Rates Left Unchanged
Large U.S. stocks continued trading in a narrow, well-defined range, constricted by the bounds of its two-month long consolidation pattern – in the face of resistance from the high set at the beginning of March. The market didn’t flinch in the least after the central bank’s policy announcement, the Fed stating that it didn’t see in the recent spate of weak economic figures a reason to refrain from hiking rates.
In Summary for the Day: The Dow Jones ended negligibly up by 0.04%, the S&P 500 ending negligibly down by 0.13%. The NASDAQ shed 0.4% and gold fell 0.7%.
Financial stocks (XLF) rallied 0.6% in the wake of yesterday’s Fed meeting as chances grew for a June rate hike.
One of the stocks standing out in yesterday’s trading was Weight Watchers (WTW), which rallied 9.3% on the background of a Q1 earnings surprise and a double-digit percentage rise in year-over-year membership. First Solar (FSLR) soared 11.8% after beating analysts’ revenue and earnings forecasts.
One of the losing stocks that stood out yesterday was Akamai (AKAM), which tumbled 15.5% after weak management guidance was released for the rest of the year on the heels of feeble internet-based video traffic. Etsy (ETSY), the online art marketplace operator, fell 7.8% yesterday after its earnings reports came out weaker than expected and likewise, after having named a new CEO. Disney (DIS) toppled 2.4% on the background of general weakness in the media sector.
Apple (AAPL) ended off 0.31% after reporting mixed results yesterday after closing; earnings trumped expectations but revenues fell short, iPhone sales missing analyst forecasts in light of continued weakness in China. Forward guidance was weak, but Apple is known for its tendency to keep expectations low.
On the economic front, a weak reading on the April ADP Employment Report, which measures the number of new jobs in the private sector, was released yesterday before opening. In turn, the reading lowered the bar for Friday’s pivotal official employment report. The number of positions created last month in the private sector was 177 thousand, beneath the market consensus of 180 thousand. The Supply Managers’ ISM Service Sector Index was strong, with a 57.5 point reading, besting the forecasted 55.8 points and March’s 55.2 point reading.
After Closing: The social media giant, Facebook (FB), which has risen almost 32% year-to-date, released good numbers, EPS coming out at $1.04, easily trouncing forecasted earnings of 87 cents per share. Revenues came to $8.03 billion, above analysts’ forecast of $7.85 billion. Despite the solid numbers, Facebook fell 2.5% in late trading, the market response being, “Buy the rumor, and sell the news!”
Another interesting report was that of Tesla (TSLA), the electric carmaker, which reported a large than expected loss of $1.33 per share, the consensus having been a 55 cent loss per share. Revenue, though, came out above the consensus. TSLA ended late trading down by 2.27%.
On the S&P 500, 31 stocks rose to new 52-week highs, 7 dipping to new yearly lows; on the NASDAQ, 83 stocks recorded new 52-week highs, 71 falling to new yearly lows.
About 7.3 billion shares changed hands on U.S. exchanges, above the 6.6 billion daily average over the last 20 trading days.
Thursday: Traders are continuing to wait for the official governmental employment report that will be released on Friday before opening. Today, we’ll be getting a number of economic reports, starting with weekly initial unemployment claims, the trade deficit and productivity and costs, all at 8:30 N.Y. time. Factory order numbers will be released at 10:00.
Today’s Hot Stocks: SQ, DATA, CAR, FB, TSLA, KHC, AIG, K
IPOs: AMGP, BHVN, URGN
Have a great trading day!
|Tuesday||14:00||April vehicle sales||–||Low|
|Wednesday||10:30||Crude Oil Inventories||–||Low|
|THC||Tenet Healthcare Corp.||PM||Monday|
|LL||Lumber Liquidators Holdings, Inc.||AM||Tuesday|
|CVS||CVS Health Corporation||AM||Tuesday|
|MOS||The Mosaic Company||AM||Tuesday|
|MRK||Merck & Co., Inc.||AM||Tuesday|
|GILD||Gilead Sciences, Inc.||PM||Tuesday|
|WTW||Weight Watchers International, Inc.||PM||Tuesday|
|TWX||Time Warner Inc.||AM||Wednesday|
|EL||The Estee Lauder Companies Inc.||AM||Wednesday|
|AIG||American International Group, Inc.||PM||Wednesday|
|KHC||The Kraft Heinz Company||PM||Wednesday|
|ATVI||Activision Blizzard, Inc.||PM||Thursday|
|SHAK||SHAKE SHACK INC.||PM||Thursday|
|Z||Zillow Group, Inc.||PM||Thursday|
|CTSH||Cognizant Technology Solutions Corporation||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – SNCR
|Company Name||Synchronoss Technologies|
No.2 – CRZO
|Company Name||Carrizo Oil & Gas, Inc.|
|Sector||Basic Materials | Independent Oil & Gas|
|Earning Date||9 May|