Glum Crude Forecast Could Jolt the Market!

Trading on Wall Street was conducted to the tune of the continued tailspin in crude and energy stocks, adding to investors’ concerns about low inflation. The biotech and tech sector helped push the NASDAQ higher.

The energy sector (XLE) was the weakest sector yesterday with declines of 1.6% after crude changed directions not long after trading began, hitting a low not seen since August – and that was despite a larger than expected decline in weekly reserve figures. The persistent weakness in crude compounded investors’ concerns about inflation, and as a result, also rippled through industrial and banking stocks. The banking sector (KBE) closed off 0.8%, investors concerned that banks’ margins will continue to be slashed, inflation being so low. Crude closed off by 2.3% at the $42.53 barrel level.

The energy sector (XLE) has fallen 14.9% year-to-date, stacked up against the 8.9% gains on the S&P 500. Crude is off 21% year-to-date, having now entered a bear market.

Investors seeking stocks offering growth opportunities turned yesterday to the NASDAQ, which boasts many tech and biotech stocks. Biotech stocks got a boost from reports that Trump’s agenda for reining in drug prices will, when push comes to shove, be more conducive to the sector than once thought.

Daily Summary: The Dow Jones fell 0.27%, the S&P 500 shedding 0.06%, and the NASDAQ rising 0.74%.

The biotech sector (IBB) soared 4.1%, with its strongest day of gains since the November 8th elections. Two of the stocks that stood out in the sector – CELG and REGN – each rallied over 5%, BIIB soaring 4.7%.

About 7.16 billion shares changed hands on U.S. exchanges, pretty much on par with the 6.92 billion average over the last 20 trading days.

Thursday: Crude will continue to command a lot of attention, the next key level being $40 per barrel. A breakdown of this level, and the rules of the game could change entirely, setting off a wave of pessimism in the market as a whole.

Today’s Economic Diary will include last week’s initial unemployment claims at 8:30 N.Y. time. At 9:00, the FHFA contractors’ union home price index will be coming out.

The earnings reports to keep your eyes out for today include: ACN, BBBY, BKS, and CCL.

Index Last Daily change
DJX (0.27%) 21,410 Down
SPX (0.06%) 2,436 Down
Nasdaq 0.74% 6,234 Up

Thursday’s Hot Stocks: HAIN, ORCL, SCS

IPOs: ATUS, SAFE

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 8:30 Current Account Balance -$123.4B Medium
Wednesday 10:00 Existing Home Sales 5.52M Medium
Wednesday 10:30 Crude Oil Inventories Low
Thursday 8:30 Initial Claims 240K High
Thursday 9:00 FHFA Housing Price Index Medium
Friday 10:00 New Home Sales 599K Medium

 

Earning Calendar

 

Symbol Company AM/PM Day
LEN Lennar Corporation AM Tuesday
RHT Red Hat, Inc. PM Tuesday
FDX FedEx Corporation PM Tuesday
ADBE Adobe Systems Incorporated PM Tuesday
KMX CarMax Inc. AM Wednesday
ORCL Oracle Corporation PM Wednesday
CACI CACI International Inc PM Wednesday
HAIN The Hain Celestial Group, Inc. AM Thursday
CCL Carnival Corporation PM Thursday
CMC Commercial Metals Company PM Thursday
ACN Accenture plc PM Thursday
BBBY Bed Bath & Beyond Inc. PM Thursday

 

 

 


 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
EXEL 24.85 NVCR CBI
JUNO 27.18 CARA GDI
ATVI 61.10 EXEL DNKN
KSS 35.16 VSLR  
SNAP 17 JUNO  
OLN 28.45 FSLR  
EAT 36.44 ESPR  
  GILD  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 Close 6.6.2017 +0.95%
12 7.6.2017 LULU Long Close 9.6.2017 -2.24%
13 14.6.2017 SIG Short Open   +3.36%
14 16.6.2017 AABA (YHOO) Long Open +3.36%
15 21.6.2017 KR Short Open   -0.81%
16