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.

Index Last Daily change
DJX 21,012 0.36% Up
SPX 2,404 0.25% Up
Nasdaq 6,163 0.40% 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

 

DAY TIME (EST) Event Forecast Impact
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
Thursday 8:30 Initial Claims High
Friday 8:30 Durable Orders Medium
Friday 8:30 GDP – Second Estimate Medium
Friday 10:00 Michigan Sentiment – Final   High

 

 

 

Earning Calendar

 

Symbol Company AM/PM Day
AKRX Akorn, Inc. AM Monday
A Agilent Technologies, Inc. PM Monday
TTWO Take-Two Interactive Software, Inc. AM Tuesday
TOL Toll Brothers, Inc. AM Tuesday
MOMO Momo Inc. AM Tuesday
INTU Intuit Inc. PM 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
HPQ HP Inc. PM Wednesday
CPRT Copart, Inc. PM Wednesday
PVH PVH Corp. PM Wednesday
NTAP NetApp, Inc. PM Wednesday
WSM Williams-Sonoma, Inc. PM Wednesday
SIG Signet Jewelers Limited AM Thursday
DLTR Dollar Tree, Inc. AM Thursday
MDT Medtronic plc AM Thursday
BBY Best Buy Co., Inc. AM Thursday
MRVL Marvell Technology Group Ltd. PM Thursday
ULTA Ulta Beauty, Inc. PM Thursday
SPLK Splunk Inc. PM Thursday
COST Costco Wholesale Corporation PM Thursday
GME GameStop Corp. PM Thursday
BRCD Brocade Communications Systems, Inc. PM Thursday
VEEV Veeva Systems Inc. PM Thursday
NTNX Nutanix, Inc. PM Thursday
BIG Big Lots, Inc. AM Frida


Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
LNG 50.71   CLDR AMC
CSX 52.65   PBYI ULTA
SBUX 62   HAS  
HAS 104.14   EA  
CVS   76.19 TGI  
      FSLR  
      WRK  

  

 

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 Close 17.5.2017 -0.41%
14 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
15 17.5.2017 AAN Long Close 24.5.2017 -2.59%
16 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
17 19.5.2017 GIMO Long Open   +2.18%
18 24.5.2017 TRCO Long Open    

 

Today’s Picks – Swing “New-York Strategy

No.1 –    RDUS

Company Name Radius Health
Entry Point 37.90
Stop Area 36.24
1st Target 38.40
Swing Target 43.30
Avg. Volume 1.08M
Sector Healthcare | Biotechnology
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.25:1

 

No.2 – DVA

Company Name DaVita
Entry Point 64.45
Stop Area 65.05
1st Target 63.90
Swing Target 61.48
Avg. Volume 1.27M
Sector Healthcare | Specialized Health Services
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.95:1