Market’s Low Volume Rally Led by Banking and Tech Sectors

Wall Street stocks bounced higher on Monday after the S&P 500 had closed the day prior at a 2-month low. Sector-wide rallies in the beaten down banking and tech sectors muscled indexes into the green on the day.

The market’s focus has switched from geopolitical tensions to the earnings season, with a number of key companies standing to report this coming week, including JNJ, GE and GS. Yesterday’s trading volumes were the lowest the market had seen year-to-date.

Stocks rebounded after investors sought havens last week in light of mounting geopolitical tensions between North Korea and the U.S. The fact that no drama developed over the weekend helped investors steel themselves and again buy stocks.

In summary for the day: the Dow Jones rose 0.9%, the S&P 500 advancing 0.86%, and the NASDAQ rising 0.89%.

The tech sector (XLK) closed up for the first time in 11 trading days, the financial sector (XLF) recording gains only for the second time in that period.

S&P 500 companies are expected to record growth of 10.4% in Q1 2017, which would make it the first quarter of double-digit growth since 2014.

Netflix (NFLX), which reported after closing, rose 3% during regular trading to the $147.25 level.

Amazon (AMZN) rallied 2% to the $901.99 level after Credit Suisse lifted its price target for the stock to $1,050 from its earlier $900 target; Credit Suisse also raised its price target on Boeing (BA), sending the jet-maker up 1.9%, with its stock closing at $179.02.

On the S&P 500, 14 stocks rose to new 52-week highs, one dipping to a new yearly low; on the NASDAQ, 32 stocks recorded new 52-week highs, 49 falling to new yearly lows.

About 5.31 billion shares changed hands on U.S. exchanges, compared to the 6.4 billion average over the last 20 trading days.

Tuesday: Optimism that the Trump administration will succeed in pushing through its grandiose plans to spur growth has been waning by the day. U.S. Treasury Secretary, Steve Mnuchin, was only the last official to douse cool water on enthusiasm about tax reform, noting in an interview to the Financial Times that pushing through legislation before August would be “highly aggressive to not realistic at this point.” Mnuchin also said, “It is fair to say it is probably delayed a bit because of the healthcare.”

Yesterday, after closing, Netflix (NFLX), the first large tech company to release its Q1 results, was in the limelight. Though it didn’t clear the high jump with flying colors, Wall Street was satisfied, NFLX, rising 1.43% in late trading. Also among the late reporters yesterday, the airline giant, United Airlines (UAL) rose almost 1% after reporting earnings of 41 cents per share, besting projections of 38 cents.

The Economic Diary today will include housing starts at 8:30 N.Y. time. Industrial output figures will be released at 9:15.

IndexLastDaily changeR2R1PPS1S2
DJX20,6370.90%Up     
SPX2,3490.86%Up236.91236.18235.30234.57233.69
Nasdaq5,8570.89%Up132.73132.39132.04131.70131.35

 

Tuesday’s Hot Stocks: NFLX, UAL, JNJ, CMA, HOG

IPOs: None

Have a great trading day!

 


Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Empire Manufacturing13.0Medium
Monday10:00NAHB Housing Market Index70Medium
Tuesday8:30Housing Starts1260KMedium
Tuesday8:30Building Permits1240KMedium
Tuesday9:15Industrial Production0.4%Medium
Wednesday10:30Crude InventoriesLow
Wednesday14:00Fed’s Beige BookHigh
Thursday8:30Initial Claims241KHigh
Thursday8:30Philadelphia Fed21.8Medium
Thursday10:00Leading Indicators0.3%Medium
Friday10:00Existing Home Sales5.55MMedium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
UALUnited Continental Holdings, Inc.PMMonday
NFLXNetflix, Inc.PMMonday
GSThe Goldman Sachs Group, Inc.AMTuesday
UNHUnitedHealth Group IncorporatedAMTuesday
BACBank of America CorporationAMTuesday
JNJJohnson & JohnsonAMTuesday
HOGHarley-Davidson, Inc.AMTuesday
CMAComerica IncorporatedAMTuesday
OMCOmnicom Group Inc.AMTuesday
IBMInternational Business Machines CorporationPMTuesday
YHOOYahoo! Inc.PMTuesday
LRCXLam Research CorporationPMTuesday
BLKBlackRock, Inc.AMWednesday
ABTAbbott LaboratoriesAMWednesday
MSMorgan StanleyAMWednesday
TXTTextron Inc.AMWednesday
URIUnited Rentals, Inc.PMWednesday
EBAYeBay Inc.PMWednesday
CSXCSX CorporationPMWednesday
QCOMQUALCOMM IncorporatedPMWednesday
AXPAmerican Express CompanyPMWednesday
PMPhilip Morris International Inc.AMThursday
TRVThe Travelers Companies, Inc.AMThursday
BBTBB&T CorporationAMThursday
DOVDover CorporationAMThursday
DHID.R. Horton, Inc.AMThursday
NUENucor CorporationAMThursday
VVisa Inc.PMThursday
GEGeneral Electric CompanyAMFriday
NEENextEra Energy, Inc.AMFriday
HONHoneywell International Inc.AMFriday
SLBSchlumberger LimitedAMFriday
STISunTrust Banks, Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AMT124.40 ZAYO 
VTR65.89 CMA 
BABA111.88   
NFLX148.29   

 

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%
1313.4.2017NKTRLongOpen +1.73%
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Today’s Picks – Swing “New-York Strategy”

Company Name
PVH 
Entry Point100.54
Stop Area99.40
1st Target101.20
Swing Target104.28
Avg. Volume1.22M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio3.28:1

 

Company Name 
Entry Point 
Stop Area 
1st Target 
Swing Target 
Avg. Volume 
Sector 
Earning Date 
Risk Rate 
Risk\Reward Ratio 

 

Today’s Picks – Swing “New-York Strategy

 No.1 –  PVH

Company Name
PVH 
Entry Point100.54
Stop Area99.40
1st Target101.20
Swing Target104.28
Avg. Volume1.22M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio3.28:1