Economy Picks it Up a Gear, Market at New High!

The market’s tendency on the first day of the month to record strong gains didn’t disappoint traders yesterday. Stocks on Wall Street rallied on Thursday, each of the main indexes reaching a new historic high, after the release of a flood of economic figures which pointed to the economy picking it up a notch. The first day of June – a month that’s statistically the fourth worst performing month of the year – ended positively!

The ADP private sector jobs survey showed that 253 thousand new positions were added in the month of May, significantly above the 185 thousand consensus. The ADP numbers could signal a strong reading from the governmental employment report today before opening, a report that includes both private and public sector figures. Strong numbers today are likely to support the anticipated move on the part of the Fed to hike rates in two weeks’ time. Traders as of now are pricing in chances of 88.9% for a quarter point hike when the central bank meets for its policy meeting between June 13th-14th.

In addition to the ADP figures, a separate report yesterday showed that factory activity picked up in May after having recorded a slowdown in the previous 2 months.

In Summary for the Day: The Dow Jones rose 0.65%, the S&P 500 jumping 0.76% and the NASDAQ tacking on 0.78%. One of the stocks that stood out in yesterday’s trading was Palo Alto Networks (PANW), which soared 17.2% to $138.99, a four month high on the heels of the better than expected earnings reported by the cyber-security company.

On the negative side, the stock of Hewlett Packard (HPE) fell 6.9% to $17.52, making it the biggest weight on the S&P 500 after the company missed on the revenue front last quarter.

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

Friday: The hiring pace for May is expected to come out strong, analysts projecting that today’s official Labor Department employment report – to be released before opening at 8:30 N.Y. time – will record a reading of 185 thousand. The unemployment rate is expected to stay stable at 4.4%. Today’s employment report is expected to highlight widespread hiring, from business sector and professionals sector – along with the retail and manufacturing sectors, two sources of recent weakness. All four job market sectors are expected to record improvement.

Economists, though, are also eyeing the hourly wage rate, which will be released in the employment report – and which has been showing signs of acceleration. Economists expect to see a month-to-month rise of 0.2% in hourly wages, after a 0.3% rise last month. That would mean an annualized rise of 2.6% in hourly wages. A rise in wages also points to inflation in the making.

IndexLastDaily change
DJX21,144+0.65%Up
SPX2,430+0.76%Up
Nasdaq6,247+0.78%Up

Besides the employment report, international trade figures are also expected for 8:30.

Friday’s Hot Stocks: LULU, RH, AVGO, WDAY, VMW

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
Friday8:30Trade Balance-$44.4BMedium
Friday8:30Nonfarm Private Payrolls185KHigh
Friday8:30Unemployment Rate4.4%High

 

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
LB53.71 CIENADI
XYL53 PANWHPE
CTRP56.75 DG 
CL76.86 SIG 
   W 
   LVS 
   LVLT 
   HLF 
   OLLI 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.5.2017AAOILongClose2.5.2017+0.54%
23.5.2017SCSSLongClose9.5.2017-1.71%
34.5.2017CRZOShortClose5.5.2017+0.30%
48.5.2017WTWLongClose16.5.2017+6.09%
515.5.2017AANLongClose16.5.2017-1.70%
616.5.2017CCLLongClose17.5.2017-0.41%
717.5.2017AMAGShortClose24.5.2017+5.38%
817.5.2017AANLongClose24.5.2017-2.59%
919.5.2017TRCOLongClose23.5.2017-1.45%
1019.5.2017GIMOLongClose26.5.2017+2.05%
111.6.2017BF.BLongOpen +1.37%
12      
13      
14      
15      
16      
17      
18      

 

Today’s Picks – Swing “New-York Strategy

No.1 –    GLYC

Company NameGlycoMimetics
Entry Point13.05
Stop Area12.20
1st Target13.70
Swing Target16.97
Avg. Volume2.14M
SectorHealthcare | Biotechnology
Earning Date
Risk RateNormal
Risk\Reward Ratio4.61:1