Global stocks powered higher as investors reacted to President Donald Trump's decision to withdraw from a multilateral nuclear treaty with Iran and the prospect of several months of rising crude prices.
Oil prices were the talk of the town with commodity talk overshadowing the last big push of second quarter earnings season. Nvidia (NVDA) ticked higher as the company is set to report earnings on Thursday while Disney (DIS) reported Tuesday evening and dipped as investors worried about the slew of media mergers in limbo currently. Whether Disney acquires Fox (FOXA) or Sky plc assets, the recent sell-off may be short-sighted. Disney reported $1.84 in adjusted earnings per share for the fiscal second quarter, ended March 31, on $14.55 billion in revenue. Revenue rose 9% year over year, while earnings increased 23%. The results also topped the consensus analyst estimate of $1.70 in EPS on $14.11 billion in revenue, according to FactSet.
Remember stock splits? Whatever happened to those? Stock splits are getting harder and harder to come by, explains TheStreet's Kinsey Grant. Citing data from S&P Dow Jones Indices, Grant says the average number of stock splits per year since 1980 is 44.68 total on the S&P 500 Index. The maximum in that period was 1986, when there were 114 splits. The minimum, though, came just last year, when there were only five stock splits. So far in 2018, there have been two. This bull market is marked by a handful of differentiating factors from other cycles of strength, most notably its nine-year length. But it seems that in this bull cycle, there are also considerably fewer stock splits happening than in others. Since this bull market began, there have been at most 16 stock splits in a year, which happened in 2011. In each of the last three years, the number of splits has shrunken. The average number of stock splits per year since 2008, when the bull market began, is just 10.7. But in the bull market from 1998 to 2000, there were an average of 91 stock splits per year. And in the bull market from 1987 to 1990, there were 57 on average per year. Those of you waiting for Booking Holdings (BKNG) (formerly Priceline) to split may need to wait a bit longer.
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Photo of the day: Crude awakening
U.S. crude oil jumped 3% on Wednesday, as investors weighed implications of the failed U.S.-Iran nuclear deal could have for general relations with the oil-rich region. At the same time Treasury Secretary Steven Mnuchin indicates that the U.S. is talking to domestic oil producers about how to increase supplies in order to maintain balance as preparation for the re-imposition of sanctions on Iran. The oil we use today in bulk was once thought of a discardable byproduct to produce kerosene. The first U.S. wells to specifically produce oil were founded near Titusville, Pa. in 1859. Read More
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