Fourth Straight Day of Gains!
Stocks on Wall Street recorded gains yesterday, stretching their winning streak to 4 after the White House released its 2018 budget proposal. Despite the weak economic figures released on Tuesday, investors breathed a sigh of relief that Trump’s first budgetary proposal was surprise-free, and in keeping with expectations.
Trump’s budget calls for increased infrastructure and defense spending, alongside cuts in sensitive outlays, like healthcare and food stamp programs, in an attempt to cut the federal budget by $3.6 trillion and stabilize it over the next decade.
The S&P 500 ended beneath the daily low. Over the course of the day, on a number of occasions, the S&P 500 succeeded in grazing the 2,400 point level for the first time since the market toppled last Wednesday on the background of concerns about Trump’s continued tenure in office.
In Summary for the Day: The Dow Jones rose 0.2%, the S&P 500 ending up 0.18%. The NASDAQ tacked on 0.08%. Crude rose 0.7% to the $51.47 barrel level, ending at a monthly high in the wake of expectations that OPEC will extend its production cut into next year. Gold shed 0.5%.
In yesterday’s economic figures, April’s new home sales plunged from a nine-and-a-half month high, as manufacturing activity in May – as measured by the PMI index – fell to its lowest level since September.
One of the stocks commanding attention yesterday was the videogame company, TTWO, which jumped 5.5% on the background of solid earnings reports – and the success of its online game, GTA. JBLU soared 2.4% after raising its revenue forecast.
On the negative side, auto-part companies demonstrated marked weakness on the background of an 11.8% drop in the stock of AZO after it missed its earnings forecast. AAP fell 4.6%, ORLY falling 3.3%. GPC fell 2%.
XLNX fell 5.26% after Wells Fargo lowered its forecast for the chipmaker. ALXN toppled 9.3% after a management change in the biotech company.
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.
Wednesday: All eyes today are turned to the release of the minutes from the Fed’s latest meeting in order to glean hints as to the rate hike pace and the timing thereof between now and the end of the year. The Fed has hiked rates 0.75% since the beginning of the monetary tightening cycle in December 2015.
Of late, we’ve seen heightened expectations for a faster rate hike clip, investor confidence growing alongside stock prices since the elections. As of now, future rate contracts reflect chances of 78.5% for another hike of a quarter of a percentage point on June 14th, in contrast with the respective chances of 50.7% a month ago. At the same time, the chances being given for another rate hike after June are 50-50. The central bank’s minutes will be released today at 14:00 N.Y. time.
On today’s Economic Diary, be primed as well for additional numbers from the real estate sector at 9:00 and then, at 10:00.
Today’s main earnings reports will include LOW, TIF, and AAP, before trading opens, the following companies reporting after closing: WSM, PVH, PSTG, HPQ.
Wednesday’s Hot Stocks: LOW, TIF, INTU
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||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy
No.1 – TRCO
|Company Name||Tribune Media Company|
|Sector||Services | Broadcasting – TV|
No.2 – DVA
|Sector||Healthcare | Specialized Health Services|