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.

Index Last Daily change
DJX 21,144 +0.65% Up
SPX 2,430 +0.76% Up
Nasdaq 6,247 +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

 

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
Friday 8:30 Trade Balance -$44.4B Medium
Friday 8:30 Nonfarm Private Payrolls 185K High
Friday 8:30 Unemployment Rate 4.4% High

 

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
LB 53.71   CIEN ADI
XYL 53   PANW HPE
CTRP 56.75   DG  
CL 76.86   SIG  
      W  
      LVS  
      LVLT  
      HLF  
      OLLI  

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
2 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
3 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
4 8.5.2017 WTW Long Close 16.5.2017 +6.09%
5 15.5.2017 AAN Long Close 16.5.2017 -1.70%
6 16.5.2017 CCL Long Close 17.5.2017 -0.41%
7 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
8 17.5.2017 AAN Long Close 24.5.2017 -2.59%
9 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
10 19.5.2017 GIMO Long Close 26.5.2017 +2.05%
11 1.6.2017 BF.B Long Open   +1.37%
12            
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18            

 

Today’s Picks – Swing “New-York Strategy

No.1 –    GLYC

Company Name GlycoMimetics
Entry Point 13.05
Stop Area 12.20
1st Target 13.70
Swing Target 16.97
Avg. Volume 2.14M
Sector Healthcare | Biotechnology
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.61:1