January 30,2018.

Apple’s X Factor

Is Apple losing its X-factor? Apple (AAPL) fell on Monday after the Japanese newspaper, Nikkei, reported that the iPhone maker would be halving production because of weak sales. The market’s response was not slow in coming. At one point in the day, AAPL shed 2.6% of its value, and traded at the $167.07 level. The stock succeeded in recovering slightly towards the end of the day, but it seems that traders’ are full of nervous anxiety in advance of the company’s report come Thursday.

Also in the tech sector, AMD rallied higher by over 2% after MKM Partners shared that the demand in the digital currency market for its products will fuel a strong 4th quarter. AMD’s main competitor, NVIDIA (NVDA) also recorded nice gains on the day.

On the heels of the fall in Apple, the market fell as well. At the bottom edge of the day, the S&P 500 and the NASDAQ traded off 0.7%. We’re not in disaster zone at the present time.

Daily Summary: The Dow Jones fell 0.67%, the S&P 500 also shedding 0.67%. The NASDAQ retreated 0.52%.

The earnings season work is playing perfectly into the market’s hand! As of now, 76% of the companies that have reported have beaten their earnings forecasts, and 81% have outstripped revenue forecasts. These 2 figures are substantially above the long-term historic average. In effect, in the event the 81% figure holds water until the end of the quarter, it would be the best reading since Q2 2011, when the figure stood at 72%.

Revenue growth now stands at 12%, each and every sector recording growth. Back in December, analysts had expected growth of 11%.

Another stock standing out in yesterday’s trading was the casino house, WYNN, which was slashed 6.6% after the company reported that it was establishing an investigative committee into the alleged sexual harassment on the part of company CEO, Steve Wynn.

Tuesday: The Federal Reserve will be convening today for its period 2-day policy meeting, in what stands to be the last meeting in which Janet Yellen will be presiding as Fed Chair. At the end of the month, she will pass the reins to incoming Fed Chair, Jerome Powell. The Fed meeting will conclude of Wednesday with a policy announcement at 14:00 N.Y. time. Yellen’s last day in the role will be this Friday.

Yellen will be leaving the Fed after presiding as Fed Chair for 4 years, and in this period, she spearheaded a gradual process of interest rate normalization, while lowering the balance on the Fed’s books. The central bank is not expected to make any monetary policy move this week – and investors are expecting the next rate hike to be executed in the Fed’s March meeting. All-in-all, the Fed expects to hike rates three times this year.


Daily change


Tuesday’s Hot Stocks: MET, MCD, TROW

IPOs: None

Have a great trading day!


Economic Calendar


DAYTIME (EST)EventForecastImpact
Tuesday9:00S&P Corelogic Case-Shiller 0.6 %Medium
Tuesday10:00Consumer Confidence123.4High
Wednesday8:15ADP Employment Report195,000High
Wednesday9:45Chicago PMI64.0Medium
Wednesday10:00Pending Home Sales Index0.4 %Medium
Wednesday10:30Oil Inventories-1.1 M barrelsLow
Wednesday14:00FOMC Meeting Announcement1.375 %High
Thursday8:30Jobless Claims235 KMedium
Thursday9:45PMI Manufacturing Index55.5Medium
Thursday10:00ISM Mfg Index58.7High
Thursday10:00Construction Spending0.5 %Medium
Friday8:30Nonfarm Payrolls176,000High
Friday8:30Unemployment Rate4.1 %High
Friday8:30Average Hourly Earnings0.3%High
Friday10:00Consumer Sentiment95.0High
Friday10:00Factory Orders1.5 %Medium


Today’s Picks – Day Trading

O 52.60 DLR


New York Strategy Swing



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