Market Notes for 3 Aug (US Markets)

It was a decent move last night in the US markets with all the major indices moving up:

Dow: +0.89%

S&P 500: +0.72%

Nasdaq: +1.47%

Russell 2000: +1.78%

When Nasdaq and Russell leads, it is often a good indicator that the trend is still holding up. Nasdaq was really held up by the mega tech names, Apple (+2.52%), Microsoft (+5.62%), Telsa (+3.79%) and Nvidia (+3.73%). 

With the hottest news on Microsoft looking to acquire TikTok US operations and in a few other countries, Microsoft made a good +5.62% move overnight with almost 79 million shares traded and likely would see more price action in the coming weeks leading to September 15 where this is the deadline imposed by the US government. If this does not go through, it is very likely that the share prices are going to take a hit. 

Volume: it is higher than the norm from the charts (almost 79 million shares traded). Last traded with volume closest to this was on 23 July with around 67.45 million shares traded. 

Fibonacci: if it stays above 213.83, it is likely testing the next level of 220.77. 

Moving Average: it is now above its 20MA after 7 days being under it, will need to see if it continues to hold above its 20MA. Overall trend is still up. 

Weekly chart still shows extended steep uptrend, some consolidation took place since 06 July so will need to see if it is sufficient for it to move to the next level. Take note that it is close to its all time high at 217.64 so may form a double top pattern. 

Microsoft Daily

Microsoft Weekly

*I currently hold Microsoft shares. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

News Flash: Microsoft has until Sept. 15 to resolve a lot of thorny questions if it wants to buy TikTok

Microsoft must create a technological solution to keep TikTok running as one application in conjunction with ByteDance that meets U.S. government approval.

Microsoft said it was open to outside U.S. investment on a deal. Could it look to large media companies for minority stakes?

Microsoft and the U.S. government have agreed to a six-week time frame to wrap up deal discussions around buying TikTok’s U.S., Canada, Australia and New Zealand operations.

Source: CNBC

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Microsoft confirms talks to buy TikTok in U.S., aims to finish deal by Sept. 15

Seems like Microsoft is looking to move ahead with the acquisition of TikTok US operations despite the possibility of TikTok being banned in US. 

Looking at this move, Microsoft looks to enter the consumer industry where there are already 80 million TikTok subscribers in US alone. However, the track record for Microsoft in consumer related activities were not that fantastic (Skype, Bing, Groove Music, Windows Media Center and probably a couple more). Its core strength is in its Office suite and Cloud services and they are probably trying to diversify towards consumer services since Apple is breaking all records in its consumer front. 

A man holding a phone walks past a sign of Chinese company ByteDance’s app TikTok, known locally as Douyin, at the International Artificial Products Expo in Hangzhou, Zhejiang province, China October 18, 2019.

Reuters

Microsoft on Sunday confirmed that it has held talks with Chinese technology company ByteDance to acquire its trendy social app TikTok in the U.S. Microsoft said in a statement that it will keep working with the U.S. government on a deal and that it intends to conclude talks by September 15.

If it were to complete the deal, Microsoft could simultaneously resolve a recent controversy in Washington and gain power in consumer technology. 

Source: CNBC

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Microsoft looking to buy TikTok

Interesting piece of news going into the weekend where Microsoft is looking to buy TikTok operations in US while on the other hand, US president is looking to ban TikTok in US on the basis of personal information theft.

Strategically, this doesn’t make a lot of sense for Microsoft, which has been steadfastly focused on enterprise software under Chief Executive Officer Satya Nadella and has seen its market valuation balloon to more than $1.5 trillion because of it. 

But Microsoft should absolutely try to acquire TikTok. Any company with the means to do it should.

Christopher Goodney | Bloomberg | Getty Images

Source: CNBC

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Congress grills tech CEOs amid backdrop of coronavirus and economic struggles

For more than six hours, members of the House Antitrust Subcommittee grilled the CEOs of Alphabet, Amazon, Apple and Facebook -- four of the country’s five most valuable companies, with only Microsoft missing -- on a wide range of matters. The CEOs dialed in through videoconference, while most of the committee members were present in Congress, where Chairman David Cicilline, D-R.I., repeatedly reminded them to wear masks to prevent the spread of Covid-19.

Source: CNBC

Seems like Facebook is getting the biggest hit and reasonably so, considering that they are like a news media firm where information is power and politicians wants to have as much influence on media as much as possible. 

Disclaimer: Whatever posted here is purely my personal view. It is not an inducement to trade and not responsible for any losses. Tips and News might just be rumors in the market. I take no responsibility for any gains or losses as a result of reading my analyses, judgement and opinions. Trade with care and diligence please!

Key notes on Microsoft:

Microsoft revenue grew 13% despite coronavirus and here’s how the company did: 

Earnings: $1.46 per share, adjusted, vs. $1.34 per share as expected by analysts, according to Refinitiv.

Revenue: $38.03 billion, vs. $36.50 billion as expected by analysts, according to Refinitiv.

However, looking at the charts, it shows a different picture where it was sold down from its highs. Using the Fibonacci as a guide, it hit its 138.2% mark and seems like it is unable to break through. Based on yesterday's close it is now below its 123.6% mark which we will need to see the weekly close to determine if it will retract back to $191.35.

*I do not own any MSFT shares currently.