), up 9 percent, and YRC Worldwide Inc. (NASDAQ: YRCW) up 6 percent.

• [By Lisa Levin] Gainers Euro Tech Holdings Company Limited (NASDAQ: CLWT) shares jumped 155.56 percent to close at $5.75 on Thursday. Inspire Medical Systems, Inc. (NYSE: INSP) shares gained 56.12 percent to close at $24.98. Inspire Medical went public Thursday on the New York Stock Exchange. The company issued 6.75 million shares priced at $16 each. Presbia PLC (NASDAQ: LENS) shares rose 53.02 percent to close at $3.55. Integrated Media Technology Limited (NASDAQ: IMTE) shares rose 46.29 percent to close at $32.11. The nano-cap low-float stock skyrocketed over 1,300 percent on Wednesday on no company specific news which would support the surge. The move higher is consistent with what was seen in other low-float stocks over the past few months. Technical Communications Corporation (NASDAQ: TCCO) climbed 27.78 percent to close at $5.75. STAAR Surgical Company (NASDAQ: STAA) shares gained 26.27 percent to close at $21.15 after reporting upbeat Q1 results. Sharing Economy International Inc. (NASDAQ: SEII) shares jumped 22.16 percent to close at $4.30 on Thursday after gaining 9.32 percent on Wednesday. China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) rose 20.45 percent to close at $2.65 on Thursday. YRC Worldwide Inc. (NASDAQ: YRCW) surged 18.36 percent to close at $9.99 following upbeat quarterly earnings. MYR Group Inc. (NASDAQ: MYRG) jumped 17.68 percent to close at $35.74 after the company posted strong Q1 earnings. Xspand Products Lab Inc (NASDAQ: XSPL) jumped 17.4 percent to close at $5.87. Xspand Products priced its IPO at $5 per share. Coherus BioSciences, Inc. (NASDAQ: CHRS) shares rose 17.32 percent to close at $14.90. Coherus BioSciences reported resubmission of BLA for CHS-1701. Rudolph Technologies, Inc. (NASDAQ: RTEC) shares gained 17.17 percent to close at $31.05 following upbeat quarterly earnings. The Meet Group, Inc. (NASDAQ: MEET) gained 16.02 percent to close at $2.68 following Q1 earnings. Ca
• [By Ethan Ryder]

  Get a free copy of the Zacks research report on YRC Worldwide (YRCW)

  For more information about research offerings from Zacks Investment Research, visit Zacks.com

Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle

Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock.

A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year.

The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index.

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QNB and FAB are “the two biggest single security index trades” for 2018 in the Middle East and North Africa, according to Mohamad Al Hajj, an equities strategist at the research arm of EFG-Hermes Holding in Dubai.

The Qatari lender could lure inflows of $651 million after the index re-balancing, which was triggered by the country increasing the maximum foreigners can hold to 49 percent, he estimates. FAB could attract more than $300 million in passive flows after a review of its weighting in the same index, expected to be announced in November, he said.

The Abu-Dhabi based bank is the result of the merger of First Gulf Bank PJSC and National Bank of Abu Dhabi PJSC, which at completion had created a financial giant with $180 billion in assets under management.

The Emirati lender remains an interesting play following the stock’s recent dip, especially considering the “value that will be generated by the merger,” said Ali El Adou, the head of asset management at Daman Investments in Dubai.

FAB rose 4.3 percent, the most in more than a year, at the close in Abu Dhabi on Wednesday, while QNB slipped 0.1 percent in Doha. They have a market valuation of $36 billion and $40 billion, respectively.

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Novavax: All Eyes On Q1 2019

Novavax (NVAX) has experienced many ups and downs in recent years. This has largely been the product of exuberance about its adult RSV vaccine trial, which ended in failure and sent shares into penny stock territory. Since then, the company has been rebuilding with a focus on its second shot at a blockbuster RSV vaccine, this time in a Phase 3 maternal vaccine study. The market has also become enamored of a candidate deeper in the pipeline, NanoFlu, which has shown superior immunogenicity to currently available flu vaccines in both animal models and preliminary human testing. These prospects have helped to buoy Novavax of late, with shares holding steady even after a stock offering announced on April 11th.

On May 9th, Novavax reported earnings for Q1 2018. The financial results held little in the way of surprises, with revenue beating analyst estimates slightly and earnings missing by a cent a share. The immediate market reaction was slightly negative, with shares falling 1.8% in the wake of the announcement, but that is a rather minor movement for a stock that still trades under $2 per share. Closing at $1.69 May 22nd, shares are down just over 1% from the day earnings were announced.

The earnings report and conference call laid the stage for the rest of 2018, and set its sights on Q1 2019, when top-line data from a Phase 2 study of a quadrivalent NanoFlu will go head-to-head against market leader Fluzone, produced by drug giant Sanofi (SNY) and, more importantly, the interim results of the Phase 3 maternal RSV trial. The first months of 2019 will truly be the make-or-break moment for Novavax. After its beat-down in the market after the failure of the Phase 3 adult RSV trial, it is unlikely the company would survive another such disappointment. But if the interim results are good, the stock will soar. And it will fly even higher if the top-line NanoFlu data is also good.

The Boring Road to 2019

A number of small catalysts have been acting as a general tailwind for Novavax's shares over the past year, including updates on the maternal RSV vaccine trial and the acceleration of the NanoFlu program. But between now and 2019, there are precious few catalysts to look forward to. For a binary event-driven stock, that can mean a listless share price.

May 2018 marked an important turning point for the RSV program, with the Phase 3 trial having enrolled 4,600 participants, which is enough to conduct an interim data analysis. However, as mentioned above, this analysis will not be available until Q1 2019. Thus, there is not a whole lot of news in this program that could move the stock massively one way or the other.

Likewise, the NanoFlu program is not set to deliver any impressive catalysts during the remainder of 2018. There will no doubt be some attention paid as the quadrivalent NanoFlu model is tested against the latest iteration of Fluzone, but this will not involve a tremendous amount of solid data until early 2019, when the top-line data from the Phase 2 trial will be available.

So the remainder of 2018 looks to be a bit of a desert where catalysts are concerned. However, it is unlikely �� barring a general market correction downward �� that Novavax will trade violently downward. As events are concerned, things seem stacked slightly in the company��s favor. That is especially the case with the flu vaccine program, as another unpleasant flu season will likely drive positive attention toward a new alternative in the works.

Cash Position Remains Something of a Worry

Cash has been a nagging worry for some time at Novavax. In a March 22nd research note, we reflected on the mounting cash concerns after the company announced it would be presenting the interim results from the maternal RSV trial in Q1 2019 instead of Q4 2018. Novavax has allayed its immediate needs, albeit via diluting shareholders, raising $54 million in a stock offering in April. The dilutive offering sent shares down below $2, but they have stabilized far above where they were trading when market sentiment was uniformly negative.

Novavax had $164.2 million in cash and equivalents at the end of Q1 2018, after burning through $66.1 million to finance operations for the quarter. That was a substantial uptick from the same period in 2017, but newly minted CFO John Trizzino stated on the earnings call that the burn would be substantially reduced in subsequent quarters of 2018:

��We do expect to see a significant decrease over the subsequent quarters for the balance of the year. And so that's going to be attributed to the reduction, mostly of kind of R&D expenses. So I think that's enough to kind of give you an indication of what we expect our spending to be through the balance of '18.��

Assuming the cash burn falls more into line with previous recent quarters, Novavax has about three quarters of runway, comfortably speaking. It could probably stretch that to four in a pinch. But that would be cutting it mighty close, since the big data readouts from the RSV vaccine and NanoFlu trials are set to happen in the first quarter of next year. Novavax can probably stretch its resources that far. But it is an open question of whether it will take the risk. In any event, positive interim data for the maternal RSV vaccine trial will send the share price skyrocketing and would allow a share offering on much more favorable terms �� if Novavax is not snapped up by a big pharmaceutical company, that is.

Investor��s Eye View

Novavax continues to be an intriguing ��all or nothing�� stock. It continues to trade below $2 a share, which will look ridiculously cheap in the event of a positive interim data readout from the maternal RSV vaccine trial. An independent data analysis suggests that this trial will not be a repeat of the failed adult RSV vaccine trial, but nothing is certain in the biotech game. A bad result will likely mean Novavax will fold �� or at least dilute current shareholders to nothing.

That said, there is clearly a massive market and evident appetite for an RSV vaccine. Pfizer (PFE) announced on May 22nd that it has commenced a Phase 1/2 adult RSV vaccine trial. If Novavax��s maternal trial is a success, Pfizer might well decide to scoop up the developmental biotech. A proven RSV vaccine is a hugely valuable asset, so there would likely be many potential partners and buyers in the event of good news.

Q1 2019 represents the hinge of fate for Novavax. The upside is massive, but the risks persist. Investors must think carefully about their risk-to-reward appetites before taking a position. But evidence would suggest that a play on Novavax will meet with welcome rewards.

Disclosure: I am/we are long NVAX.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Why don't inflation rate and CPI match?

Inflation has gotten more attention lately�as price increases at the gas pump have taken a bite out of Americans' disposable income. For many, the personal experience of having to pay more for prescription medications, rent and food makes budgeting increasingly difficult, especially for those on fixed incomes who haven't seen much in the way of boosts to paychecks or Social Security payments lately. Yet official readings from the Consumer Price Index indicate low levels of inflation, running at around 2% per year over the past several years.

Many people jump to the conclusion that the government's inflation numbers deliberately understate true inflation for the American public overall. But the way�the Bureau of Labor Statistics measures inflation won't exactly match with any single person's own spending experience.

For instance, the most commonly cited Consumer Price Index for All Urban Consumers (CPI-U) looks at prices of key goods and services in 75 urban areas, collecting data on thousands of households and retail establishments. It captures 93% of the U.S. population and includes employed, unemployed�and retired people. As the CPI-U measures it, the typical American spends these percentages in major categories of their personal budgets:

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As you can see, the major categories Americans spend on include food, shelter, medical care, transportation, and energy. Yet these costs vary greatly from person to person. Older Americans typically incur more health care costs as they age, and many people of all ages have above-average medical needs that make up more than 7% of their spending. Those who have to drive a long way to work incur more in fuel and transportation costs than those who live nearby or can take public transportation. By contrast, while housing costs are high in many urban areas, those who live in lower-cost parts of the country can get away with spending less than a third of their money on rent or a mortgage payment.

Inflation eats away at the purchasing power of your savings, and what's most important in measuring it is how rising prices affect the things you want and need. Therefore, you shouldn't be surprised if your personal inflation rate is different from what the official CPI number suggests.

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