After Closing: Snapchat Falls 18%!

Stocks on Wall Street ended mixed yesterday as investors digested both Trump’s sudden sacking of FBI head, James Comey, as well as the earnings reports from Disney (DIS) and Nvidia (NVDA). The Dow Jones ended lightly down, while the NASDAQ soared to a new historic high.

Trump said the firing of the head of the FBI came on the heels of his failed handling of the inquiry into Democratic presidential candidate, Hillary’s Clinton’s email server. That notwithstanding, Comey was also at the helm of the investigation into whether Trump’s 2016 election campaign had colluded with Russia.

Wall Street has seen the latest Washington upheaval as a distraction of sorts, one of many, that could sidetrack Trump from following through on his promise to cut taxes and accelerate infrastructure spending. The stock market had soared to new highs under the Trump administration, the hope being that he’d jumpstart the economy and propel firm earnings higher.

In Summary for the Day: The Dow Jones ended off 0.16%, the S&P 500 rising 0.11%. The NASDAQ gained 0.14%, rising to a new high of 6,129.14.

After Closing: The stock of Snapchat plunged 23% after the social media app company reported for the first time after its new issue earlier in the year. Investors expressed their dissatisfaction about the company’s quarterly numbers, voting with their feet.

One of the stocks standing out in yesterday’s trading was Nvidia (NVDA), which soared 17.83% after the chipmaker reported a sharper than expected rise in Q1 revenues. The wave of optimism washed over its competitor, AMD, as well, the latter rising 6%.

On the flipside, Disney (DIS) fell 2.15%, making it the biggest weight on the Dow after the company reported lower than expected quarterly revenues and a decline in the number of subscribers to its sport channel, ESPN.

On the S&P 500, 29 stocks rose to new 52-week highs, 2 dipping to new yearly lows; on the NASDAQ, 131 stocks recorded new 52-week highs, 68 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.

Thursday: Investors in the latest hot tech IPO, SNAP, may feel that they got burnt, but the stock market on large is expected to look today beyond their disappointing earnings numbers.

The large retailers, Macy’s (M) and Kohl’s (KSS) are expected to report before the opening bell. The two department stores are likely, in their conference calls, to address both weak sales and store closings. Nordstrom (JWN) will report after closing.

More than anything else, Snapchat (SNAP) will be the topic of conversation on Wall Street today, the IPO from March of this year having been the hottest on Wall Street since Alibaba (BABA). SNAP tumbled over 23% in late trading on Wednesday, after having missing analysts’ topline revenue forecasts and reporting lower than expected growth in its user base. The stock closed late trading at the price of $17.68, slightly above its issue price of $17 a few months ago.

Snapchat reported a huge loss of $2.2 billion, making its $105 million loss last year look like peanuts. The company also reported revenues of $150 million, short of the $158 million analysts were expecting.

It seems like Snapchat’s fall from grace isn’t exceptional in the least, when taking into account that Facebook (FB) and Twitter (TWTR) tumbled 14% on average after releasing their first earnings reports. All-in-all, it seems that Wall Street is punishing Snapchat for acting more like the cool kid of the class rather than a public company. A dog-eat-dog world!

Investors certainly recall that it took Facebook (FB) time to find its way – and now they’re trying to gauge whether Snapchat will be a blockbuster success story, the likes of Facebook, or will fail to get off the ground, a la Twitter.

Additional earnings reports today include Teva (TEVA) before opening and Cyberark (CYBR) after closing.

Today’s Economic Diary today will also include initial unemployment claims at 8:30 N.Y. time, along with the Producer Price Index (PPI).

The Bank of England will be holding its interest rate meeting today, the ministers of the G7 countries likewise convening today in Italy. OPEC will also be releasing its monthly crude report.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,943 (-0.16%) Down          
SPX 2,400 0.11% Up 236.91 236.18 235.30 234.57 233.69
Nasdaq 6,129 0.14% Up 132.73 132.39 132.04 131.70 131.35

Thursday: SNAP, TEVA, KSS, M, FOXA, SYMC

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 JOLTS – Job Openings Medium
Tuesday 10:00 Wholesale Inventories Medium
Wednesday 8:30 Import Prices Medium
Wednesday 8:30 Export Prices Medium
Wednesday 10:30 Crude Oil Inventories Low
Wednesday 14:00 Treasury Budget Low
Thursday 8:30 PPI High
Thursday 8:30 Initial Claims High
Friday 8:30 CPI High
Friday 8:30 Retail Sales High
Friday 10:00 Mich Sentiment – Prelim High
Friday 10:00 Business Inventories Medium

 

Earning Calendar

 

Symbol Company AM/PM Day
JD JD.COM, INC. PM Monday
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
W WAYFAIR INC. AM Tuesday
TSRO Tesaro, Inc. PM Tuesday
TRIP TripAdvisor, Inc. PM Tuesday
DIS The Walt Disney Company PM Tuesday
EA Electronic Arts Inc. PM Tuesday
BID Sotheby’s AM Wednesday
MYL Mylan N.V. AM Wednesday
NCLH Norwegian Cruise Line Holdings Ltd. AM Wednesday
SODA SodaStream International Ltd. AM Wednesday
VMC Vulcan Materials Company AM Wednesday
SNAP Snap Inc. PM Wednesday
FOXA Twenty-First Century Fox, Inc. PM Wednesday
KSS Kohl’s Corporation AM Thursday
TEVA Teva Pharmaceutical Industries Limited AM Thursday
M Macy’s, Inc. AM Thursday
JWN Nordstrom, Inc. PM Thursday
CYBR CyberArk Software Ltd. PM Thursday
JCP J. C. Penney Company, Inc. AM Friday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
CIT 47.40   NVDA SODA
MIME 25.37   CNC TGI
CNC 75.75   LL FOSL
TSLA 327.66   EA  
LL 24.90   NUAN  
RHT 89.22   DDD  
JWN 50.22   TTWO  
FOXA   27.75 NUS  

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 3.4.2017 ARNC Long Close 31.3.2017 -2.52%
2 3.4.2017 GME Short Close 10.4.2017 +1.95%
3 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
4 13.4.2017 NKTR Long Close 21.4.2017 +0.61%
5 25.4.2017 LULU Short Close 2.5.2017 -0.17%
6 26.4.2017 GNC Long Close 28.4.2017 -4.39%
7 28.4.2017 CARA Long Close 1.5.2017 -3.23%
8 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
9 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
10 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
11 8.5.2017 WTW Long Open   +4.39%
12            
13            
14            
15            
16            
17            
18            

 

Today’s Picks – Swing “New-York Strategy

No.1 –    UA

Company Name Under Armour,
Entry Point 20
Stop Area 19.45
1st Target 20.45
Swing Target 107.37
Avg. Volume 2.14M
Sector
Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.55:1