Market Heats Up Before Employment Release

Wall Street ended off on Wednesday, and in the absence of the tech sector gains which offset a fat chunk of the sharp losses in energy stocks, indexes would have ended far lower. Crude cut its longest winning streak in 5 years, plunging 4% on the heels of strength in the U.S. dollar and concern about an uptick in OPEC country exports.

The stocks of Exxon-Mobil (XOM) and Chevron fell over 1.5%, making them among the biggest weights on the Dow Jones and the S&P 500. The energy sector (XLE) shed 2%, making it the worst performing sector on the day of the 11 S&P 500 sectors.

New factory orders, released yesterday, recorded a sharper than expected decline in May despite capital equipment having come out slightly stronger than expected, pointing in its own right to manufacturing continuing on a moderate growth track.

The Fed minutes released yesterday afternoon reflected bankers being divided on projected inflation and its impact on future rate hikes. The minutes from the latest FOMC meeting, when the central bank hiked rates for the second time this year, likewise shed light on the bank’s plan to streamline its huge $4.5 trillion asset base accumulated after its QE stimulus initiative was implemented in 2008. The minutes even showed that a number of bankers voiced their views that stock prices are high compared to standard valuation methods, even with earnings growth being strong.

Daily Summary: The Dow ended negligibly off by 0.01%, the S&P 500 falling 0.15% and the NASDAQ rising 0.67%.

The tech sector (XLK) ended up 1%, its biggest winners including AMD, MU, and NVDA, which saw substantial gains. The chip-sector (SMH) was the strongest, jumping 2.1% on the day. Tech stocks have seen high-level volatility over the last few weeks. That notwithstanding, it’s still the best performing sector year-to-date, up almost 17%.

On the negative side, auto part stocks took a bad hit. ORLY fell 18.9% to an almost 3-year low, after its Q2 sales figures missed analyst forecasts. The movement sent shock waves through the entire industry, AZO falling 9.6%. AAP tumbled 11.5%.

About 6.52 billion shares changed hands on U.S. exchanges, beneath the 7.19 billion average over the last 20 trading days.

Thursday: Investors will start focusing on employment figures to glean hints into the trajectory for interest rates. First-off, today we’ll be getting the ADP survey on the number of jobs produced in the private sector in June, a preview for Friday’s official employment numbers.

The ADP report is expected to feature 185 thousand new jobs in the private sector for June, while Friday’s official number is supposed to come out at 179 thousand. Hourly wages are supposed to record growth of 0.3%, the annual clip projected to come out at 2.7%; the unemployment rate is expected to remain steady at 4.3%.

Another economic figure on the radar is the crude inventory release at 11:00 N.Y. time.

IndexLastDaily change
DJX(0.01%)21,479Down
SPX(0.15%)2,429Down
Nasdaq0.67%6,110Up

Hot Stocks: PSMT, MLHR, YUMC, MRK

IPOs: AKCA

Have a great trading day.

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00ISM Index55.0High
Monday10:00Construction SpendingMedium
Monday14:00Auto SalesLow
Tuesday4th of July

Independence Day – Wall Street is Close

Wednesday10:00Factory Orders-0.5%Medium
Wednesday14:00FOMC MinutesHigh
Thursday8:15ADP Employment Change185KHigh
Thursday8:30Initial Claims244KHigh
Thursday8:30Trade Balance-$46.1BMedium
Thursday10:00ISM Services56.6Medium
Thursday11:00Crude Oil InventoriesLow
Friday8:30Nonfarm Payrolls173KHigh
Friday8:30Unemployment Rate4.3%High 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
MLHRHerman Miller, Inc.AMCWednesday
PSMTPriceSmart, Inc.AMCWednesday
YUMCYum China Holdings, Inc.AMCWednesday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
BZUN25.04JUNOTSLA
CAT108.18IONSDBD
JUNO32JMPORLY
ALNY87ACHNAAP
NOAH29.73CALA
NFX27.22
CARA14.15
AMC22.15
     

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.5.2017AAOILongClose2.5.2017+0.54%
23.5.2017SCSSLongClose9.5.2017-1.71%
34.5.2017CRZOShortClose5.5.2017+0.30%
48.5.2017WTWLongClose16.5.2017+6.09%
515.5.2017AANLongClose16.5.2017-1.70%
616.5.2017CCLLongClose17.5.2017-0.41%
717.5.2017AMAGShortClose24.5.2017+5.38%
817.5.2017AANLongClose24.5.2017-2.59%
919.5.2017TRCOLongClose23.5.2017-1.45%
1019.5.2017GIMOLongClose26.5.2017+2.05%
111.6.2017BF.BLongClose6.6.2017+0.95%
127.6.2017LULULongClose9.6.2017-2.24%
1314.6.2017SIGShortClose23.6.2017+2.29%
1416.6.2017AABA (YHOO)LongClose26.6.2017+3.14%
1521.6.2017KRShortClose27.6.2017-2.75%
1629.6.2017DKSShortClose3.7.2017+1.04%
17
18  

 

Today’s Picks – Swing “New-York Strategy

No.1 – HAIN

Company NameThe Hain Celestial Group,
Entry Point38.29
Stop Area37.70
1st Target38.80
Swing Target39.94
Avg. Volume2.05M
SectorServices | Food Wholesale
Earning Date22 Jun
Risk RateNormal
Risk\Reward Ratio2.80:1

No.2 – DKS

Company NameDick’s Sporting Goods,
Entry Point40
Stop Area40.85
1st Target39.55
Swing Target35.87
Avg. Volume2.62M
SectorServices | Sporting Goods Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio4.86:1