Market Seesaws: Despair Makes Way for Hope

Stocks on Wall Street ended slightly changed on Tuesday, yesterday’s trading dominated by the reflex reactions to the intrigue in the White House which sent investors’ emotions up and down like a rollercoaster. The market went from despair – to hope – indexes seesawing after new concerns were transplanted by optimism about the fruition of Trump’s economic agenda.

Stocks took a sharp downturn after the first trading hour, after emails were revealed from the account of Trump’s firstborn son, which made it evidently clear that Russia was backing his father’s 2016 election campaign. The emails relate to a Russian state attorney who offered the Trump campaign incriminatory information about Democratic opponent, Hillary Clinton.

The market succeeded in recovering fully later in the day’s trading after the Republic Senate majority leader, Mitch McConnell, announced that the recess would be postponed by two weeks to allow more time for working on legislation, a fact that signals progress in executing the Republican agenda.

The deferment of the recess instilled hope in that it communicated commitment on the part of the party in power to enact the changes the market wants to see. The lack of certainty about whether the Trump administration will succeed in pushing through its agenda this year has weighed on market activity of late, especially after the repeated and aborted attempts at pushing through replacement health care legislation.

Daily Summary: The Dow Jones ended unchanged. The S&P 500 ended lightly off by 0.08%, the NASDAQ tacking on 0.27%.

Investors are sitting on the sidelines, waiting to see what will prompt the next market move. Today’s bi-annual testimony of Fed Chair, Janet Yellen, is likely to shed light on the bank’s stance on monetary tightening. Investors are also keeping a watchful eye on the Q2 earnings season which is already underway, but more specifically, on the financial reports from large banks this coming Friday, which will include J.P. Morgan (JPM), Citigroup (C), and Wells Fargo (WFC).

SNAP Inc. (SNAP) continued falling, having nosedived 45% since the latest high achieved shortly after its IPO in March of this year. The stock fell yesterday by 8.9% after its lead underwriter, Morgan Stanley, lowered its price target, voicing concern about the social media company’s ability to hold its own against its competitor, Instagram. For the first time ever, the stock closed on Monday beneath its issue price of $17.

Trading volumes were thin, about 5.9 billion shares trading hands on U.S. exchanges, compared to the 6.9 billion average over the last 20 trading days.

Wednesday: Fed Chairwoman, Janet Yellen, is expected to address the House Financial Services Committee today and the Senate Banking Committee tomorrow. She is expected to stress that the Fed stands to hike rates again this year and that it will start shaving its huge balance sheet which has mushroomed to $4.5 trillion by not repurchasing the maturing bonds it had invested in as part of its QE initiative.

The Economic Diary is rather slim today, save Yellen’s speech. Investors will be awaiting crude inventory figures which will be released at 10:30; last week featured a sharp and substantial downtick in inventories.

Two of the companies that will be reporting before opening include OZRK and FAST.

IndexLastDaily change
DJX21,4090.00%Up
SPX2,426(0.08%)Down
Nasdaq6,1930.27%Up

Wednesday’s Hot Stocks: FAST, OZRK, HCSG, NRG

IPOs: CODX – a small IPO

Have a great trading day!

 

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism IndexMedium
Tuesday10:00JOLTSMedium
Tuesday10:00Wholesale TradeMedium
Wednesday8:30Janet Yellen Speaks-0.5%Medium
Wednesday10:00Janet Yellen TestifiesMedium
Wednesday10:30Crude Oil Inventories185KLow
Thursday8:30Initial Claims244KHigh
Thursday8:30PPI-$46.1BHigh
Friday8:30Consumer Price Index56.6High
Friday8:30Retail SalesMedium
Friday9:15Industrial Production173KMedium
Friday10:00Business Inventories4.3%Medium
Friday10:00Consumer SentimentHigh


 

Earning Calendar

 

SymbolCompanyAM/PMDay
HELEHelen of Troy LimitedAMMonday
PEPPepsiCo, Inc.AMTuesday
OZRKBank of the Ozarks, Inc.AMWednesday
FASTFastenal CompanyAMWednesday
DALDelta Air Lines, Inc.AMThursday
PNCThe PNC Financial Services Group, Inc.AMFriday
CCitigroup Inc.AMFriday
WFCWells Fargo & CompanyAMFriday
JPMJPMorgan Chase & Co.AMFriday

 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
TWLO30NKTRWBMD
HAIN39.52SQKORS
AAP99.13YRDACAD
TJX68.22NVCR
EAT36.44RDUS
MAC56

 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

114.6.2017SIGShortClose23.6.2017+2.29%
216.6.2017AABA (YHOO)LongClose26.6.2017+3.14%
321.6.2017KRShortClose27.6.2017-2.75%
429.6.2017DKSShortClose3.7.2017+1.04%
56.7.2017HAINLongOpen +1.55%
66.7.2017DKSShortOpen +4.20%
710.7.2017ORCLLongOpen+0.85%
8
9
10
11
12
13
14
15
16
17
18  

 

Today’s Picks – Swing “New-York Strategy

No.1 –    YUMC

Company Name
Yum China Holdings,
Entry Point37
Stop Area37.85
1st Target36.55
Swing Target33.56
Avg. Volume3.38M
SectorServices | Restaurants
Earning Date
Risk RateNormal
Risk\Reward Ratio4.05:1