Earnings of Top Firms Gasp!

Yesterday, the S&P 500 recorded losses for the fourth time in five trading days on the background of a decline in the stocks of Goldman Sachs (GS) and Johnson & Johnson (JNJ) in light of their financial results, alongside geopolitical tension which added to investors’ tension levels.

Goldman Sachs (GS) fell 4.7% to the $215.59 level, after having traded at its lowest level since November 29th. The bank released numbers that missed analysts forecasts, trading revenues taking a turn for the worse. It was the sharpest day of losses for the stock since June 24th, a day after Britain voted to leave the Euro bloc.

Johnson & Johnson (JNJ) tumbled 3.1%, recording its worst trading day in the last 14 months after Q1 revenues didn’t come out in line with analyst forecasts.

The health sector (XLV) fell 1% on the day and the financial sector (XLF) slipped 0.8%, making them the 2 worst performing sectors of the 11 sectors on the S&P 500.

A rough start to the earnings season is likely to add to investors’ concerns about market valuations on the heels of a strong election-fueled rally in which hopes had been pinned on an aggressive growth-oriented posture from the Trump administration, something that had pushed indexes to a series of new historic highs.

In Summary for the Day: The Dow Jones fell 0.55%, the S&P 500 slipping 0.29% and the NASDAQ shedding 0.12%.

Safe haven assets have seen a lot of fanfare of late on the part of investors, gold and treasuries climbing in advance of imminent French elections, tensions flaring between North Korea and the U.S., along with May’s calls for early elections in Britain.

Despite the earnings misses on the part of a number of high profile companies, Q1 results seem altogether promising. Out of the 45 S&P 500 companies which have already reported, 76% trounced expectations.

On the S&P 500, 17 stocks rose to new 52-week highs, 2 dipping to new yearly lows; on the NASDAQ, 40 stocks recorded new 52-week highs, 59 falling to new yearly lows.

About 6.07 billion shares changed hands on U.S. exchanges, compared to the 6.41 billion average over the last 20 trading days.

Wednesday: A fall in governmental bond yields are like a litmus test for market pessimism – and that’s something there’s been a lot of lately! Bond yields move inversely from bond prices. That being the case, bond market purchasing has sent interest rates to levels not even entertained by many experts. However, with the potential at play for more bad news, in the event there’s another development that casts a pallor over the market and that catches players off guard, projections have 10-year T-bond yields falling to 2% or even 1.87%, the levels at which they had traded prior to the elections. On Tuesday, the 10-year T-bond yield fell to 2.165%, its lowest level since November 10th. On March 24th, yields had stood at 2.4%; that was the day on which Congress failed to pass Trump’s bill to replace Obamacare.

The 10-year T-bond yield is important seeing that it’s a general barometer for investor confidence. Likewise, it’s the financial instrument that determines mortgage rates, along with interest rates for other types of loans.

The market, on Wednesday, will glance at the Fed Beige Book on the economy which will be released at 14:00 N.Y. time. In weekly fashion, at 10:30, last week’s petroleum and petroleum product inventories will be released.

Today’s earnings reports will include ABT, MS, and TXT before opening. After closing, be primed for the numbers of EBAY, AXP, QCOM and CSX.

IndexLastDaily changeR2R1PPS1S2
DJX20,523(-0.55%)Down     
SPX2,342(-0.29%)Down236.91236.18235.30234.57233.69
Nasdaq5,849(-0.12%)Down132.73132.39132.04131.70131.35

 

Wednesday’s Hot Stocks: ABT, TXT, IBM, LRCX, RARE

IPOs: None

Have a great trading day!

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Empire Manufacturing13.0Medium
Monday10:00NAHB Housing Market Index70Medium
Tuesday8:30Housing Starts1260KMedium
Tuesday8:30Building Permits1240KMedium
Tuesday9:15Industrial Production0.4%Medium
Wednesday10:30Crude InventoriesLow
Wednesday14:00Fed’s Beige BookHigh
Thursday8:30Initial Claims241KHigh
Thursday8:30Philadelphia Fed21.8Medium
Thursday10:00Leading Indicators0.3%Medium
Friday10:00Existing Home Sales5.55MMedium

  

Earning Calendar

 

SymbolCompanyAM/PMDay
UALUnited Continental Holdings, Inc.PMMonday
NFLXNetflix, Inc.PMMonday
GSThe Goldman Sachs Group, Inc.AMTuesday
UNHUnitedHealth Group IncorporatedAMTuesday
BACBank of America CorporationAMTuesday
JNJJohnson & JohnsonAMTuesday
HOGHarley-Davidson, Inc.AMTuesday
CMAComerica IncorporatedAMTuesday
OMCOmnicom Group Inc.AMTuesday
IBMInternational Business Machines CorporationPMTuesday
YHOOYahoo! Inc.PMTuesday
LRCXLam Research CorporationPMTuesday
BLKBlackRock, Inc.AMWednesday
ABTAbbott LaboratoriesAMWednesday
MSMorgan StanleyAMWednesday
TXTTextron Inc.AMWednesday
URIUnited Rentals, Inc.PMWednesday
EBAYeBay Inc.PMWednesday
CSXCSX CorporationPMWednesday
QCOMQUALCOMM IncorporatedPMWednesday
AXPAmerican Express CompanyPMWednesday
PMPhilip Morris International Inc.AMThursday
TRVThe Travelers Companies, Inc.AMThursday
BBTBB&T CorporationAMThursday
DOVDover CorporationAMThursday
DHID.R. Horton, Inc.AMThursday
NUENucor CorporationAMThursday
VVisa Inc.PMThursday
GEGeneral Electric CompanyAMFriday
NEENextEra Energy, Inc.AMFriday
HONHoneywell International Inc.AMFriday
SLBSchlumberger LimitedAMFriday
STISunTrust Banks, Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AKRX33.58AKRXAGIO
OLLI35.80GNCUAL
PRGO65.47CMACUDA
FDX183SNAP 
SKX24.64TWI 
 SSYS 
 CORE 
 DY 
 TRVG 
 MC 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

16.3.2017LBTYKLongClose14.3.2017+2.47%
28.3.2017FTNTLongClose9.3.2017+0.37%
313.3.2017ARNCLongClose21.3.2017+1.92%
414.3.2017MOMOLongClose20.3.2017+5.50%
515.3.2017PTLALongClose17.3.2017+0.65%
617.3.2017NTNXLongClose21.3.2017-4.23%
722.3.2017FNSRShortClose25.3.2017-2.78%
827.3.2017AKAOLongClose31.3.2017+11.31%
930.3.2017AFSIShortClose3.4.2017-6.63%
103.4.2017ARNCLongClose31.3.2017-2.52%
113.4.2017GMEShortClose10.4.2017+1.95%
125.4.2017IPXLLongClose11.4.2017+7.03%
1313.4.2017NKTRLongOpen -0.39%
14
15
16
17
18

  

Today’s Picks – Swing “New-York Strategy”

Company Name
Sears Holdings
Entry Point14.09
Stop Area13.20
1st Target14.60
Swing Target18.18
Avg. Volume1.93M
SectorServices | Department Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio4.60:1

 

Company Name
Entry Point 
Stop Area
1st Target 
Swing Target
Avg. Volume 
Sector
Earning Date
Risk Rate
Risk\Reward Ratio

 No.1 –  SHLD

Company Name
Sears Holdings
Entry Point14.09
Stop Area13.20
1st Target14.60
Swing Target18.18
Avg. Volume1.93M
SectorServices | Department Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio4.60:1