The Moskowitz Report (LB, AMGN, FB, JPM, SRPT, GPS, CLVS, AMZN, BAC, ALXN, KSS, ISRG, NFLX, XLF, VRTX, DDS, VRX, BA, C, CELG, ROST, TSRO, AAPL, GS, IBB, WMT, ICPT, TSLA, BIIB, SHLD, ATHN, NVDA, REGN, JCP) - Stock Market Commentary for Friday, August 18, 2017
Well, today’s market was weak from the start but between the exodus of corporate heads from the panel and the attack in Barcelona we sank slowly but continuously until about 2:00PM. We had tried to bottom (and I traded SPY calls for a small loss) but broke the lows and accelerated from -180 in the DJIA and fell an additional 100 to close at the lows of the day with a loss of 274.48 or 1.25%, and that was the best performance of the day. The S&P500 was -38.10 (1.54%, NASDAQ-123.20 (1.94, Russell-24.59 (1.78%), and the Transports -224.77 or a whopping 2.4%. The internals were all negative with NYSE 4:1 volume and 3:1 A/D and 3:1 for both on NASDAQ.
At the risk of repeating myself, political and geopolitical shifts are the fastest way to turn sentiment in either direction. When you have even the top members of your own party (Bob Corker R-TN) expressing doubt of his president’s ability to govern or even understand what his job entails, there is a major problem. While it is common for the market to “climb a wall of worry” sometimes the worry is so overwhelming that an “event” needs to occur to wash it out.
All groups were weak and retail had some earnings with LB-3.30 pre-open, and traded as low as 35 before rallying to close at the high 37.55 still down $2 or 5%, WMT also reported and helped push the DJIA down and was -3 but also closed near the high-1.28 or 1.58%. After the close ROST beat and traded +6.30 from its NY close, GPS also beat and closed +1.25 after being +4. All this was little comfort to those who own M-.49 a 7 year low, JWN-.14, KSS-.69, DDS-1.10 (raised div from .07 to .10, SHLD-.35, JCP-.01, WMT-1.23, and XRT.64.
All of the big names were lower with GOOGL-16.61, AMZN-20.98, AAPL-2.93, FB-3.24, NFLX-3.89, NVDA- 3.20, TSLA- 11.41, BA- 2, and IBM- 1.80. Also an across the board loser was the financials with GS- 4.46, JPM- 1.59, BAC- .53, C- 1.10 and XLF- .43.
Bio / Pharma was lower with the IBB-6.01, CELG-3.58, ALXN- 1.92, REGN- 4.52, SRPT- .88, VRTX-2.83, BIIB- 9.78, AMGN- 3.58, INCY-2.60, ISRG-15.80, TSRO-3.94, ATHN- 3.26, CLVS-1.90, ICPT-1.28, and the lone gainer VRX +.25.
It’s hard to be positive on a week like this one, but a trade on the SPYs of $243.55 would close the gap left on the breakaway on 7/11.
Tomorrow is another day...CAM
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