The Stock that Citi Analysts Think Could Double…
Stocks on Wall Street traded nicely up in yesterday’s trading, after the testimony of former FBI chief, James Comey, reversed the impression that President Trump had tried to take justice into his own hands by pressure him into ending his investigation of former National Security Adviser, Flynn. Resultantly, the very same catalyst that had led the market to its biggest daily losses of the year on May 17th, evaporated.
At the same time, further into the day’s trading, the Dow Jones would fall 130 points from its high, and go into the red against the backdrop of headlines that pointed to a rise in tensions between Qatar and Saudi Arabia and the latter’s allies.
In Summary for the Day: The Dow Jones succeeded in ending negligibly up. The NASDAQ rose 0.4%, the S&P 500 recording marginal gains. Gold shed 1.1% in the wake of dollar strengthening. Crude ended off 0.2%.
Financial stocks (XLF) led the gains, rallying 1.1% after a rise in long term bond yields, which piqued hope for a rise in banking stocks’ profit margins.
One of the stocks that stood out in yesterday’s trading was the Chinese firm, Alibaba (BABA), which soared 13.3% after releasing strong guidance for 2018. The company expects a 49% surge in revenues, significantly above the consensus. Yahoo (YHOO) enjoyed a bounce of 10.2%, for no reason other than the fact that it has a 15.5% ownership stake in Alibaba.
Nordstrom (JWN) soared 10.3% after announcing its intent to go back to being a private company. Graphic card maker, Nvidia (NVDA) jumped 7.3% after Citigroup analysts raised their price target on the stock to $180 from its prior target of $145. Citi added that in the long-term, the stock could also hit $300.
On the negative side, we saw dour news for more brick and mortar retailers. This time it was Urban Outfitter (URBN), which tumbled 10.3% after releasing a sales warning.
Despite the fact that Comey and the ECB didn’t ultimately lead to waves of volatility in yesterday’s trading – contrary to investors’ expectations – the Middle East caused a small measure of commotion, Saudi Arabia and a number of other countries deciding to cut off diplomatic and economic ties with Qatar, the allegation being that the latter supports terror and pro-Iranian groups including Hamas.
On the heels of the above-mentioned tension, crude fell; the friction between the oil producing countries could jeopardize the survival of the recently signed OPEC accord which had extended the prior production cut. A breakdown of the $45 barrel level is likely to lead to a fast drop and a test of the $40 level. A decline beneath this level will put crude’s 2016 low (beneath the $30 level) into play, making it fair game.
About 7.1 billion shares traded hands on U.S. exchanges, exceeding the 6.62 billion average over the last 20 trading days.
Friday: The next potential catalyst for an uptick in market volatility is the coming Fed meeting which will take place next week. Banking stocks soared yesterday given the high chances of a rate hike in the central bank’s policy announcement this upcoming Wednesday.
Today promises to be calm in the marketplace, after a jam-packed trading day yesterday that included James Comey’s testimony, the ECB policy meeting – and British elections, which in fact led May to an electoral victory but giving her a split parliament nonetheless, the Conservative Party losing its overall majority, which would presumably lead to a soft Brexit.
Today’s Economic Diary will be meager with wholesale inventory figures at 10:00 N.Y. time.
Friday’s Hot Stocks: NVDA, ENDP, CLDR
IPOs: PLYM (REIT)
Have a great trading day!
|Tuesday||10:00||JOLTS – Job Openings||–||Medium|
|Wednesday||10:30||Crude Oil Inventories||Low|
|CASY||Casey’s General Stores, Inc.||PM||Monday|
|THO||Thor Industries, Inc.||PM||Monday|
|PLAY||Dave & Buster’s Entertainment, Inc.||PM||Tuesday|
|UNFI||United Natural Foods, Inc.||PM||Tuesday|
|NAV||Navistar International Corporation||AM||Thursday|
|DVMT||Dell Technologies Inc.||AM||Thursday|
|SJM||The J. M. Smucker Company||PM||Thursday|
Today’s Picks – Day Trading!
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