Tech Day on the Market!
Stocks on Wall Street closed lightly down on Wednesday after gaining significant ground on the previous 2 trading days. Yesterday, the Trump administration revealed its plan to cut corporate taxes and offshore moneys companies are looking to repatriate. The proposal, though, offered no detail as to how the reform would be funded without increasing the federal budget.
Tax cut expectations were one of the catalysts behind the strong rally propelling the American stock market higher since November. The market has halted slightly over the last few weeks – after the Trump administration failed to pass key health care legislation. With that said, economic growth and firm earnings are likely to provide adequate support for current stock market levels.
All-in-all, S&P 500 earnings are expected to record Q1 growth of 11.8%, the fastest growth rate since 2011.
In Summary for the Day: The Dow Jones shed 0.1%, the S&P 500 ending negligibly down by 0.05%, with the NASDAQ trading unchanged.
One of the stocks that stood in yesterday’s trading was Twitter (TWTR), which soared 7.9% after its numbers hit analysts’ top and bottom line forecasts. Twitter likewise reported a 14% rise in daily user activity on its service offerings.
Wynn Resorts (WYNN) rallied 5.9% after a large earnings surprise, riding the wave of marked strength in its Macau and Las Vegas casinos.
On the negative side, U.S. Steel (X) fell 26.8% after the company fell short of analyst forecasts. Seagate (STX) tumbled 16.8% after its revenue miss, the company also announcing that its inventories were high.
On the S&P 500, 82 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 210 stocks recorded new 52-week highs, 28 falling to new yearly lows.
About 7.33 billion shares changed hands on U.S. exchanges, outstripping the 6.44 billion average over the last 20 trading days.
Thursday: Today will be dominated by the earnings releases of large tech companies, something that could very well spur the market on to new highs. Earnings numbers will start pouring into the market with UNP, BMY, F, CMCSA, DOW, and RTN before opening.
Large tech companies, some of which helped the market rally higher over the last few week, will be reporting after closing – and are likely to constitute a substantial catalyst the moment the market opens on Thursday. These players include Amazon (AMZN) which has soared 21% year-to-date and Google (GOOGL), which is up 12% on the year.
Other companies reporting today after closing include: MSFT, INTC, and SBUX.
Thursday’s Hot Stocks: AMGN, PYPL, FFIV, CTXS, AAL, UPS, CELG
IPOs: XRF, FND, VRNA
Have a great trading day!
|Tuesday||9:00||Case-Shiller Home Price Index||–||Medium|
|Tuesday||9:00||FHFA Housing Price Index||–||Medium|
|Tuesday||10:00||New Home Sales||–||Medium|
|Thursday||10:00||Pending Home Sales||–||Medium|
|Friday||10:00||Michigan Sentiment – Final||–||High|
|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|
|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|
|BA||The Boeing Company||AM||Wednesday|
|HSY||The Hershey Company||AM||Wednesday|
|FFIV||F5 Networks, Inc.||PM||Wednesday|
|JCI||Johnson Controls International plc||AM||Thursday|
|AAL||American Airlines Group Inc.||AM||Thursday|
|UPS||United Parcel Service, Inc.||AM||Thursday|
|GOOGL||Google Class A||PM||Thursday|
|XOM||Exxon Mobil Corporation||AM||Friday|
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