What Would You Do with $1 Trillion?

S2S1PPR1R2Daily changeLastIndex
     0.57%19,913DJX
225.51226.55227.32228.36229.130.66%2,280SPX
122.99123.58123.98124.57124.970.86%5,601Nasdaq

Market Rally Fueled by Huge $1 Trillion Infrastructure Spending Bill

Stocks on Wall Street rallied on Tuesday to new historic highs in the wake of a huge – and aggressive – infrastructure spending platform valued at $1 trillion, which surprise, surprise, wasn’t proposed by Donald Trump but rather Democrats on Capitol Hill who wanted to spearhead fiscal stimulus to their own liking. The rally convinced traders that there’s still room for more gains, the new highs putting the ball back in the bulls’ hands.

Trump, for his part, also had his hands full, meeting with automobile execs, prodding them to increase U.S. manufacturing. Beyond that, Trump’s busy day also included the first outcropping of his vendetta against the Environmental Protection Agency (EPA), the emphasis being cutting regulation.

In summary for the day, the Dow Jones tacked on 0.6%, the S&P 500 rising 0.7%, with the NASDAQ being the strongest of the three with a rally of 0.9%. The Russell 2000 soared 1.6%. Assets considered safer shores like gold – which soared last week – recorded losses yesterday. Gold (GLD) shed 0.4%. Crude (USO), though, ended up 0.8%.

One of the stocks that stood out in yesterday’s trading was ATI which soared 31.1%, after the company surprised analysts with a smaller than expected loss, while simultaneously releasing strong guidance for the rest of the year, management weighing in on demand for next generation jet engines. GoPro (GPRO) rallied 7.8% after being upgraded by the analysts at Pacific Crest – that, coupled with concern about a short squeeze. The Chinese online retail giant, Alibaba, rose 3.1% after its results for last quarter trounced analysts’ top-line forecast by 8%.

On the flipside, the communication company, Verizon (VZ) lost altitude, plummeting 4.4% after its earnings results and cellular communication operations fell short of expectations, despite its good revenue numbers. The company’s future guidance also disappointed investors. Lockheed Martin (LMT) fell 2.2% on the background of weak guidance. Johnson & Johnson (JNJ) fell 1.9% on the heels of disappointing sales numbers.

On the economic front, December’s existing home sales came to an annualized 5.5 million units, slightly beneath expectations, while the combination of rising mortgage costs and rising home prices along with low supply led to price stagnation.

As of now, despite yesterday’s gains, stocks are still well-bound in a narrow price range. The technical indicators continue to signal losses to come, breadth narrowing and sentiment off the charts being weak. “Smart money” traders are simply yearning to see a rise in volatility. The fact of the matter is that last month underscored the narrowest trading range on the Dow since the year, 1900.

What enables, of course, the low level volatility is the Fed’s historic cheap money experiment, a policy expected to change this year. The central bank, which raised interest rates just twice over the last 10 years, is expected, at present, to hike rates three times this year.

Furthermore, Fed Chairwoman, Janet Yellen has changed the tone of her rhetoric of late. Before the elections, when Trump blamed her for keeping rates low to push up stock prices, she announced that she’s ready to let the economy heat up for a period of time – while just a few months later, she changed her viewpoint. Investors will be sure to remind her of the tough stance she had taken when the Fed holds its monetary policy meeting at the end of the month.

Wednesday: Wall Street is being roused again and traders now want to see yesterday’s rally continue into today, something that would be reminiscent of the shape the rally took right after the elections. On Wednesday, traders will go up against a flood of earnings reports; before opening, BA, ABT, UTX, STT, NSC, and TXT will be reporting, along with other firms. After closing, be primed for FFIV, T, LRCX, LVS, MCK, WDC and CTXS.

Until now, 70% of the S&P 500 companies that have reported have hit their earnings forecasts, with average earnings growth at 6.7%.

Today’s Economic Diary will feature the FHFA home price index at 9:00 N.Y. time, crude inventory numbers to be released by the U.S. Department of Energy at 10:30.

Wednesday’s Hot Stocks: BA, ABT, STT, TXT, UTX, CREE, STX, BOBE, CA

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
25.1.2017
Today’s Picks – Day Trading
SymbolBreakoutBreakdownMomentumMomentum
PG88 MMPFSLR
AXP78 DATAAKS
CNI71.57 ATIYY
CCL54.87 MTZWATT
OZRK54.92 LEN 
OCLR10.19 ACM 
BMY 48.92CRUS 
   ASYS 
   LITE 
   IVAC 
   TGH 
   IIVI 
   EMES 
New York Strategy Swing
#DateStockLong\

Short

StatuesDate CloseProfit \ Loss
15.12.2016CSCLongClose6.12.2016-1.62%
26.12.2016YYShortClose7.12.2016+0.72%
37.12.2016ROSTLongClose14.12.2016+0.42%
49.12.016TWLOShortClose13.12.2016+2.01%
512.12.2016PDCOLongClose14.12.2016+0.48%
613.12.2016TLRDLongOpen22.12.2016+1.87%
713.12.2016IGTShortClose14.12.2016-0.19%
814.12.2016CCLongClose21.12.2016+0.52%
929.12.2016JWNShortClose6.1.2017+3.45%
106.1.2017TRGPLongClose9.1.2017+0.20%
119.1.2017NVDALongClose17.1.2017+1.02%
1210.1.2017TLRDLongClose10.1.2017-3.27%
1313.1.2017LWLongOpen +0.78%
Today’s Picks – Swing “New-York Strategy
Company NameThe Procter & Gamble Company
Entry Point88
Stop Area87.20
1st Target88.45
Swing Target90.33
Avg. Volume9.38M
SectorConsumer Goods | Personal Products
Earnings Date
Risk RateNormal
Risk\Reward Ratio2.91:1