“Cyber War”: Amazon vs. Walmart

A lot happened yesterday but perhaps the biggest question today will be who will reign triumphant: Amazon, the online behemoth, or Walmart, the brick and mortar powerhouse? Walmart, after all, has increasingly repositioned itself as a worthy competitor to Amazon, buying up online sites, continually bolstering its supply chain to be able to eat into Amazon’s dominancy. There’s no question that Amazon is the #1 online retailer. What’s on investors’ minds is whether Walmart can leverage its vast network of stores, purchasing power, economies of scale, increasing online talent and competitive offerings to give Amazon a run for its money! And that’s what we hope to get today, some glimpse into the initial numbers from these two rivals that have faced off like gladiators in a fight to the finish!

On the political scene, things have also gotten messy. It would seem that the Republicans would have carte blanche to push through tax reform no questions asked, almost like a running back whose broken loose, not a single defensive player in sight. That could not be farther from the truth though. Beleaguered by scandal, a president under investigation for election meddling in cahoots with the Russians and a Senate divided on clear ideological lines, nothing seems to be going the Republicans’ way. While the House pushed through a tax bill, the Senate has proven more than recalcitrant. The president keeps on promising that it’s coming, it’s right around the corner, the last details just have to be stamped out, but some 9 Republican holdouts have proven hard to convince. With 52 Republican Senators pitted against 48 Democratic counterparts, the former can only afford to lose 2 votes – the Vice President, then, breaking the tie.  Of the 9 abovementioned Republicans, there are 3 different blocs, each with different reasons for not tagging along with the president’s orders. With a vote expected as early as today, it’s anybody’s guess how things will play out.

Yesterday, like we wrote both this past Sunday and last Friday, the market showed seasonal weakness, the Monday after Thanksgiving historically weak. We did see intraday records on the heels of sizzling retail shares, but come the closing bell, only blue chips were able to eke out gains.

More than anything, it was the retail sector that found itself in the limelight yesterday. Black Friday sales hit an online record of $5.03 billion, Cyber Monday likewise expected now to set an online record. Amazon ended up 0.83% yesterday, making it its fourth straight record close. Both Amazon and Walmart have been on fire this year, Amazon’s CEO, Jeff Bezos, taking center stage with his net worth recently exceeding $100 billion.

Traditional retailers didn’t fare so badly either, American Eagle (AEO) rising 1.75%, Gap (GPS) tacking on 1.21% and Dillard’s (DDS) surging 4.7%.

That’s not to say there weren’t losers, fast food chain, Chipotle (CMG) shedding 1.71%, and toymakers Mattel (MAT) and Hasbro (HAS) each shedding at least 1%.

On to the Fed! Robert Kaplan, Dallas Fed President, who had until recently voiced concern about a December hike, said yesterday that he’s all aboard. Kaplan, though, did underscore potential financial imbalances. In relation to the fact that the market hasn’t fallen 3% in a full year, he commented, “This is extraordinarily unusual.”

Other active stocks included Time Inc. (TIME), which soared 9.5% in heavy trading after Meredith (MDP), agreed to buy the magazine publisher for $1.85 billion. Meredith also took off, gaining 11% on the day.

It was the energy sector, though, that was the market’s Achilles heel, falling 1%, slipping in tandem with falling crude prices. OPEC will be convening later this week, investors now hoping for a production cut. The most actively traded stocks in the sector were Hess (HES, -2.93%), Marathon (MRO, -4.30%) and Chevron (CVX, -0.79%).

Bitcoin also took off, rising 3.5% to a new all-time high yesterday. The digital currency is closing in on $10,000, now trading at $9,651.90.

Index Last Daily change
DJX 23,580.78 +22.79 (0.10%)
SPX 2,601.42 -1.00 (-0.04%)
Nasdaq 6,878.52 -10.64 (-0.15%)

 

Today’s Market: The incoming Fed Chief, Jerome Powell is expected to field questions from the Senate today. Janet Yellen will be testifying to the Joint Economic Committee on Wednesday.

Tuesday’s Hot Stocks: THO, UNH, TECD, Q

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 10:00 New Home Sales 620 K Medium
Tuesday 9:00 FHFA House Price Index 0.6 % Medium
Tuesday 9:00 S&P Case-Shiller 0.4 % Medium
Tuesday 10:00 Consumer Confidence 240 K High
Tuesday 10:00 Jerome Powell Speaks High
Wednesday 8:30 GDP 3.3 % High
Wednesday 10:00 Janet Yellen Speaks High
Wednesday 10:00 Pending Home Sales Index 1.0 % Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 240 K Medium
Thursday 8:30 Personal Income and Outlays 0.3 % Medium
Thursday 9:45 Chicago PMI 64.0 Medium
Friday 9:45 PMI Manufacturing Index 54.5 Medium
Friday 10:00 ISM Mfg Index 58.4 High
Friday 10:00 Construction Spending 0.5 % Medium

 


Earning Calendar

 

Symbol Company AM/PM Day
TECD Tech Data Corporation PM Monday
MOMO Momo Inc. AM Tuesday
ADSK Autodesk, Inc. PM Tuesday
MRVL Marvell Technology Group Ltd. PM Tuesday
PSTG Pure Storage, Inc. PM Tuesday
NUAN Nuance Communications, Inc. PM Tuesday
TIF Tiffany & Co. AM Wednesday
RY Royal Bank of Canada AM Wednesday
SNPS Synopsys, Inc. PM Wednesday
WDAY Workday, Inc. PM Wednesday
PVH PVH Corp. PM Wednesday
GWRE Guidewire Software, Inc. PM Wednesday
JACK Jack in the Box Inc. PM Wednesday
BOX Box, Inc. PM Wednesday
GLNG Golar LNG Limited AM Thursday
DCI Donaldson Company, Inc. AM Thursday
KR The Kroger Co. AM Thursday
VMW VMware, Inc. PM Thursday
ULTA Ulta Beauty, Inc. PM Thursday
NTNX Nutanix, Inc. PM Thursday
FIVE Five Below, Inc. PM Thursday
BIG Big Lots, Inc. AM Friday
 

 

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
ANF $17.19 CPRT TGT
XRAY $68.00 RIOT  
GPS $30.14 AMZN  
STX $40.90 NKTR  
NKE $59.53 JUNO  
ANF $17.19    
XRAY $68.00    

  

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.9.2017 VNTV Long Close 14.9.2017 +1.35%
2 12.9.2017 CPB Short Close 15.9.2017 -1.10%
3 18.9.2017 INSM Long Close 22.9.2017 +1.92%
4 25.9.2017 GPS Long Close 2.10.2017 +1.69%
5 27.9.2017 SQM Long Close 29.9.2017 +1.69%
6 2.10.2017 ATI Long Close 6.10.2017 +3.12%
7 2.10.2017 TROX Long Close 18.10.2017 +13.93%
8 3.10.2017 ABT Long Close 11.10.2017 +1.60%
9 9.10.2017 ZGNX Long Close 12.10.2017 +3.26%
10 16.10.2017 INSM Long Close 19.10.2017 -2.82%
11 24.10.2017 CVS Short Close 1.11.2017 +4.77 %
12 30.10.2017 SKX Long Close 31.10.2017 -1.42%
13 31.10.2017 STX Long Close 2.11.2017 -0.15%
14 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
15 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
16 16.11.2017 FLR Long Close 25.11.2017 +2.16%
17
18