Trump Gets to Work, Markets Cringe

S2S1PPR1R2Daily changeLastIndex
(-0.14%)19,800DJX
224.54225.34226.08226.88227.62(-0.27%)2,265SPX
122.19122.77123.15123.73124.11(-0.04%)5,553Nasdaq

 

Uncertainty about new administration does not play into stocks’ hand

Stocks on Wall Street traded down yesterday as Donald Trump started his first work week as the leader of the free world. Trump met with the CEOs of leading American companies yesterday, promising to drastically cut regulation that hinders business activity. On his first day in office, Trump also, with one stroke of the pen, terminated the 12-member transatlantic trade agreement, giving traders ample reason to cast doubt about the durability of the sharp rally that followed the elections. Trump, thereafter, announced that he hopes to renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico. In summary for the day, the S&P 500 shed 0.27%, the NADSAQ closing negligibly off by 0.04%.

Earlier in the trading day, Trump met with the heads of a dozen prominent American manufacturing companies in the White House, conveying that he plans on cutting regulation and lowering corporate taxes to accelerate economic growth. Later on in the week, Trump will meet with the CEOs of the top American automobile and construction companies.

The rally after the elections led Wall Street to record a series of historic highs, the rally though halting of late with the S&P 500 recording moderate losses over the last few weeks as investors started to voice concern about the potential offshoots of Trump’s isolationist trade policy. On a technical basis, the situation remains the same, the Dow Jones stuck in a narrow trading range over the last 2 months, cordoned off by the 20,000 point level from above and the 19,750 point level from below. Concern is growing among investors and the narrow trading range defining the major market indexes leaves the market vulnerable to more extensive losses.

The UUP index which tracks dollar performance against a basket of world currencies fell to a 7 week low of 100.18 point. On the heels of the continued declines, precious metals – and first and foremost, gold – climbed to a 2-month high. The ETF for gold mines, the GDX, soared 3%.

The energy sector (XLE) closed off 1.06%, making it the worst performing sector of the 11 on the S&P 500, while crude prices fell on the background of signs of a strong recovery in the number of American rigs in operation. Halliburton (HAL) weighed on the sector with sharp losses of 2.9%, after the world’s second large oil field service provider reported a larger than expected loss for last quarter.

Qualcomm (QCOM) toppled 12.7% to the $54.88 level after Apple (AAPL) submitted a huge $1 billion lawsuit against the chipmaker this past Friday. Yesterday, the company suffered its worst trading day since November ’15 – making it the biggest weight on both the S&P 500 and the NASDAQ.

On the S&P 500, 16 stocks rose to new 52-week highs, 6 dipping to new yearly lows; on the NASDAQ, 79 stocks recorded new 52-week highs, 41 falling to new yearly lows.

About 6.15 billion shares changed hands on U.S. exchanges, in line with the daily average over the last 20 trading days.

Tuesday: Wall Street is now waiting for further detail about tax rates and is digesting the developments revolving Trump’s trade policy, traders, in the meantime keeping their eyes on the lookout for today’s economic reports in hopes of seeing further signs of U.S. economic growth. The question is whether the economy can continue improving irrespective of the Trump administration’s policies.

Real estate and manufacturing figures are expected to be released today before closing in advance of key reports on durable goods orders and economic growth (GDP) that will be released on Friday.

December’s new home sales are expected to have recorded a slight decline to an annualized pace of 5.5 million units. In November ’16, the home sales rate of 5.61 million was the fastest clip recorded since 2007.

Markit’s PMI manufacturing index for January is expected to record a reading of 54.5 points, last month’s reading being 54.3 points.

In addition to these figures, traders will carefully track any developments related to Trump’s policies in his second day in office.

This is the second full week of the earnings season. Among the companies reporting today before opening we’ll find MMM, DD, BABA, JNJ, TRV, KMB, LMT, DHI and AKS. After closing, be primed for the numbers of AA, COF, DFS, ISRG and STX.

Tuesday’s Hot Stocks: SE, OXY, NUE, SYMC, KMB, BABA, DD, AKS, YHOO

IPOs: None

Have a great trading day!

Economic Calendar
DAYTIME (EST)EventForecastImpact
Tuesday10:00Existing Home Sales5.55MMedium
Wednesday9:00FHFA Housing Price IndexMedium
Wednesday10:30Crude InventoriesLow
Thursday8:30Initial Claims246KHigh
Thursday10:00Leading Indicators0.5%Medium
Thursday10:00New Home Sales589KMedium
Friday8:30GDP-Adv.2.2%Medium
Friday8:30Durable Orders3.0%Medium
Friday10:00Michigan Sentiment – Final98.0High

 

Earnings Calendar
SymbolCompanyAM/PMDay
MCDMcDonald’s CorporationAMMonday
HALHalliburton CompanyAMMonday
YHOOYahoo! Inc.PMMonday
JNJJohnson & JohnsonAMTuesday
BABAAlibaba Group Holding LimitedAMTuesday
LMTLockheed Martin CorporationAMTuesday
KMBKimberly-Clark CorporationAMTuesday
MMM3M CompanyAMTuesday
TRVThe Travelers Companies, Inc.AMTuesday
DDE. I. du Pont de Nemours and CompanyAMTuesday
CACA, Inc.PMTuesday
TXNTexas Instruments IncorporatedPMTuesday
COFCapital One Financial CorporationPMTuesday
STXSeagate Technology plcPMTuesday
HESHess CorporationAMWednesday
ABTAbbott LaboratoriesAMWednesday
TXTTextron Inc.AMWednesday
NSCNorfolk Southern CorporationAMWednesday
STTState Street CorporationAMWednesday
UTXUnited Technologies CorporationAMWednesday
BAThe Boeing CompanyAMWednesday
WDCWestern Digital CorporationPMWednesday
LVSLas Vegas Sands Corp.PMWednesday
QCOMQUALCOMM IncorporatedPMWednesday
EBAYeBay Inc.PMWednesday
MCKMcKesson CorporationPMWednesday
XLNXXilinx, Inc.PMWednesday
CCICrown Castle International Corp.PMWednesday
LRCXLam Research CorporationPMWednesday
VRTXVertex Pharmaceuticals IncorporatedPMWednesday
NOWServiceNow, Inc.PMWednesday
CTXSCitrix Systems, Inc.PMWednesday
NOCNorthrop Grumman CorporationAMThursday
SWKStanley Black & Decker, Inc.AMThursday
SHWThe Sherwin-Williams CompanyAMThursday
WRKWestRock CompanyAMThursday
BIIBBiogen Inc.AMThursday
TROWT. Rowe Price Group, Inc.AMThursday
MJNMead Johnson Nutrition CompanyAMThursday
RTNRaytheon CompanyAMThursday
RCLRoyal Caribbean Cruises Ltd.AMThursday
FFord Motor CompanyAMThursday
CMCSAComcast CorporationAMThursday
BMYBristol-Myers Squibb CompanyAMThursday
LUVSouthwest Airlines Co.AMThursday
DOWThe Dow Chemical CompanyAMThursday
CATCaterpillar Inc.AMThursday
CELGCelgene CorporationAMThursday
POTPotash Corporation of Saskatchewan Inc.AMThursday
PYPLPayPal Holdings, Inc.PMThursday
SBUXStarbucks CorporationPMThursday
JNPRJuniper Networks, Inc.PMThursday
INTCIntel CorporationPMThursday
MSFTMicrosoft CorporationPMThursday
GOOGLAlphabet Inc.PMThursday
MXIMMaxim Integrated Products, Inc.PMThursday
KLACKLA-Tencor CorporationPMThursday
VMWVMware, Inc.PMThursday
GDGeneral Dynamics CorporationAMFriday
NEENextEra Energy, Inc.AMFriday
CLColgate-Palmolive CompanyAMFriday
HONHoneywell International Inc.AMFriday
AALAmerican Airlines Group Inc.AMFriday
ABBVAbbVie Inc.AMFriday
CVXChevron CorporationAMFriday

 

#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
119.1.2017NVDALongClose17.1.2017+1.02%27
1210.1.2017TLRDLongClose10.1.2017-3.27%28
1313.1.2017LWLongOpen -1.16%29
1430 
1531 
1632

 

Today’s Picks – Swing “New-York Strategy

No.1 – FAST

Company NameFastenal 
Entry Point51.56
Stop Area50.45
1st Target52.30
Swing Target
Avg. Volume
2.66M
SectorServices | Industrial Equipment Wholesale
Earnings Date
Risk RateNormal
Risk\Reward Ratio1.38:1

No.2 – WMB

Company NameThe Williams Companies
Entry Point27.99
Stop Area28.65
1st Target27.55
Swing Target22.39
Avg. Volume9M
SectorBasic Materials | Oil & Gas Pipelines
Earnings Date15 Feb
Risk RateNormal
Risk\Reward Ratio