February 13, 2018.

Wall Street firms are buying their stocks back and in so doing are likely to inject more fuel into the market rebound over the coming weeks. That likelihood is all the more pronounced as the strong earnings season comes to a close and also, as the market rides the wave of the Trump tax reform which has left more money on the balance sheets of American firms.

The S&P 500 jumped 1.39% on Monday, its second consecutive day of gains, giving Wall Street a measure of confidence after experiencing its worst trading week in two years. The index primarily benefitted from the surge of 4% in the stock of Apple (AAPL) and the 3.5% jump in the stock of Amazon.

Now, with most companies having already released their Q4 2017 results – most of them succeeding in trouncing analyst forecasts – what they’re doing now is either continuing or raising their clip of stock buybacks. That, in its own right, is something that should give the market greater stability.

The big test on the S&P 500 came this past Friday, when the index succeeded in jumping past the 200-period EMA – a significant technical level it gravitated back to after having tumbled 11.8% since its last historic high on January 26th.

Daily Summary: The Dow Jones rose 1.7%, the S&P 500 jumping 1.39% and the NASDAQ tacking on 1.56%.

Despite two days of gains, in our estimate, the correction is not yet over. This past Thursday, the stock market officially entered correction territory, recording a decline of over 10% since the latest high. When push comes to shove, this is a tug of war between short-term, negative momentum, and long-term fundamentals. The long-term fundamentals will win out, but volatility is part of the equation, and has not yet abated.

On the S&P 500, 52 stocks rose to new 52-week highs, 8 dipping to new yearly lows; on the NASDAQ, 24     stocks recorded new 52-week highs, 43 falling to new yearly lows.

About 8.13 billion shares changed hands on U.S. exchanges, compared to the 8.5 billion average over     the last 20 trading days.

Tuesday: Despite two days of gains, there are hurdles that the market still has to overcome. First-off, the continued climb in governmental bond yields which indeed fell slightly yesterday, but which had nonetheless frightened the market last week. Likewise, there’s a chance that the economy is too strong, which means that inflation is hot, a fact that could bring the Fed to hike rates faster than expected.

We would be happy to see the market get back to “the meat and potatoes,” what’s really important, i.e. earnings reports. Key companies will be releasing their reports today before the opening bell: PEP, GNRC, and UA. After closing, investors will focus on the numbers of BIDU and TWLO.

Apple (AAPL), today, will be in focus with its annual stockholder meeting at 12:00 N.Y. time.

The small business optimism index will be released before the opening bell at 6:00 N.Y. time.

Index              Last

Daily change


Tuesday’s Hot Stocks: MOH, CHGG, RNG, G, VIPS, PEP, TRU, UA, GNRC, AAPL

IPOs: None

Have a great trading day!

Economic Calendar


DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index105.8   Medium
Wednesday8:30Consumer Price Index0.3 %High
Wednesday8:30Retail Sales0.3 %Medium
Wednesday10:00Business Inventories0.2 %Medium
Wednesday10:30Oil Inventories1.9 M barrelsLow
Thursday8:30Jobless Claims229 KMedium
Thursday8:30Philadelphia Fed Business Outlook Survey21.5Medium
Thursday8:30PPI0.4 %High
Thursday8:30Empire State Mfg Survey17.5Medium
Thursday9:15Industrial Production0.2 %Medium
Thursday10:00Housing Market Index72Medium
Friday8:30Housing Starts1.230 MMedium
Friday8:30Import and Export Prices0.6 %Medium
Friday10:00Consumer Sentiment95.5High



Earning Calendar


PEPPepsico, Inc.AMTuesday
BIDUBaidu, Inc.PMTuesday
DVADaVita Inc.PMTuesday
FANGDiamondback Energy, Inc.PMTuesday
METMetLife, Inc.PMTuesday
OXYOccidental Petroleum CorporationPMTuesday
BGBunge LimitedAMWednesday
DPSDr Pepper Snapple Group, Inc.AMWednesday
TAPMolson Coors Brewing CompanyAMWednesday
WYNWyndham Worldwide CorporationAMWednesday
AAgilent Technologies, Inc.PMWednesday
ABXBarrick Gold CorporationPMWednesday
AEMAgnico Eagle Mines LimitedPMWednesday
AMATApplied Materials, Inc.PMWednesday
CSCOCisco Systems, Inc.PMWednesday
MARMarriott International, Inc.PMWednesday
MROMarathon Oil CorporationPMWednesday
NTAPNetApp, Inc.PMWednesday
WMBThe Williams Companies, Inc.PMWednesday
PRGOPerrigo Company plcAMThursday
SHOPShopify Inc.AMThursday
TRPTransCanada CorporationAMThursday
WMWaste Management, Inc.AMThursday
YNDXYandex N.V.AMThursday
ZTSZoetis Inc.AMThursday
ANETArista Networks, Inc.PMThursday
CBSCBS CorporationPMThursday
DLRDigital Realty Trust, Inc.PMThursday
LBTYALiberty Global plcPMThursday
CPBCampbell Soup CompanyAMFriday
DEDeere & CompanyAMFriday
KHCThe Kraft Heinz CompanyAMFriday
KOThe Coca-Cola CompanyAMFriday
SJMThe J. M. Smucker CompanyAMFriday
TRGPTarga Resources Corp.AMFriday



Today’s Picks – Day Trading!

LL 23.81SEDG 
WYNN 160.50IMGN 


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