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.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,637 0.90% Up          
SPX 2,349 0.86% Up 236.91 236.18 235.30 234.57 233.69
Nasdaq 5,857 0.89% Up 132.73 132.39 132.04 131.70 131.35

 

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

IPOs: None

Have a great trading day!

 


Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Empire Manufacturing 13.0 Medium
Monday 10:00 NAHB Housing Market Index 70 Medium
Tuesday 8:30 Housing Starts 1260K Medium
Tuesday 8:30 Building Permits 1240K Medium
Tuesday 9:15 Industrial Production 0.4% Medium
Wednesday 10:30 Crude Inventories Low
Wednesday 14:00 Fed’s Beige Book High
Thursday 8:30 Initial Claims 241K High
Thursday 8:30 Philadelphia Fed 21.8 Medium
Thursday 10:00 Leading Indicators 0.3% Medium
Friday 10:00 Existing Home Sales 5.55M Medium

 

 

Earning Calendar

 

Symbol Company AM/PM Day
UAL United Continental Holdings, Inc. PM Monday
NFLX Netflix, Inc. PM Monday
GS The Goldman Sachs Group, Inc. AM Tuesday
UNH UnitedHealth Group Incorporated AM Tuesday
BAC Bank of America Corporation AM Tuesday
JNJ Johnson & Johnson AM Tuesday
HOG Harley-Davidson, Inc. AM Tuesday
CMA Comerica Incorporated AM Tuesday
OMC Omnicom Group Inc. AM Tuesday
IBM International Business Machines Corporation PM Tuesday
YHOO Yahoo! Inc. PM Tuesday
LRCX Lam Research Corporation PM Tuesday
BLK BlackRock, Inc. AM Wednesday
ABT Abbott Laboratories AM Wednesday
MS Morgan Stanley AM Wednesday
TXT Textron Inc. AM Wednesday
URI United Rentals, Inc. PM Wednesday
EBAY eBay Inc. PM Wednesday
CSX CSX Corporation PM Wednesday
QCOM QUALCOMM Incorporated PM Wednesday
AXP American Express Company PM Wednesday
PM Philip Morris International Inc. AM Thursday
TRV The Travelers Companies, Inc. AM Thursday
BBT BB&T Corporation AM Thursday
DOV Dover Corporation AM Thursday
DHI D.R. Horton, Inc. AM Thursday
NUE Nucor Corporation AM Thursday
V Visa Inc. PM Thursday
GE General Electric Company AM Friday
NEE NextEra Energy, Inc. AM Friday
HON Honeywell International Inc. AM Friday
SLB Schlumberger Limited AM Friday
STI SunTrust Banks, Inc. AM Friday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
AMT 124.40   ZAYO  
VTR 65.89   CMA  
BABA 111.88      
NFLX 148.29      

 

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 Close 10.4.2017 +1.95%
12 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
13 13.4.2017 NKTR Long Open   +1.73%
14            
15            
16            
17            
18            

 


 

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

Company Name
PVH 
Entry Point 100.54
Stop Area 99.40
1st Target 101.20
Swing Target 104.28
Avg. Volume 1.22M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.28:1

 

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 Point 100.54
Stop Area 99.40
1st Target 101.20
Swing Target 104.28
Avg. Volume 1.22M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.28:1