Market 2018-01-31 (BA, FB, Pharma, and more)

Market opened strong today as Boeing lifted Dow Jones. However, most of the gains vanished afterwards, especially after FOMC @ 2 pm. There were no surprises as FED keeps rates on hold, and next rate hike will probably in March. Indices manage to finish in green.

One thing I would like to mention --- in a downward day, buying waves usually start @ 1:30 pm (after lunch) and 3:00 pm, which indicate the buying power of institutions. There were two waves yesterday and one wave today.

On News Today: Director of the Centers for Disease Control and Prevention (CDC) Dr. Brenda Fitzgerald has resigned over financial conflicts of interest. Yesterday, Politico reported that Dr. Fitzgerald purchased shares in a tobacco company a month into her term, as well as biotech company stocks.

Winners

BA +4.9% after reporting Q4 EPS of $4.80 beats by $1.91; Revenue of $25.4B (+9.1% Y/Y) beats by $710M. Backlog remains robust at $488B, including a record 5,864 commercial aircraft. Outlook for 2018: Core EPS of $13.80-14.00 (vs. $9.20-9.40); Revenues of $96-98B; Commercial deliveries of 810-815 planes.

Shutterfly (SFLY +27.8%) flies after ER beats. For FY 2018, SFLY foresees EPS of $1.94-$2.38 on revenues of $1.22B-$1.26B, surpassing analyst consensus for $1.50 EPS and $1.21B in revenues, with gross profit margin of 48.5%-49.5% of net revenues. I think the stock is over-priced.

Pitney Bowes (PBI +11.8%) jumps after reporting Q4 EPS of $0.40 beats by $0.03. Revenue of $1.05B (+18.4% Y/Y) beats by $59M. FY2018 Guidance: Revenue: +9 to +13% (on a constant currency basis); Adjusted EPS: $1.40-1.55; Free cash flow: $350-400M. The stock price is still within the downward channel. However, it is possible to break out --- we will see.

Semiconductors finish the day strong with peers moving after the AMD (AMD +6.7%) earnings report and Samsung’s bullish memory market outlook from its report. MU +4.9%, NVDA +1.3%, WDC +2.2%...

SQ +3% "Instant buying (and selling, if you don't want to hodl) of Bitcoin is now available to most Cash App customers".

EA +7% after ER. TTWO +7.1%, ATVI +3.5%.

Airlines bounce back: AAL +3.3%, ALK +2.3%, LUV +1.6%, UAL +1.2%.

Losers

Big Pharmas take a hit as Trump attacked high drug price again (he did several times last year although nothing really happened), IBB -1.9%: JNJ -3%, GILD -4%, ABBV -3.2%, AGN -2.3%, AZN -1.9%, BMY -2.1%, LLY -5.4%, GSK -1.6%, MRK -2.3%, PFE -2%, NVS -1.8%, NVO -2.1%, SHPG -3%, BIIB -1.4%, AMGN -2.7%, SNY -2%, REGN -3.5%...

Juniper Networks (JNPR -7.7%) plunges after disappointing guidance.

HOG (-4.6%) continues to slip for 2nd day.

 AKS -7.8%, X -3.1%. 

AH Earnings
Microsoft (MSFT +2.4%): Q2 EPS of $0.96 beats by $0.09. Revenue of $28.9B (+12.0% Y/Y) beats by $510M. Shares -1.5% in AH.

Facebook (FB -0.1%): Q4 EPS of $2.21 beats by $0.26. Revenue of $12.97B (+47.2% Y/Y) beats by $420M. Shares -5% in AH as it is "the slowest quarterly growth" in a few years as its site changes cut time spent on the platform by users. I would like to add more shares.

Qualcomm (QCOM +1.8%): Q1 EPS of $0.98 beats by $0.07. Revenue of $6B (+0.2% Y/Y) beats by $70M. Shares -0.8%.

PayPal (PYPL +1.8%): Q4 EPS of $0.55 beats by $0.03. Revenue of $3.75B (+25.8% Y/Y) beats by $120M. Full-year guidance includes revenue growth of 15-17% and non-GAAP EPS of $2.24-$2.30. Shares -4.6% in AH.

AT&T (T): Q4 EPS of $0.78 beats by $0.13. Revenue of $41.7B (-0.3% Y/Y) beats by $510M. Shares +3.5% in AH.

AFLAC (AFL -0.4%): Q4 EPS of $1.60 beats by $0.05. Revenue of $5.42B (-9.1% Y/Y) beats by $90M.

AGNC Investment (AGNC -1.6%): Q4 EPS of $0.63 beats by $0.02. Net interest income of $212M (-28.1% Y/Y) misses by $6.44M. Tangible book value per share of $19.69 down $0.09 from three months earlier. Today's close of $18.81 is a 4.5% discount to Dec. 31 book.

Tractor Supply (TSCO -2.3%): Q4 EPS of $0.91 beats by $0.04. Revenue of $1.95B (+1.6% Y/Y) beats by $20M. Shares -4.3%.

My Trades Today


  • Added more LIT PG CELG

Earnings tomorrow


  • pre-market: AN, BABA, BSX, BX, COP, DWDP, MA, MO, RDS.A, RHHBY, UPS
  • post-market: AAPL, AMZN, ATHN, DATA, EMN, GOOG, GPRO, MAT, V

Comments

  1. Nina AthenaMay 15, 2018 at 8:14 PM

    Thank you for sharing such valuable and helpful information and knowledge. This can give us more insights! Keep it up. I would love to see your next update.

    Shares to Buy

    ReplyDelete

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