Market 2017-10-30 (MAT, AAPL, DIS, and more)

The market is taking another break after the strong Nasdaq pop last Friday. Political chaos is adding the clouds. Also investors are waiting for more big earnings later this week (FB, QCOM, AIG, AAPL). You can find the major earnings and events here (https://defeatmarket.blogspot.com/2017/10/events-and-stocks-to-watch-next-week.html)

Winners

MAT (+11.2%): BMO Capital Markets analyst Gerrick Johnson said investors should start looking at the toymaker “from a sale of the company perspective.” His note, which said Mattel’s assets could be worth much more in a sale or breakup, followed a surprisingly sharp sales decline at the toy titan last quarter. Stock price now is higher than the closing price before earnings. It is so ironic. It was below $12 once in last Thursday AH. Fix-income investors were rushing out to damp MAT. It finishes @ $15.6 today. What can I say? The street always wins.

AAPL (+2.3%) jumped amid the speculated 'strong demand' of iPhone X. No numbers are out yet. Iphone suppliers have a nice day as well. However, I think their upcoming earning will be lackluster because of the poor sale data of iPhone 8.

CELG (+2.9%), I have called twice last week to buy it after the post-earning selloff. I think the pipeline headwind is not a big deal for their long-term goal.

Losers

S (-9.3%) softbank might kill the merger deal with tmobile (TMUS -5.4%).

 AMD (-8%) is downgraded by MS.

 MRK (-6.1%), pulled drug application in Europe, which added more pain to the big loss last Friday. Many other big Pharmas are also down.

M(-4.4%) is downgraded by Citibank.

 GM (-2.8%) downgraded by GS.

 GE(-1.8%) is downgraded by Deutsche Bank with lower target of $18.

Movie theaters --- box office had 'bloodbath' in October (worst in a decade). AMC -5.8%, IMAX -1.6%. Disney is bringing some hope, new Thor movie (11/3, 109M oversea last weekend already) and Star Wars (12/15) will definitely be blockbuster. Long DIS.


My Trades Today

Sold half MAT position by taking the loss (-6%).

Bought more M. It is overweight (12%) in my portfolio now.

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