Subject: Google and Facebook’s International Growth Strategies

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Rover's Weekly Market Brief
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Indices

Dow Jones: 17,675.2 (-1.06%)

NASDAQ: 4,800.34 (-1.92%)

S&P 500: 2,071.22 (-1.19%)

Commodities

Gold: 1,300.10 (+1.90%)

Copper: 205.60 (+1.26%)

Crude Oil: 48.14 (-1.90%)

Economy

The Federal Open Market Committee unanimously voted to keep the target federal funds rate unchanged at 0.25% to 0.50% in its June Meeting. The Committee lowered its forecast for 2016 GDP growth to 2.0% from 2.2%. The FOMC’s statement noted that since April job growth has slowed and business investment has remained soft. However, the Committee's June assessment of the economy is in large part the same as its April assessment. The Committee maintains that it “expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.” A July rate hike will depend in large part of the June Employment report.


Consumer prices reported by the CPI rose a slight 0.2% in May. Consumer prices excluding food and energy also increased 0.2%. Energy costs increased 1.2%; however, gasoline prices are down 10.1% on the year. Housing and medical care both rose 0.3%. Other categories saw unremarkable increases. Overall, prices consumer prices remain flat.


May retail sales increased a significant 0.5%. E Commerce retail sales jumped 1.3% and auto sales increased 0.3%. Sporting goods, music, and hobby sales were up. Building materials and garden equipment sales dropped 1.8%. The overall upbeat report may indicate an improvement in the household finances of US consumers.

What to Watch for Next Week:

Wednesday June 22 — Existing Home Sales (a gauge of housing demand)

Thursday June 23 — Jobless Claims (a measure of the health of the job market)

Earnings Calendar

Mon
ITRI
Tues
FDX
ADBE
Wed
RHT
BKS
Thurs
ACN
SONC
Fri
FINL
 
 

Google and Facebook in International Waters

 

For both Facebook (FB) and Google (GOOGL) the majority of revenue and user growth in the past several years has come not from the US but from abroad. Yet much of the world still has little or no internet connectivity, meaning there is a lot of growth still untapped. In this deep dive blog post, we explore the two companies' international strategies. Both stocks are likely to be strong in the long run, but we think only one is a buy right now.

Read the Article
 
 

Ideas: Top Growth Stocks

 

This week our featured screener finds the fastest growers in the S&P 500. Plus we have 3 additional screeners to help you find top growth stocks in the tech, consumer cyclical, and consumer defensive (AKA staples) sectors. A low P/E is included in the weighted criteria to find growth stocks that are not overly expensive. These screeners can be easily updated for any sector you want to screen. See what’s coming in!

Go to Ideas

New Stock on the Dividends Block: OC

 

Selling EFX last week opened up an opportunity for something new in the Dividend Growers portfolio. Our search led us to basic materials stock Owens Corning (OC). OC’s got growth, increasing profitability, manageable debt, and a new but increasing dividend payout—all for a price we liked. Get the details on this promising pick on our blog.

Why We Bought OC
 
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Wishing you a productive week,

The Stock Rover Team

www.stockrover.com

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