GoPro Shares Surge on New Camera
On Monday, the shares of GoPro (GPRO, +5.52%) surged 7 percent. This came after the company announced the introduction of a new camera with an LCD touch screen. According to CNET, the GoPro Hero+ LCD is the 2nd product from GoPro which has a built in screen feature and it also features built in Bluetooth and WiFi. The GoPro Hero+ LCD camera also has up to 2 hours of recording time and can also record 1080p60 video. This new camera will be available for purchase in the U.S. from the 6th of June and it will be priced at $299. Added to this, last week Thursday, the shares of GoPro rose almost 7% and this came after Nick Woodman, CEO of GoPro, announced that the company is in the process of developing a drone as well as a 6-camera virtual-reality recording system. With the latest product as well as the announcement by the company’s CEO, analysts forecast that these offerings could potentially add as $475 million to GoPro’s sales in the coming financial year. Over the past 12 months, the shares of GoPro have advanced 89% yet they are down 6 percent year to date. According to analysts, this weakness has occurred as a result of concerns that competition in the point-of-view camera space is climbing. The shares of GoPro are currently trading at $58.52 a share.
On Monday, U.S. stocks gained marking a good start to the month of June. This came in response to mixed economic reports out of the country which included construction and manufacturing data as well as consumer spending data. At the close of trading, the Nasdaq Composite index (COMP) rose 0.3%, or 12.90 points, to 5,082.93. The top performer on the tech heavy index was Altera Corporation (NASDAQ:ALTR) which finished just ahead of American Airlines Group (NASDAQ:AAL), which gained 4.27%, or 1.81 to 44.18. The worst performer on the index was Broadcom Corporation (NASDAQ:BRCM), which lost 1.39 or 2.44% to 55.47. Also on the upside was the Dow Jones Industrial Average (DJIA) which gained 0.2%, or 29.69 points, to 18,040.37 while the S&P 500 index (SPX) advanced 0.2%, or 4.35 points, to close at 2,111.74. Gains were led by health care, technology and industrials stocks.
In currency trading on Monday, the U.S. dollar (USD) traded higher. This came after data showed that in the U.S., manufacturing activity had expanded more than expected in May which prompted investors to believe that the Federal Reserve is likely to hike interest rates in the near future. In their report, the Institute for Supply Management said that its PMI (purchasing manager’s index) rose from 51.5 in April to 52.8 in May. This beat analysts’ expectations of an increase to 52.0. In a separate report, the Commerce Department reported that personal spending in the U.S. was unchanged in April. This missed expectations for an increase of 0.2%. Added to this, data showed that personal income rose 4 percent in April. In forex trading, the EUR/USD traded at 1.0910, down 0.74% while the GBP/USD traded at 1.5224, down 0.41%. Against the yen and the Australian dollar, the USD traded higher with USD/JPY up 0.14% at and with AUD/USD down 0.41% to 0.7617. Also, the U.S. dollar index was at 97.53, up 0.60%.
On Tuesday, in early morning Asian trade, crude oil prices declined. This came as investors now turn their attention to the weekly report by the American Petroleum Institute on the stockpiles of U.S. crude oil for the end of last week. WTI crude oil for delivery in July traded at $60.12 a barrel, down 0.12 percent, on the NYMEX. Meanwhile, on Monday, Brent crude oil for delivery in July traded at $64.99 a barrel, down 0.87% or 0.57, on the Intercontinental Exchange (ICE).