One Night Fling!
A landslide?! No way! On Wall Street, for the bears – all over again – it was just a one night fling, a short-lived romance, the downward momentum evaporating only a day after first surfacing. Not only that but stocks soared yesterday, the S&P 500 recording its strongest winning day in 2 months, financial and tech stocks leading the market-wide rebound. The NASDAQ recorded its strongest day of gains since November 7th, i.e. a day before the U.S. elections.
The S&P 500 suffered its sharpest day of losses in 6 weeks yesterday after the Senate health care bill was pushed off. Health care legislation is the first big test in so far as Trump’s ability to make true on his election promises, investors now waiting on the edge of their seats to see whether the newly elected president will be able to carry out the rest of his agenda, from tax cuts to infrastructure spending and slashing regulation.
In Summary for the Day: The Dow Jones rose 0.68%, the S&P 500 rallying 0.88% and the NASDAQ soaring 1.43%.
The banking sector (KBE) outperformed yesterday after a number of senior Fed bankers commented that we’re still in a cycle of low rates. Banking stocks also rallied in advance of the stress tests conducted by the Federal Reserve; the sector continued rising during after hour trading, after news broke that the Fed approved the plans of 34 large banks for capital deployment, from stock buybacks, to dividend issues and other capital usages.
Tech stocks (XLE) soared yesterday, after having experienced their worst trading day in 2-weeks the day prior. The sector has led the S&P 500 year-to-date with gains of 9%, though took a step back on Tuesday, leaving some investors to wonder whether prices in the sector have become too expensive. Yesterday, though, the tech sector bounced higher from its 50-period EMA, a level that had proven itself solid technical support on 2 occasions earlier in the month.
One of the stocks which stood out in yesterday’s trading was SPLS, which shot up 8.4% against the backdrop of reports that the company is on the verge of being purchased by a private buyer. KBH surged 5% after releasing better than expected results, revenue numbers outstripping forecasts by 7%. The food company, GIS rose 1.6% after its latest earnings reports showed that cost controls have propelled its earnings higher.
With the Q2 earnings reports of American firms starting to pick up in the second week of July, investors hope that the results will support stock prices. The S&P is trading at a 12-month forward PE of 18, significantly above its long-term average of 15.
About 6.7 billion shares traded hands on U.S. exchanges, beneath the 7.2 billion average over the last 20 trading days.
Thursday: Today’s trading will be affected by the response to initial unemployment claims which will be released at 8:30 N.Y. time. The most important figure on the economic calendar will be the latest Q1 growth reading at the very same hour.
Additionally, WBA, MKC, and NKE will be reporting before the opening bell.
Today’s Hot Stocks: WBA, MKC, NKE, CAG, C, PIR, JPM, COF
IPOs: ALRN, APRN, BY, DOVA
Have a great trading day!
|Wednesday||10:30||Crude Oil Inventories||–||Low|
|Thursday||8:30||GDP – Third Estimate||1.2%||High|
|Friday||10:00||Michigan Sentiment – Final||94.7||High|
|FDS||FactSet Research Systems Inc.||BMO||Tuesday|
|DRI||Darden Restaurants, Inc.||BMO||Tuesday|
|GIS||General Mills, Inc.||BMO||Wednesday|
|WOR||Worthington Industries, Inc.||AMC||Wednesday|
|MKC||McCormick & Company, Incorporated||BMO||Thursday|
|CAG||Conagra Brands, Inc.||BMO||Thursday|
|WBA||Walgreens Boots Alliance, Inc.||BMO||Thursday|
|STZ||Constellation Brands, Inc.||BMO||Thursday|
|MU||Micron Technology, Inc.||AMC||Thursday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – DKS
|Company Name||Dick’s Sporting Goods|
|Sector||Services | Sporting Goods Stores|
No.2 – ATUS
|Company Name||Altice USA|
|Sector||Technology | Telecom Services – Domestic|