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.

Index Last Daily change
DJX (0.01%) 21,479 Down
SPX (0.15%) 2,429 Down
Nasdaq 0.67% 6,110 Up

Hot Stocks: PSMT, MLHR, YUMC, MRK

IPOs: AKCA

Have a great trading day.

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 10:00 ISM Index 55.0 High
Monday 10:00 Construction Spending Medium
Monday 14:00 Auto Sales Low
Tuesday 4th of July

Independence Day – Wall Street is Close

Wednesday 10:00 Factory Orders -0.5% Medium
Wednesday 14:00 FOMC Minutes High
Thursday 8:15 ADP Employment Change 185K High
Thursday 8:30 Initial Claims 244K High
Thursday 8:30 Trade Balance -$46.1B Medium
Thursday 10:00 ISM Services 56.6 Medium
Thursday 11:00 Crude Oil Inventories Low
Friday 8:30 Nonfarm Payrolls 173K High
Friday 8:30 Unemployment Rate 4.3% High 

 

Earning Calendar

 

Symbol Company AM/PM Day
MLHR Herman Miller, Inc. AMC Wednesday
PSMT PriceSmart, Inc. AMC Wednesday
YUMC Yum China Holdings, Inc. AMC Wednesday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
BZUN 25.04 JUNO TSLA
CAT 108.18 IONS DBD
JUNO 32 JMP ORLY
ALNY 87 ACHN AAP
NOAH 29.73 CALA
NFX 27.22
CARA 14.15
AMC 22.15
         

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
2 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
3 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
4 8.5.2017 WTW Long Close 16.5.2017 +6.09%
5 15.5.2017 AAN Long Close 16.5.2017 -1.70%
6 16.5.2017 CCL Long Close 17.5.2017 -0.41%
7 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
8 17.5.2017 AAN Long Close 24.5.2017 -2.59%
9 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
10 19.5.2017 GIMO Long Close 26.5.2017 +2.05%
11 1.6.2017 BF.B Long Close 6.6.2017 +0.95%
12 7.6.2017 LULU Long Close 9.6.2017 -2.24%
13 14.6.2017 SIG Short Close 23.6.2017 +2.29%
14 16.6.2017 AABA (YHOO) Long Close 26.6.2017 +3.14%
15 21.6.2017 KR Short Close 27.6.2017 -2.75%
16 29.6.2017 DKS Short Close 3.7.2017 +1.04%
17
18    

 

Today’s Picks – Swing “New-York Strategy

No.1 – HAIN

Company Name The Hain Celestial Group,
Entry Point 38.29
Stop Area 37.70
1st Target 38.80
Swing Target 39.94
Avg. Volume 2.05M
Sector Services | Food Wholesale
Earning Date 22 Jun
Risk Rate Normal
Risk\Reward Ratio 2.80:1

No.2 – DKS

Company Name Dick’s Sporting Goods,
Entry Point 40
Stop Area 40.85
1st Target 39.55
Swing Target 35.87
Avg. Volume 2.62M
Sector Services | Sporting Goods Stores
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.86:1