Market Gets Wakeup Call as Euphoria Wanes

Index Last Daily change R2 R1 PP S1 S2
DJX 20,052 (-0.09%) Down          
SPX 2,293 (-0.21%) Down 229.72 229.33 228.93 228.54 228.14
Nasdaq 5,664 (-0.06%) Down 126.18 126.00 125.68 125.50 125.18

Shlomo Cooper, Tradenet Chief Analyst

Earnings Reports Record Improvement though Delays Could Beset Trump’s Plans

Wall Street took a step back yesterday after storm clouds again appeared on the geopolitical front. Stocks traded down on Monday, led lower by the energy sector on the background of a decline in crude prices, as investors decided to wait for the next round of primetime earnings report, while seeking further clarity regarding the economic plans of President Trump. The S&P 500 backtracked after having closed at an all-time high on Friday. The market euphoria is beginning to wane, Wall Street now getting it that not everything will be seen to in Trump’s first 100 days of office. In brief, there’s still a large measure of uncertainty.

In summary for the day, the S&P 500 recorded a decline of 0.21%, the NASDAQ shedding 0.06%.

Economists at Goldman Sachs noted yesterday that it’s more reasonable to expect the U.S. fiscal boost, if it happens at all, to play out in 2018 seeing that Trump’s growth-oriented agenda is likely to be offset by the negative impact of newly carved trade agreements and limitations on immigration.

The biggest movement yesterday was in precious metals, which soared on the background of investor’s desire to tuck away their capital in safer shores in light of growing uncertainty about European elections this year as candidates for once-fringe parties succeed in gaining popularity on the heels of Trump’s election victory. Over the coming months, elections will take place in German, Italy and France. Gold (GLD) lured in buyers yesterday, demonstrating strength with gains of 1.35%, expressing traders’ fears about the trade discussions being held by Trump. Moreover, it seems that Trump’s timetable for some of the items on his agenda is creating uncertainty, the newly elected U.S. president sharing in an interview on Sunday that the repeal of Obamacare may take until 2018. This statement raised questions about the timing of tax reform and the fiscal stimulus initiative, the 2 main topics on Trump’s agenda that had caused stocks to rally after the elections.

One of the stocks commanding attention was Hasbro (HAS) which soared 14.1% after the number 2 toymaker in the U.S. reported a holiday quarter with record sales. Processor and graphic chip maker, AMD, soared 11.4% on the background of favorable coverage it received from Barron’s which projected that the stock’s value is likely to double thanks to its success in retaking once lost market share, and its new management team. Tyson Foods (TSN) fell 3.5%. The company reported that it had received a subpoena from the U.S. Securities and Exchange Commission apparently related to allegations of collusive price fixing in the poultry market.

A number of key companies from different sectors stand to report over the rest of the week, including Coca Cola (KO), Disney (DIS) and Gilead (GILD).

Over half of the companies on the S&P 500 have reported their Q4 results, two-thirds having beaten Wall Street’s earnings forecasts.

On the S&P 500, 15 stocks rose to new 52-week highs, just one stock dipping to a new yearly low; on the NASDAQ, 108     stocks recorded new 52-week highs, 24 falling to new yearly lows.

About 6 billion shares changed hands on U.S. exchanges, beneath the 6.7 billion average over the last 20 trading days.

Tuesday: Michael Kors (KORS), British Petroleum (BP) and General Motors (GM) will be some of the companies from different industries reporting in the morning today. On the economic front, trade balance figures will be released at 8:30 N.Y. time, the consensus being a contraction in the trade deficit to $44.8 billion from the prior deficit reading of $45.2 billion. Additional job market figures will come from the JOLTS survey, which tracks the number of new job openings, the reading coming out at 10:00.

Other companies reporting today before opening include: ADM, CAH, EMR, VMC, TEN. Disney (DIS), and Gilead (GILD) will be among the companies reporting their numbers after closing – along with TWLO, Z, AKAM, and PNR.

Tuesday’s Hot Stocks: FOXA, GPS, FMC, FN, KORS, NOV, CAH, VMC, OMC

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 8:30 Trade Balance -$45.0B Medium
Tuesday 10:00 JOLTS – Job Openings Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Initial Claims 250K High
Thursday 10:00 Wholesale Inventories 1.0% Low
Friday 8:30 Export Prices ex-ag. High
Friday 10:00 Mich Sentiment – Prelim 97.9 High
Friday 14:00 Treasury Budget Low

 

Earning Calendar

 

Symbol Company AM/PM Day
HAS Hasbro, Inc. AM Monday
TSN Tyson Foods, Inc. AM Monday
CTSH Cognizant Technology Solutions Corporation AM Monday
NOV National Oilwell Varco, Inc. PM Monday
FOXA Twenty-First Century Fox, Inc. PM Monday
SNE Sony Corporation AM Tuesday
VMC Vulcan Materials Company AM Tuesday
MOS The Mosaic Company AM Tuesday
GRFS Grifols, S.A. AM Tuesday
CAH Cardinal Health, Inc. AM Tuesday
OMC Omnicom Group Inc. AM Tuesday
ORLY O’Reilly Automotive, Inc. PM Tuesday
AKAM Akamai Technologies, Inc. PM Tuesday
MCHP Microchip Technology Incorporated PM Tuesday
GILD Gilead Sciences Inc. PM Tuesday
DIS The Walt Disney Company PM Tuesday
PXD Pioneer Natural Resources Company PM Tuesday
SO The Southern Company AM Wednesday
TWX Time Warner Inc. AM Wednesday
ALK Alaska Air Group, Inc. AM Wednesday
CAJ Canon Inc. AM Wednesday
HUM Humana Inc. AM Wednesday
YUM Yum! Brands, Inc. PM Wednesday
MYL Mylan N.V. PM Wednesday
LVLT Level 3 Communications, Inc. PM Wednesday
FISV Fiserv, Inc. PM Wednesday
TSLA Tesla Motors, Inc. PM Wednesday
PRU Prudential Financial, Inc. PM Wednesday
OXY Occidental Petroleum Corporation AM Thursday
CVS CVS Health Corporation AM Thursday
RAI Reynolds American Inc. AM Thursday
KO The Coca-Cola Company AM Thursday
Q Quintiles IMS Holdings, Inc. AM Thursday
COTY Coty Inc. AM Thursday
CMI Cummins Inc. AM Thursday
K Kellogg Company AM Thursday
TWTR Twitter, Inc. AM Thursday
VIAB Viacom, Inc. AM Thursday
CCE Coca-Cola European Partners Plc AM Thursday
DTE DTE Energy Company AM Thursday
CERN Cerner Corporation PM Thursday
EXPE Expedia, Inc. PM Thursday
DVA DaVita Inc. PM Thursday
AAP Advance Auto Parts, Inc. PM Thursday
ATVI Activision Blizzard, Inc. PM Thursday
AGU Agrium Inc. PM Thursday
NVDA NVIDIA Corporation PM Thursday
VTR Ventas, Inc. AM Friday
XRAY DENTSPLY SIRONA Inc. AM Friday

 

7.2.2017

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
CHKP 99.74   AMD CLVS
EXPE 122.08   DVMT TSN
VOYA 41.58   WB SCOR
DE 108.50   SINA  
TSLA 258.50   ACAD  
TPX   42.50 NVDA  
UA   18 DRYS  
GNC   8.28 GLBS  


New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 29.12.2016 JWN Short Close 6.1.2017 +3.45%
2 6.1.2017 TRGP Long Close 9.1.2017 +0.20%
3 9.1.2017 NVDA Long Close 17.1.2017 +1.02%
4 10.1.2017 TLRD Long Close 10.1.2017 -3.27%
5 13.1.2017 LW Long Close 26.1.2017 +0.09%
6 31.1.2017 ATI Long Open   +0.35%
7 1.2.2017 AKAO Long Open   +5.40%
8 2.2.2017 DATA Long Close 6.2.2017 +13.09%
9            
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Today’s Picks – Swing “New-York Strategy

No.1 –    UAA

Company Name Under Armour
Entry Point 20.44
Stop Area 21.05
1st Target 19.80
Swing Target
Avg. Volume 5.51M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio

       No.2 – GNC

Company Name GNC Holdings
Entry Point 8.28
Stop Area 9.06
1st Target 7.80
Swing Target
Avg. Volume 2.28M
Sector Services | Drug Stores
Earning Date 16 Feb
Risk Rate Normal
Risk\Reward Ratio