FAANGs Plummet, Banks Look to Summit

It was a good day for the Dow, though the floor came out from beneath the NASDAQ as the tech heavy index saw its worst trading day in 3 months. All-in-all, trading was mixed. Trading opened to the tune of reports about North Korea’s intercontinental ballistic missile which can reach anywhere in the U.S., along with news about a preliminary understanding between Britain and its EU counterparts. What weighed on the tech-heavy NASDAQ was a strong selloff in megacap tech stocks. The question is, “Is this a mere rotation or have tech stocks lost their lustre?!”

Facebook (FB) tumbled 4%, Amazon (AMZN) plunged 2.71% and Apple (AAPL) shed 2.07%. Netflix (NFLX) toppled 5.54% and Google parent, Alphabet (GOOG), lost 2.46%.

Schroders investment strategist, Jonathan Mackay, weighed in on the question, noting, “What we’re seeing is a combination of defense positioning, with people taking some profit out of the high-growth areas, technology specifically, and rotating into sectors that should hold up better if we get any negative news on tax bill or the debt ceiling.” Wedbush Securities equities division head, commented, “Since so many portfolios had the same positions and are rebalancing, what we are seeing is a mini unwind of momentum stocks. It is difficult to say whether it will spill over to the rest of the market at some point.”

Banks, on the flipside got a boost from the revised Q3 GDP reading. Albeit in line with expectations, the growth rate was raised to 3.3% from the previous governmental reading of 3%. The Dow was led higher by banks like J.P. Morgan (JPM), which rose 2.34%, and Bank of America (BAC), which tacked on 2.32%.

Janet Yellen, in what was likely her last hearing before the Joint Economic Committee of Congress, took an upbeat tone. She did note that a strengthening economy mandates more rate hikes, necessary to keep inflation in check. Jerome Powell just the day before remarked that the case was coming together for a December hike. The positive assessment by the two could be responsible in large part for banks’ strength, bank stocks now catching up with the Fed’s bullish rate hike stance. U.S. 10-year and 30-year bonds also hit two week peaks on the encouraging comments.

On to the political front, we could very well see a lot of movers and shakers in today’s markets with the possibility that the tax bill will go to vote in the Senate as early as today! The bill has a lot of clauses from lowering corporate tax rates to allowing corporate behemoths with huge cash stores overseas to repatriate their earnings at a lower tax rate. Proskauer Rose tax lawyer, David Miller, underscored the going wisdom: “A tax deferred is a tax avoided.” Apple has more than $128 billion offshore. With corporate America claiming that some $3 trillion in earnings were made offshores in places like Bermuda and Grand Cayman, a tax bill today or in the near future would certainly benefit not only Apple, but other corporate titans like GE, Google and Pfizer.

Autodesk (ADSK) took the gold for the biggest loser on the S&P 500, nosediving over 16% after its forecasts came out beneath estimates, the company also adding that it’s anticipating restructuring charges.

The restaurant chain, Chipotle (CMG) rose 4% after it said it would be on the lookout for a turnaround expert to replace company founder and Chief Executive, Steve Ells. Allergan rose 4.15% on a Morgan Stanley upgrade.

On the macro front, pending-home sales rose 3.5% in October. At the same time, they came out 0.6% lower than a year ago.

Index Last Daily change
DJX 23,940.68 +103.97 (0.44%)
SPX 2,626.07 -0.97 (-0.04%)
Nasdaq 6,824.39 -87.97 (-1.27%)


Today’s Economic Calendar: Initial jobless claims and personal income and outlays will be released at 8:30 N.Y. time, the Chicago PMI coming out at 9:45. The EIA natural gas report will be released at 10:30, with the Fed balance sheet coming out at 4:30.

Thursday’s Hot Stocks: BOX, JACK, JNPR, SMTC

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





New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


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%