Market 2017-11-7 (PCLN, MNK, and more)

Market has little change today. However, we have many losers.

Home ownership rose to 63.9% in Q3, the highest since 2014. below average 65%. All-time high was 69% before the housing crash 10 years ago. Mortgage rate is still historically low.

Job openings remain high.

Winners

Weight Watch (WTW +13.5%) jumps after ER. Opera wins.

 CVS (+3.2%) ER beats, up guidance.

FOX (+1.6%) FOXA (+1.1%) DIS (+1%) These three continue to rise after the news. Street likes the idea of Disney buying most part of Fox. developing story. NFLX (-2.1%).

Losers

Travel agent companies are all in deep red, PCLN (-13.8%) and TRIP (-23.6%) provided loomed guidance in earnings call yesterday. EXPE (-2.7%, gap down after ER last week). These companies are facing headwind from Airbnb. How long will this headwind last? I don't know, would like to wait for another 1-2 quarters.

Mallinckrodt (MNK -35.5%) free-falls after it posted Q3 results that included a 10% drop in revenues. Prescriptions are down due to tightened access to opioids. MNK's hydrocodone and oxycodone sales were down 42% and 38%, respectively, from a year ago. I believe it is not bottom yet for opioids makers. IBB -0.5% today.

TrueCar (TRUE -35.3%) after yesterday’s Q3 results beat EPS estimates but missed on revenue. Downside Q4 guidance has revenue from $81M to $83M compared to the $84.21M consensus. Full-year guidance was lowered to revenue from $321M to $323M (consensus: $328.56M).

Car rental companies have bloodbath today after Avis Budget (CAR -15.1%) lowered guidance. HTZ (-17.5%).

Blue Apron (APRN -21.6%) sinks to a new low after reporting low operating margin in new fulfillment center.

Financial sector down due to falling bonds yield.

Mall stocks slip cannot stop. M, KSS, JCP, SHLD, JWN, DDS, TGT all in red.

Earnings AH

Zillow (Z) Q3 EPS of $0.19 beats by $0.02. Revenue of $281.8M (+25.5% Y/Y) beats by $5.23M. +6.3% AH

SNAP  Q3 EPS of -$0.14 beats by $0.01. Revenue of $207.9M (+62.2% Y/Y) misses by $28.81M. Daily active users grew to 178M from a year-ago 153M (up 17% Y/Y, and up 3% Q/Q). Average revenue per user grew 39% Y/Y to $1.17 from $0.84. -17.8% AH

Fossil (FOSL): Q3 EPS of $0.04 beats by $0.32. Revenue of $688.7M (-6.7% Y/Y) beats by $38.83M. However, shares -25% AH due to weak guidance. recovered a lot now to -16%

LendingClub (LC): Q3 EPS of $0.03 in-line. Revenue of $154M (+34.4% Y/Y) misses by $3.5M. Shares -19% AH


My Trades Today

Sold all O @ $56.3 to lock 5% profit in half month. O has been traded in a narrow range ($53~59) for quite a while, I have taken short-term trades for a few times on it.

Bought more RUBI to average down my cost, big loss on this.

Bought a little bit more M, betting on its earning on Thursday.

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