Picks of the Day January 3,2018
Back to the Racetrack!
If what we saw yesterday was only the aperitif, then investors’ appetite for 2018 has only begun to be whetted.
U.S. stocks rallied higher on the first day of the trading year, the NASDAQ closing for the first time ever above the 7,000 point level. Investors, yesterday, put their money where their mouth is, conveying their optimism that 2018 will bring with it further gains in the stock market.
The NASDAQ index, yesterday, saw support from the stocks of Apple (AAPL), Facebook (FB), Amazon (AMZN), and Google (GOOGL). The NASDAQ closed in April of last year above the 6,000 point level and above the 5,000 point level in 2015 – at which point it had succeeded in recovering fully from the dot-com crisis which had struck at the beginning of the millennium. The tech sector (XLK) soared 1.4% yesterday, after having surged 37% in 2017, crowing the sector as the best-performing on the S&P 500 on the year.
The S&P 500 likewise recorded a new historic on the first day of the trading year. Besides tech stocks, health, energy and the materials sectors each tacked on over 1%.
The large stock indexes closed the year, 2017, with their best performance since 2013. Many investors are saying that the stock rally is likely to continue this year when considering the successful passage of the tax bill which is expected to boost Wall Street firms’ profitability and stimulate the economy.
Daily Summary: The Dow Jones rose 0.42%, the S&P 500 tacking on 0.83%, the NASDAQ jumping 1.5%.
The stocks that stood out in yesterday’s trading included JCP, JWN, and KSS, which all climbed after Citigroup analysts gave the retail sector as a whole a bullish recommendation. The analysts noted the benefit the sector will accrue from the corporate tax cut.
Energy stocks rallied higher, despite the drop in the price of crude. Crude is trading at the high levels prices reached in 2015 against the backdrop of protests against the Iranian government and the ongoing production cut on the part of OPEC and Russia. The energy sector (XLE) soared 1.8% on the day.
The casino homes, WYNN and MLCO, fell after a report that pointed to a smaller than expected rise in casino revenues in Macau in December.
ABT soared 3%, recording another historic high, after receiving an upgrade from two different brokers.
About 6.7 billion shares traded hands on U.S. exchanges, compared to the 6.3 billion average over the last 20 trading days.
Wednesday: Despite this week seeing shortened trading of only 4 days, it’s far from “scot-free” when it comes to significant macro figures. The week’s focal point will be the official December employment report which will be released this Friday. Before that, though, investors will hone their sights on the minutes from the last Fed meeting that took place in December. The minutes are expected to provide important insight into the Fed’s take on inflation and interest rates.
The minutes will be released at 14:00 N.Y. time and are expected to cause volatility in today’s trading. Before that, throughout the morning, car sales numbers will be released – which are likely to affect movement in stocks like GM, F, and TSLA. The Supply Managers’ index for the industrial sector will be released at 10:00, along with infrastructure spending numbers – at the same hour.
Hot Stocks: MGI, TTPH
Have a great trading day!
|Tuesday||9:45||PMI Manufacturing Index||55||Medium|
|Wednesday||10:00||ISM Mfg Index||58.0||High|
|Wednesday||10:00||Construction Spending||0.6 %||Medium|
|Thursday||8:15||ADP Employment Report||185,000||Medium|
|Thursday||8:30||Jobless Claims||240 K||Medium|
|Thursday||9:45||PMI Services Index||52.4||Medium|
|Thursday||11:00||Oil Inventories||-4.6 M barrels||Low|
|Friday||8:30||Unemployment Rate – Level||4.1 %||High|
|Friday||8:30||Average Hourly Earnings||0.3 %||High|
|Friday||10:00||Factory Orders||1.1 %||High|
|Friday||10:00||ISM Non-Mfg Index||57.6||Medium|
|CMC||Commercial Metals Company||AM||Wednesday|
|WBA||Walgreens Boots Alliance, Inc.||AM||Thursday|
|CALM||Cal-Maine Foods, Inc.||AM||Friday|
|STZ||Constellation Brands, Inc.||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing