This Season’s Winners and Losers!

Earnings reports took center-stage on Wall Street yesterday, a sharp rally in the stock of Netflix (NFLX) pushing the NASDAQ to a historic high on Tuesday, while a sharp decline in Goldman Sachs (GS) pulled the Dow Jones down. The NASDAQ recorded its 8th straight day of gains, its longest winning streak since February 2015, when the index had risen 10 straight days.

The video streaming company, Netflix (NFLX), soared 13.5% to the $183.60 level, a day after having trounced Wall Street’s consensus on new subscribers; the company added 5.2 million subscriptions for Q2.

The more the Q2 earnings season picks up, investors will focus more and more on individual companies’ results. Earnings and the guidance firms offer are likely to affect the market far more than the news from Capitol Hill. The same way that GS and NFLX shaped trading yesterday, it will be other companies driving movement over the coming few weeks.

As noted, the Dow Jones was dragged lower against the backdrop of sharp declines of 2.6% in GS. The Dow Jones is a price weighted index, meaning the higher the price of a stock, the more its impact on the index’s trading level. GS, which capped off trading yesterday at $223.31, is the priciest stock of the 30 on the index. Yesterday, the company reported a 40% nosedive in bond trading revenues, and its worst commodity trading results since having gone public.

Also on the earnings front, the motorcycle maker, Harley Davidson (HOG), fell 5.9% to the $48.95 level after its board slashed its full-year forecast for new deliveries.

Wall Street analysts expect firms to record Q2 earnings growth of 8.5% and revenue growth of 4.7%. Were these figures to materialize, they will have come on the heels of the strongest growth in Q1 numbers for American firms since 2011.

Daily Summary: The Dow Jones recorded losses of 0.25%, the S&P 500 ending lightly up by 0.06%, the NASDAQ rising 0.47%; both the NASDAQ and the S&P 500 ended the day at historic highs.

Republican took another hit on the legislative front yesterday, failing to rally enough votes to annul and replace the current health bill, Obamacare. The market’s response was reserved and it seems that investors’ expectations for business-friendly legislation from Congress is no longer a consideration in so far as stock investments go. Investors are looking for stocks that are not dependent on fleeting changes in the economy or the whims of Washington, but rather, strictly on firm results. Despite the stock market’s reserved response to the failure to pass the Republican’s Better Care Act, the dollar (UUP) plunged against a basket of currencies to a 10-month low.

About 5.7 billion shares traded hands on U.S. exchanges, compared to the 6.47 billion average over the last 20 trading days.

Wednesday: Republicans are licking their wounds from their political failure yesterday and it seems that one catalyst that could spur tax cut legislation is the fact that congressmen don’t want to go into mid-term elections in the middle of next year without any significant achievement to show. One could argue that the prospective cut will focus on individual tax rates, but some political commentators are saying that it’s more reasonable that Congress will try to push through sweeping corporate tax reform. It goes without saying that the size of the reform, its breadth and timetable are yet unknown.

Besides Washington, today the market will focus on the continuous flow of earnings numbers, MS kicking things off before opening. After closing, it will be AXP, AA, WCOM, TMUS, and KMI.

The earnings calendar will feature new building permits and starts at 8:30 N.Y. time. At 10:30, weekly crude and petroleum product inventory numbers will be released.

Likewise, investors will focus, among other things, on IBM, which fell after closing by 2.79%, after reporting its 21st straight quarter of declining revenues.

IndexLastDaily change
DJX(0.25%)21,575Down
SPX0.06%2,461Up
Nasdaq0.47%6,344Up

Wednesday’s Hot Stocks: IBM, MS, UAL, VRTX, CSX

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Empire Manufacturing13.0Medium
Tuesday8:30Export\Imports PricesMedium
Tuesday10:00NAHB Housing Market Index67Medium
Wednesday8:30Building Permits1196KMedium
Wednesday8:30Housing Starts1160KMedium
Wednesday10:30Crude Oil InventoriesLow
Thursday8:30Philadelphia Fed22.0Medium
Thursday8:30Initial Claims245KHigh
Thursday10:00Leading Indicators0.4%Medium


 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
GDDY44.22YELPCLVS
TRVG24RHCMG
EDU83.21JNJTTS
NTAP43.90NFLX 
ATVI61.58AAOI 
GILD72.17YRD 
NFX25.46  
BBBY28.33 
CLVS84  

  

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%
56.7.2017HAINLongClose18.7.2017+2.52%
66.7.2017DKSShortClose13.7.2017+3.96%
710.7.2017ORCLLongClose13.7.2017+1.38%
813.7.2017YUMCShortOpen +0.35%
918.7.2017LBShortOpen+1.49%
10
11
12
13
14
15
16
17
18  

 

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

Company NameXilinx
Entry Point66
Stop Area65.20
1st Target66.60
Swing Target68.68
Avg. Volume3.38M
SectorTechnology | Semiconductor – Integrated Circuits
Earning Date26 Jul
Risk RateNormal
Risk\Reward Ratio3.35:1