January Ends in the Green
The S&P 500 fell yesterday for the fourth time in a row, weighed down by sectors sensitive to economic growth on the background of disappointment from earnings results and persistent concerns about the priorities of the Trump administration.
Tech and financial stocks recorded the sharpest losses on the S&P 500, while the health sector (XLV) soared 1.6%, helping offset some of the index’s losses – and pushing the S&P 500 far from the daily bottom.
In summary for the day, the S&P 500 closed slightly off by 0.09%, the NASDAQ tacking on 0.02%. The Dow Jones fell 0.54% on the day.
The S&P 500 recorded its fourth straight day of losses, its longest losing streak since the period leading up to the elections. In tandem, the 3 large indexes ended the month of January up, with the NASDAQ surging 4.3%, making it its strongest month since July ’16.
The President of the United States of America, Donald Trump, met with the heads of some of the largest American pharmaceutical companies in a move seen as aimed at tapering the anxiety besetting pharma stocks that had caused them to lag behind after the U.S. elections.
In tandem, some of investors’ concerns revolve around the fact that Trump’s focus doesn’t seem to be on the issues that prompted the sharp market rally after the election results were finalized on November 8th, like tax reform and fiscal stimulus.
One of the stocks standing out in yesterday’s trading was the parcel delivery company, U.P.S. (UPS) which fell by 6.8% to $109.13, weighing on most of the transportation and industrial sector, after having reported a loss last quarter and lowering its full year 2017 forecast.
The fashion chain, Under Armour (UA), lost almost a quarter of its market cap yesterday, plunging 23.4% to the $19.22 level.
Despite the negative market movement caused by political headlines over the last few days, some are placing their faith in fundamentals, hoping they will support stock prices. Projections have firm earnings recording Q4 growth of 7.1%, revenues forecasted to rise 4.2%. Economic momentum is solid and the job market is functioning well.
On the S&P 500, 10 stocks rose to new 52-week highs, 4 dipping to new yearly lows; on the NASDAQ, 82 stocks recorded new 52-week highs, 48 falling to new yearly lows.
All-in-all, 6.7 billion shares changed hands on U.S. exchanges, slightly above the 6.65 billion average over the last 20 trading days.
Wednesday: The Fed is expected to take center-stage today, the central bank, though, likely to alter market sentiment as well. Strategists are saying that while the Fed isn’t expected to hike rates at the end of its 2-day policy meeting which kicked off yesterday, it is expected to reiterate its intent to hike rates 3 times this year, by 0.75% altogether. The Fed announcement will be coming out at 14:00 N.Y. time.
Stocks are likely to respond positively to the earnings of Apple (AAPL) which reported strong quarterly numbers yesterday after closing. Apple jumped 3% after releasing its results. The tech powerhouse reported earnings of $3.36 per share on revenues of $78.40 billion, making it the company’s highest quarterly revenue figure ever. Sales of the iPhone came to 78.3 million units, beating last quarter’s figure of 74.8 million units. The company’s cash pile has reached a new high of $159 billion, most of the moneys though held overseas.
Besides the Fed announcement, today’s economic diary will include car sales, carmakers releasing their numbers throughout the day. The ISM manufacturing sector index will be released at 10:00 and Markit’s PMI figures will be released slightly earlier at 9:45. Before the trading day opens, different employment-related numbers will be released, giving an insight into what to expect on Friday morning. Today, the ADP survey for the private sector will be released at 8:15, the consensus being that 164 thousand new positions were added.
Today will likewise be a busy day on the earnings report front. Before opening, the troupe of reporters will include: MPC, MO, IR, JCI, and TUP. After closing, be on the lookout for the numbers of Facebook (FB), alongside MET, ALL, TSCO, CRUS, and SYMC.
Wednesday’s Hot Stocks: AAPL, EA, MTCH, MPC, IR, TUP
Have a great trading day!
|Monday||10:00||Pending Home Sales||1.3%||Medium|
|Tuesday||9:00||S&P Case Shiller Home Price Index||5.0%||Medium|
|Wednesday||8:15||ADP Employment Change||165K||High|
|Wednesday||14:00||FOMC Rate Decision||0.625%||High|
|Thursday||8:30||Unit Labor Costs||1.9%||Medium|
|ZBH||Zimmer Biomet Holdings, Inc.||AM||Tuesday|
|VLO||Valero Energy Corporation||AM||Tuesday|
|TMO||Thermo Fisher Scientific Inc.||AM||Tuesday|
|LLY||Eli Lilly and Company||AM||Tuesday|
|UPS||United Parcel Service, Inc.||AM||Tuesday|
|XOM||Exxon Mobil Corporation||AM||Tuesday|
|APC||Anadarko Petroleum Corporation||PM||Tuesday|
|CHRW||C.H. Robinson Worldwide, Inc.||PM||Tuesday|
|OKS||ONEOK Partners, L.P.||PM||Tuesday|
|EA||Electronic Arts Inc.||PM||Tuesday|
|BAX||Baxter International Inc.||AM||Wednesday|
|MPC||Marathon Petroleum Corporation||AM||Wednesday|
|JCI||Johnson Controls International plc||AM||Wednesday|
|ADP||Automatic Data Processing, Inc.||AM||Wednesday|
|MO||Altria Group, Inc.||AM||Wednesday|
|LNC||Lincoln National Corporation||PM||Wednesday|
|ALL||The Allstate Corporation||PM||Wednesday|
|NXPI||NXP Semiconductors N.V.||PM||Wednesday|
|EW||Edwards Lifesciences Corporation||PM||Wednesday|
|IP||International Paper Company||AM||Thursday|
|BSX||Boston Scientific Corporation||AM||Thursday|
|EL||The Estee Lauder Companies Inc.||AM||Thursday|
|CME||CME Group Inc.||AM||Thursday|
|PM||Philip Morris International Inc.||AM||Thursday|
|MRK||Merck & Co., Inc.||AM||Thursday|
|MSI||Motorola Solutions, Inc.||PM||Thursday|
|HSY||The Hershey Company||AM||Friday|
|LYB||LyondellBasell Industries N.V.||AM||Friday|
|CLX||The Clorox Company||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – FAST
|Company Name||Fastenal Company|
|Sector||Services | Industrial Equipment Wholesale|
No.2 – AKAO
|Sector||Healthcare | Biotechnology|