Can the Donald Get the Market out of its Rut?!

S2S1PPR1R2Daily changeLastIndex
(-0.11%)19,805DJX
225.55226.11226.45227.01227.35+0.18%2,272SPX
122.46122.75122.96123.25123.46+0.31%5,556Nasdaq

 

Lips pressed, investors and traders alike are playing the waiting game until the end of the week when Donald Trump officially moves into the Oval Office, trading reserved for the time being. With that said, it’s hard to say that investors are waiting on the fence, though stock movement has been selective and measured – and of course, nobody wants to be caught off guard when the safety is released and markets are jarred back into motion.

The day’s big winner – on the background of Trump and his incoming administration’s continued twitting barrage – was the metal and steel sector. Investors in the sector were happy to hear the leading candidate for Commerce Secretary hint that the new administration is considering imposing tariffs and restrictions on Chinese steel imports. In the candidate’s view, imports of Chinese steel at drop bottom prices weighs on the industry, necessitating action on the administration’s part. The leading local firms in the sector recorded impressive gains, X climbing 8.5%, and STLD and NUE climbing 4.6% and 3.7% respectively.

The financial sector stabilized, its late rally helping the market end at the day’s highest level after gains in the stocks of Bank of America (BAC) and Morgan Stanley (MS) helped offset the losses in banking kingpin, Goldman Sachs (GS). The banking index ended up by almost a percentage point.

There was more drama in the stock of Mallinckrodt (MNK) on the background of the newsfeed that the Federal Trade Commission (FTC) is preparing an anti-trust suit against the company that alleges that the company exploited the monopoly it has with its Lupus and Multiple Sclerosis drugs. The FTC claims that the company engaged in price gouging when raising its dosage price by 2,165% to $28,000. After the stock collapsed 12%, trading was halted, and the company attempted to assuage investors’ fears by saying that it had reached a middle ground with the authorities, compelling it to pay $100 million to shelve the suit. After trading resumed, it seemed that investors bought the alibi to some extent, the stock ending off by “only” 6%.

Another company that could feel investor wrath was Cameco (CCJ). The uranium mining company had already announced 2 days ago that it would be laying off 10% of its work force, at the same time, lowering its financial forecast; the stock ended sharply off yesterday by 19%.

On the macro-level, the Consumer Price Index came out in keeping with expectations, standing at 0.3%, while the Beige Book and the speeches of outgoing President Obama, and Fed Chairwoman, Janet Yellen, didn’t impress much on the market.

In summary for the day, the S&P 500 scraped by with light gains of 0.18%, the NASDAQ rising slightly more – up 0.31% on the day – and the Dow lightly off with losses of 0.11%.

After Closing: Netflix soared 9% after routing analyst forecasts and announcing that it had signed up 7 million users, with plans to invest $6 billion in content in 2017.

Thursday: The earnings season is entering full swing with the earnings numbers of additional banks, along with those of the railway company, Union Pacific and the Israeli-cyber company, Checkpoint. Be primed as well for economic figures relating to housing, along with the Philadelphia Fed Survey, and weekly crude and gas inventories.

Thursday’s Hot Stocks: NFLX, CP, UNP, BBT, KMI, BK, NSC, CHKP

IPOs: None

Have a great trading day!

 

Economic Calendar
DAYTIME (EST)EventForecastImpact
Tuesday8:30Empire Manufacturing8.3Medium
Wednesday8:30CPI0.3%High
Wednesday9:15Industrial Production0.6%Medium
Wednesday10:00NAHB Housing Market IndexMedium
Wednesday14:00Fed’s Beige BookMedium
Thursday8:30Initial Claims252KHigh
Thursday8:30Housing Starts1193KMedium
Thursday8:30Building Permits1217KMedium
Thursday8:30Philadelphia Fed15.3Medium
Thursday11:00Crude InventoriesLow

 

Earnings Calendar
SymbolCompanyAM/PMDay
CMAComerica IncorporatedAMTuesday
INFOIHS Markit Ltd.AMTuesday
MSMorgan StanleyAMTuesday
UNHUnitedHealth Group IncorporatedAMTuesday
UALUnited Continental Holdings, Inc.PMTuesday
CSXCSX CorporationPMTuesday
FASTFastenal CompanyAMWednesday
GSThe Goldman Sachs Group, Inc.AMWednesday
CCitigroup Inc.AMWednesday
KMIKinder Morgan, Inc.PMWednesday
NFLXNetflix, Inc.PMWednesday
CPCanadian Pacific Railway LimitedPMWednesday
SLMSLM CorporationPMWednesday
CHKPCheck Point Software Technologies Ltd.AMThursday
UNPUnion Pacific CorporationAMThursday
PPGPPG Industries, Inc.AMThursday
BBTBB&T CorporationAMThursday
IBMInternational Business Machines CorporationPMThursday
AXPAmerican Express CompanyPMThursday
TEAMAtlassian Corporation PlcPMThursday
SWKSSkyworks Solutions, Inc.PMThursday
KSUKansas City SouthernAMFriday
COLRockwell Collins, Inc.AMFriday
SLBSchlumberger LimitedAMFriday
STISunTrust Banks, Inc.AMFriday
SYFSynchrony FinancialAMFriday
GEGeneral Electric CompanyAMFriday

19.1.2017

Today’s Picks – Day Trading

SymbolBreakoutBreakdownMomentumMomentum
INSY11.22XCCJ
O60.32NUETGT
KMB117.41MJNMNK
FB129.27FASTGIMO
UAA29PM 
TEVA33.56  
XOM85.86  

 

#DateStockLong\

Short

StatuesDate CloseProfit \ Loss#DateStockLong \ShortStatuesDate CloseProfit \ Loss
15.12.2016CSCLongClose6.12.2016-1.62%17
26.12.2016YYShortClose7.12.2016+0.72%18      
37.12.2016ROSTLongClose14.12.2016+0.42%19
49.12.016TWLOShortClose13.12.2016+2.01%20
512.12.2016PDCOLongClose14.12.2016+0.48%21
613.12.2016TLRDLongOpen22.12.2016+1.87%22
713.12.2016IGTShortClose14.12.2016-0.19%23
814.12.2016CCLongClose21.12.2016+0.52%24
929.12.2016JWNShortClose6.1.2017+3.45%25
106.1.2017TRGPLongClose9.1.2017+0.20%26
119.1.2017NVDALongClose17.1.2017+1.02%27
1210.1.2017TLRDLongClose10.1.2017-3.27%28
1313.1.2017LWLongOpen -0.83%29
1430 
1531 
1632

 

Today’s Picks – Swing “New-York Strategy

No.1 – XOM

Company NameExxon Mobil Corporation
Entry Point85.86
Stop Area87.5
1st Target85.05
Swing Target
Avg. Volume10.78M
SectorBasic Materials | Major Integrated Oil & Gas
Earnings Date
Risk RateHigh
Risk\Reward Ratio1.38:1

 

No.2 – TEVA

Company NameTeva Pharmaceutical
Entry Point33.50
Stop Area34.55
1st Target33.05
Swing Target
Avg. Volume10.34M
SectorFinancial | REIT – Retail 
Earnings Date14 Feb
Risk RateNormal
Risk\Reward Ratio