Microsoft: Pika World Shinning Star

Microsoft: Pika World Shinning Star

The company which is Pika World’s favourite, had a good piece of news. It is returning capital to shareholders through increasing its quarterly dividend coupled with a new share purpose program. While some investors feel that the company could have better invested for the future, it is still a positive sentiment.

The dividend is expected to increase by 11% from 56 cents per quarter to 62 cents. This is the 12th consecutive year of dividend boost. In addition, an open-ended $60 billion stock repurchase program was announced. As a result, Pika World maintains a positive outlook on the company.

Gaming: The Holiday Season may Arrive Sooner

We understand that game consoles from Sony and Microsoft are likely to be scarce on a broader chip shortage. Some analysts are taking a re-look at video game software companies as the holiday season is on the horizon.

After a splendid performance in 2020 due to lockdown, videogame stocks generally lag behind the broader markets, complicated by hardware supply shortages. Three such companies are on the radar: Activision Blizzard, Electronic Arts and Take-Two Interactive Software have taken a hit as the economy reopens and time devoted to gaming has generally reduced.

Nonetheless, game releases tend to be more vibrant when a new console cycle occurs, which is happening this year. As such, there may be a boost to the stock prices that have been in a shadow for quite a while.

Delta Variant Worry Re-Surface

Covid cases have been on the rise as summer is coming to an end. Reports have indicated that more than 95% of the ICU beds are now used by about a quarter of US hospitals. This is an increase from 20% last month. If the occupancy rates rise further, it might again put pressure on the healthcare system, especially in Alabama and Mississippi, which have low vaccination rates.

Pika World believes worsening Covid cases in selected states will have spillover effects to other states and curb economic activities.

Boeing: Sign of Recovery?

The company released a new rosy forecast for its long-term commercial jet as the industry heals from the pandemic. It is viewed as a $9 trillion market for the next decade, increasing from $8.5 trillion stated previously and span over aerospace products and services.

While its 787 Dreamliner deliveries have been delayed, it still projects optimistic 20-year forecasts on the broader market. However, having lost 2 solid years of growth, the company will need more momentum in sales orders and global demand to see the light at the end of the tunnel.

What’s on the Menu Today?

There are three critical data to be released at the same time.

At 8.30 pm, we will receive the Core Retail Sales, which is expected to decline slightly by 0.1%, improving from a -0.4% in the prior period.

Similarly, the Initial Jobless Claims data rises to 330K, not far from 310K from the previous period.

The Philadelphia Fed Manufacturing Index is set to moderate to 18.8 from 19.4.

It is 16 September, Tuesday, at 7.20 am in Singapore and 7.20 pm in New York. As the market remains volatile, Pika World wishes all friends a safe and profitable trading week!