January 26, 2018

Trump & Co. Put Currencies in Spotlight

More than anything, besides the Q4 earnings season, what’s been in the spotlight these past few days is the weakness of the dollar. After Trump’s Treasury Secretary, Mnuchin’s ill-fated comments about the administration’s desire to see a weak dollar, Trump – and Mnuchin – had no choice but to backtrack and change their narrative after what was probably no more than an errant slip of the tongue on the part of Mnuchin. Mnuchin, at Davos, had earlier bucked past administrations’ policy on the dollar, boasting in turn that America prefers a weak dollar because it strengthens multinational firms and exports. What Mnuchin failed to grasp is that a weak dollar weakens the average American investors – something any White House administration wants to avoid “taking credit” for. The irony of Mnuchin’s statement was all the more pronounced after Trump had ranted on the campaign trail about China’s artifice in weakening its own currency. Likewise, after Mnuchin’s comments, European countries sharply criticized the administration’s tipping the scales against the EU, which wants its members countries to compete against America on an equal playing field.

As we have noted earlier, with the market on a tear – possibly on a “melt up,” the thing that players have to be concerned about the most is international friction and conflict in global trade. Any hint of a trade war, could take the oxygen out of global growth, which would in turn hurt the market. With Trump’s “America First” policy, the president has indeed buoyed the market by redistributing wealth – cutting corporate taxes and adding to the wealth of the America’s wealthiest – but he has also started slapping on tariffs, just recently on washing machines and solar panels. And the questions is always, “What’s next?” Every country seeks to engage in some protective measures, and no country really fully adopts a Ricardian trade model that says everyone is better off when the cheapest producing country makes a respective good. But everyone – and that includes economists across the board – agree that the world economy is better off without trade wars, tariffs and secretive efforts to manipulate currencies and trade balances, especially when the world gets wind of such efforts after slips the likes of Mnuchin’s.

Intel (INTC) released its Q4 2017 results, noting that it anticipates no material financial impact from the recently revealed flaws in its chips – which have been given the names, Spectre and Meltdown. The company also shared that it was working to employ a hardware approach to lessen the vulnerability in the face of any potential attack. In the words of company, Chief Exec. Brian Krzanich, Intel will implement “silicon-based changes to future products that will address the Spectre and Meltdown threats in hardware and those products will begin appearing later this year.” Even after factoring in these needed changes, the company’s forecast easily beat expectations. At the same time, the company did revise its “risk factors statement.” In late trading, Intel shares rose – at times –  to highs not seen in 17 years, though prior to the extended-hour jump, stocks had been down 1.9% on the year, compared to the gains of 6.1% on the blue-chip Dow. Intel’s Q4 numbers reflected earnings of $1.08 per share, revenues coming out at $17.1 billion.

Market Summary: The Dow is up 1.44% over the last 5 trading days, the S&P 500 up 1.47% over the same time frame. The NASDAQ is up 1.58% over the last 5 days. Sectors on the S&P 500 ended mixed, telecom services performing the best over the last 5 trading days, with aggregate gains of 1.42%. Yesterday, utilities were up 0.88%, followed by consumer discretionary stocks which rose 0.40%. Energy stocks shed 0.54% and Consumer Staples slipped 0.48%.

Index Last

Daily change

DJX 26,392.79 +140.67 (0.54%)
SPX 2,839.25 +1.71 (0.06%)
NASDAQ 7,411.16 -3.89 (-0.05%)

Today’s Economic Calendar: Durable goods orders and GDP numbers will be released at 8:30.

Friday’s Hot Stocks: ETFC, WDC, ISRG, SBUX, INTC

Have a great trading day!


                                              Economic Calendar


DAY TIME (EST) Event Forecast Impact
Wednesday 9:00 FHFA House Price Index 0.5 % Medium
Wednesday 10:00 Existing Home Sales 5.750 M Medium
Wednesday 10:30 Oil Inventories -6.9 M barrels Low
Thursday 8:30 International Trade in Goods
$-68.9 B Medium
Thursday 8:30 Jobless Claims 240 K Medium
Thursday 10:00 Wholesale Inventories 683 K Medium
Thursday 10:00 New Home Sales 0.5 % Medium
Friday 8:30 Durable Goods Orders 0.8 % Medium
Friday 8:30 GDP 2.9 % High


Earning Calendar


Symbol Company AM/PM Day
STT State Street Corporation AM Tuesday
KMB Kimberly-Clark Corporation AM Tuesday
VZ Verizon Communications Inc. AM Tuesday
PG The Procter & Gamble Company AM Tuesday
JNJ Johnson & Johnson AM Tuesday
TXN Texas Instruments Incorporated PM Tuesday
COF Capital One Financial Corporation PM Tuesday
UAL United Continental Holdings, Inc. PM Tuesday
GD General Dynamics Corporation AM Wednesday
SWK Stanley Black & Decker, Inc. AM Wednesday
RCL Royal Caribbean Cruises Ltd. AM Wednesday
GE General Electric Company AM Wednesday
CMCSA Comcast Corporation AM Wednesday
ABT Abbott Laboratories AM Wednesday
UTX United Technologies Corporation AM Wednesday
LVS Las Vegas Sands Corp. PM Wednesday
LRCX Lam Research Corporation PM Wednesday
CCI Crown Castle International Corp. (REIT) PM Wednesday
F Ford Motor Company PM Wednesday
WHR Whirlpool Corporation PM Wednesday
XLNX Xilinx, Inc. PM Wednesday
URI United Rentals, Inc. PM Wednesday
MKC McCormick & Company, Incorporated AM Thursday
NOC Northrop Grumman Corporation AM Thursday
RTN Raytheon Company AM Thursday
LUV Southwest Airlines Co. AM Thursday
AAL American Airlines Group Inc. AM Thursday
CELG Celgene Corporation AM Thursday
UNP Union Pacific Corporation AM Thursday
CAT Caterpillar Inc. AM Thursday
MMM 3M Company AM Thursday
BIIB Biogen Inc. AM Thursday
INTC Intel Corporation PM Thursday
SBUX Starbucks Corporation PM Thursday
WDC Western Digital Corporation PM Thursday
KLAC KLA-Tencor Corporation PM Thursday
MXIM Maxim Integrated Products, Inc. PM Thursday
CL Colgate-Palmolive Company AM Friday
ABBV AbbVie Inc. AM Friday
HON Honeywell International Inc. AM Friday



New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
2 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
3 16.11.2017 FLR Long Close 25.11.2017 +2.16%
4 6.12.2017 SPLK Long Close 8.12.2017 +1.51%
5 11.12.2017 NKTR Long Close 2.1.2017 +4.57%
6 18.12.2017 SYY Long Close 19.12.2017 +0.14%
7 3.1.2018 VOYA Long Close 8.1.2017 +0.67%
8 4.1.2018 TER Long Close 10.1.2017 +0.45%
9 9.1.2018 SCG Long Close 10.1.2017 -3.35%
10 11.1.2018 CREE Long Close 16.1.2018 +1.84%
11 11.1.2018 CF Long Close 16.1.2018 +1.66%