Market 2018-01-26 (INTC, SBUX, and more)

Indices crash their records as market carries strong momentum in this first earning season after Tax Reform. Tech and Healthcare lead; Utilities lag. YTD, Nasdaq +8.7%, DJI +7.7%,  S&P 500 +7.4%.

Crude +0.92% to $66.11. Gold -1.06% to $1,348.50. Last weekend, I have predicted  the near-term uptrend of crude price. The price next week will be determined by US dollar. UUP -0.2% today.

 On news today: Chinese smartphone market -4% YoY to 459M. As comparison, it was +11% from 2015 to 2016. Oppo -16%, Vivo -7%; Huawei +9%. It is especially alarming that the overall shipment was -14% in 17Q4. This could be bad news for Apple and Samsung.

Winners

Tech

INTC +10.6%, breaks out to all time high after strong earnings, lifting the whole Semiconductors. TER +6.5%, NVDA +3%. WDC also manages to recover the selloff yesterday AH to finish +1.8%.

VWM +9% as rumor that it may merge with Dell.

Chinese Tech shine again

BABA +3.5%, JD +6.6%, BIDU +2.4%, SOHU +3.2%, SINA +3.1%, WB +4.3%, NTES +1.9%, MOMO +1.8%... Mad money host Jim Cramer once mentioned a psychological rule, if the stock price reaches $96 (or some number around that), it will probably reach $100 in near-term. BABA today cruises over $200 smoothly, doubling stock price within a year.

 Biotech rocks after ABBV's earnings, IBB +1.2%.

 ABBV +13.7%, Q4 EPS of $1.48 beats by $0.04. Revenue of $7.74B (+13.8% Y/Y) beats by $210M. 2018 Guidance: Revenue $32B; Non-GAAP EPS $7.33-7.43. GILD +5.3%, PFE +4.8%, BIIB +4%, EDIT +5.1%, AMGN +3.1%...

Losers

AAPL +0.2%. The recent weakness continues as it didn't join the Tech party today. BTIG analyst Walter Piecyck thinks Apple will guide March quarter revenues as low as $60B (consensus: $68B) although BTIG rates AAPL as Buy with $198 PT. Apple will report earnings on 2/1 (Th).

 CL -4.9% amid margin concerns after reporting Q4 EPS of $0.75 in-line. Revenue of $3.89B (+4.6% Y/Y) misses by $40M. PG -0.7%. I added more PG today.

SBUX (-4.2%) is punished by slower growth. It is also removed from Goldman's "Conviction Buy List". The only shining piece in ER is the growth in China, 30% with +6% same-store sales. The company gets Overweight rating from Piper Jaffray ($70 PT) and Buy rating from Bank of America Merril Lynch ($66 PT). I am long SBUX, and I just added more shares today.

QD -7.7%, tumbled with double-average volume. No news as far as I know.

My Trades Today

  • Sold 1/3 NTES @ $340.
  • Added PG @ $87.5
  • Added SBUX @ $56.7

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