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.

Index Last Daily change
DJX 21,009 (-0.10%) Down
SPX 2,412 (-0.05%) Down
Nasdaq 6,199 (-0.08%) Down

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

IPOs: None

Have a great trading day!

 

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday No Trading Memorial Day    
Tuesday 8:30 Personal income/spending Medium
Tuesday 9:00 S&P/Case-Shiller Medium
Tuesday 10:00 Consumer confidence High
Wednesday 9:45 Chicago PMI Medium
Wednesday 10:00 Pending home sales Medium
Wednesday 14:00 Beige book Medium
Thursday 8:15 ADP employment Medium
Thursday 8:30 Initial claims   High
Thursday 9:45 Manufacturing PMI   Medium
Thursday 10:00 ISM manufacturing   High
Thursday 10:00 Construction spending   Medium
Thursday 11:00 Crude Oil Inventories   Low

 

 

Earning Calendar

 

Symbol Company AM/PM Day
ADI Analog Devices, Inc. AM Wednesday
CAE CAE Inc. AM Wednesday
KORS Michael Kors Holdings Limited AM Wednesday
PANW Palo Alto Networks, Inc. PM Wednesday
BOX Box, Inc. PM Wednesday
HPE Hewlett Packard Enterprise Company PM Wednesday
BUD Anheuser-Busch InBev SA/NV AM Thursday
CIEN Ciena Corporation AM Thursday
TECD Tech Data Corporation AM Thursday
DG Dollar General Corporation AM Thursday
DCI Donaldson Company, Inc. AM Thursday
LULU Lululemon Athletica Inc. PM Thursday
WDAY Workday, Inc. PM Thursday
FIVE Five Below, Inc. PM Thursday
VMW VMware, Inc. PM Thursday
AVGO Broadcom Limited PM Thursday

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
WYNN 129.03   VRTX GLNG
DRI 89.14   PYPL SINA
JNJ 129   DRI GS
      PRGO STI

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 3.4.2017 ARNC Long Close 31.3.2017 -2.52%
2 3.4.2017 GME Short Close 10.4.2017 +1.95%
3 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
4 13.4.2017 NKTR Long Close 21.4.2017 +0.61%
5 25.4.2017 LULU Short Close 2.5.2017 -0.17%
6 26.4.2017 GNC Long Close 28.4.2017 -4.39%
7 28.4.2017 CARA Long Close 1.5.2017 -3.23%
8 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
9 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
10 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
11 8.5.2017 WTW Long Close 16.5.2017 +6.09%
12 15.5.2017 AAN Long Close 16.5.2017 -1.70%
13 16.5.2017 CCL Long Close 17.5.2017 -0.41%
14 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
15 17.5.2017 AAN Long Close 24.5.2017 -2.59%
16 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
17 19.5.2017 GIMO Long Close 26.5.2017 +2.05%
             

 

Today’s Picks – Swing “New-York Strategy

No.1 –    BF.B

Company Name Brown-Forman
Entry Point 52
Stop Area 50.95
1st Target 52.70
Swing Target 57
Avg. Volume 1.12M
Sector Consumer Goods | Beverages – Wineries & Distillers
Earning Date 7 Jun
Risk Rate Normal
Risk\Reward Ratio 4.76:1

No.2 – VFC

Company Name V.F. Corporation
Entry Point 53.60
Stop Area 54.25
1st Target 53.10
Swing Target 51.25
Avg. Volume 3.63M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.76:1