Market Gets Wakeup Call as Euphoria Wanes

IndexLastDaily changeR2R1PPS1S2
DJX20,052(-0.09%)Down     
SPX2,293(-0.21%)Down229.72229.33228.93228.54228.14
Nasdaq5,664(-0.06%)Down126.18126.00125.68125.50125.18

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

 

DAYTIME (EST)EventForecastImpact
Tuesday8:30Trade Balance-$45.0BMedium
Tuesday10:00JOLTS – Job OpeningsMedium
Wednesday10:30Crude InventoriesLow
Thursday8:30Initial Claims250KHigh
Thursday10:00Wholesale Inventories1.0%Low
Friday8:30Export Prices ex-ag.High
Friday10:00Mich Sentiment – Prelim97.9High
Friday14:00Treasury BudgetLow

 

Earning Calendar

 

SymbolCompanyAM/PMDay
HASHasbro, Inc.AMMonday
TSNTyson Foods, Inc.AMMonday
CTSHCognizant Technology Solutions CorporationAMMonday
NOVNational Oilwell Varco, Inc.PMMonday
FOXATwenty-First Century Fox, Inc.PMMonday
SNESony CorporationAMTuesday
VMCVulcan Materials CompanyAMTuesday
MOSThe Mosaic CompanyAMTuesday
GRFSGrifols, S.A.AMTuesday
CAHCardinal Health, Inc.AMTuesday
OMCOmnicom Group Inc.AMTuesday
ORLYO’Reilly Automotive, Inc.PMTuesday
AKAMAkamai Technologies, Inc.PMTuesday
MCHPMicrochip Technology IncorporatedPMTuesday
GILDGilead Sciences Inc.PMTuesday
DISThe Walt Disney CompanyPMTuesday
PXDPioneer Natural Resources CompanyPMTuesday
SOThe Southern CompanyAMWednesday
TWXTime Warner Inc.AMWednesday
ALKAlaska Air Group, Inc.AMWednesday
CAJCanon Inc.AMWednesday
HUMHumana Inc.AMWednesday
YUMYum! Brands, Inc.PMWednesday
MYLMylan N.V.PMWednesday
LVLTLevel 3 Communications, Inc.PMWednesday
FISVFiserv, Inc.PMWednesday
TSLATesla Motors, Inc.PMWednesday
PRUPrudential Financial, Inc.PMWednesday
OXYOccidental Petroleum CorporationAMThursday
CVSCVS Health CorporationAMThursday
RAIReynolds American Inc.AMThursday
KOThe Coca-Cola CompanyAMThursday
QQuintiles IMS Holdings, Inc.AMThursday
COTYCoty Inc.AMThursday
CMICummins Inc.AMThursday
KKellogg CompanyAMThursday
TWTRTwitter, Inc.AMThursday
VIABViacom, Inc.AMThursday
CCECoca-Cola European Partners PlcAMThursday
DTEDTE Energy CompanyAMThursday
CERNCerner CorporationPMThursday
EXPEExpedia, Inc.PMThursday
DVADaVita Inc.PMThursday
AAPAdvance Auto Parts, Inc.PMThursday
ATVIActivision Blizzard, Inc.PMThursday
AGUAgrium Inc.PMThursday
NVDANVIDIA CorporationPMThursday
VTRVentas, Inc.AMFriday
XRAYDENTSPLY SIRONA Inc.AMFriday

 

7.2.2017

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
CHKP99.74 AMDCLVS
EXPE122.08 DVMTTSN
VOYA41.58 WBSCOR
DE108.50 SINA 
TSLA258.50 ACAD 
TPX 42.50NVDA 
UA 18DRYS 
GNC 8.28GLBS 


New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

129.12.2016JWNShortClose6.1.2017+3.45%
26.1.2017TRGPLongClose9.1.2017+0.20%
39.1.2017NVDALongClose17.1.2017+1.02%
410.1.2017TLRDLongClose10.1.2017-3.27%
513.1.2017LWLongClose26.1.2017+0.09%
631.1.2017ATILongOpen +0.35%
71.2.2017AKAOLongOpen +5.40%
82.2.2017DATALongClose6.2.2017+13.09%
9      
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Today’s Picks – Swing “New-York Strategy

No.1 –    UAA

Company NameUnder Armour
Entry Point20.44
Stop Area21.05
1st Target19.80
Swing Target
Avg. Volume5.51M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio

       No.2 – GNC

Company NameGNC Holdings
Entry Point8.28
Stop Area9.06
1st Target7.80
Swing Target
Avg. Volume2.28M
SectorServices | Drug Stores
Earning Date16 Feb
Risk RateNormal
Risk\Reward Ratio