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.

IndexLastDaily change
DJX23,5480.04%Up
SPX2,5910.13%Up
Nasdaq6,7860.33%Up

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

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index105.0 Medium
Tuesday10:00JOLTS6.082 MMedium
Wednesday10:30Oil InventoriesLow
Thursday8:30Jobless Claims232 KHigh
Thursday10:00Wholesale Trade0.3 %Medium
Thursday10:00Consumer Sentiment100.0High
Tuesday6:00NFIB Small Business Optimism Index105.0Medium
Tuesday10:00JOLTS6.082 MMedium
Wednesday10:30Oil InventoriesLow
Thursday8:30Jobless Claims232 KHigh
Thursday10:00Wholesale Trade0.3 %Medium
Thursday10:00Consumer Sentiment100.0High
Tuesday6:00NFIB Small Business Optimism Index105.0Medium
Tuesday10:00JOLTS6.082 MMedium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
CAHCardinal Health, Inc.AMMonday
CVSCVS Health CorporationAMMonday
MYLMylan N.V.AMMonday
MCHPMicrochip Technology IncorporatedPMMonday
PCLNThe Priceline Group Inc.PMMonday
SWKSSkyworks Solutions, Inc.PMMonday
COHCoach, Inc.AMTuesday
EXPDExpeditors International of Washington, Inc.AMTuesday
HCNWelltower Inc.AMTuesday
RCLRoyal Caribbean Cruises Ltd.AMTuesday
WBWeibo CorporationAMTuesday
WLKWestlake Chemical CorporationAMTuesday
AGUAgrium Inc.PMTuesday
CLRContinental Resources, Inc.PMTuesday
DVADaVita Inc.PMTuesday
MARMarriott International, Inc.PMTuesday
SNAPSnap Inc.PMTuesday
TTWOTake-Two Interactive Software, Inc.PMTuesday
HUMHumana Inc.AMWednesday
MGMMGM Resorts InternationalAMWednesday
FOXATwenty-First Century Fox, Inc.PMWednesday
HOLXHologic, Inc.PMWednesday
MNSTMonster Beverage CorporationPMWednesday
SQSquare, Inc.PMWednesday
COTYCoty Inc.AMThursday
DISHDISH Network CorporationAMThursday
JCIJohnson Controls International plcAMThursday
NCLHNorwegian Cruise Line Holdings Ltd.AMThursday
PRGOPerrigo Company plcAMThursday
DISThe Walt Disney CompanyPMThursday
LBTYKLiberty Global plcPMThursday
NVDANVIDIA CorporationPMThursday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
SM22.81CRCEVH
NTNX29NOVACAD
TRU54.50APAHOG
FNV85.03HESATVI
CMA80.25SLBDATA
 QRVOBID
 KORS 
 FOXA 
 GPOR 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.9.2017VNTVLongClose14.9.2017+1.35%
212.9.2017CPBShortClose15.9.2017-1.10%
318.9.2017INSMLongClose22.9.2017+1.92%
425.9.2017GPSLongClose2.10.2017+1.69%
527.9.2017SQMLongClose29.9.2017+1.69%
62.10.2017ATILongClose6.10.2017+3.12%
72.10.2017TROXLongClose18.10.2017+13.93%
83.10.2017ABTLongClose11.10.2017+1.60%
99.10.2017ZGNXLongClose12.10.2017+3.26%
1016.10.2017INSMLongClose19.10.2017-2.82%
1124.10.2017CVSShortClose1.11.2017+4.77 %
1230.10.2017SKXLongClose31.10.2017-1.42%
1331.10.2017STXLongClose2.11.2017-0.15%
143.11.2017AKAMLongOpen +1.62%
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