The market today was particularly unremarkable, even if the DJIA was up at a new high close. The rest of the averages didn’t fare as well as the S&P500 -$ .49, NASDAQ -18.66, and the biggest loser, Russell 2000– 18.87 (-1.26%) a major loss vs. losses of less than .25% for the others. The problem that I’m having is that the market internals don’t support the gains. Today NYSE volume and A/D were both 1.5:1 negative and the NASDAQ was 1.1:1 and A/C 2.5:1. AMZN took another arrow from its quiver and sent it into the furniture retailers. RH, W, and WSM took it on the chin, but I’ll cover that below in the Retail Sector.
Other names in the news, (earnings), both pre-open and after the close we had many big names report: While it reported yesterday, RRGB continued to fall $19.35 (28%), also from yesterday was WTW +6.07 (13%). Today we had a beat by VRX +2.05 (17%), CRC +1.91after $2.09 for a 2nd day (32%), AAOI was as high as $46.89 before coming back to 39.69 + $1. We also had some notable losers, FOSL missed and fell as low as $4.85 before bouncing back to $6.14 - .71. This is a “private label” watch maker for the Fossil brand and companies like KORS but is down from $12.59 in August and is down from $100 in February 2015. SNAP missed and was down from $15.21 to 12.58 or 20% from the close. It is also down from its IPO with a high of $29.33 to $6.41, as well as LC -1.21 (20%), MNK -11.07 (35%).
Oil, $57.20 -.15, and holding that range tonight @$57.00 -.20. The stocks are holding pretty well and were mixed with CVX -.04, APC -.95, COP -.35, BP +.03, PSX +.24, MPC +.76, MRO -.26, RIG -.13, OAS +.33, OXY -.07, XOM -.48, HES -.29, and XLE -.09.
RETAIL, was mostly lower with the news that AMZN is going into the furniture business and W -3.79 (5.9%), WSM -2.08 (4.2%) although it was up on the day and traded @ $50, and RH also lower. This is just another example of “Death by AMZN” following books, groceries, and music and movies for Prime members. The term “Death by AMZN” was not my term, but there is an actual index by Bespoke that includes such names as Toys R Us, Payless, True Religion, Perfumania, Eastern Outfitters, Vitamin World, hh Gregg, Wet seal, and RadioShack, and those chapters were just YTD 2017. Other retail was lower with M -.62, JWN reports tomorrow was -.96, KSS -1.72, DDS -2.07, KORS + .02, SHLD -.24, JCP -.14 (5.5%) also reports tomorrow, WMT+.04, GPS -.35, ANF -.21, LB -.64, TJX +.02, TGT – 1.40, DKS -.19, UAA -.14, RL -2.40 and XRT -.94 (2.53%).
FAANG, was higher today with GOOGL +10.17, AMZN +.97, FB -.17, AAPL +.15 NFLX -4.22, TSLA +2.89, NVDA +1.94, and we will add BA +1.64, IBM + .46, BABA +.10 since they will start trading futures on FAANG + these as well as BIDU –1.06.
FINANCIALS, lower starting with GS -3.93, JPM -2.09, BAC -.65, C -1.29, and XLF - .27.
METALS, GOLD held above $1,270 but closed - 5, and is +$3.10 tonight. Silver couldn’t move above and fell $ .29 but is also + .08 tonight .Copper lost $ .07 but is up .02 tonight.
Tomorrow is another day...CAM
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