Sharp Gains Precede 2017’s Big Announcement!

Champagne’s been flowing on Wall Street for two days in a row now! The NASDAQ soared to a historic high on Tuesday, the Dow Jones and S&P 500 tiptoeing around their most recent highs as strong earnings reports drove investors to flock again to stocks.

Caterpillar (CAT) surged 7.9% to the $104.42 level after reporting stellar numbers, McDonalds (MCD) rallying 5.6% to the $141.70 level after hitting analyst forecasts. All-in-all, S&P 500 earnings growth is expected to hit 11.4% for Q1 2017, its fastest clip since 2011.

The sweeping gains yesterday followed the Wall Street Journal report that Trump’s tax reform proposal is expected to be released today – and will include a tax reduction to 15% from the current 35%-39% level. Yesterday’s gains came on the heels of Monday’s rally which was fueled by the victory of the centrist presidential candidate, Emmanuel Macron, who is also expected to win the second voting round and become the next president of France come May 7th.

The NASDAQ reached a new historic high at the 6,036.00 point level, after having surpassed the 6,000 point level for the first time ever, propped up by gains in the large index players like Apple (AAPL) and Microsoft (MSFT). The index had hit the 5,000 point level for the first time in March 2000, at the height of the dot-com bubble; by October 2002, it had imploded 80%.

In Summary for the Day: The Dow Jones rallied 1.12%, the S&P 500 tacking on 0.61% and the NASDAQ rising 0.7%.

On the S&P 500, 85 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 218 stocks recorded new 52-week highs, 43 falling to new yearly lows.

About 7.31 billion shares changed hands on U.S. exchanges, above the 6.4 billion average over the last 20 trading days.

Wednesday: Wall Street is waiting at the edge of its seat for the tax plan Trump is expected to release today, its debut expected to be familiar, though. The first indications are that it will be very similar to the one touted during the election campaign, in other words lowering taxes to 15%. The big question is how the government will fund the massive tax cuts, something we’re not expected to get answers to today. The thinking at first was that the tax cut would be less aggressive, capped at 20% – and would also include a controversial import tax that would line federal coffers with $1 trillion over the next 10 years. At the same time, the White House is not expected to adopt that initiative and traders now believe that financing the cuts will be anchored more in the anticipated economic growth rate than increased tax revenues from other sources.

Stocks have been zipping along full speed ahead, the catalyst, solid earnings numbers. Yesterday, after closing, earnings reports included X which was slashed 20% on the background of a large earnings miss, and CMG, which rallied 6% after its own good numbers.

Today’s reporters will include these key firms: BA, PG, PEP, UTX, TWTR, and GD, all of which will be releasing their numbers before opening. After closing, be primed for the numbers of AMGN, PYPL, FFIV and TSCO.

Crude is likely to be another factor in today’s market movement after a surprise jump in crude reserves as per released in the American Petroleum Institute (API) report yesterday after closing. The governmental weekly inventory report, like on every Wednesday, will be released today at 10:30 N.Y. time.

Stock traders are now eyeing crude prices, which have been retreating of late. Over the last few days crude has traded beneath the key $50 barrel level – a psychologically key level for petrol firms. The API figures showed a surprise jump of 900 thousand barrels in last week’s crude reserves. In the event today’s inventory figures confirm the API numbers, we can expect further weakness in the “black gold” in today’s trading.

 

Index Last Daily change R2 R1 PP S1 S2
DJX 20,996 1.12% Up          
SPX 2,389 0.61% Up 236.91 236.18 235.30 234.57 233.69
Nasdaq 6,025 0.70% Up 132.73 132.39 132.04 131.70 131.35

By: Shlomo Cooper, Senior Analyst at Tradenet

Wednesday’s Hot Stocks: X, BA, PG, WYNN, JNPR, ARNC, COF, HSY

IPOs: None

Have a great trading day!

 

 

 


Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 9:00 Case-Shiller Home Price Index Medium
Tuesday 9:00 FHFA Housing Price Index Medium
Tuesday 10:00 New Home Sales Medium
Tuesday 10:00 Consumer Confidence Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Initial Claims High
Thursday 8:30 Durable Orders Medium
Thursday 8:30 Initial Claims High
Thursday 10:00 Pending Home Sales Medium
Friday 8:30 GDP-Adv. Medium
Friday 9:45 Chicago PMI Medium
Friday 10:00 Michigan Sentiment – Final High

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Earning Calendar

 

Symbol Company AM/PM Day
CAT Caterpillar Inc. AM Tuesday
DD E. I. du Pont de Nemours and Company AM Tuesday
KO The Coca-Cola Company AM Tuesday
LLY Eli Lilly and Company AM Tuesday
MCD McDonald’s Corporation AM Tuesday
MMM 3M Company AM Tuesday
VLO Valero Energy Corporation AM Tuesday
X United States Steel Corporation PM Tuesday
JNPR Juniper Networks, Inc. PM Tuesday
COF Capital One Financial Corporation PM Tuesday
ARNC Arconic Inc. PM Tuesday
BA The Boeing Company AM Wednesday
HSY The Hershey Company AM Wednesday
PEP Pepsico, Inc. AM Wednesday
FFIV F5 Networks, Inc. PM Wednesday
AMGN Amgen Inc. PM Wednesday
CELG Celgene Corporation AM Thursday
JCI Johnson Controls International plc AM Thursday
AAL American Airlines Group Inc. AM Thursday
UPS United Parcel Service, Inc. AM Thursday
SBUX Starbucks Corporation PM Thursday
MSFT Microsoft Corporation PM Thursday
GOOGL Google Class A PM Thursday
GPRO GOPRO, INC. PM Thursday
AMZN Amazon.com, Inc. PM Thursday
CL Colgate-Palmolive Company AM Friday
CVX Chevron Corporation AM Friday
PSX Phillips 66 AM Friday
XOM Exxon Mobil Corporation AM Friday

 

 

 

 


 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
GD 194   BIDU TROW
DD 82.37   WBA  
AAOI 50   TGTX  
TXN 82.44   BITA  
      ATI  
      EDU  
      NFLX  
      MCD  
      DISH  
      WNC  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 6.3.2017 LBTYK Long Close 14.3.2017 +2.47%
2 8.3.2017 FTNT Long Close 9.3.2017 +0.37%
3 13.3.2017 ARNC Long Close 21.3.2017 +1.92%
4 14.3.2017 MOMO Long Close 20.3.2017 +5.50%
5 15.3.2017 PTLA Long Close 17.3.2017 +0.65%
6 17.3.2017 NTNX Long Close 21.3.2017 -4.23%
7 22.3.2017 FNSR Short Close 25.3.2017 -2.78%
8 27.3.2017 AKAO Long Close 31.3.2017 +11.31%
9 30.3.2017 AFSI Short Close 3.4.2017 -6.63%
10 3.4.2017 ARNC Long Close 31.3.2017 -2.52%
11 3.4.2017 GME Short Close 10.4.2017 +1.95%
12 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
13 13.4.2017 NKTR Long Close 21.4.2017 +0.61%
14 25.4.2017 LULU Short Open   -0.05%
15            
16            
17            
18            

 


 

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

Company Name GNC Holdings,
Entry Point 8.19
Stop Area 7.75
1st Target 8.60
Swing Target 9.57
Avg. Volume 4.48M
Sector Services | Drug Stores
Earning Date
Risk Rate Low
Risk\Reward Ratio 3.14:1
Company Name  
Entry Point  
Stop Area  
1st Target  
Swing Target  
Avg. Volume  
Sector  
Earning Date  
Risk Rate  
Risk\Reward Ratio  

 No.1 –  GNC

Company Name GNC Holdings,
Entry Point 8.19
Stop Area 7.75
1st Target 8.60
Swing Target 9.57
Avg. Volume 4.48M
Sector Services | Drug Stores
Earning Date
Risk Rate Low
Risk\Reward Ratio 3.14:1