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