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.

IndexLastDaily changeR2R1PPS1S2
DJX20,6890.19%Up     
SPX2,3600.06%Up236.23235.85235.21234.83234.19
Nasdaq5,8990.07%Up132.96132.74132.30132.08131.64

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

IPOs: HESM

Have a great trading day!

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00ISM Index57.0High
Monday10:00Construction Spending1.0%Medium
Monday14:00Auto Sales0.2%Low
Tuesday10:00Factory Orders0.9%Medium
Wednesday8:15ADP Employment Change175KHigh
Wednesday10:00ISM Services57.0Medium
Wednesday10:30Crude InventoriesLow
Wednesday14:00FOMC MinutesHigh
Thursday8:30Initial Claims245KHigh
Friday8:30Nonfarm Payrolls180KHigh
Friday8:30Unemployment Rate4.7%High
Friday10:00Wholesale Inventories0.4%Medium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
MONMonsanto CompanyAMWednesday
WBAWalgreens Boots Alliance, Inc.AMWednesday
YUMCYum China Holdings, Inc.PMWednesday
BBBYBed Bath & Beyond Inc.PMWednesday
KMXCarMax Inc.AMThursday
STZConstellation Brands, Inc.AMThursday
PSMTPriceSmart, Inc.PMThursday
ALRAlere Inc.AMFriday

 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
RICE24 LLTWLO
CNQ33.39 CRUSDLPH
FMC72.04 VRTXCREE
ACOR 17.50LVNTANVDA
SRPT 28.50 JWN
    RL
    LB
    AAL

  

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%
113.4.2017GMEShortOpen +2.10%
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Today’s Picks – Swing “New-York Strategy”

Company NameImpax Laboratories
Entry Point12.25
Stop Area11.80
1st Target12.65
Swing Target15.05
Avg. Volume2.04M
SectorHealthcare | Drug Manufacturers – Major
Earning Date
Risk RateLow
Risk\Reward Ratio6.22:1
Company Name 
Entry Point 
Stop Area 
1st Target 
Swing Target 
Avg. Volume 
Sector 
Earning Date 
Risk Rate 
Risk\Reward Ratio 

 No.1 –  IPXL

Company NameImpax Laboratories
Entry Point12.25
Stop Area11.80
1st Target12.65
Swing Target15.05
Avg. Volume2.04M
SectorHealthcare | Drug Manufacturers – Major
Earning Date
Risk RateLow
Risk\Reward Ratio6.22:1