Can the Donald Get the Market out of its Rut?!
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
Have a great trading day!
|Wednesday||10:00||NAHB Housing Market Index||–||Medium|
|Wednesday||14:00||Fed’s Beige Book||–||Medium|
|INFO||IHS Markit Ltd.||AM||Tuesday|
|UNH||UnitedHealth Group Incorporated||AM||Tuesday|
|UAL||United Continental Holdings, Inc.||PM||Tuesday|
|GS||The Goldman Sachs Group, Inc.||AM||Wednesday|
|KMI||Kinder Morgan, Inc.||PM||Wednesday|
|CP||Canadian Pacific Railway Limited||PM||Wednesday|
|CHKP||Check Point Software Technologies Ltd.||AM||Thursday|
|UNP||Union Pacific Corporation||AM||Thursday|
|PPG||PPG Industries, Inc.||AM||Thursday|
|IBM||International Business Machines Corporation||PM||Thursday|
|AXP||American Express Company||PM||Thursday|
|TEAM||Atlassian Corporation Plc||PM||Thursday|
|SWKS||Skyworks Solutions, Inc.||PM||Thursday|
|KSU||Kansas City Southern||AM||Friday|
|COL||Rockwell Collins, Inc.||AM||Friday|
|STI||SunTrust Banks, Inc.||AM||Friday|
|GE||General Electric Company||AM||Friday|
Today’s Picks – Day Trading
|Statues||Date Close||Profit \ Loss||#||Date||Stock||Long \Short||Statues||Date Close||Profit \ Loss|
Today’s Picks – Swing “New-York Strategy
No.1 – XOM
|Company Name||Exxon Mobil Corporation|
|Sector||Basic Materials | Major Integrated Oil & Gas|
No.2 – TEVA
|Company Name||Teva Pharmaceutical|
|Sector||Financial | REIT – Retail|
|Earnings Date||14 Feb|