What to watch
IHS Markit: IHS Markit is a financial information firm headquartered in London, but listed on the Nasdaq exchange. Its share price is close to flat year-to-date, and up 23.1% over the past year, after a huge 61.4% rally during the last three months. The near $30bn market cap company reports its latest set of quarterly earnings on Tuesday. Per Zacks Equity Research, what the company has on its side is a well-diversified global customer base and strong brand recognition, with stable revenues. One thing that investors will be watching for on the analyst call on Tuesday morning New York time is any hint of additional M&A activity, after the company’s purchase of Singapore-based Catena Technologies in May. The huge gulf between the company’s debt and cash level will also likely feature. Currently, 11 analysts rate the stock as a buy, one as an underweight and eight as a hold.
Crest Nicholson: British housebuilder Crest Nicholson reports its half year results on Wednesday. Despite a 32% rally over the past three months, the stock remains more than 40% down in 2020 so far, which has pushed up its dividend yield into double digits. Late last week, the company was approved for a £300m lending facility under the Bank of England’s Covid corporate financing program. The question for investors watching Crest Nicholson earnings will be how big a hit to profits the lockdown, which halted viewings and sales, has been. As part of the lockdown measures, the Government actually ordered a temporary freeze on the housing market back in late March.
Services and manufacturing flash data: On Tuesday, US manufacturing and service sector data will be released, in the form of IHS Markit’s flash manufacturing and services indices, which take stock of how quickly the sectors are expanding or contracting. Flash purchasing manager indices (PMI) for both will be released, where firms share data such as output, new orders and pricing. A figure below 50 indicates contraction, and above 50 expansion. Economist expectations are for a figure of 48 for the manufacturing sector (versus 39.8 in May) and 46.5 for the services sector (versus 37.5 the month before).
Crypto corner: Buy your toothpaste with Bitcoin
Bitcoin ATM company LibertyX has partnered with major US retailers 7Eleven, CVS and RiteAid to let shoppers buy their groceries and toiletries with Bitcoin.
The deal with the well-known US retail brands gives shoppers access to 20,000 locations across the country. While LibertyX is better known for its ATMs, customers of these shops will now be able to download an app to make purchases.
Shoppers will need to use the app to present a barcode for payment at the shops where they will be able to use the world’s biggest cryptoasset to make routine purchases such as snacks and toothpaste.
There is a catch for now however. Customers who use the app to pay will have to stump up a $4.95 retailer service fee and “customer selected miner fee,” although LibertyX says it is waiving these for now.
All data, figures & charts are valid as of 23/06/2020. All trading carries risk. Only risk capital you can afford to lose.
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