Investors Sidelined

Stocks on Wall Street barely moved yesterday, sidelined investors waiting in anticipation for the Q1 earnings season number and beset by concerns about Trump’s ability to deliver on his election campaign tax reform promises. Likewise, investors now find themselves focusing on the tense meeting between the President of the United States and his Chinese counterpart, Xi Jinping, set for this Thursday and Friday. Retail stocks fell after a number of sector-based downgrades, and after Ralph Lauren (RL) announced that it was closing its 5th Avenue flagship store in NYC, and that it was cutting its work force.

In summary for the day, the Dow Jones rose 0.19%, the S&P 500 tacking on 0.06% and the NASDAQ rising 0.07%.

Despite Trump’s policy promises having boosted U.S. stocks to new highs since the November 8th elections, the new president’s latest setbacks in passing reforms in Congress have led investors to cast doubt on the abilities of the White House to follow through with its commitments. Stocks found support to some degree at the beginning of the day, after Trump made known that infrastructure spending is likely to come to $1 trillion, adding that the administration is working on a significant “haircut” to Dodd-Frank, which was imposed on banks after the 2008 financial crisis.

The stock, RL, fell 4.5%, after further signs that the traditional real estate sector was losing clientele in favor of online shopping. JWN recorded sharp losses of 5.5%, LB slashed 4.4% after suffering a downgrade.

Airline stocks were weak, American Airlines (AAL) falling 3.7%, its competitor, Delta (DAL) slumping 2.6% after announcing that it was lowering its revenue forecast for the second time in less than a month.

The stock of chipmaker, Nvidia (NVDA), fell 7% on the background of a Pacific Crest Securities downgrade, the firm’s analysts apprehensive about the saturation of the chip market’s video processing segment, projecting limited demand growth in the foreseeable future, which all-in-all sufficed for it to give the chipmaker an “underweight” rating. Its competitor, AMD, also saw sharp losses of 3.3%.

On the S&P 500, 12 stocks rose to new 52-week highs, 7 dipping to new yearly lows; on the NASDAQ, 38 stocks recorded new 52-week highs, 48 falling to new yearly lows.

About 6.2 billion shares changed hands on U.S. exchanges, beneath the 6.8 billion average over the last 20 trading days.

Wednesday: For the market, there’s always the shock factor risk from Washington, but that aside, the market will focus on 3 main reports today:

The big reading in the market today is likely to be that of the ADP report, which will be released at 8:15 N.Y. time, about an hour and a half before trading opens; the report is a warmup of sorts for the official employment report, which will be released this Friday morning. The big question is whether the wintry inclement weather in March will cause a short-circuit in the employment numbers, after February’s strong reading of 235 thousand new hires. The ADP report is expected to point today to 187 thousand new positions in the private sector, and if indeed the numbers come out weaker because of weather patterns, we could definitely see downgraded forecasts leading up to Friday’s job numbers.

Economists expect to see 180 thousand new jobs in March’s official employment report this Friday, their projections having unemployment staying stable at 4.7%.

Today’s second biggest number will be the Supply Managers’ ISM service sector index, the report focusing on the non-manufacturing side of the economy. The figure is expected to point to a 57.6 point reading for February, every reading above 50 points signaling economic expansion; the figure will be the 87th consecutive month featuring growth, along with plenty of service sector strength. In any case, traders will be eyeing the numbers, which will be released today at 10:00.

The third reading will come later in the day at 14:00 N.Y. time, i.e. the minutes from the latest Fed meeting. Just to jog our memories, the central bank hiked rates in its mid-March meeting, and ever since, bankers have been very vocal about their desire to see more of the same. That being the case, traders will look deeper into today’s minutes for any information about what the Fed’s got in store.

Besides these 3 large reports, the Energy Information Administration (EIA) will be releasing weekly crude inventory numbers at 10:30. Key earnings reports are expected from MON and WBA before closing. BBBY and YUMC will be reporting after the closing bell.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,689 0.19% Up          
SPX 2,360 0.06% Up 236.23 235.85 235.21 234.83 234.19
Nasdaq 5,899 0.07% Up 132.96 132.74 132.30 132.08 131.64

Wednesday’s Hot Stocks: WBA, MON, SHLM, NVDA

IPOs: HESM

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 10:00 ISM Index 57.0 High
Monday 10:00 Construction Spending 1.0% Medium
Monday 14:00 Auto Sales 0.2% Low
Tuesday 10:00 Factory Orders 0.9% Medium
Wednesday 8:15 ADP Employment Change 175K High
Wednesday 10:00 ISM Services 57.0 Medium
Wednesday 10:30 Crude Inventories Low
Wednesday 14:00 FOMC Minutes High
Thursday 8:30 Initial Claims 245K High
Friday 8:30 Nonfarm Payrolls 180K High
Friday 8:30 Unemployment Rate 4.7% High
Friday 10:00 Wholesale Inventories 0.4% Medium

 

 

Earning Calendar

 

Symbol Company AM/PM Day
MON Monsanto Company AM Wednesday
WBA Walgreens Boots Alliance, Inc. AM Wednesday
YUMC Yum China Holdings, Inc. PM Wednesday
BBBY Bed Bath & Beyond Inc. PM Wednesday
KMX CarMax Inc. AM Thursday
STZ Constellation Brands, Inc. AM Thursday
PSMT PriceSmart, Inc. PM Thursday
ALR Alere Inc. AM Friday

 

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
RICE 24   LL TWLO
CNQ 33.39   CRUS DLPH
FMC 72.04   VRTX CREE
ACOR   17.50 LVNTA NVDA
SRPT   28.50   JWN
        RL
        LB
        AAL

  

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 Open   +2.10%
12            
13            
14            
15            
16            
17            
18            

 


 

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

Company Name Impax Laboratories
Entry Point 12.25
Stop Area 11.80
1st Target 12.65
Swing Target 15.05
Avg. Volume 2.04M
Sector Healthcare | Drug Manufacturers – Major
Earning Date
Risk Rate Low
Risk\Reward Ratio 6.22:1
Company Name  
Entry Point  
Stop Area  
1st Target  
Swing Target  
Avg. Volume  
Sector  
Earning Date  
Risk Rate  
Risk\Reward Ratio  

 No.1 –  IPXL

Company Name Impax Laboratories
Entry Point 12.25
Stop Area 11.80
1st Target 12.65
Swing Target 15.05
Avg. Volume 2.04M
Sector Healthcare | Drug Manufacturers – Major
Earning Date
Risk Rate Low
Risk\Reward Ratio 6.22:1