The market today was a little soft at the open with the futures reacted to the Asian and London markets. We started with a move by Broadcom (AVGO) having a bid for rival QCOM. Both stocks were higher on the news since it is more about the leverage that the combined entity would have against AAPL in the patent infringement brought by QCOM. Next M&A deal was a non-deal from Softbank for the merger between TMUS and Sprint. Both stocks gapped lower and while they may have recovered during the day but TMUS-3.37 (5.7%) and S-.77 (11%).
Other names in the news, (earnings), Notable in their numbers, today was very busy. On the beat side was KORS +7.00 (14.7%), TXMD +1.38 (32%) after being up a $1 higher, CVS -2.45 (3.5%) beat but fell on news in the deal with AET. WTW beat and the stock shot up to $51.98 and is currently 49.71 +4.91 (11%). The misses were HSCI-7.60 (10%), TRIP -3.53 (10%), PCLN -180 (9.4%), RRGB – 12.65 (18%) after trading as much as $19 lower, TRUE -4.64 (27%), CAR -4.62 (11%).
Oil, $57.64 + 1.71, the next area of resistance goes back to May of 2015 when it closed $60.30. I traded the SCO for a loss last week and I’m going to again, but I need to see how it trades foe a few days. The stocks I follow were ALL higher with CVX +2.17, APC +2.30, COP +.78, BP +.86, PSX +1.10, MPC +.15, MRO +.76, RIG +.42, OAS +.85 (8.2%), OXY +.56, XOM +.57, HES +2.82 and XLE +1.64.
RETAIL, was mostly higher and helped by impressive numbers from KORS +6.98 (14.6%), M -.20, JWN +.76, KSS +.27, DDS +1.00, SHLD +.08, JCP +.16, WMT -.89, GPS -.27, ANF +.08, LB +.86, TJX -.28, TGT -.06, TPR +.15, UAA +.39, DKS -.08, and the XRT +.06.
FAANG, and other big names were mixed to higher with GOOGL -5.49, AMZN +8.75, FB +1.37, AAPL +1.70, NFLX -.01, TSLA -4.09, NVDA +1.26, BA +2.55, IBM -.74.
BROADCAST/CONTENT, there was also a lot of talk about a possible deal between DIS and FOX. It is NOT a merger but DIS wants certain assets and not others. Unwanted is anything with FOX Sports since ESPN would be a problem with DOJ. This first announcement was all the spark that was needed to set the group on fire. Others mentioned in this frenzy were NFLX (why didn’t DIS buy this before it was so expensive), FOX, CBS (cord cutting helps them), VIA.B, and CHTR. I’ll start to cover this group and build my watch this week.
FINANCIALS, were lower with rates moving slightly down. GS -1.06, JPM -.52, BAC -.09, C -.30 and XLF -.03.
METALS, GOLD again held $1,266 and closed $1,281.60 +$11, Silver held $16.85 and closed today $17.23 +about $ .50 and having broken the sharp downtrend line it is consolidating before taking a shot at $17.50. Copper was closed + $4.00 and is looking like it wants to test $3.18-3.20.
Tomorrow is another day...CAM
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