Introduction Part: By Kexin Qiu and Abbigail Lee
The Order Of Participants Presented Stockpitch:
- Janavi Janakiraman
- Abby Chernila, and Anh Nguyen
- Yanni Chen
- Hanxiao Lu
- Xiya Wei
- Noah Conners
Overview: The first week after President Donald Trump’s Inauguration
- US quarterly GDP has been dragged greatly because of the Net Export
–Background: Trump’s proposed policies:
–Stronger job markets
Consequence: Consumer Spending (70%) rose 2.5%; purchase added 1.7% point to growth; Investment and Housing improved. Investment on equipment rose at 3.1% and residential construction jumped at 10.2%.
US Stock Market: Stocks:
- S&P500 Index finished its 0.2 percent from its record set last Wednesday
- Greenback capped fifth weekly slide
- The yen weakened as Japan’s central bank stepped in to buy debts.
- 10-year treasury yields fell below 2.5%
- Gold has headed for its longest slump in 3 months
- Although GDP reports gave little reasons for investors to invest more dollars in the market, strong job market and growth optimism make investors keep adding money in.
The S&P 500 slipped 0.1 percent to 2,294.50 at 4 p.m. in New York. It rose 1 percent in the week and closed Wednesday at a record.
The Stoxx Europe 600 fell 0.4 percent following three days of gains. The measure rose 1.1 percent in the week.
Dollar Spot rate fell by 0.1%
The pound slipped 0.3 percent, paring its gain in the week to 1.4 percent weekly gain. The yen slid 0.5 percent and the euro was little changed.
The yield on 10-year U.S. Treasuries fell two basis points to 2.48 percent.
German bonds due in a decade halted a three-day slide, pushing the yield to 0.46 percent.
Japanese 10-year yields were little changed at 0.08 percent. The BOJ boosted the amount of 5-to-10-year bonds it buys in its outright purchase operations, underscoring a commitment to keep its yield-curve target.
Gold futures fell 0.1 percent to settle at $1,191.10 an ounce, the lowest price in two weeks.
Trump, Immigration and Tech
President Donald Trump’s sudden executive order on immigration on SaturdayResponds from Tech leaders:
Netflix Inc Chief Executive Reed Hastings: “It is time to link arms together to protect American values of freedom and opportunity.”
Apple Inc CEO Tim Cook: “not a policy we support” and promised to help affected employees; “We have reached out to the White House to explain the negative effect on our coworkers and our company,”
Leave employees from tech companies potentially stranded overseas and unable to return back to the US
–>Alphabet Inc’s Google urgently called back employees from overseas and told ones who might be affected by the ban not to leave the United States.
- Post-Trump’s victory & stock market
- Interest rate
- Oil price
- Tech news
Market registered healthy gains following Trump’s victory, but lost steam gradually on concerns over Trump’s policies.
- Initial elation over his blueprint for business-friendly policies began fading.
- Investors took profits on their post-election gains.
–Interest Rate: Fed Trump-Yellen punch
- Janet Yellen expects a few rate hikes this year and that the fed funds target rate could get to 3% by 2019
- The economy is near maximum employment, and inflation is moving toward our goal
- It is probably not a good idea to allow the US economy to run hot.
- OPEC and other oil-producing countries have cut oil supply by 1.5 million barrels a day, more than 80 percent of their collective target, since the deal came into effect on Jan.1
- MAYBE the rebalancing of the crude oil market can be attained
- Tesla offers a new version of a vehicle or unleashes a software update
- Musk’s unanticipated connection to President Trump
- Musk has joined Trump’s council of business leaders.
–Announcement: Semester Plan of OIG Team Spring 2017
- General Meetings
- Early job & internship preparation panel and workshop
- Stock pitch competition
- Skype chats with Alum from JP Morgan and BoA
- Portfolio committee and board election
On September 12th, we held our annual internship panel by inviting our bi-co upperclass students who spent their summer doing internship in finance sectors.
Our panelists had internships with various companies in finance, consulting and business as following:
• Goldman Sachs (Global Investment Research, Equity Research)
• Oliver Wyman (Financial Services, Risk & Finance Practice)
• PNC Bank (Asset Management Group, Investment Strategy)
• Morgen Evan Advisory Services (Investment Banking)
Panels not only shared their experiences, but also gave advice to the audience like how to get an internship or how international students can get an internship in the US and many more.
Thank you panels for sharing your experiences, and thank you all for joining us that night!
Market Update – by Linh C. Nguyen:
- The Oil price is going up. Equities expect the oil price will continuously grow.
- New York real estate and labor market jumped after decreased in 2015.
Case Study Workshop – by Siran Tang:
- We had an exercise of matching unidentified industries with their balance sheets in order to see some ways to evaluate a company’s financial status.
Market Update – by Linh C. Nguyen:
- The Fed announced their goal to keep the short-term interest rate steady around 0.25% to 0.5% and to lift the inflation rate to 2%.
- The Oil Market kept declining and recently hit it’s lowest point around $27 per share.
- IPhone sales fell short of projections. There are concerns that the market for smartphones is becoming saturated.
OIG Portfolio Update – by Siran Tang:
- Currently our portfolio consists of 15 stocks and 1 ETF (Exchange – Traded Fund).
- Starting from the end of 2015, due to the increase of the interest rate, the stock market has been falling, which has led our portfolio to lose around 10k.
- Now, we are looking into the European and Japanese stock market. Also, we are going to sell some of our stocks and try to buy some bonds.
Adirondack Cup Competition Update – by Rachael Abraham:
- Due to the overall underperformance of the stock market, the last quarter ended with around -8% return for our team.
- Now the team has a chance to change the portfolio, and they decided to change all the stocks they hold.
- While choosing 5 new stocks, depending on their observation of the market, the team decided not to look into the oil market, basic materials, and REIT’s。
Market Update – by Linh C. Nguyen
- Due to the upcoming festivities, giant retailers had strong sales in the U.S this week.
- The Housing Market in the U.S fell 11% last month, reaching its lowest level since March.
- Due to recent terrorist attacks from ISIS, all European Stock Markets opened low on Monday. However, at closing, the market flatted out before slightly increasing..
Porter’s Six Forces and Tesla – by Hunter Rendleman:
- Porter’s Six Forces Model is a strategic business tool that helps businesses evaluate the competitiveness and attractiveness of a market.
- We divided into six groups and each group focused on one force, discussed and presented Tesla’s current condition.
- The portfolio team did not think Tesla was a bad stock, but it’s stock would not grow quickly so they decided not to buy it now.
Market Update – by Linh C. Nguyen
- Some reports show that the U.S Labor Market is doing well. Data shows that the unemployment rate fell in October, while both the number of jobs in U.S and the average hourly wage rose.
- Alibaba held a big Single Day Sale on Nov. 11th. Its total revenue reached $14.3 billion.
- On Nov. 4th the government of Japan sold 11% of the shares of Japan Post to the public, delivering around $12 billion. It is the world’s biggest IPO in 2015.
Intro to Options – by Siran Tang:
- An option is a contract that offers the buyers the right to buy or sell a financial asset at an agreed-upon price during a certain period of time or on a specific date.
- Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.
- There are many strategies to control the risk in using options. Graphs of vertical spread and butterfly spread are some of them.
We also had Brainteaser activities that were held by Linh C. Nguyen.
Bryn Mawr Alum Jody K. Lurie ’08, a CFA Charter-holder, a Corporate Credit Analyst and Vice President of financial services firm Janney Montgomery Scott, with her colleague Ashwini Walde, a Project Manager and Business Technology Leader, came and shared experiences in their careers.