Island of Calm!
Even though Pandora (P) and Valeant (VRX) certainly caught traders’ attention yesterday, market indexes stayed smugly in place, moving purposely around the zero line in one of the quietest trading days in decades. Catalysts nowhere to be found, the S&P 500 went into neutral! A sign of the calm on Wall Street was clear as day, the VIX index – also known as the fear gauge – recording a high with a streak of 12 straight days beneath the 11 point level. In other words, investors have never felt so at ease.
Strong earnings reports from American firms and the victory of Emmanuel Macron in Sunday’s French presidential elections have instilled investors with confidence. At the same time, it’s always important to recall that stocks’ current valuations are higher than their historical averages. Investors continue to be full of hope, pinning their hopes on Trump slashing corporate and personal income taxes.
The stock of Apple (AAPL), which 2 days ago soared to a market cap of over $800 billion for the first time in history, continued climbing higher yesterday. Apple ended up 0.64% on the day at the $153.99 level, the behemoth now trading at a market cap of $803 billion, the highest market cap ever recorded by an American firm.
In summary for the day, the Dow Jones shed 0.17%, the S&P 500 ending negligibly off by 0.1%, with the NASDAQ tacking on 0.29%. Gold continued losing altitude, falling another 0.9%, crude dropping 1.2% in advance of today’s inventory release.
One of the stocks commanding attention yesterday was Valeant Pharmaceuticals (VRX) which soared 24.4% on the background of its mixed results. The company missed on the topline, but bottom-line earnings surprised on the upside. The sharp gains, though, more than anything else, came on the heels of management’s strong guidance. The online furniture retailer, Wayfair (W), soared 20.7% on the background of its earnings and revenue surprise, recording a 7% rise in active clients; management also released strong revenue guidance. United Continental (UAL) took off 4.8%, making it the strongest player in the entire airline sector yesterday after reporting that April traffic had risen 7.4%.
On the negative side, the global rental car company, Hertz (HTZ) collapsed 14.2% after missing on the revenue and earnings front on the background of continued pressure from companies like Uber, and other car services. Pandora (P) fell 4.4% after missing analysts’ revenue forecast, and after lowering its own forward looking forecasts.
On the economic front, although the NFIB Small Business Optimism Index did indeed drop slightly in April, it managed to record its sixth consecutive reading at a historically high level – a run not seen since Reagan was president in 1983. In another report released yesterday – the JOLTS report – the number of new positions in the American economy rose to 5.7 million, the highest level seen since July 2016. The JOLTS numbers are the employment stats preferred by the Fed.
On the S&P 500, 42 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 120 stocks recorded new 52-week highs, 59 falling to new yearly lows.
About 6.7 billion shares changed hands on U.S. exchanges, in keeping with the average over the last 20 trading days.
Wednesday: Yesterday, President Trump fired the head of the FBI, James Comey, concerns now raised that this development is likely to push off the materialization of Trump’s agenda. The news release came out after closing yesterday, meaning that Wall Street is yet to respond.
A number of earning reports could be of interest to traders today, including Disney (DIS), News Corp (NWSA) and Discovery Communications (DISCA), which reported yesterday after closing. Other reports that stood out yesterday included NVIDIA (NVDA), which soared over 10% in late trading, and Yelp (YELP), which toppled over 28% in late trading.
The companies expected to report today before opening included Crocs (CROX), Mylan (MYL) and Sodastream (SODA).
Before opening today, the economic news will focus on import and export figures for April from the U.S. Department of Commerce at 8:30 N.Y. time. Like every
week, traders will be awaiting the weekly crude inventory figures at 10:30.
Wednesday’s Hot Stocks: YELP, NVDA, DIS, FOSL, TRIP, EA, SODA, NCLH, BID
Have a great trading day!
|Tuesday||10:00||JOLTS – Job Openings||–||Medium|
|Wednesday||10:30||Crude Oil Inventories||–||Low|
|Friday||10:00||Mich Sentiment – Prelim||–||High|
|TSN||Tyson Foods, Inc.||AM||Monday|
|MAR||Marriott International, Inc.||PM||Monday|
|HTZ||Hertz Global Holdings, Inc.||PM||Monday|
|DISCA||Discovery Communications, Inc.||AM||Tuesday|
|DF||Dean Foods Company||AM||Tuesday|
|DIS||The Walt Disney Company||PM||Tuesday|
|EA||Electronic Arts Inc.||PM||Tuesday|
|NCLH||Norwegian Cruise Line Holdings Ltd.||AM||Wednesday|
|SODA||SodaStream International Ltd.||AM||Wednesday|
|VMC||Vulcan Materials Company||AM||Wednesday|
|FOXA||Twenty-First Century Fox, Inc.||PM||Wednesday|
|TEVA||Teva Pharmaceutical Industries Limited||AM||Thursday|
|CYBR||CyberArk Software Ltd.||PM||Thursday|
|JCP||J. C. Penney Company, Inc.||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – UA
|Company Name||Under Armour,|