All-Time High: Huge OPEC Deal on Horizon
Stocks on Wall Street succeeded in stretching their winning streak to 5 on Wednesday with a close at an all-time high, while the minutes from the last Federal Reserve meeting projected unanimity about the plan to cut the bank’s balance sheet, while pointing to a high likelihood of a rate hike this coming June, in keeping with investor expectations. The Fed balance sheet has grown to almost $4 trillion on the heels of the Fed’s bond buying spree, compared to a balance of $800 before the recession. Sooner or later, it goes without saying, the bank needed to cut its holdings down to size!
In Summary for the Day: The S&P 500 rose 0.3% to a new closing high at the 2,404.39 point level. The Dow Jones climbed 0.36%, ending off just 0.5% from its all-time high set on March 1st. The NASDAQ index rose 0.4%, closing at the 6,163.02 point level. Crude ended lightly off by 0.38% after 5 consecutive winning days. Despite yesterday’s positive reading which showed a decline in weekly crude reserves, investors are anxious in advance of the OPEC summit and the cartel’s decision today, the thinking being that the oil producing countries will agree to extend their production cuts. Gold ended off by 0.2%.
One of the stocks standing out in yesterday’s trading was TCS, which soared 35.2% on the background of better than expected sales figures and an earnings surprise. The company also raised its forecast for the remainder of the year, announcing a 4-part plan to optimize their “consolidated business and drive improved sales and profitability.”
ANF soared 8.9% on the background of further rumors about a buyout. The chipmaker, NVDA, rose 1.1% on the heels of reports that SoftBank now holds 4.9% of the company’s stock.
On the negative side, TIF fell 8.7% on the background of lower than expected Q1 revenues. AAP fell 5.4% after missing on the top and bottom line, Lowe’s (LOW) falling 3% on the background of weakness in top line revenues, its earnings numbers coming out beneath the consensus.
On the S&P 500, 45 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 102 stocks recorded new 52-week highs, 60 falling to new yearly lows.
About 5.9 billion shares changed hands on U.S. exchanges, beneath the 6.9 billion average over the last 20 trading days.
Thursday: All eyes today are turned to the OPEC meeting in Vienna and the fate of last year’s production cut. That agreement involved both member countries and non-member countries, like Russia – and will expire come the end of June. The consensus is that OPEC will vote in favor of a 9-month extension in an attempt to lower excess supply and lower high reserve numbers, the aim being to stabilize crude prices.
Crude rallied 13% last week on the background of expectations for an extension deal. As of now, word on the street is that the new deal is likely to also include a further and deeper production cut.
OPEC’s problem is that a production cut on the part of the world’s largest producers encourages large U.S. oil shale producers to enter the void that’s been created and ramp up production, the result likely to be that OPEC will lose market share.
Today’s economic figures are likely to give a glimpse into Q2 growth numbers, projections lowered by some economists yesterday after the release of weak real estate figures. The Leading Indicators Index will be released at 8:30 N.Y. time, along with initial unemployment claims. The Leading Indicators Index includes a first glimpse into global trade and business inventories, both weighty components in the GDP calculus.
A number of retailers will be reporting before opening SHLD, DLTR, ANF, SIG, BURL, and BBY. After closing, today, be primed for these reporters: COST, ULTA, SPLK, and GME.
Today’s Hot Stocks: SHLD, BBY, SIG, ANF, DLTR, HPQ, NTAP, WSM, GES, AERI
IPOs: APPN, WIW, IMRN
Have a great trading day!
|Tuesday||10:00||New Home Sales||–||Medium|
|Wednesday||9:00||FHFA Housing Price Index||–||Medium|
|Wednesday||10:00||Existing Home Sales||–||Medium|
|Wednesday||10:30||Crude Oil Inventories||–||Low|
|Friday||8:30||GDP – Second Estimate||–||Medium|
|Friday||10:00||Michigan Sentiment – Final||High|
|A||Agilent Technologies, Inc.||PM||Monday|
|TTWO||Take-Two Interactive Software, Inc.||AM||Tuesday|
|TOL||Toll Brothers, Inc.||AM||Tuesday|
|TIF||Tiffany & Co.||AM||Wednesday|
|AAP||Advance Auto Parts, Inc.||AM||Wednesday|
|DY||Dycom Industries, Inc.||AM||Wednesday|
|EV||Eaton Vance Corp.||AM||Wednesday|
|LOW||Lowe’s Companies, Inc.||AM||Wednesday|
|SIG||Signet Jewelers Limited||AM||Thursday|
|DLTR||Dollar Tree, Inc.||AM||Thursday|
|BBY||Best Buy Co., Inc.||AM||Thursday|
|MRVL||Marvell Technology Group Ltd.||PM||Thursday|
|ULTA||Ulta Beauty, Inc.||PM||Thursday|
|COST||Costco Wholesale Corporation||PM||Thursday|
|BRCD||Brocade Communications Systems, Inc.||PM||Thursday|
|VEEV||Veeva Systems Inc.||PM||Thursday|
|BIG||Big Lots, Inc.||AM||Frida|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – RDUS
|Company Name||Radius Health|
|Sector||Healthcare | Biotechnology|
No.2 – DVA
|Sector||Healthcare | Specialized Health Services|