M&A Pushes Wall Street to New Highs!

Stocks on Wall Street rallied yesterday to new historic highs, driven by optimism about merger and acquisition (M&A) activity, investors betting that the Republican initiative to slash taxes will boost firm earnings.

Qualcomm (QCOM) continued rallying, edging up another 1.15% after Broadcom (AVGO) offered to buy the smartphone chip supplier for $103 billion, which could make it the biggest acquisition ever in the tech sector. AVGO tacked on 1.42%.

We haven’t yet seen a lot of M&A activity in 2017. It could be that yesterday’s announcement will spur additional activity in the field in light of the changes in U.S. tax policy.

Twenty First Century Fox (FOXA) soared 9.93% after the CNBC Network reported that the television and movie giant is in discussions about selling most of the company’s division to media giant, Walt Disney (DIS). DIS rose 2.02%.

Investors’ optimism is being fueled by Republican’s bill proposal last week to slash corporate tax rates to 20% from their current rate of 35% – and likewise eliminate a number of tax benefits now granted to individuals and corporations.  That’s been the main engine presently pushing stocks up on Wall Street. Even if when push comes to shove the corporate tax rate falls to 25%, everything is still moving in the right direction.

Daily Summary: The Dow Jones rose 0.04%, the S&P 500, 0.13%. The NASDAQ climbed 0.33%.

After Closing: Priceline (PCLN) shed 6%, Weight Watchers (WTW) soaring 10%, after the duo reported their earnings numbers.

With over 400 companies on the S&P 500 having reported to date, Q3 earnings are expected to climb on aggregate by 8%, compared to the expectations for earnings growth of 5.9% at the beginning of October.

With year-to-date gains of 15%, the S&P 500 is traded at a forward multiplier of 18.

One of the stocks that stood out in yesterday’s trading was Michael Kors (KORS). KORS surged 14.7% after the fashion apparel maker raised its 2017 revenue forecast. The stock was the strongest yesterday on the S&P 500.

AMD jumped 7.28% in the wake of the newsfeed that the company plans on teaming up with Intel (INTC) to create a new PC chip division. INTC rose 1.37%.

About 6.6 billion shares changed hands on U.S. exchanges, above the 6.4 billion average over the last 20 trading days.

Index Last Daily change
DJX 23,548 0.04% Up
SPX 2,591 0.13% Up
Nasdaq 6,786 0.33% Up

Tuesday’s Hot Stocks: WTW, MCHP, SWKS, WB, RCL, COH

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 6:00 NFIB Small Business Optimism Index 105.0  Medium
Tuesday 10:00 JOLTS 6.082 M Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 232 K High
Thursday 10:00 Wholesale Trade 0.3 % Medium
Thursday 10:00 Consumer Sentiment 100.0 High
Tuesday 6:00 NFIB Small Business Optimism Index 105.0 Medium
Tuesday 10:00 JOLTS 6.082 M Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 232 K High
Thursday 10:00 Wholesale Trade 0.3 % Medium
Thursday 10:00 Consumer Sentiment 100.0 High
Tuesday 6:00 NFIB Small Business Optimism Index 105.0 Medium
Tuesday 10:00 JOLTS 6.082 M Medium

 

 

Earning Calendar

 

Symbol Company AM/PM Day
CAH Cardinal Health, Inc. AM Monday
CVS CVS Health Corporation AM Monday
MYL Mylan N.V. AM Monday
MCHP Microchip Technology Incorporated PM Monday
PCLN The Priceline Group Inc. PM Monday
SWKS Skyworks Solutions, Inc. PM Monday
COH Coach, Inc. AM Tuesday
EXPD Expeditors International of Washington, Inc. AM Tuesday
HCN Welltower Inc. AM Tuesday
RCL Royal Caribbean Cruises Ltd. AM Tuesday
WB Weibo Corporation AM Tuesday
WLK Westlake Chemical Corporation AM Tuesday
AGU Agrium Inc. PM Tuesday
CLR Continental Resources, Inc. PM Tuesday
DVA DaVita Inc. PM Tuesday
MAR Marriott International, Inc. PM Tuesday
SNAP Snap Inc. PM Tuesday
TTWO Take-Two Interactive Software, Inc. PM Tuesday
HUM Humana Inc. AM Wednesday
MGM MGM Resorts International AM Wednesday
FOXA Twenty-First Century Fox, Inc. PM Wednesday
HOLX Hologic, Inc. PM Wednesday
MNST Monster Beverage Corporation PM Wednesday
SQ Square, Inc. PM Wednesday
COTY Coty Inc. AM Thursday
DISH DISH Network Corporation AM Thursday
JCI Johnson Controls International plc AM Thursday
NCLH Norwegian Cruise Line Holdings Ltd. AM Thursday
PRGO Perrigo Company plc AM Thursday
DIS The Walt Disney Company PM Thursday
LBTYK Liberty Global plc PM Thursday
NVDA NVIDIA Corporation PM Thursday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
SM 22.81 CRC EVH
NTNX 29 NOV ACAD
TRU 54.50 APA HOG
FNV 85.03 HES ATVI
CMA 80.25 SLB DATA
  QRVO BID
  KORS  
  FOXA  
  GPOR  

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 Open   +1.62%
15            
16  
17
18