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.

 

IndexLastDaily changeR2R1PPS1S2
DJX20,9961.12%Up     
SPX2,3890.61%Up236.91236.18235.30234.57233.69
Nasdaq6,0250.70%Up132.73132.39132.04131.70131.35

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

 

DAYTIME (EST)EventForecastImpact
Tuesday9:00Case-Shiller Home Price IndexMedium
Tuesday9:00FHFA Housing Price IndexMedium
Tuesday10:00New Home SalesMedium
Tuesday10:00Consumer ConfidenceMedium
Wednesday10:30Crude InventoriesLow
Thursday8:30Initial ClaimsHigh
Thursday8:30Durable OrdersMedium
Thursday8:30Initial ClaimsHigh
Thursday10:00Pending Home SalesMedium
Friday8:30GDP-Adv.Medium
Friday9:45Chicago PMIMedium
Friday10:00Michigan Sentiment – FinalHigh

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Earning Calendar

 

SymbolCompanyAM/PMDay
CATCaterpillar Inc.AMTuesday
DDE. I. du Pont de Nemours and CompanyAMTuesday
KOThe Coca-Cola CompanyAMTuesday
LLYEli Lilly and CompanyAMTuesday
MCDMcDonald’s CorporationAMTuesday
MMM3M CompanyAMTuesday
VLOValero Energy CorporationAMTuesday
XUnited States Steel CorporationPMTuesday
JNPRJuniper Networks, Inc.PMTuesday
COFCapital One Financial CorporationPMTuesday
ARNCArconic Inc.PMTuesday
BAThe Boeing CompanyAMWednesday
HSYThe Hershey CompanyAMWednesday
PEPPepsico, Inc.AMWednesday
FFIVF5 Networks, Inc.PMWednesday
AMGNAmgen Inc.PMWednesday
CELGCelgene CorporationAMThursday
JCIJohnson Controls International plcAMThursday
AALAmerican Airlines Group Inc.AMThursday
UPSUnited Parcel Service, Inc.AMThursday
SBUXStarbucks CorporationPMThursday
MSFTMicrosoft CorporationPMThursday
GOOGLGoogle Class APMThursday
GPROGOPRO, INC.PMThursday
AMZNAmazon.com, Inc.PMThursday
CLColgate-Palmolive CompanyAMFriday
CVXChevron CorporationAMFriday
PSXPhillips 66AMFriday
XOMExxon Mobil CorporationAMFriday

 

 

 

 


 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
GD194 BIDUTROW
DD82.37 WBA 
AAOI50 TGTX 
TXN82.44 BITA 
   ATI 
   EDU 
   NFLX 
   MCD 
   DISH 
   WNC 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

16.3.2017LBTYKLongClose14.3.2017+2.47%
28.3.2017FTNTLongClose9.3.2017+0.37%
313.3.2017ARNCLongClose21.3.2017+1.92%
414.3.2017MOMOLongClose20.3.2017+5.50%
515.3.2017PTLALongClose17.3.2017+0.65%
617.3.2017NTNXLongClose21.3.2017-4.23%
722.3.2017FNSRShortClose25.3.2017-2.78%
827.3.2017AKAOLongClose31.3.2017+11.31%
930.3.2017AFSIShortClose3.4.2017-6.63%
103.4.2017ARNCLongClose31.3.2017-2.52%
113.4.2017GMEShortClose10.4.2017+1.95%
125.4.2017IPXLLongClose11.4.2017+7.03%
1313.4.2017NKTRLongClose21.4.2017+0.61%
1425.4.2017LULUShortOpen -0.05%
15      
16      
17      
18      

 


 

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

Company NameGNC Holdings,
Entry Point8.19
Stop Area7.75
1st Target8.60
Swing Target9.57
Avg. Volume4.48M
SectorServices | Drug Stores
Earning Date
Risk RateLow
Risk\Reward Ratio3.14:1
Company Name 
Entry Point 
Stop Area 
1st Target 
Swing Target 
Avg. Volume 
Sector 
Earning Date 
Risk Rate 
Risk\Reward Ratio 

 No.1 –  GNC

Company NameGNC Holdings,
Entry Point8.19
Stop Area7.75
1st Target8.60
Swing Target9.57
Avg. Volume4.48M
SectorServices | Drug Stores
Earning Date
Risk RateLow
Risk\Reward Ratio3.14:1