FOR TRADING JANUARY 24, 2018
Market Strategies Newsletter - Special Daily Edition
Earnings Surprises Didn’t Help PG or JNJ
FOR TRADING JANUARY 24th
Today’s action was a split affair with the DJIA moving lower on a couple of big DJIA names discussed below. At the end of the day the DJIA was -3.79 (.01%) but NASDAQ was +52.26 (.71%), S&P 500 +6.16 (.22%), the Russell +5.54 (.35%) and the Transports were down $11.21 after a down open of -86.25. Internals were pretty solid with volume 1:1 and A/D 1.5:1 on the NYSE and 2:1 and 4:3 respectively on NASDAQ.
SECTORS:
Other names in the news,earnings abound again with some American names; JNJ -6.31 (4.3% and 43 DJ points) followed by PG -2.87 (3.1% and 19 DJ points) although they both beat estimates and issued solid guidance. JNJ lost a patent case on its arthritis drug Remicade after losing another battle for its prostate cancer drug Zytiga last week. As a bit of balance, TRV beat and gapped up for a gain of $6.91 (4.9% and 48 DJ points. VZ also beat but after hitting $54.60 (+1.38) it fell back and closed $53.22 -.24. After the close TXN reported inline numbers but fell $8.30 (7%) because guidance was a disappointment and the stock has run 15% YTD.
BIO/PHARMA,was mixed after yesterday’s solid performance. As mentioned above, JNJ was a disappointment but there were others. Most of the losses were minor, down less than a percent while CLVS +7% yesterday continued higher by $2.83 or another 4.6% today. The biggest loser was PUMA Bio, PBYI, which received bad news from the CHMP, the EU board, that they viewed negatively the PUMA breast cancer drug and the stock was trading $68.05 -25.95 (29%). As I said, the rest was mixed with CELG +1.64, BIIB -.89, AMGN -.34, REGN +5.77, ALXN +1.78, ISRG +5.61, INCY +.45, SRPT +1.37, GILD -.51, TEVA -.55, MYL -.79, LABU +5.81 (%.6%) and the IBB +1.29 (1.2%).
RETAIL, were also mixed with M +.01, JWN -.82, KSS +.66, DDS -.10, KORS +.93, SHLD -.04, JCP -.01, WMT +.45, TJX -.14, TGT -.46, LB +1.16 NKE +.75, SIG +1.41, and XRT -.06.
FAANG,stocks were clearly back to “risk-on” for a second day with GOOGL +11.14, AMZN +33.61(2.5%), FB +3.61, AAPL -.35, NFLX +22.40 (9.8%), TSLA +1.23, NVDA +4.51, BA -1.80, BIDU +3.01, IBM +3.39, BABA +8.03 (4.3%), and XLK +.15.
FINANCIALS,were mostly lower with GS -1.52, JPM -.32, BAC -.04, C-.09, PNC +.05 and XLF -.05. We sold half of our C 2/2 78 calls @ $1.32 and we are still holding the XLF 2/29 calls within a few cents of the 100% Up trigger.
Bitcoin,was lower breaking $10,000 again but rallied to close $11,000+785 and is trading +$130 now. This is the kind of bounce that can carry to the $12,000 to $13,000 resistance. Since I don’t buy into the whole “Bitcoin is a currency” argument I can only look at it technically. The stocks are tough to figure out since there is little or no REAL information on a lot of them, and the moves get excessive in both directions. With today’s bounce they were mixed with RIOT +.72, MARA -.01, GBTC -33 (2%), OSTK +3.45 (4.5%), NETE -.52 (6.1%), LFIN -3.45 (7.4%), TEUM -.12, FTFT -.04, CNET +.39 (10.4%), KODK -.70, IXEA -.10 and XNET +.55.
OIL, $64.47 +.90continues to grind higher and traded as high as $64.88 (+1.31) and today’s close was the best level since November 2014 when it was $66.15 and was lower by almost 20% that month. The stocks were mixed with CVX -1.67, APC +.22, COP -.62, BP -.15, PSX -.11, MPC -.03, MRO -.18, RIG -.29, OAS +.06, OXY -.21, XOM +.05, HES +.15 and XLE -.36
METALS,Gold was higher today trying the $1,341 area and closing $1,336.70 +4.80 and is just below the closing high from 4 days ago @ $1,339.20. If the US$ continues lower we should see new highs ($1,358 Sept.2017) with a high close of $1,347.30. Silver was lower closing -$ .076, and Copper, which I have been discussing in this spot and yesterday called for a test of $3.10-3.12, was lower by $ .08 at $3.11. We’ll have to see if it holds here. I am looking to buy JJC, a new Copper ETF.
Tomorrow is another day.
CAM
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