As Market Naps, Tech Stocks Rock the House!

Wall Street ended up, the NASDAQ rallying for the third day in a row. At the same time, it’s hard to imagine a greater quiet casting its spell over the market, the S&P 500 trading in its narrowest trading range since the 1960s, the VIX continuing its streak of readings beneath the 11 point level. Large tech stocks are still the apple of investors’ eye, though, with but a few numbered companies starring, pulling their weight and the NASDAQ to new highs.

In Summary for the Day: The Dow Jones shed 0.01%, the S&P 500 closing negligibly down by 0.1%, the NASDAQ tacking on 0.3%. Gold rose 0.5%, profit taking in crude leading to losses of 0.4%.

Tech stocks took the lead on Wall Street yesterday, the S&P SPDR Technology ETF (XLK) ending up 0.5%. One of the sector’s stocks that stood out was Microsoft (MSFT), which rose 1.4%. I.B.M. (IBM) also rose 1.4%. AMD soared 11.7% on the background of reports that Intel (INTC) paid for a license to use the company’s graphic technology after its deal with Nvidia (NVDA) expired in March. Amazon (AMZN) tacked on another 0.9%.

Retail stocks continued to be the market’s punching bag, the sell-off continuing. Dick’s Sports (DKS) toppled 13.7% after reporting lower than expected sales growth in its store chain. TJX fell 4.1% in the wake of weak results. The siege on brick and mortar retailers continue, investors following in consumers’ footsteps by voicing their preference for digital sellers.

On the economic front, new building starts for April fell 2.6%. Industrial output came out stronger than expected with a 1% April rise, the fastest monthly pace recorded since February 2014.

The weakness in the dollar (UPP) continues, the greenback now losing the ground gained after the elections on the background of a number of headwinds: doubts about Trump’s ability to bring to fruition growth-driven legislation, weak economic figures and the hordes of cash leaving American capital markets in favor of European markets and emerging markets which have outperformed the American stock market year-to-date. The dollar (UUP) ended sharply off by 0.74% against a basket of foreign currencies.

Wednesday: The market still isn’t convinced that the economy will be strong enough to enable the Fed to hike rates two more times this year. The economic figures coming out of the U.S. have fallen short of forecasts for weeks now, and despite the fact that April has come out stronger than March, the figures have nonetheless disappointed. As of now, the market’s pricing in another rate hike and a half this year, while the Fed is projecting 2 hikes. The chances of a June rate hike have recently fallen from 80% to 70%, the chances of a December hike haven fallen more precipitously from 65% a few days ago to 37% now. Future rate hike contracts last week already reflected the doubts at play, movement picking up after last Friday’s disappointing consumer inflation figures.

Today, traders will be focusing on additional developments on Capitol Hill after the revelation that President Trump leaked classified information about ISIS – received from an Israeli-operated spy chain – to top Russian officials.

The economic figures today will include mortgage requests at 7:00 N.Y. time, and in weekly fashion, crude inventories at 10:30.

Earnings reports are expected from TGT and AEO before opening. CSCO and LB will be reporting after the closing bell.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,980 (-0.01%) Down          
SPX 2,401 (-0.07%) Down 236.91 236.18 235.30 234.57 233.69
Nasdaq 6,170 0.33% Up 132.73 132.39 132.04 131.70 131.35

Today’s Hot Stocks: RRGB, JACK, URBN, AEO, TGT

IPOs: GTHX

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Empire Manufacturing Medium
Tuesday 8:30 Housing Starts Medium
Tuesday 9:15 Industrial Production Medium
Wednesday 10:30 Crude Oil Inventories Low
Thursday 8:30 Initial Claims High
Thursday 8:30 Philadelphia Fed Medium
Thursday 10:00 Leading Indicators Medium

 

 

Earning Calendar

 

Symbol Company AM/PM Day
TRVG trivago N.V. AM Monday
VIPS Vipshop Holdings Limited PM Monday
LBTYA Liberty Global plc PM Monday
DKS Dick’s Sporting Goods, Inc. AM Tuesday
SINA SINA Corporation AM Tuesday
WB Weibo Corporation AM Tuesday
TJX The TJX Companies, Inc. AM Tuesday
HD The Home Depot, Inc. AM Tuesday
JACK Jack in the Box Inc. PM Tuesday
URBN Urban Outfitters, Inc. PM Tuesday
AEO American Eagle Outfitters, Inc. AM Wednesday
TGT Target Corporation AM Wednesday
LB L Brands, Inc. PM Wednesday
FLO Flowers Foods, Inc. PM Wednesday
CSCO Cisco Systems, Inc. PM Wednesday
WMT Wal-Mart Stores, Inc. AM Thursday
BABA Alibaba Group Holding Limited AM Thursday
RL Ralph Lauren Corporation AM Thursday
PLCE The Children’s Place, Inc. AM Thursday
GPS The Gap, Inc. AM Thursday
ADSK Autodesk, Inc. PM Thursday
ROST Ross Stores, Inc. PM Thursday
MCK McKesson Corporation PM Thursday
AMAT Applied Materials, Inc. PM Thursday
CRM Salesforce.com, inc. PM Thursday
DE Deere & Company AM Friday
CPB Campbell Soup Company AM Friday
FL Foot Locker, Inc. AM Friday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
YUMC 35.57   AMD AMC
CTRP 56.75   DDD RL
MOH 68.67   JUNO DKS
UAL 79.16   Z CVS
CVS   78.94 LITE CTXS
AFSI   12.13 WB DVA
ACAD   28 SINA  
      RH  
      QRVO  
      MCHP  
      AMBA  
      MOMO  

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 Close 16.5.2017 +6.09%
12 15.5.2017 AAN Long Close 16.5.2017 -1.70%
13 16.5.2017 CCL Long Open   +0.11%
14            
15            
16            
17            
18            

 Today’s Picks – Swing “New-York Strategy

No.1 –    AAN

Company Name Aaron’s
Entry Point 35.17
Stop Area 34.27
1st Target 35.80
Swing Target 37.67
Avg. Volume 789K
Sector Services | Rental & Leasing Services
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.78:1

 

No.2 – AMAG

Company Name AMAG Pharmaceuticals
Entry Point 19.95
Stop Area 20.55
1st Target 19.40
Swing Target 17.90
Avg. Volume 1.16M
Sector Healthcare | Diagnostic Substances
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.42:1