Monday, October 18, 2021

Global Market Square

By on August 20, 2021

The U.S. and European stock markets ended the week with gains, but not enough to make up for the losses accumulated during the week.

This week, the Dow Jones lost 395.30 points, the S&P 500 lost 26.33 and the Nasdaq Composite lost 106.24.

Global stocks recorded their worst week since early June as investors’ views have taken a turn towards the negative with fears over economic growth slowdowns, Federal Reserve tapering, the rise of the Delta variant of COVID-19 and the elapsing of stimulus funding.

Another element that is making markets cringe is that the Chinese stock sell-off continues as the government has pushed through one of the strictest data privacy laws that have sunk most of the public stocks there. The worst performers since this took hold on July 1 follow:

  • DIDI Global (DIDI) has lost 54.88% in value.
  • Pinduodo Inc. (PDD)has lost 37.08% in value.
  • Alibaba Group (BABA) has lost 29.20% in value.
  • Tencent Holdings (TCTZF)  has lost 24.78% in value.

The corporate earnings parade continued with one of America’s most emblematic companies, John Deere & Co., the world’s leading agricultural equipment manufacturer, producing those beautiful green tractors that are some of the most recognizable machines in the industry.

  • John Deere & Co. (DE) reported its 3Q21 earnings with Net Revenues of $11.52 billion, an increase of 29%; Net income of $1.66 billion, an increase of 106%; and earnings per share of $5.32. The stock closed at $351.43, down $7.55. In my opinion, this stock is a great buying opportunity.

Eurozone Summary for Aug. 20:

  • Stoxx 600 closed at 468.64, up 1.40 points, or 0.30%.
  • FTSE 100 closed at 7,087.90, up 29.04 points, or 0.41%
  • Dax Index closed at 15,808.04, up 42.23 points, or 0.27%.

Wall Street summary for Aug. 20:

  • The Dow Jones Industrial Average closed at 35,120.08, up 225.96 points, or 0.65%.
  • The Standard & Poor’s 500 closed at 4,441.67 up 35.87 points, or 0.81%.
  • The Nasdaq Composite Index closed at 14,714.66, up 172.88 points, or 1.19%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,535.94, down 10.35 points, or 0.41%.
  • The U.S. Treasury 10-year note closed at 1.26%.
  • The U.S. Treasury 2-year note closed at 0.23%.

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