Apple Soars in After Hour Trading!
The Dow Jones climbed to a new historic high on Thursday, declines in the stock of Facebook (FB), though, weighing on the NASDAQ and the S&P 500, causing them to close at just around the zero line. Investors, at present, are digesting the tax reform initiative revealed by President Donald Trump and the Republican Party.
The bill proposal calls for cutting the corporate tax rate from 35% to 20%. Even though some analysts pointed to a corporate tax cut as an event that could spur further gains in a market already traded at an all-time high, investors’ assessment is that the bill is just an opening bid of sorts, before the nitty gritty of drawn out negotiations. The message we’re getting from the market is that there’s still uncertainty about the bill and that therefore, it’s best not to jump the gun because there’s no way to know how the bill will pan out in the end.
Daily Summary: The Dow Jones rose 0.35%, the S&P 500 tacking on 0.02%. The NASDAQ shed 0.02%.
After closing, Apple (AAPL) soared over 3% to a new all-time high, the iPhone maker releasing a stronger Q4 forecast than investors had expected; the current quarter includes the holiday shopping season.
Trump officially appointed Jerome Powell to become the next Fed Chair. He will occupy the position starting in February of next year. Powell supports the monetary policy of the presiding Chair, Janet Yellen.
Earnings reports for Q3 continue to remain in focus, investors pointing to firm earnings growth as the force supporting the 2017 stock market rally. With over 75% of S&P 500 companies having reported, Q3 earnings growth is expected to come to 7.7%, a rise from expectations of 5.9% at the beginning of October.
Facebook (FB) fell 2%, investors ignoring the company’s strong quarterly results and voicing concern about the clip of spending at the social media chain. The stock was the biggest weight on the S&P 500 and the NASDAQ.
Tesla (TSLA) tumbled 6.8% after the company slashed its production target for its Model 3 Sedan, reporting its largest ever quarterly loss.
Teva (TEVA) tumbled almost 20% after lowering its 2017 sales and earnings forecast, as well as its cash flow forecast. The company said that the first reason for lowering its forecast is the launch of a generic version of its Copaxone drug on the part of Mylan (MYL). Teva said that the drug’s launch came sooner than expected and will hurt its bottom line already in 2017. The second reason given by Teva was that the sale of new generic drugs in the U.S. are expected to come out to $400 million, beneath the previous forecast of $500 million. TEVA is down a whopping 69% year-to-date!
About 7.4 billion shares traded hands on U.S. exchanges, above the 6.2 billion average over the last 20 trading days.
Friday: Economists’ projection is 310 thousand new job creations for October, a substantial rebound after a spate of disastrous hurricanes, Irma and Harvey wreaking havoc and likewise dragging the job figure down to 33 thousand for September. September’s job numbers were the first big shock in economic data after the natural disasters that struck at the end of August and at the beginning of September. The rest of the economic figures were for most intents and purposes strong, including growth (GDP) numbers which are now on pace to come out at an annualized 3% pace for each of the last 2 quarters.
Economists expect the unemployment report to remain at 4.2% and hourly wages to drop 0.2%.
Wages is an area in particular in which economists hope to see growth as the first sign of inflation’s return. Low inflation is a source of worry for the Fed, which had been expecting to see it pick up. That notwithstanding, the central bank is expected to hike rates later this year come December.
Employment figures will be released today before trading opens at 8:30 N.Y. time.
Friday’s Hot Stocks: AAPL, P, SBUX, CBS, AIG, CC
Have a great trading day!
|Monday||8:30||Personal Income and Outlays||0.4 %||Medium|
|Tuesday||9:00||S&P Corelogic Case-Shiller HPI||0.5 %||Medium|
|Wednesday||8:15||ADP Employment Report||220,000||Medium|
|Wednesday||9:45||PMI Manufacturing Index||54.5||Medium|
|Wednesday||10:00||ISM Mfg Index||59.5||High|
|Wednesday||10:00||Construction Spending||0.1 %||Medium|
|Thursday||8:30||Jobless Claims||235 K||Medium|
|Thursday||8:30||Productivity and Costs||2.4 %||Medium|
|Friday||8:30||Unemployment Rate – Level||4.3%||High|
|Friday||8:30||Average Hourly Earnings||0.2 %||High|
|NBL||Noble Energy, Inc.||PM||Monday|
|SBAC||SBA Communications Corporation||PM||Monday|
|AMT||American Tower Corporation||AM||Tuesday|
|APC||Anadarko Petroleum Corporation||PM||Tuesday|
|EA||Electronic Arts Inc.||PM||Tuesday|
|CHRW||C.H. Robinson Worldwide, Inc.||PM||Tuesday|
|CHKP||Check Point Software Technologies Ltd.||PM||Tuesday|
|EL||The Estee Lauder Companies Inc.||AM||Wednesday|
|CTSH||Cognizant Technology Solutions Corporation||AM||Wednesday|
|KHC||The Kraft Heinz Company||PM||Wednesday|
|OXY||Occidental Petroleum Corporation||PM||Wednesday|
|WMB||The Williams Companies, Inc.||PM||Wednesday|
|CTRP||Ctrip.com International, Ltd.||PM||Wednesday|
|ALL||The Allstate Corporation||PM||Wednesday|
|LBTYA||Liberty Global plc||PM||Wednesday|
|PRU||Prudential Financial, Inc.||PM||Wednesday|
|YUM||Yum! Brands, Inc.||AM||Thursday|
|DLPH||Delphi Automotive PLC||AM||Thursday|
|BABA||Alibaba Group Holding Limited||AM||Thursday|
|TEVA||Teva Pharmaceutical Industries Limited||AM||Thursday|
|ADP||Automatic Data Processing, Inc.||AM||Thursday|
|ATVI||Activision Blizzard, Inc.||PM||Thursday|
|AIG||American International Group, Inc.||PM||Thursday|
|CC||The Chemours Company||PM||Thursday|
|ED||Consolidated Edison, Inc.||PM||Thursday|
|MSI||Motorola Solutions, Inc.||PM||Thursday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
|Company Name||Akamai Technologies|
|Sector||Technology | Internet Information Providers|