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Lovisa Alvin
Lovisa Alvin
Articles (45) 

Moving The Markets – Nintendo, Falling Oil and Retail Sales Boost

This week has put smiles on investors' faces

July 15, 2016 | About:

This week has been undeniably excellent for stock investors. If you played your cards right and managed to withstand the storm brought by Brexit, you were likely able to increase the overall value of your portfolio.

While not all stocks have climbed, the majority have and Nintendo (NTDOY) was one of the quickest risers. Since the release of Pokémon Go, the stock has climbed from $17 to $32.60. The game’s release in the U.S. sparked mass hysteria as gamers took to the streets to hunt for the game’s most elusive creatures.

Nintendo’s climb is likely far from over. Nintendo has several games coming including a new Pokémon game and Zelda: Breath of the Wild, which are more than likely capable of sending the stock even higher. At this point, sticking with Nintendo as a long-term investment seems like a great idea.

Unfortunately, not all industries have benefited over the past few weeks. Although it has been mainly overshadowed by rising stocks, oil has plummeted to lows once again. Fears of a global glut have helped to keep oil prices at a minimum. At one point, the price of a barrel of oil soared to almost $51. Now, crude can barely eek out gains over $45.

Nonetheless, there is some good news on the horizon for oil inclined investors. Recently released data from the U.S. and China suggests demand is stronger than ever. If this is the case, oil prices will once again begin to rise and could very well surpass their previous yearly highs. It is believed that the increased demand has a lot to do with the recent holidays and the traveling associated with each. And since consumers have opted to drive to stores to do their school shopping instead of using online retailers, such as Swap more gasoline has been used. Thus, the supply has decreased, and the demand has increased. Expect an increase in oil prices in the coming weeks.

Another market driver is consumer confidence. Previously, retail sales in the U.S. were stagnant and refused to budge because consumers were worried about the future and spending their money. This changed substantially in June, and it is certainly a good thing for businesses and investors. According to the recent report, sales at restaurants and retail stores across the U.S. rose 0.6% in June. This equates to an overall $456 billion in consumer spending, according to the Commerce Department. Also, household spending increased. When retail sales and automobile purchases are exluded, household spending increased by 0.7%.

These figures greatly exceeded the expectations of economists, who predicted a 0.1% increase and nothing more. All in all, June experienced a 2.7% year-over-year increase. Surprisingly, the biggest winner of all was building-supply stores, such as Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW). These retailers experienced a 3.9% increase in sales during the month of June. The future is bright for stock investors, but it is always wise to be cautious. A single event can always send the markets plummeting again.

Disclosure: I do not own any shares or any stocks mentioned in this article.

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