20,000 on the Dow Escapes the Radar Again

S2S1PPR1R2Daily changeLastIndex
     (-0.38%)19,887DJX
226.00226.23226.65226.88227.30(-0.35%)2,269SPX
121.68122.00122.28122.60122.880.19%5,532Nasdaq

The path of the Dow Jones to the 20,000 point level went off course again yesterday as the sell-off in crude dragged the energy sector down, souring the market atmosphere. The Dow Jones ended off by 0.37%, closing the day at the 19,888 point level. The 20,000 point mark ever so close, all the index needs is one rally to hit the important psychological milestone. The S&P 500 ended off 0.35%. The NASDAQ was the only index ending up on the day, with gains of 0.19%, setting another historic high – at the 5,531 point level.

The merger and acquisition (M&A) front was buzzing yesterday with announcements about new deals. The drug company, MACK, rose 1.9% after announcing that another industry player, Ipsen, has agreed to purchase some of its suite, including its pancreatic cancer drug, in a deal valued over $1 billion. MACK added that it would be terminating 80% of its workforce in an attempt to focus on its pipeline of new drugs.

Ariad Pharmaceuticals (ARIA) soared 72% after Takeda Pharmaceuticals agreed to buy out the company at a price of $24 per share, reflecting a 75% premium on the stock’s Friday closing price. The all-cash deal is expected to be completed by the end of February. Stocks of other pharmaceutical companies responded favorably, rising on the day, including EXAS, GILD, and AMGN. The biotech sector (IBB) soared on the day, with gains of 1.43%.

Crude fell beneath the $53 barrel level on Monday, continuing to see downward pressure after the figures released last Friday on the number of active rigs, which pointed to a continued rise in crude production. Friday’s figures showed the number of active rigs climbing for the 10th straight week. The last few weeks have been tumultuous in the crude market, with investors pitting the OPEC agreement to slash production against U.S. producers’ move to ramp up production. When considering that crude rallied substantially on the background of expectations for a recalibration of market prices after month-long discussions about a potential cut, the market is now at risk of being at a point where it just “sells the news,” irrespective of supply and demand. Crude ended off 3.8% at $51.96, its low point since mid-December. The energy sector (XLE) recorded losses of 1.4% on the day.

Alibaba (BABA) rallied almost 1% after its CEO, Jack Ma, met with president-elect, Donald Trump. Trump and Ma  noted that the meeting was successful, the focus being on employment and small businesses.

Tuesday: Today there will only be a few numbers on the Economic Diary, which will include the JOLTS employment reading at 10:00 N.Y. time and wholesale trade figures at the same time. The NFIB small business optimism survey will be released earlier at 6:00 AM.

The 2016 Q4 earnings season will open up today, kicked off by Alcoa (AA), which is expected to release its numbers before the opening bell. Analysts are expecting solid earnings numbers for the earnings season, Q4 expected to register year-over-year earnings growth of 4.4%. Presuming we see earnings growth, that would make it 2 seasons of

back-to-back growth, after an almost 2-year earnings recession; in Q3 2016, earnings saw a turnaround and grew by 4%.

Tuesday’s Hot Stocks: CUDA, WMB, AA

Initial Public Offerings: None

Have a great trading day!

 

Economic Calendar
DAYTIME (EST)EventForecastImpact
Tuesday10:00JOLTS – Job OpeningsMedium
Tuesday10:00Wholesale Inventories0.9%Medium
Wednesday10:30Crude InventoriesLow
Thursday8:30Export Prices ex-ag.Medium
Thursday8:30Import Prices ex-oilMedium
Thursday8:30Initial Claims255KHigh
Friday8:30PPI56.6High
Friday8:30Retail Sales0.7%Medium
Friday10:00Business Inventories0.6%Medium
Friday10:00Mich Sentiment98.5High

 

Earnings Calendar
SymbolCompanyAM/PMDay
CMCCommercial Metals CompanyAMMonday
GPNGlobal Payments Inc.AMMonday
LWLamb Weston Holdings, Inc.AMTuesday
AAAlcoa CorporationAMTuesday
TSMTaiwan Semiconductor Manufacturing Company LimitedAMThursday
DALDelta Air Lines, Inc.AMThursday
PNCThe PNC Financial Services Group, Inc.AMFriday
BLKBlackRock, Inc.AMFriday
BACBank of America CorporationAMFriday
WFCWells Fargo & CompanyAMFriday
JPMJPMorgan Chase & Co.AMFriday
INFYInfosys LimitedAMFriday

AM – Before Market Open

PM – After Market Close

 

10.1.2017

Today’s Picks – Day Trading

SymbolBreakoutBreakdownMomentumMomentum
PTCT14.57 EXASAMAG
HALO14.38 DDDWTW
ALXN145.42 CLVSTSO
APA 62YPFX
TWX 93NVDAAGIO
TRV 117.28HCAMBLY
   ETRMTROW
   NLNKZOES
   MON 

New York Strategy Swing

#DateStockLong\

Short

StatuesDate CloseProfit \ Loss#DateStockLong \ShortStatuesDate CloseProfit \ Loss
15.12.2016CSCLongClose6.12.2016-1.62%17      
26.12.2016YYShortClose7.12.2016+0.72%18      
37.12.2016ROSTLongClose14.12.2016+0.42%19      
49.12.016TWLOShortClose13.12.2016+2.01%20      
512.12.2016PDCOLongClose14.12.2016+0.48%21      
613.12.2016TLRDLongOpen22.12.2016+1.87%22      
713.12.2016IGTShortClose14.12.2016-0.19%23      
814.12.2016CCLongClose21.12.2016+0.52%24      
929.12.2016JWNShortClose6.1.2017+3.45%25      
106.1.2017TRGPLongClose9.1.2017+0.20%26      
119.1.2017NVDALongOpen +2.69%27      
12      28      
13      29      
14      30      
15      31      
16      32     

 

No.1 – TLRD
No.2 – PTLA

Today’s Picks – Swing “New-York Strategy”

 

 

Company Name
Tailored Brands
Entry Point22.60
Stop Area21.90
1st Target23.30
Swing Target28.76
Avg. Volume1.35M
SectorServices | Apparel Stores
Earnings Date
Risk RateNormal
Risk\Reward Ratio8.80:1

 

Company NamePortola Pharmaceuticals,
Entry Point26.36
Stop Area24.95
1st Target26.90
Swing Target28.60
Avg. Volume1.05M
SectorHealthcare | Biotechnology
Earnings Date
Risk RateNormal
Risk\Reward Ratio1.59:1