Crude Piles on More Losses

Wall Street ended down yesterday in relatively quiet trading, with energy and banking stocks leading the losses. Banking stocks were battered against the backdrop of concern about trading revenue declines and anemic interest margins which have eaten into profitability. Energy stocks saw downward pressure, crude experiencing continued weakening. The big names in each of these sectors are now in jeopardy of breaking down significant support levels, which could make matters only worse, leading more losses to pile up.

In Summary for the Day: The S&P 500 shed 0.05%, the NASDAQ falling 0.1%. Gold rallied 0.8%, crude falling 2.7%.

One of the banking stocks that stood out was JPM, which fell 2.1% after its CFO announced that Q2 revenues to date are down 15% year-over-year. BAC fell 1.9% after its CEO shared that the bank’s Q2 trading revenues will see a decline. GS fell 3.3%, recording the sharpest losses on the Dow Jones.

The financial sector (XLF) has rallied over 20% ever since the U.S. presidential elections this past November, riding hopes for a stimulus package and lowered regulation under the new occupant of the Oval Office. Financial stocks, though, have struggled over the last few weeks.

It seems that investors no longer believe in the fruition of Trump’s campaign promises about his flagship issues, from huge infrastructure spending, to tax and regulation cuts – well at least not, that is to say, to the extent or at the clip the market had once priced in. That’s the reason that many sectors that had rallied on Trump’s promises are now retreating.

The energy sector (XLE) recorded losses of 0.4%. Crude prices hit a 3-week low after a rise in the production pace in Nigeria and Libya sparked concern that the production cut in OPEC won’t hold water. Crude closed down by 2.7% at the $48.32 barrel level.

One of the stocks that stood out in yesterday’s trading was Michael Kors (KORS), which toppled 8.5% to the $33.18 level. The upscale apparel company released a dismal full-year forecast, noting that it plans to close 100 stores over the next 2 years.

On the S&P 500, 28 stocks rose to new 52-week highs, 11 dipping to new yearly lows; on the NASDAQ, 82 stocks recorded new 52-week highs, 70 falling to new yearly lows.

About 7.85 billion shares changed hands on U.S. exchanges, above the 6.72 billion average over the last 20 trading days.

Thursday: A wide range of economic figures will wash over the market today – job numbers, car sales and manufacturing activity – and on a whole, they are expected to provide a clear snapshot of how the economy fared in May. The torrent of numbers today will precede the month’s most important figure, the official May employment report which will be released tomorrow before opening.

The ADP survey, which measures the number of new private sector positions, will be released before trading opens at 8:15 N.Y. time. The ADP release for May is expected to point to 185 thousand new positions. Initial weekly unemployment claims, and the Q1 worker productivity and costs report will be released at 8:30.

Car sale figures for May will be released over the course of the morning – expected to come in at an annual pace of 16.8 million units.

Manufacturing figures will be released by Markit, with its PMI index coming out at 9:45, immediately followed by the Supply Managers ISM manufacturing index at 10:00. Infrastructure spending figures will be released at the same hour.

The deluge of figures today is of the utmost importance seeing that Q2 figures to date have lacked consistency, in light of the fact that economists still believe that the economy will record quarterly growth of 3%.

Investors will also be awaiting weekly crude reserve figures, all the more so given the plunge in crude yesterday that seems to be spiting OPEC’s best efforts to stabilize prices in the market.

A number of companies are expected to report today. Before opening, be primed and ready for DG, EXPR, CIEN, and MBLY. Then, after closing, it will be LULU, VMW, AVGO, WDAY, and FIVE.

IndexLastDaily change
DJX21,009(-0.10%)Down
SPX2,412(-0.05%)Down
Nasdaq6,199(-0.08%)Down

Thursday’s Hot Stocks: DG, EXPR, CIEN, PANW, HPE, MPC

IPOs: None

Have a great trading day!

 

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
MondayNo TradingMemorial Day  
Tuesday8:30Personal income/spendingMedium
Tuesday9:00S&P/Case-ShillerMedium
Tuesday10:00Consumer confidenceHigh
Wednesday9:45Chicago PMIMedium
Wednesday10:00Pending home salesMedium
Wednesday14:00Beige bookMedium
Thursday8:15ADP employmentMedium
Thursday8:30Initial claims High
Thursday9:45Manufacturing PMI Medium
Thursday10:00ISM manufacturing High
Thursday10:00Construction spending Medium
Thursday11:00Crude Oil Inventories Low

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
ADIAnalog Devices, Inc.AMWednesday
CAECAE Inc.AMWednesday
KORSMichael Kors Holdings LimitedAMWednesday
PANWPalo Alto Networks, Inc.PMWednesday
BOXBox, Inc.PMWednesday
HPEHewlett Packard Enterprise CompanyPMWednesday
BUDAnheuser-Busch InBev SA/NVAMThursday
CIENCiena CorporationAMThursday
TECDTech Data CorporationAMThursday
DGDollar General CorporationAMThursday
DCIDonaldson Company, Inc.AMThursday
LULULululemon Athletica Inc.PMThursday
WDAYWorkday, Inc.PMThursday
FIVEFive Below, Inc.PMThursday
VMWVMware, Inc.PMThursday
AVGOBroadcom LimitedPMThursday

  

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
WYNN129.03 VRTXGLNG
DRI89.14 PYPLSINA
JNJ129 DRIGS
   PRGOSTI

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

13.4.2017ARNCLongClose31.3.2017-2.52%
23.4.2017GMEShortClose10.4.2017+1.95%
35.4.2017IPXLLongClose11.4.2017+7.03%
413.4.2017NKTRLongClose21.4.2017+0.61%
525.4.2017LULUShortClose2.5.2017-0.17%
626.4.2017GNCLongClose28.4.2017-4.39%
728.4.2017CARALongClose1.5.2017-3.23%
81.5.2017AAOILongClose2.5.2017+0.54%
93.5.2017SCSSLongClose9.5.2017-1.71%
104.5.2017CRZOShortClose5.5.2017+0.30%
118.5.2017WTWLongClose16.5.2017+6.09%
1215.5.2017AANLongClose16.5.2017-1.70%
1316.5.2017CCLLongClose17.5.2017-0.41%
1417.5.2017AMAGShortClose24.5.2017+5.38%
1517.5.2017AANLongClose24.5.2017-2.59%
1619.5.2017TRCOLongClose23.5.2017-1.45%
1719.5.2017GIMOLongClose26.5.2017+2.05%
       

 

Today’s Picks – Swing “New-York Strategy

No.1 –    BF.B

Company NameBrown-Forman
Entry Point52
Stop Area50.95
1st Target52.70
Swing Target57
Avg. Volume1.12M
SectorConsumer Goods | Beverages – Wineries & Distillers
Earning Date7 Jun
Risk RateNormal
Risk\Reward Ratio4.76:1

No.2 – VFC

Company NameV.F. Corporation
Entry Point53.60
Stop Area54.25
1st Target53.10
Swing Target51.25
Avg. Volume3.63M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio4.76:1