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.

IndexLastDaily change
DJX21,0120.36%Up
SPX2,4040.25%Up
Nasdaq6,1630.40%Up

Today’s Hot Stocks: SHLD, BBY, SIG, ANF, DLTR, HPQ, NTAP, WSM, GES, AERI

IPOs: APPN, WIW, IMRN

Have a great trading day!

 

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday10:00New Home SalesMedium
Wednesday9:00FHFA Housing Price IndexMedium
Wednesday10:00Existing Home SalesMedium
Wednesday10:30Crude Oil InventoriesLow
Thursday8:30Initial ClaimsHigh
Friday8:30Durable OrdersMedium
Friday8:30GDP – Second EstimateMedium
Friday10:00Michigan Sentiment – Final High

 

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
AKRXAkorn, Inc.AMMonday
AAgilent Technologies, Inc.PMMonday
TTWOTake-Two Interactive Software, Inc.AMTuesday
TOLToll Brothers, Inc.AMTuesday
MOMOMomo Inc.AMTuesday
INTUIntuit Inc.PMTuesday
TIFTiffany & Co.AMWednesday
AAPAdvance Auto Parts, Inc.AMWednesday
DYDycom Industries, Inc.AMWednesday
EVEaton Vance Corp.AMWednesday
LOWLowe’s Companies, Inc.AMWednesday
HPQHP Inc.PMWednesday
CPRTCopart, Inc.PMWednesday
PVHPVH Corp.PMWednesday
NTAPNetApp, Inc.PMWednesday
WSMWilliams-Sonoma, Inc.PMWednesday
SIGSignet Jewelers LimitedAMThursday
DLTRDollar Tree, Inc.AMThursday
MDTMedtronic plcAMThursday
BBYBest Buy Co., Inc.AMThursday
MRVLMarvell Technology Group Ltd.PMThursday
ULTAUlta Beauty, Inc.PMThursday
SPLKSplunk Inc.PMThursday
COSTCostco Wholesale CorporationPMThursday
GMEGameStop Corp.PMThursday
BRCDBrocade Communications Systems, Inc.PMThursday
VEEVVeeva Systems Inc.PMThursday
NTNXNutanix, Inc.PMThursday
BIGBig Lots, Inc.AMFrida


Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
LNG50.71 CLDRAMC
CSX52.65 PBYIULTA
SBUX62 HAS 
HAS104.14 EA 
CVS 76.19TGI 
   FSLR 
   WRK 

  

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

13.4.2017ARNCLongClose31.3.2017-2.52%
23.4.2017GMEShortClose10.4.2017+1.95%
35.4.2017IPXLLongClose11.4.2017+7.03%
413.4.2017NKTRLongClose21.4.2017+0.61%
525.4.2017LULUShortClose2.5.2017-0.17%
626.4.2017GNCLongClose28.4.2017-4.39%
728.4.2017CARALongClose1.5.2017-3.23%
81.5.2017AAOILongClose2.5.2017+0.54%
93.5.2017SCSSLongClose9.5.2017-1.71%
104.5.2017CRZOShortClose5.5.2017+0.30%
118.5.2017WTWLongClose16.5.2017+6.09%
1215.5.2017AANLongClose16.5.2017-1.70%
1316.5.2017CCLLongClose17.5.2017-0.41%
1417.5.2017AMAGShortClose24.5.2017+5.38%
1517.5.2017AANLongClose24.5.2017-2.59%
1619.5.2017TRCOLongClose23.5.2017-1.45%
1719.5.2017GIMOLongOpen +2.18%
1824.5.2017TRCOLongOpen  

 

Today’s Picks – Swing “New-York Strategy

No.1 –    RDUS

Company NameRadius Health
Entry Point37.90
Stop Area36.24
1st Target38.40
Swing Target43.30
Avg. Volume1.08M
SectorHealthcare | Biotechnology
Earning Date
Risk RateNormal
Risk\Reward Ratio3.25:1

 

No.2 – DVA

Company NameDaVita
Entry Point64.45
Stop Area65.05
1st Target63.90
Swing Target61.48
Avg. Volume1.27M
SectorHealthcare | Specialized Health Services
Earning Date
Risk RateNormal
Risk\Reward Ratio4.95:1